AMD and NVIDIA have reportedly reserved TSMC's entire CoWoS production for the next two years as both firms aggressively compete in the AI race.
TSMC Expects To Increase CoWoS Output Tremendously, Next-Gen SoIC Standard In Works As Well With Entire Supply Reserved By NVIDIA And AMD
Well, it's no secret that the AI industry is in dire need of computing power, and to facilitate the process, manufacturers such as NVIDIA and AMD have given their all to ensure that they capitalize on the markets to their fullest. In light of this, suppliers such as TSMC are ongoing a gold rush, not only because they are faced with huge demand but also because their existing facilities have massively upscaled, especially regarding the packaging process, including CoWoS and the newer SoIC standard.
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Taiwan Economic Daily reports that TSMC has seen its packaging supply wholly booked by AMD and NVIDIA. The CoWoS technology is being used for the development of NVIDIA's Hopper and the latest Blackwell GPUs while AMD is also leveraging it for its own MI300 accelerators.
The Taiwanese semiconductor giant plans to massively scale its production facilities in response to such huge demand. The company looks to achieve around 45,000 to 55,000 units of output by the end of this year, marking a vast YoY increase. This not only shows how big of a demand the industry is witnessing but also that TSMC has shown resilience and has gone to all extents to satisfy clientele demand.
Apart from CoWoS, TSMC plans to upscale SoIC, which is about to reach 5,000 to 6,000 pieces. For those unaware, SoIC (System on Integrated Chip) is the next iteration of CoWoS, coming with superior density stacking abilities and ultra-high bandwidth. Due to these features, the standard has seen massive adoption in modern times, especially in HPC applications. While NVIDIA has yet to integrate SoIC into modern-day AI architectures, AMD has already implemented SoIC with its primary Instinct MI300 AI accelerators.
With anticipated future demand, TSMC's SoIC production will reach 10,000 units by 2025. This will mark the transition to future standards of chip packaging, yet again setting new opportunities for TSMC and others involved. We recently gave a rundown on what TSMC expects with the future of packaging markets, and with that, SoIC is going to play an important role.
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