tsmc to double cowos output by 2025 with massive expansion
Taipei, Thursday, 2 January 2025.
Taiwan Semiconductor Manufacturing Company (TSMC) is making significant strides to expand its Chip-on-Wafer-on-Substrate (CoWoS) capacity in Taiwan. The company’s ambitious plan aims to reach a new milestone of 75,000 wafers per month by 2025, doubling its 2024 output. This expansion responds to the growing demand from high-performance computing and AI markets. Industry sources suggest that the combined efforts with packaging partners could push capacity beyond this target. TSMC’s move is driven by the strong demand from major clients like NVIDIA and AMD, who have already fully booked its advanced packaging capabilities. The initiative marks a strategic effort to balance supply and demand, with plans to continue this expansion through 2026. TSMC’s CoWoS technology is crucial for integrating multiple chiplets and memory on a single substrate, enhancing system performance and efficiency.
Accelerated expansion timeline
TSMC has significantly shortened its facility construction timeline for CoWoS production. What previously took three to five years can now be completed in just 18 to 24 months [1]. The company is establishing new facilities across Taiwan, with the AP6B fab in Zhunan already receiving its usage permit in December 2024 [6]. The Chiayi plant, which began construction in May 2024, is progressing rapidly, while the Taichung AP5B fab is set to start operations in early 2025 [6].
Substantial capacity growth trajectory
The expansion represents a remarkable growth in production capacity. From the current 35,000-40,000 wafers per month in 2024, TSMC aims to reach 75,000 wafers monthly by 2025 [1][6]. This expansion aligns with TSMC Vice President Jun He’s projection of achieving a compound annual growth rate exceeding 50% from 2022 to 2026 [1]. The Tainan AP8 fab alone is expected to contribute 40,000 to 50,000 wafers monthly when it begins production in late 2025 [6].
Market dominance and industry impact
TSMC’s expansion reinforces its commanding position in the semiconductor industry, where it controls 60% of the global foundry market and produces over 90% of advanced chips [5]. The company’s CoWoS technology is particularly crucial for high-performance computing and AI applications [6]. This dominance has significant implications for the global tech ecosystem, as TSMC’s manufacturing capabilities directly impact major clients like Apple, NVIDIA, AMD, and Qualcomm [5].
Economic implications
The semiconductor boom led by TSMC continues to drive Taiwan’s economic growth, creating a stark contrast with traditional industries [2]. This expansion comes at a time when Taiwan’s manufacturing sector shows overall improvement [4]. However, the concentration of advanced semiconductor capabilities in Taiwan raises geopolitical considerations, as any disruption could significantly impact global technology supply chains [5].