TSMC forecasts 80% CoWoS CAGR

Taiwan Semiconductor Manufacturing Co. told investors on May 14 that the global semiconductor market could exceed $1.5 trillion by 2030, lifting its earlier $1 trillion forecast as artificial intelligence and high-performance computing demand reshape industry spending. In the same presentation materials, TSMC said capacity for CoWoS — its chip-on-wafer-on-substrate advanced packaging technology used in AI processors — is forecast to grow at a compound annual rate of more than 80% from 2022 through 2027. Reuters reported the figures from TSMC materials released ahead of the company’s technology symposium. The numbers matter because CoWoS has become one of the industry’s most visible choke points for AI chips. TSMC’s packaging technology is used in processors designed by customers including Nvidia, and packaging limits have mattered alongside wafer capacity and high-bandwidth memory supply in determining how quickly AI systems can be built and shipped, according to TSMC’s presentation and industry reporting. (money.usnews.com) ### Why is CoWoS getting so much attention? CoWoS is a packaging method that connects logic chips and high-bandwidth memory in a tightly integrated module, and TSMC said it is a key technology widely used in AI chips, including Nvidia designs. That makes packaging capacity a practical constraint on how many AI accelerators can move from wafer fabrication into deployable products. (finance.yahoo.com) TSMC’s May 14 materials paired the CoWoS forecast with another expansion target: a 70% compound annual growth rate for capacity tied to its 2-nanometer and A16 process technologies from 2026 to 2028. The company also said AI accelerator wafer demand is projected to grow elevenfold from 2022 to 2026, underscoring why packaging and front-end manufacturing are being discussed together. (finance.yahoo.com) ### What exactly did TSMC change in its market outlook? TSMC said the semiconductor market would exceed $1.5 trillion by 2030, compared with its prior forecast of $1 trillion. Reuters reported that AI and high-performance computing are expected to account for 55% of that market, followed by smartphones at 20%, automotive at 15%, internet-of-things applications at 5% and other uses at 5%. (finance.yahoo.com) The revised forecast gives investors a sense of how TSMC is framing long-range demand for both manufacturing and packaging. The company has been expanding production footprints in the United States, Japan and Germany as it tries to support that growth, according to Reuters and other reports on the presentation. (money.usnews.com) ### Where does imec’s IC-Link fit into this? Imec said on May 12 that IC-Link, its ASIC and silicon photonics design-and-manufacturing service unit, had joined TSMC’s Open Innovation Platform 3DFabric Alliance. The alliance is built around TSMC’s 3D silicon stacking and advanced packaging technologies, including SoIC, CoWoS, InFO and SoW. (economictimes.indiatimes.com) IC-Link said the move would let it combine its ASIC services with access to TSMC’s advanced integration technologies for projects in AI, high-performance computing, mobile and automotive markets. Imec described the step as a way to widen access for customers developing multi-die systems and advanced packaging programs, including in Europe. (imec-int.com) ### Why does that alliance move matter for buyers? European access is the concrete change. Imec’s Leuven-based network gives chip developers another route into TSMC’s packaging ecosystem at a time when demand for AI hardware is forcing cloud companies, labs and chip startups to think not just about compute performance, but about who can secure packaging slots. That last point is an inference from the capacity data and the alliance expansion, rather than a direct quote from either company. (imec-int.com) Alternative access does not mean a second source for TSMC’s manufacturing itself. It does mean more design and integration support around TSMC’s stack of SoIC, CoWoS, InFO and SoW technologies, which are increasingly central to AI system design. ### What should readers watch next? (imec-int.com) May 14 is the date attached to TSMC’s updated market and capacity forecasts, and May 12 is the date on imec’s IC-Link alliance announcement. The next concrete markers will be TSMC disclosures on packaging ramp progress and any additional 3DFabric ecosystem partners or customer programs tied to SoIC, CoWoS, InFO and SoW. (money.usnews.com) (imec-int.com)