TSMC reportedly weighs CoWoS price hikes of up to 20% as AI packaging stays scarce

TSMC is reportedly considering raising prices on its CoWoS advanced packaging services by up to 20%. What CoWoS is and why it matters CoWoS, short for Chip on Wafer on Substrate, is the stage that holds the band together. It places multiple chips side by side on a silicon interposer, a thin layer packed with fine connections, which then sits on a substrate. It lets separate chips behave like one giant chip. That matters a lot for AI workloads, which constantly move huge amounts of data between processor and memory. The details of the reported hikes According to the research findings, TSMC’s planned increases fall in a range of 10-20% for CoWoS services. The adjustments reportedly apply from 2025 onward. The more notable detail is who has reportedly signed off. TSMC has received approval for the higher prices from major customers, including NVIDIA, per the findings. Discussions about further increases in 2026 are reportedly ongoing. TSMC’s CoWoS output is projected to reach 120,000-130,000 wafers per month by late 2026. Even at that level, demand is expected to exceed supply by roughly 10-20%. TSMC’s CEO has stressed that demand remains much higher than supply, and the findings poin...