Taiwan Semiconductor Manufacturing Co. plans to raise prices for its advanced chip packaging service by up to 20% next year as artificial intelligence computing strains production capacity.
The world’s largest contract chipmaker received approval from Nvidia Corp. to increase prices for its Chip on Wafer on Substrate (CoWoS) technology. The price adjustment could range from 10% to 20%, depending on capacity expansion.
TSMC is pushing to more than double its CoWoS capacity in 2024 but still faces overwhelming demand. To bridge the gap, the company is partnering with ASE Group and Siliconware Precision Industries Co. (SPIL) for back-end processing.
SPIL recently invested NT$419 million ($13.1 million) in land at Central Taiwan Science Park and NT$3.7 billion ($115.7 million) in Yunlin property to boost capacity. ASE is constructing a new facility in Kaohsiung, set to open in 2026.
The chipmaker also partnered with Amkor Technology Inc. in Arizona to expand packaging capabilities, potentially serving U.S. clients including Apple Inc. and AI chip developers using TSMC’s advanced nodes.
By 2025, ASE could handle nearly half of TSMC’s outsourced CoWoS substrate packaging operations, industry sources told CNA.
