TSMC Reserves 70% of 2025 CoWoS-L Capacity for NVIDIA

Rumors previously suggested that NVIDIA might scale back its CoWoS orders from TSMC. However, according to a report from Economic Daily News, orders for TSMC’s advanced packaging have instead seen a surge. NVIDIA’s Blackwell architecture GPUs are in strong demand, leading the company to secure over 70% of TSMC’s CoWoS-L advanced packaging capacity for 2025. Shipment volumes are projected to rise by more than 20% each quarter, with total annual shipments expected to surpass 2 million units.

Meanwhile, following the U.S. announcement of the Stargate project—which is anticipated to drive new AI server demand—NVIDIA is reportedly considering placing additional orders with TSMC. During TSMC’s earnings call in January, Chairman C.C. Wei stated that the company is continuously expanding its advanced packaging capacity to keep pace with customer demand. According to reports, advanced packaging revenue accounted for roughly 8% in 2024 and is projected to exceed 10% in 2025.

NVIDIA’s Blackwell architecture chips B200/B300 continue to be manufactured using TSMC’s 4 nm process. The company has adopted CoWoS-L advanced packaging, which integrates a redistribution layer (RDL) with a partial silicon interposer (LSI). CoWoS-L packaging technology enhances chip size and area by increasing transistor density, enabling the stacking of more high-bandwidth memory (HBM). Compared to previous CoWoS-S and CoWoS-R technologies, CoWoS-L offers superior performance, higher yield, and better cost efficiency.

Economic Daily News also reports that TSMC intends to expand its CoWoS manufacturing footprint by adding eight facilities in the near future. Two of these will be located at ChiaYi Science Park Phase 1, while another two will come from the acquisition of Innolux (AP8). However, two more facilities initially planned by TSMC for ChiaYi Science Park Phase 2 will have to wait at least until 2026 as the land will not be available. As a result, TSMC has shifted its focus to prioritizing the construction of two CoWoS sites at STSP Phase III. The final two locations remain under evaluation.