TSMC reportedly weighs CoWoS price increases as demand strains capacity

TSMC is reportedly considering raising prices for its CoWoS advanced packaging by as much as 20%, according to supply chain sources cited by Taiwan’s Commercial Times. Foundries and outsourced packaging firms are also weighing another round of 10% to 20% increases. Demand has expanded beyond AI GPUs to server CPUs and custom ASICs, leaving a growing backlog of unfilled orders. TSMC has not confirmed the potential increases.

Testing is becoming another bottleneck. Nomura estimates, reported by Seoul Economic Daily, indicate that NVIDIA’s Blackwell takes roughly four times longer than Hopper in final testing, while Rubin could need seven times as long. Package sizes are also increasing, with TSMC already mass producing CoWoS-L at 5.5 times the reticle limit.

Equipment availability is adding to the pressure. Tool lead times have reportedly stretched from three to six months to as long as eight months. TSMC, which typically negotiates discounts or additional features, reportedly placed this year’s equipment orders at existing prices instead.