Intel Gains as TSMC Faces Packaging Shortages

TSMC's CoWoS capacity constraints drive NVIDIA and AMD toward alternative packaging providers like Intel and Taiwanese OSAT firms.

TSMC is currently unable to meet surging demand for its CoWoS advanced packaging technology from major clients including NVIDIA, AMD, and Amazon AWS. While TSMC operates five advanced packaging and testing facilities across Taiwan—located in Hsinchu, Southern Taiwan Science Park, Longtan, Central Taiwan Science Park, and Zhunan—the capacity crunch is forcing a shift in the supply chain. Intel is now positioning itself to become the world's second-largest advanced packaging provider using its proprietary EMIB technology, with reports indicating NVIDIA will move packaging orders for its Feynman GPUs to Intel. Meanwhile, AMD continues to utilize TSMC's CoWoS for EPYC Venice chips on the N2P node and plans to use TSMC advanced packaging for future MI400 and MI500 chips. To address global demand, TSMC is planning two new plants in Arizona, but current spill-over orders are already benefiting Taiwanese firms ASE, SPIL, Powertech, and KYEC.