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Broadcom reportedly faces 2026 CoWoS capacity cuts to accommodate Nvidia demand

Thursday, January 1, 2026 at 09:53 AM

Reports suggest that Broadcom may see a significant reduction in its 2026 CoWoS advanced packaging capacity allocation to prioritize Nvidia's supply requirements.

Context

TSMC’s CoWoS capacity bottlenecks are currently capping production upside for the AI industry’s largest designers. While NVIDIA sought to raise its wafer allocation from 600,000 to 800,000 units, TSMC has only reflected roughly 700,000 wafers for now. Similarly, Broadcom’s request to increase its October order volume from 240,000 to 270,000 wafers remains unapproved, as advanced packaging facilities stay at their absolute limit. Despite recent rumors of cooling demand, Google’s TPU orders appear firm with 2026 production capacity tracking between 3.3 million and 3.4 million units. Broadcom manages the vast majority of this at 3.0 million wafers, while MediaTek holds the remaining 300,000 to 400,000. This tight supply environment is also constraining the networking layer; while optical module demand is rising, shortages for Google’s LITE product have limited fulfillment to 10% to 15%, falling short of the original 20% target for next year.

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