Rumor
Claimed Costs for Fabbing and CoWoS-S Advanced Packaging Circulate
Friday, December 12, 2025 at 01:38 PM
Unconfirmed reports from semiconductor supply chain watchers claim a cost of $700 for chip fabbing and $600 for CoWoS-S advanced packaging services.
Context
Recent discussions highlight the substantial costs associated with manufacturing Nvidia's advanced AI chips. Claims suggest fabbing costs around $700 per chip, with CoWoS-S advanced packaging adding approximately $600. These figures align with analyst estimates placing the Nvidia H200 chip's cost at roughly $1,300, excluding High Bandwidth Memory (HBM). This underscores the specialized and complex nature of producing cutting-edge AI accelerators.
Nvidia is strategically shifting its advanced packaging focus, with CEO Jensen Huang confirming in January 2025 a transition to CoWoS-L technology for its next-generation Blackwell chips. This move aims to increase overall advanced packaging capacity, not reduce it. TSMC's CoWoS capacity is projected to reach 70,000 wafers per month by December 2025.
Despite these high costs, Nvidia continues to secure significant advanced packaging capacity from TSMC, reportedly booking over half of the expanded CoWoS capacity for 2026-27. This reflects sustained strong demand for its AI solutions and the critical role of advanced packaging in the AI supply chain.
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