News
TSMC to expand CoWoS monthly capacity to 115,000 wafers as OSATs ramp CapEx
Sunday, February 1, 2026 at 09:27 PM
TSMC is projected to expand its monthly CoWoS packaging capacity to 115,000 wafers by the end of 2025, up from 70,000. Major OSATs are also increasing CapEx: ASE Technology plans $3.4 billion for equipment with a focus on WoS and wafer testing, while Powertech and King Yuan Electronics (KYEC) are expanding FOPLP and burn-in testing capacities respectively. TSMC is expected to repurpose existing 8-inch fabs in Taiwan for advanced packaging to meet supply shortfalls.
Context
TSMC is accelerating its advanced packaging roadmap, aiming to expand monthly CoWoS capacity to 115,000 wafers by the end of 2026, up from 70,000 in late 2025. Driven by surging AI and HPC demand, TSMC has raised its annual capital expenditure to a range of $52 billion to $56 billion. This investment focuses on converting existing facilities into advanced packaging hubs to resolve persistent supply shortages for high-end chips as the industry transitions toward 2nm processes.
This expansion is triggering a massive investment cycle among major OSATs. ASE Technology Holding is increasing machinery spending by $1.5 billion to capture spillover demand, targeting 3x growth in advanced packaging revenue. Simultaneously, King Yuan Electronics plans a record NT$39.37 billion in CapEx for high-power testing, while Powertech Technology projects up to NT$40 billion in spending through 2028. These moves highlight a structural shift toward heterogeneous integration across the global semiconductor supply chain.
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