News
Broadcom's Increased Reservations Drive CoWoS Capacity Constraints, Shifting Focus to ASE and Powerchip
Monday, November 24, 2025 at 02:32 AM
Rumors suggest a significant surge in CoWoS production demand, primarily fueled by increased orders from Broadcom. Due to limitations in TSMC's expansion capacity for CoWoS, the CoW and WoS packaging capabilities of alternative providers like ASE and Powerchip are reportedly becoming critical to meet market demand.
Context
Surging demand for AI accelerators, driven by increased reservations from Broadcom, is creating a significant bottleneck in TSMC’s CoWoS advanced packaging supply. While NVIDIA remains the largest customer, commanding an estimated 63% of 2025 capacity, Broadcom’s growing orders now account for 13%, straining the supply chain. Even as TSMC races to expand its output toward 75,000 wafers per month in 2025, its production lines remain fully allocated, forcing a strategic shift.
This capacity crunch is compelling TSMC to outsource key CoWoS process steps for the first time, creating new winners in the semiconductor ecosystem. ASE Technology has emerged as a primary beneficiary, securing orders for the Chip-on-Wafer (CoW) process and investing over NT$47 billion in the second half of 2024 to expand its capabilities. Concurrently, Powerchip (PSMC) is entering the market by preparing to mass-produce crucial silicon interposers, with initial production starting in the second half of 2024. This diversification signals a major change in the previously closed-off advanced packaging landscape.
Sources (23)
[News] TSMC Set to Expand CoWoS Capacity to ... - TrendForceCoWoS Capacity Set to Skyrocket by 2026: Massive Growth in ...TSMC To Significantly Upscale "CoWoS" Production Within ...[News] TSMC Faces Order Cut Fears as AMD, Broadcom, ...Three Major Players in the Field of Large Chip Packaging - 36氪Ray Wang on X外資瑞銀UBS看來自輝達（Nvidia）和博通（Broadcom）更強勁 ...TSMC Expands CoWoS Outsourcing, ASE Orders Set to Surge
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