TSMC reportedly plans to raise advanced packaging prices by 10% to 20%, putting pressure on Nvidia and AMD costs.

October 27 - According to Taiwanese media citing supply chain sources, TSMC is considering raising prices for advanced packaging services by 10% to 20%, primarily involving CoWoS packaging technology used for high-end AI chips. If the price increase is implemented, chip manufacturers such as NVIDIA and AMD will face upward pressure on production costs.

CoWoS can integrate chips and high-bandwidth memory (HBM) into the same package, and is a key process for high-end AI accelerator chips. As demand expands from GPUs to server CPUs and custom AI chips (ASICs), advanced packaging capacity continues to tighten.

The report predicts that TSMC's CoWoS monthly capacity will exceed 130,000 wafers in 2026, and is expected to further increase to more than 200,000 wafers in 2027. Even with continuous capacity expansion, demand growth may still drive packaging prices higher.

If costs rise, manufacturers highly dependent on CoWoS such as NVIDIA may face margin pressure, and customers such as Apple may also be indirectly affected by rising supply chain costs. However, the related price increase plan is currently still under consideration.