At TSMC’s earnings call on the 17th, the company revealed that its CoWoS (Chip-on-Wafer-on-Substrate) capacity will double each year in 2024 and 2025, but demand will continue to outpace supply. According to a report from Money DJ, the CoWoS expansion wave is expected to extend into 2026, promising strong growth for equipment suppliers for at least the next two to three years.
TSMC stated that advanced packaging currently accounts for approximately 7-9% of its revenue, and growth in this segment is expected to outpace the company’s average over the next five years. While the gross margin for advanced packaging is slightly below the company average, it is steadily approaching it. Regarding CoWoS capacity, customer demand significantly exceeds TSMC’s ability to supply, even with production capacity doubling year-on-year in both 2024 and 2025.