Taiwan Semiconductor Manufacturing Co. is accelerating the expansion of its CoWoS (Chip-on-Wafer-on-Substrate) advanced packaging capacity. This technology is currently the primary bottleneck for producing high-performance AI accelerators.
TSMC forecasts monthly production capacity will reach 120,000 to 140,000 wafers during 2026. The supply-demand gap for CoWoS is expected to narrow from roughly 20% to 10% by the end of 2026.
Capacity remains tight as demand continues to outpace the aggressive production ramp-up.