TSMC will double its chip packaging capacity by the end

TSMC will double its chip packaging capacity by the end of next year

TSMC not only processes silicon wafers in-house, but also tests and assembles chips into packages when it comes to products with complex spatial arrangements. This phase of the contract manufacturing of chips for artificial intelligence systems is currently the “bottleneck”. Therefore, TSMC expects to double its core capacity by the end of next year.

    Image source: TSMC

Image source: TSMC

CEO CC Wei during a discussion with analysts on the quarterly report case admitted that TSMC’s advanced chip spatial packaging capabilities currently do not fully meet customer demand. Realizing that the market demand for such services will not abate in the near future, TSMC is actively expanding its core manufacturing capabilities. However, restrictions in this area will not be lifted until late next year if all goes according to plan.

By the way, at the stage of processing silicon wafers, TSMC is able to fully meet customers’ demand, so there are no problems at present, the company boss said. He later added that the company expects to roughly double its capacity in the field of chip packaging using the CoWoS process, which is in demand in the manufacture of components for AI systems.

As noted above, over the next five years, TSMC expects its AI revenue to grow at a compound annual rate of 50%, growing rapidly from its current 6% to double-digit percentages. According to the company’s management, the not exactly easy year 2023 does not force the company to give up the medium-term forecast of a growth rate of total sales of 25-30% per year on average. According to management, TSMC will be able to leverage its strengths by providing cutting-edge AI chips and gain market dominance in such services. This year, however, she does not expect any significant support from this direction.

About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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