TSMC reportedly plans to raise its advanced packaging prices by 10% to 20%, putting cost pressure on Nvidia and AMD.
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According to Taiwanese media reports citing supply chain sources, TSMC is considering raising prices for its advanced packaging services by 10% to 20%, with the increase primarily targeting its CoWoS packaging technology used in high-end AI chips. If the price hike takes effect, chipmakers including NVIDIA and AMD will face upward pressure on production costs. CoWoS, which integrates chips and high-bandwidth memory (HBM) into a single package, is a critical process for high-end AI accelerator chips. As demand expands beyond GPUs to server CPUs and custom AI chips (ASICs), advanced packaging capacity remains tight. The report projects TSMC’s monthly CoWoS production capacity will exceed 130,000 units in 2026, with an expected further rise to over 200,000 units by 2027. Even with ongoing capacity expansion, demand growth is likely to continue driving packaging price increases. Should costs rise, manufacturers heavily reliant on CoWoS such as NVIDIA could face margin pressure, while clients like Apple may also be indirectly impacted by the higher supply chain costs. However, the relevant price hike plans are still under consideration.
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