With the AI chip market experiencing a feverish surge, TSMC is facing production capacity constraints in the realm of advanced packaging. Tech behemoths, exemplified by NVIDIA, are ramping up the pace of their AI product rollouts. This has sparked a dramatic uptick in orders for key packaging technologies, notably CoWoS. Consequently, TSMC's initial production schedules have been pushed forward by several months. The current market demand is vastly outstripping TSMC's present production capabilities, and customers are imposing strict deadlines for delivery. This scenario has forced TSMC to overhaul its production tactics.

To tackle these obstacles, TSMC is in the process of constructing a more adaptable supply chain and forging partnerships with local firms. The accelerated product innovation cycles of AI chip producers have only heightened the packaging strain. Industry pundits suggest that the supply-demand disparity in the advanced packaging market could linger until 2025, with packaging emerging as a pivotal determinant of AI chip manufacturers' competitive edge.