On August 19, reports emerged indicating that TSMC’s capacity for CoWoS advanced packaging is facing significant strain due to a sharp uptick in orders. Sources reveal that certain advanced packaging back-end orders have been outsourced to Intel’s Malaysia facility, with both companies collaborating on a portion of the capacity to jointly serve key clients—a move that breaks from traditional industry practices.
In addition to bolstering TSMC’s front-end advanced process shipments, industry analysts suggest that supply chain partners working with both TSMC and Intel, such as ASE Technology Holding, as well as leading substrate manufacturers Unimicron and ChipMOS Technologies, are poised to benefit from this collaboration.
On August 18, industry insiders highlighted that the global bottleneck in advanced packaging capacity stems from the slower scaling of back-end processes relative to front-end advancements. TSMC is expected to expand its network of back-end capacity partners to expedite front-end process shipments and better meet market needs.