Artificial intelligence (AI), high-performance computing (HPC), and PCs have been driving demand for advanced process technologies rapidly in recent years, and leading chipmakers have expanded their leading-edge production capacities to accommodate them. Apparently, demand for advanced compute GPUs, such as Nvidia's A100 and H100, is so high that TSMC is now planning to expand its advanced packaging capacities, according to a DigiTimes report.
Current demand for packaging technologies like chip-on-wafer-on-substrate (CoWoS) far outpaces the available capacity, which is why TSMC is presently accelerating efforts to boost such production capacity, the report says.
TSMC reportedly pledged to process an extra 10,000 CoWoS wafers for Nvidia throughout the duration of 2023. Given Nvidia gets about 60-ish A100/H100 GPUs per wafer (H100 is only slightly smaller), that would mean an additional ~600,000 top-end data center GPUs.
The projections imply an increase of about 1,000 to 2,000 wafers each month for the rest of this year. TSMC's monthly CoWoS output oscillates between 8,000 and 9,000 wafers, so supplying Nvidia with an additional 1,000 to 2,000 wafers monthly will significantly enhance the utilization rate of TSMC's high-end packaging facilities. This upsurge might lead to a supply scarcity of CoWoS services for other industry players due to the heightened demand, and that's why TSMC reportedly plans to expand its advanced packaging capacities.
TSMC's production increase is reportedly aimed at supporting the escalating demand for Nvidia's AI chips, which are extensively employed across the industry. For instance, Google recently launched its new A3 supercomputer, based on Nvidia's H100, boasting 26 ExaFLOPS of AI performance. Similarly, several prominent firms such as Microsoft, Oracle, and even Elon Musk's upcoming AI venture have procured tens of thousands of Nvidia's AI GPUs in the past few months.
It remains unclear which specific compute GPUs Nvidia intends to ramp up, as its current range includes the A100, A30, H100, and China-exclusive A800 and H800 GPUs. All of TSMC's facilities that provide advanced packaging services are located in Taiwan.
