TSMC plans to raise CoWoS advanced packaging prices by 10% to 20%

Later that same day, a report by Caiwen said TSMC planned to raise CoWoS packaging prices by 10% to 20%, noting that the technology is widely used in high-end AI processors and that demand has spread from GPUs to server CPUs and custom ASICs. According to that report, longer testing cycles have intensified packaging and testing pressure, equipment lead times have stretched from 3 to 6 months to 6 to 8 months, and customers are no longer in a position to haggle, ordering as long as delivery times are guaranteed. Citing analysts, it projected monthly CoWoS capacity would exceed 130,000 wafers in 2026 and rise further to 200,000 in 2027. The report also quoted TSMC chairman C. C. Wei as saying CoWoS remains the customers' top choice and that TSMC is the only company in volume production at 5x reticle size, with excellent yields, while continuing to develop 9x and 14x reticle-size solutions and pushing ahead with CoPoS. Caiwen added that TSMC did not reopen price negotiations for its annual equipment purchases this year, ordering at existing prices. The two reports differ on capacity figures and timeframes — TrendForce estimates capacity doubling by end-2028 versus 2026 to 130,000 wafers per month, while the analyst figures cited by Caiwen point to over 130,000 wafers in 2026 and 200,000 in 2027 — and the materials do not reconcile the discrepancy.