Jen-hsun Huang stressed that TSMC's CoWoS demand has not decreased and has far-reaching impact on the industry
TechNews
January 20, 2025
Written by Atkinson
January 20, 2025
Written by Atkinson
Nvidia CEO Jen-Hsun Huang recently talked about TSMC's demand for advanced packaging. Although the demand is constantly changing, it remains strong overall. Nvidia is moving from CoWoS-S to CoWoS-L advanced packaging, which represents a major advancement in chip architecture and a major shift for TSMC.
Siliconware Precision Industries, a packaging and testing company, opened a new plant in Taichung. Jen-Hsun Huang explained the changes in demand for Nvidia chip packaging. When moving to the Blackwell architecture, CoWoS-L advanced packaging is mainly used. The Hopper architecture is still being manufactured, and Hopper is based on CoWoS-S advanced packaging. The capacity of the Blackwell architecture has increased, and the capacity of CoWoS-S has been transferred to CoWoS-L, which does not mean a reduction in capacity, but an increase in the capacity of CoWoS-L. It also does not mean that the overall advanced packaging production capacity will decrease.
CoWoS-L has made much progress in performance and efficiency compared to CoWoS-S in advanced applications such as AI and HPC. The main difference between CoWoS-L and CoWoS-S is that CoWoS-L uses LSI (local silicon interconnect) chip interposer, which flexibly integrates chip interconnection and RDL layer power and signal transmission. This seemingly minor change significantly increases interconnect density, which directly translates into increased bandwidth. It also supports up to 12 HBM3 memory modules, surpassing CoWoS-S.
Jen-Hsun Huang's statement was a response to the recent news that Nvidia may reduce TSMC's advanced packaging orders. There may be some truth to the rumors. Although Nvidia's overall demand remains strong, the shift to CoWoS-L may allow TSMC to adjust its production capacity.
TSMC estimates that its CoWoS production capacity will double by 2025, with Nvidia accounting for more than half. Nomura Securities estimates that Nvidia's reduction in CoWoS-S orders may cause TSMC's revenue to fall by 1% to 2%. Some analysts predict that Nvidia may cut TSMC's CoWoS-S orders by as much as 80%.
As the demand for CoWoS-S production capacity decreases, other participants in Nvidia's supply chain may also be affected. From a broader perspective, Nvidia's shift could accelerate the semiconductor industry's adoption of advanced packaging, setting a new benchmark for high-performance AI chips.
Related link: https://technews.tw/2025/01/20/nvidia-emphasizes-that-the-demand-for-tsmc-cowos-has-not-decreased/
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