TAIPEI (Taiwan News) — Taiwan Semiconductor Manufacturing Company (TSMC) Chair C. C. Wei (魏哲家) said Thursday (July 18) the company expects its Chip-on-Wafer-on-Substrate (CoWoS) capacity will more than double this year and in 2025.

TSMC held its first corporate briefing on Thursday since Wei became chair, per CNA. Investors inquired about the supply and demand status and capacity progress of CoWoS advanced packaging.

Wei said AI chips are driving strong demand for CoWoS advanced packaging and TSMC is doing its best to increase capacity. TSMC is collaborating with back-end Outsourced Semiconductor Assembly and Tests (OSATs) to meet demand, he added.

When asked when supply and demand might balance, Liu said CoWoS advanced packaging supply remains tight but hopes it will ease by 2025 and achieve a balance by 2026. TSMC previously expected the compound annual growth rate of CoWoS capacity from 2022 to 2026 to exceed 60%, he said.

The company’s Fab 5 at Central Taiwan Science Park, Taichung began construction in 2023 and is expected to mass-produce CoWoS by 2025.