TSMC Reportedly Plans 10–20% CoWoS Advanced Packaging Price Increase
Rising AI chip demand and tighter equipment supply are putting pressure on advanced packaging capacity as TSMC forecasts continued revenue growth.
Taiwan Semiconductor Manufacturing Company (TSMC) is preparing to raise prices for its chip-on-wafer-on-substrate (CoWoS) advanced packaging service by 10 to 20%, according to a report published by Taiwan's Commercial Times on 27 October 2026. Third-party outsourced assembly and test (OSAT) suppliers are also said to be preparing similar price adjustments.
CoWoS integrates AI processors and high-bandwidth memory (HBM) in a single package and is used in most leading AI accelerators. According to the report, demand for the technology is no longer limited to graphics processing units. Server CPUs and custom application-specific integrated circuits (ASICs) are now competing for the same capacity, while longer test times for AI chips are adding further pressure on packaging and test lines.
Equipment supply has also tightened. Lead times for new tools have stretched to six to eight months, up from three to six months previously.
Analysts cited in the report expect TSMC's monthly CoWoS capacity to exceed 130,000 wafers in 2026 and reach around 200,000 wafers in 2027. Earlier this month, GlobalFoundries announced an agreement to manufacture silicon interposers in the United States for TSMC's CoWoS technology.
The reported price increase follows a record third quarter for TSMC. The company posted revenue of NT$1.494 trillion (about US$46.72 billion), up 41.2% year on year, while net income rose 68.7% to NT$763.06 billion. Chips built on 7nm and more advanced nodes accounted for 79% of wafer revenue, with 3nm contributing 33%, 5nm 28%, 7nm 10% and 2nm 8%.
For the fourth quarter, TSMC has guided revenue of US$52.3 billion to US$54.3 billion.
TSMC has not publicly commented on the reported price changes.
