TSMC to Raise AI Chip Packaging Prices by 20%

Taiwan Semiconductor Manufacturing Co. is preparing to increase prices for its advanced chip-on-wafer-on-substrate (CoWoS) packaging services by up to 20%. This critical technology is essential for the production of advanced AI processors, including graphics processing units, server central processing units, and custom application-specific integrated circuits.

The price hikes follow a surge in demand for AI infrastructure that has tightened capacity across the semiconductor supply chain. Production is further strained by longer testing times for AI chips and extended equipment lead times, which have increased from a previous window of three to six months to a current window of six to eight months.

To address these constraints, the company is expanding its production capabilities. TSMC projects its CoWoS monthly capacity will exceed 130,000 wafers in 2026 and reach 200,000 wafers in 2027.