In a bid to meet the demand for compute GPUs and other processors used for AI and HPC, TSMC recently placed orders for additional tools used for chip-on-wafer-on-substrate (CoWoS) packaging, as indicated in the most recent earnings call. The company seems to be particularly optimistic about demand for AMD’s upcoming Instinct MI300-series datacenter APUs and GPUs, DigiTimes reports, saying it will be half of Nvidia's total output of CoWoS-packaged chips.
This ongoing expansion has been triggered by the upcoming mass production of AMD’s MI300 series and the persistent shortage of chip-on-wafer-on-substrate (CoWoS) packaging capacity, exacerbated by Nvidia’s demands. DigiTimes goes as far as saying, citing its sources in the industry, that when AMD’s MI300-series enters mass production, the volume of TSMC’s shipments for this CoWoS-based product will be equivalent to half of Nvidia’s CoWoS-equipped GPU total in a single quarter.
This essentially suggests that demand for AMD’s next-generation compute GPU will be half of Nvidia's shipments of CoWoS-equipped GPUs, which is a very optimistic expectation as today Nvidia commands over 90% of the compute GPU market due to the dominance of its CUDA software stack among AI and HPC developers.
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