TSMC Ramps Up AI Chip Packaging While Nvidia Controls Most 2026 Capacity
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Taiwan Semiconductor Manufacturing Company (TSMC) is rapidly expanding its advanced chip packaging operations in Taiwan, particularly at its Chiayi AP7 site and Longtan AP3 plant. By the end of 2026, TSMC's CoWoS capacity is expected to reach 125,000 to 130,000 wafers per month. Advanced packaging is projected to increase from 8% of revenue in 2025 to over 10% in 2026, with 10% to 20% of TSMC's $52 billion to $56 billion capital spending for 2026 allocated to packaging and testing. TSMC will open the Chiayi AP7 facility to media on January 22.
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