---
title: "TSMC Gets Fresh Pricing Power From AI Chip Boom"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/303276037.md"
description: "TSMC is preparing to raise prices for its advanced CoWoS packaging services by up to 20% due to surging AI demand and tight supply. This pricing power stems from capacity constraints in equipment availability and testing, with usage expanding beyond GPUs to server CPUs and custom accelerators. TSMC's Q3 revenue hit a record $46.72 billion, and analysts view advanced packaging as a critical bottleneck and strategic lever for margin expansion amidst the AI chip boom."
datetime: "2026-10-27T19:03:08.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/303276037.md)
  - [en](https://longbridge.com/en/news/303276037.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/303276037.md)
generator: "portal-rs"
---

# TSMC Gets Fresh Pricing Power From AI Chip Boom

Taiwan Semiconductor Manufacturing is reportedly preparing to raise prices for its advanced CoWoS packaging services by as much as **20%**, as booming AI demand continues to strain supply across the semiconductor industry.

According to the Commercial Times, chipmakers and packaging firms are preparing price increases of roughly **10% to 20%** for CoWoS, a critical packaging technology used to combine advanced AI processors with high-bandwidth memory.

The move highlights just how tight the advanced packaging market has become.

Demand is no longer coming only from GPUs.

CoWoS usage is expanding across **server CPUs and custom AI accelerators**, putting additional pressure on capacity while chip testing times are also getting longer.

Equipment availability is becoming another constraint.

Delivery times for new packaging equipment have reportedly stretched from roughly **three to six months to six to eight months**, slowing the industry's ability to add capacity quickly.

Analysts expect TSMC's monthly CoWoS capacity to surpass **130,000 wafers in 2026** and reach roughly **200,000 in 2027**.

That expansion is increasingly strategic because advanced packaging has become one of the most important bottlenecks in the AI chip supply chain.

Earlier this month, GlobalFoundries announced an agreement with TSMC to manufacture silicon interposers in the U.S. for CoWoS, giving TSMC another potential source of packaging components.

The pricing report comes after another strong quarter for TSMC.

Third-quarter revenue reached a record **NT$1.494 trillion, or about $46.72 billion**, up 41.2% year over year, while net income jumped **68.7% to NT$763.06 billion**.

TSMC expects fourth-quarter revenue of **$52.3 billion to $54.3 billion**.

**Investor Takeaway**

I think the biggest takeaway is that **AI demand is giving TSMC pricing power beyond the wafer itself**.

CoWoS has become essential infrastructure for high-end AI systems, and supply is still struggling to keep pace.

That gives TSMC another potential lever for margin expansion.

The important question is whether customers continue absorbing higher packaging costs without slowing orders.

So far, the demand picture looks strong.

For investors, the key things to watch are **CoWoS capacity additions, packaging prices, HBM demand, equipment lead times and whether advanced packaging margins improve as utilization stays high**.

TSMC already dominates leading-edge manufacturing.

The AI boom is increasingly showing that its packaging business may be just as strategically important.

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## Related News & Research

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---
> **Disclaimer: This article is for reference only and does not constitute any investment advice.**