Nvidia Expands Capacity with TSMC's Advanced Packaging

Nvidia continues to enhance its packaging technology with TSMC, shifting from CoWoS-S to CoWoS-L for its AI chips. The company aims to increase capacity, not reduce it, as demand grows. Jensen Huang, Nvidia's CEO, clarifies these strategic moves amidst ongoing media speculation about order reductions.

Nvidia's demand for TSMC's advanced packaging remains robust, as the AI chip giant is shifting its technological needs, CEO Jensen Huang stated on Thursday. Responding to speculation about potential order cuts, Huang affirmed the company's strategic shift during an event in Taiwan.

The focus is on Nvidia's Blackwell chip, which utilizes a sophisticated chip-on-wafer-on-substrate (CoWoS) technology. While previously reliant on CoWoS-S, the company now emphasizes CoWoS-L, impacting supplier dynamics. Nvidia plans to transition its operating capacity to CoWoS-L, suggesting a move towards expansion rather than reduction.

Huang highlighted that advanced packaging capacity has grown approximately fourfold in recent years, despite bottlenecks. While declining comments on recent U.S. export restrictions, he remains a figure of interest in Taiwan, expected to attend Nvidia's annual event in Taipei this week.

(With inputs from agencies.)