Particle.news
Download on the App Store

TSMC Plans 2026 Packaging Outsourcing as AI Demand Overwhelms CoWoS Capacity

Analysts lift targets on persistent AI orders.

Overview

  • Orders for TSMC’s CoWoS-L and CoWoS-S advanced packaging are fully booked, with supply-chain reports describing severe short supply driven by Nvidia, Google, Amazon and MediaTek.
  • TSMC is preparing to outsource portions of its advanced packaging workflow beginning in 2026, moving to a hybrid model with specialized partners to expand throughput.
  • Industry models project CoWoS output reaching roughly 100,000–125,000 wafers per month by late 2026, with next year’s capital spending modeled around $47 billion.
  • The stock retains a consensus Buy rating as targets rise, including a $355 median one-year target, Bernstein at $330 and Bank of America at $390, supported by strong 2025 performance.
  • A civil lawsuit filed Nov. 25 against former SVP Wei-Jen Lo is active, prosecutors searched two residences and seized devices on Nov. 27, and Intel denies receiving any TSMC trade secrets.