Summary: TSMC is reportedly considering a 10%–20% price increase for Chip-on-Wafer-on-Substrate (CoWoS) advanced packaging services, according to Taiwan's Commercial Times. Surging AI processor demand, longer testing times, and extended equipment lead times are tightening advanced packaging capacity, although TSMC has not officially confirmed the reported price adjustment.

 

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Taiwan's Commercial Times reported on Tuesday that semiconductor foundries and outsourced semiconductor assembly and test (OSAT) providers are preparing to adjust prices for Chip-on-Wafer-on-Substrate (CoWoS) packaging services, with potential increases ranging from 10% to 20%. CoWoS is a critical advanced packaging technology used in high-performance AI processors, and capacity availability directly affects semiconductor manufacturing schedules.

 

 

According to the report, demand for advanced packaging is expanding beyond GPUs to server CPUs and custom application-specific integrated circuits (ASICs), with more product categories competing for limited CoWoS capacity. Meanwhile, AI processors require longer testing times, adding to the workload of packaging and testing providers. Capacity constraints are also spreading to equipment suppliers, with delivery lead times reportedly extending from approximately three to six months to six to eight months.

 

Regarding capacity expansion, the report cites analyst estimates that TSMC's monthly CoWoS capacity could exceed 130,000 wafers in 2026 and potentially reach 200,000 wafers in 2027. It also indicates that TSMC is expected to continue expanding CoWoS production capacity through 2027.

 

It is important to note that the reported 10%–20% price increase is based on industry sources and has not been confirmed through an official TSMC pricing announcement. The projected capacity figures for 2026 and 2027 are also analyst estimates and depend on whether planned expansion targets are achieved. Overall, the reported pricing move highlights the direct link between surging AI computing demand and constrained advanced semiconductor packaging supply. Investors and industry observers will need to monitor TSMC's official statements and actual capacity expansion progress. For readers tracking advanced packaging capacity and semiconductor supply chain developments, chip-related product offerings on the Eriksen platform are also expanding rapidly, with an increasingly broad range of categories available for further exploration.