TSMC to raise advanced chip packaging prices by up to 20%, report says

Taiwan Semiconductor Manufacturing Co. (TSMC) (TW:2330) is poised to raise prices for its advanced chip packaging services by as much as 20%, as surging AI demand tightens capacity across the semiconductor supply chain, the Commercial Times reported on Tuesday, citing industry sources.

The report said foundries and outsourced semiconductor assembly and test providers were preparing for price increases of 10% to 20% for chip-on-wafer-on-substrate (CoWoS) packaging, which is widely used in advanced AI processors.

Demand has expanded beyond graphics processing units to server central processing units and custom application-specific integrated circuits, while longer testing times for AI chips are adding pressure on packaging and testing capacity, the report said.

Equipment lead times have lengthened to six to eight months from three to six months previously, as chipmakers prioritise delivery schedules and suppliers struggle to expand production quickly.

TSMC's CoWoS monthly capacity is expected to exceed 130,000 wafers in 2026 and reach 200,000 in 2027, according to analyst estimates cited by the newspaper.

The reported price increases underscore how the AI infrastructure boom is driving up costs across the semiconductor industry as manufacturers race to meet demand.