Looking at the latest industry reports, the AI supply crunch shows no signs of easing anytime soon.
$Taiwan Semiconductor Manufacturing(TSM)$ $NVIDIA(NVDA)$ $iShares MSCI South Korea ETF(EWY)$
The key bottleneck remains advanced packaging. TSMC's monthly CoWoS capacity is expected to grow from around 70K wafers in 2025 to 130K–140K by the end of 2026, but even with that expansion, supply is still projected to trail demand by roughly 20%.
$NVIDIA(NVDA)$ has reportedly locked in 800K–850K CoWoS wafers for 2026, which accounts for more than half of TSMC's annual CoWoS capacity.
At the same time, TSMC's outsourcing push is sparking another wave of investment. Major OSAT companies are scaling up production, and equipment suppliers, particularly in South Korea, are seeing new orders ramp up.
It feels like the AI race isn't just about chips anymore. It's becoming about who can secure advanced packaging capacity first.
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