TSMC Forecasts 1.5 Year Shortage of HPC and AI GPUs
TSMC, the leading chip manufacturer, has acknowledged that the shortage of compute GPUs used for AI and HPC servers is due to a bottleneck in its chip-on-wafer-on-substrate (CoWoS) packaging capacity. The company is expanding its CoWoS capacity, but expects the shortage to persist for 1.5 years. TSMC produces the majority of processors for AI services, including compute GPUs, FPGAs, and specialized ASICs. The shortage is impacting the availability of high-bandwidth memory (HBM) used in these devices. Traditional outsourced semiconductor assembly and test (OSAT) companies are less motivated to offer advanced packaging services due to the higher financial risks involved. TSMC is investing billions in advanced packaging facilities to increase capacity.