Advanced packaging technologies, particularly CoWoS (Chip on Wafer on Substrate), are set to witness over 80% CAGR between 2022 and 2027
Taiwan Semiconductor Manufacturing Company (TSMC) has recently updated its global semiconductor market forecast to exceed $1.5 trillion by 2030, significantly up from its earlier $1 trillion estimate.
Artificial intelligence (AI) and high-performance computing (HPC) are two major drivers of this rapid rise. 55% of the total market depends on it, whereas smartphones contributes 20%, while automotive applications will make up around 10%, reflecting increasing semiconductor demand across industries.
TSMC is planning to expand this market and its business in 2026 by building nine phases of wafer fabrication plants and advanced packaging facilities. It is also expanding production of its cutting-edge 2-nanometer and next-generation A16 chips, forecasting a compound annual growth rate (CAGR) of 70% in capacity from 2026 to 2028.
Advanced packaging technologies, particularly CoWoS (Chip on Wafer on Substrate), are set to witness over 80% CAGR between 2022 and 2027. This technology is critical for AI chips, including those designed by Nvidia. TSMC also expects AI accelerator wafer demand to grow 11-fold between 2022 and 2026.
In terms of global reach, the company plans to expand its presence across multiple areas. In Arizona, multiple fabs are under development, while Japan and Germany facilities are progressing to support the growing demand for advanced and mature nodes.
