TSMC signs seven-year deal with Xintec to expand CoWoS packaging

TSMC has signed a seven-year agreement with Xintec to expand its CoWoS advanced packaging capacity, extending a partnership aimed at easing a persistent bottleneck in AI chip supply. The deal underscores how demand for CoWoS—used to package high-bandwidth memory alongside GPUs—continues to outstrip available capacity, reinforcing TSMC's central role in the AI hardware supply chain. Financial terms were not disclosed, and the arrangement builds on Xintec's existing role as a packaging partner for TSMC. The move matters because packaging constraints have limited shipments of AI accelerators even as chipmakers ramp production. Watch for capacity additions at TSMC's advanced packaging facilities and any follow-on orders from AI chip customers as the multi-year buildout proceeds.