NVIDIA Secures a Hefty CoWoS Supply From Intel To Fulfill Upcoming AI GPU Demand

NVIDIA has reportedly turned its hopes toward Intel to fulfill its "immense" advanced packaging demand, as TSMC & others face a huge supply bottleneck.

CoWoS packaging is considered a vital part of creating the necessary hardware for AI computing, especially for AI accelerators, such as NVIDIA's H100s. With the advent of the generative AI hype, GPU manufacturers rushed towards "pushing out" AI-focused products at their maximum capacity, which ultimately has prompted the demand for CoWoS packaging as well.

Since NVIDIA is leading the charts regarding data center revenue, Team Green has been focusing on acquiring vast volumes of advanced packaging to fulfill the demand of current and future markets moving forward, and the only way to do so is by diversifying the supply chain.

Taiwan Economic Daily reports that Intel has managed to obtain a portion of the CoWoS supply from Intel, with the reported figure reaching around 5,000 wafers per month. Team Blue's inclusion would result in NVIDIA witnessing a 10% rise in CoWoS volumes, which is a huge milestone because the firm is indeed preparing for next-gen products such as the Hopper H200 AI GPUs, and it is expected that the demand would only increase from here on.

Apart from Intel, TSMC has expressed confidence in its CoWoS supply going forward and has shown optimism that the monthly CoWoS output could reach up to 32,000 units by the end of 2024, and this figure could potentially reach 44,000 units by the end of next year as well, which means that the firm is continuously working on the upgrade of its existence facilities, to ensure a streamlined supply of packaging, without any disruptions, such as those witnessed in the past.

It is believed that the future won't witness an AI equipment shortage similar to what was seen in 2023, as the crucial components involved, such as HBM and CoWoS, have reached optimal production levels, hopefully enough to cater to the upcoming demand. However, nothing is certain yet, and it could also turn out the other way.

News Source: Taiwan Economic Daily