Chip Packaging Shortage to Limit Supply of Top AI Chips Until Late 2024

TSMC warns shortage of advanced chip packaging capacity will continue impacting supply of top AI accelerators like Nvidia's A100 and H100 until late 2024.
Problem is not lack of chip production but constrained advanced CoWoS packaging used to assemble components.
Shortage affects accelerators like Nvidia's H100 and AMD's upcoming Instinct MI300-series that rely heavily on CoWoS.
TSMC expanding packaging capacity but it will take 18 months to resolve shortage.
While TSMC uses CoWoS, competitors like Samsung and Intel have alternate advanced packaging technologies.

theregister.com

Relevant topic timeline:

8/24/2023

Advanced Micro Devices: Strong Read From Nvidia's AI GPU Surge (NASDAQ:AMD)

Nvidia has reported explosive sales growth for AI GPU chips, which has significant implications for Advanced Micro Devices as they prepare to release a competing chip in Q4. Analysts believe that AMD's growth targets for AI GPU chips are too low and that they have the potential to capture a meaningful market share from Nvidia.

8/24/2023

When one company dominates a market, there can be downsides

Nvidia's dominance in the AI chip market and its reliance on a single manufacturer, TSMC, poses potential risks due to manufacturing disruptions and geopolitical tensions with Taiwan.

9/7/2023

TSMC: Shortage of Nvidia's AI GPUs to Persist for 1.5 Years

The ongoing shortage of compute GPUs for AI and HPC applications is caused by constraints in chip-on-wafer-on-substrate packaging capacity, which is expected to persist for 18 months due to rising demand for generative AI applications and slow expansion of CoWoS capacity at TSMC.

9/8/2023

Analyst Downgrades AMD Stock Over Concerns Company Will Miss AI Revenue Expectations

Advanced Micro Devices (AMD) has been downgraded to a sell due to concerns about high expectations for A.I. revenue and the belief that AMD's A.I. GPU offerings will lag behind Nvidia, leading to underperformance and a recommendation to sell.

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AMD Graphics Rebound in Q2 But Headwinds Remain for Gaming GPUs

Despite a significant decline in PC graphics card shipments due to the pandemic, Advanced Micro Devices (AMD) sees a glimmer of hope as shipments increase by 3% from the previous quarter, indicating a potential bottoming out of demand, while its data center GPU business is expected to thrive in the second half of the year due to increased interest and sales in AI workloads.

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Posted 9/8/2023, 12:34:00 PM

Chip Packaging Shortage to Limit Supply of Top AI Chips Until Late 2024

TSMC warns shortage of advanced chip packaging capacity will continue impacting supply of top AI accelerators like Nvidia's A100 and H100 until late 2024.
Problem is not lack of chip production but constrained advanced CoWoS packaging used to assemble components.
Shortage affects accelerators like Nvidia's H100 and AMD's upcoming Instinct MI300-series that rely heavily on CoWoS.
TSMC expanding packaging capacity but it will take 18 months to resolve shortage.
While TSMC uses CoWoS, competitors like Samsung and Intel have alternate advanced packaging technologies.

theregister.com

Relevant topic timeline:

8/24/2023

Advanced Micro Devices: Strong Read From Nvidia's AI GPU Surge (NASDAQ:AMD)

8/24/2023

When one company dominates a market, there can be downsides

Nvidia's dominance in the AI chip market and its reliance on a single manufacturer, TSMC, poses potential risks due to manufacturing disruptions and geopolitical tensions with Taiwan.

9/7/2023

TSMC: Shortage of Nvidia's AI GPUs to Persist for 1.5 Years

9/8/2023

Analyst Downgrades AMD Stock Over Concerns Company Will Miss AI Revenue Expectations

9/9/2023

AMD Graphics Rebound in Q2 But Headwinds Remain for Gaming GPUs