NVIDIA Corporation (NASDAQ: NVDA) has taken control of more than 70% of Taiwan Semiconductor Manufacturing Company’s (NYSE: TSM) advanced chip packaging capacity for 2025, according to a report from Taiwanese media on Monday. The move comes as demand for NVIDIA’s next-generation Blackwell AI chips skyrockets, driven by the growing appetite for artificial intelligence technology.
The Taiwanese newspaper Economic Daily, citing unnamed industry sources, revealed that NVIDIA has secured over 70% of TSMC’s Chip on Wafer on Substrate (CoWoS) capacity with silicon interposers for 2025. This specialized packaging process combines multiple semiconductors into a single, high-performance electronic device during the fabrication stage. TSMC is the only mass-market provider of this advanced technology, reinforcing its position as the world’s biggest contract chipmaker.
Following the report, TSMC (NYSE: TSM) shares in Taiwan recovered some of their intraday losses, a sign that investors see the company riding the AI wave.
In late 2024, reports indicated NVIDIA (NASDAQ: NVDA) had already contracted at least 60% of TSMC’s advanced packaging capacity for 2025. The latest figure shows demand has only intensified since then.
Recent earnings reports from major tech players—Microsoft (NASDAQ: MSFT), Google (NASDAQ: GOOGL), Meta (NASDAQ: META), and Amazon (NASDAQ: AMZN)—revealed blockbuster spending on AI infrastructure. These Wall Street giants, often dubbed AI hyperscalers, signaled that their outsized investments will stretch well into 2025. This trend promises a steady demand for NVIDIA AI chips, which power data centers and fuel the AI revolution.
For TSMC, NVIDIA’s appetite translates into big business. The company recently posted stellar fourth-quarter earnings and announced plans to expand its manufacturing and packaging operations in 2025 to keep pace with AI-driven demand. TSMC is also poised to benefit from a growing push in the United States to build more AI infrastructure, further strengthening its global reach.
Investors now await NVIDIA’s fourth-quarter earnings, slated for Wednesday. The report will signal where the AI and chipmaking industries are headed. With AI demand red-hot, NVIDIA and TSMC are gearing up to dominate 2025.
