Understanding the Market | ASM Pacific Technology rose nearly 4% as TSMC accelerates CoWoS expansion. Industry insiders say there is currently a severe supply shortage for CoWoS

ASMPT rose nearly 4%, as of the time of publication, it rose 3.77% to HKD 107.30, with a turnover of HKD 64.0287 million. On the news front, according to market media reports, the demand for AI servers continues to rise, and TSMC is accelerating the large-scale production expansion of CoWoS. Equipment manufacturers indicate that the current CoWoS supply gap is quite severe. Although equipment factories have been delivering goods one after another recently, the demand growth rate exceeds expectations. To meet market demand, TSMC has once again placed urgent orders with equipment factories and plans to increase production capacity year by year. According to estimates, monthly production capacity will reach 32,000 wafers in the second half of 2024, gradually increasing to 58,000 wafers by 2028; furthermore, after the new factory in Chiayi is put into operation, production capacity will further increase. It is reported that ASMPT is a major supplier of 2.5D advanced packaging thermal compression bonding (TCB), with technology applied to TSMC's CoWoS and HBM products