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TSMC Debunks Rumors and Reaffirms Commitment to Expand Amidst Shifting Demand in Semiconductor Market

Word on the StreetThursday, Jan 16, 2025 4:00 am ET

1min read

Recent market speculation suggested that Taiwan Semiconductor Manufacturing Company (TSMC), a leading player in the semiconductor industry, might reduce its capacity expansion due to decreased demand for its CoWoS (Chip on Wafer on Substrate) packaging technology. These rumors were swiftly addressed by TSMC during their recent earnings call, where Chairman Mark Liu categorically dismissed the claims as unfounded, affirming the company's ongoing plans to ramp up production to meet customer demand.

The rumors were fueled by a newly adjusted roadmap from NVIDIA, which had reportedly lowered its demand for CoWoS-S packaging. Despite this, TSMC emphasized the strong market demand for its CoWoS technology, indicating that any shift by customers from CoWoS-S to CoWoS-L does not equate to a decrease in overall orders. The move was characterized as a strategic adaptation rather than a cutback, with CoWoS-L capacity continuing to be unable to keep pace with the burgeoning demand from an expanding customer base.

TSMC's commitment to expanding its production capacity is indicative of its strategic focus on sustaining its leadership position in the semiconductor industry. By addressing these market rumors directly, TSMC aims to reassure stakeholders of its robust growth trajectory and capability to meet the dynamic needs of its clients.

The company's response underscores the broader competitive dynamics within the semiconductor sector, where continuous technological advancements and shifting consumer requirements necessitate agile operational strategies. TSMC's proactive stance in dispelling unfounded rumors reflects its dedication to maintaining operational transparency and fostering confidence among investors, partners, and clients.

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