TSMC is struggling to meet the surge in AI chip orders for its advanced packaging technology, specifically CoWoS, leading to a spillover effect benefiting competitors like Intel and Taiwanese packaging and test companies. Intel is aggressively pursuing advanced packaging with its EMIB technology, with reports indicating NVIDIA will move next-gen Feynman GPU orders to Intel. Taiwanese firms ASE, SPIL, Powertech, and KYEC are also capitalizing on TSMC's inability to keep up with demand.
Advanced packaging capacity is now a binding constraint for AI chip supply, forcing hyperscalers to diversify beyond TSMC and enabling Intel to gain share.