NVIDIA’s recent buzz in the tech industry revolved around widespread rumors concerning a supposed cut in their CoWoS packaging orders. Many believed this stemmed from dwindling demand in the AI sector, which even affected NVIDIA’s stock prices and stirred unease in Taiwanese markets. However, NVIDIA’s CEO Jensen Huang has debunked these rumors, providing clarity on the situation.
The confusion seems to have arisen due to a transition in their technology lines. Previously, the Hopper generation of NVIDIA products harnessed the CoWoS-S technology, renowned for its maturity and impressive yield rates of up to 99%. But, as NVIDIA transitions to its Blackwell series, they have adopted the cutting-edge CoWoS-L technology. This new packaging, while offering powerful performance enhancements, has yet to reach the yield efficiency of its predecessor, resulting in a temporary dip in production output. Yet, NVIDIA remains proactive, collaborating with partners to quicken the optimization process.
Reports from the Taiwan Economic Daily emphasize TSMC’s efforts to upscale CoWoS-L production to keep pace with its rising demand. Anticipated to fully transition by the latter half of 2025, TSMC’s move aligns with NVIDIA’s upcoming Blackwell Ultra GB300 lineup, which will feature CoWoS-L technology.
Interestingly, while the current CoWoS output doesn’t fully depict the AI market’s demand, NVIDIA aims to recapture the momentum it experienced with the Hopper lineup. With keen expectations surrounding the Blackwell Ultra series, enthusiasts are optimistic about seeing a performance leap forward that will set new benchmarks in the market.
