TSMC signs seven-year deal with Xintec to build CoWoS packaging line in Taiwan
In brief
- TSMC and Xintec signed a seven-year CoWoS packaging agreement running through December 31, 2033.
- Xintec will build and run an on-substrate line inside TSMC's Central Taiwan Science Park facility.
- Initial mass production is targeted for 2029, according to Crypto Briefing.
- Xintec plans to raise NT$15 billion through convertible bonds to fund equipment and systems.
What the deal covers
Crypto Briefing described the agreement as a capacity outsourcing arrangement. Xintec will build and operate a line dedicated to the on-substrate portion of CoWoS (usually shortened to oS). It won't be a standalone plant, though. The line will sit inside TSMC's facility in the Central Taiwan Science Park, with TSMC supplying the building and Xintec supplying the equipment and staff.
Initial mass production is targeted for 2029.
How's Xintec paying for it? The company plans to raise NT$15 billion through convertible bonds, according to the report, and that money is earmarked for the equipment and systems the new line will need.
Why CoWoS matters
CoWoS, short for Chip-on-Wafer-on-Substrate, places logic dies and high-bandwidth memory on a silicon interposer. It's become TSMC's flagship technology for AI and high-performance computing chips. Crypto Briefing also called it one of the industry's most persistent chokepoints, noting that TSMC has repeatedly expanded capacity to keep up with demand. Chipmakers such as Nvidia and AMD rely on this kind of packaging for their AI hardware, the outlet said.
The Xintec deal isn't TSMC's only capacity move. The report pointed to a previously announced $2 billion deal with GlobalFoundries to produce silicon interposers in the US (ramp-up targeted for 2028), plus TSMC's purchase of display plants from AUO to gain more cleanroom space.
A long runway for Xintec
TSMC owns approximately 41% of Xintec, and Xintec gets more than 70% of its revenue from TSMC-related work, per Crypto Briefing. The outlet said the agreement moves Xintec further into back-end packaging, a step up from its existing role in the supply chain.
Timing is the other part of the story. In Crypto Briefing's analysis, the 2029 target means this line won't relieve near-term tightness, and CoWoS supply constraints are projected to ease gradually through 2028 (the report didn't say who made that projection). So the deal looks more like long-range planning than a fix for today's shortage.
Frequently asked questions
What is CoWoS packaging?
CoWoS, short for Chip-on-Wafer-on-Substrate, places logic dies and high-bandwidth memory on a silicon interposer. According to Crypto Briefing, it's TSMC's flagship technology for AI and high-performance computing chips, and it's been one of the industry's most persistent chokepoints.
When will the TSMC-Xintec CoWoS line start production?
Initial mass production is targeted for 2029, according to Crypto Briefing. The outlet said that timing means the line won't relieve near-term CoWoS supply tightness.
How is Xintec funding the new CoWoS line?
Xintec plans to raise NT$15 billion through convertible bonds, Crypto Briefing reported. The proceeds are earmarked for the equipment and systems the line will need, while TSMC supplies the building in the Central Taiwan Science Park.
