Morgan Stanley Report: CoWoS Demand to Double by 2027, Driven by AMD and ASICs in AI Chip Growth - KuCoin

Morgan Stanley's latest AI supply chain report forecasts that global CoWoS demand will surge to 2.694 million wafers by 2027, up 93% from 1.394 million in 2026. While NVIDIA remains the largest user a... Read original →

The CoWoS demand surge reveals advanced packaging—not chip design—as the true AI bottleneck. AMD’s adoption of CoWoS for its Venice CPU signals a pivotal shift from accelerators to general-purpose computing, forcing tighter co-design between HBM4 and 3nm logic dies and pressuring OSATs to upgrade EUV alignment and thermal solutions. Geopolitically, TSMC’s (Taiwan, China) >80% capacity dominance is triggering U.S., EU, and Japanese efforts to onshore packaging capabilities. Mainland firms like JCET and Tongfu lack EUV and high-density TSV maturity, raising compliance costs. NVIDIA’s Blackwell inventory acts as a buffer, but AMD’s volatile ordering history exposes supply chain fragility. With Google’s TPU delay, Chinese ASIC players gain breathing room. Over the next 18 months, control over CoWoS allocation will dictate AI chip market share—packaging supremacy equals compute sovereignty.