UBS has raised its CoWoS industry capacity forecast, expecting it to reach 270,000 wafers per month by the end of 2027, a significant 69% increase from 2026, driven by strong ASIC and CPU demand.

UBS noted in its latest research report that the demand for cloud AI chips continues to exceed expectations, driving the advanced packaging industry into a new expansion cycle. The report raised its forecast for global CoWoS industry capacity by the end of 2027 from the previous 260,000 wafers/month to 270,000 wafers/month, a significant increase of approximately 69% from the estimated 160,000 wafers/month by the end of 2026. This upward revision is primarily driven by the strong rise in ASIC and CPU demand, with UBS expecting these two types of chips to still largely rely on CoWoS packaging technology in 2028-2029. Meanwhile, global CoWoS total demand is projected to reach approximately 2.63 million wafer equivalents in 2027, nearly double the estimated 1.321 million in 2026. NVIDIA remains the largest customer, but the proportion of ASICs and AMD has significantly increased, reflecting diversified demand sources. On the supply side, ASE's CoW capacity is expected to expand significantly from 20,000 wafers/month by the end of 2026 to 70,000 wafers/month by the end of 2027, and TSMC's advanced packaging sales are projected to maintain a compound annual growth rate of approximately 50% from 2026 to 2030.