Morgan Stanley: TSMC CoWoS Capacity to Triple to 200K Wafers Monthly by End of 2027

According to Morgan Stanley's latest industry report, Taiwan Semiconductor Manufacturing Company (TSMC) will boost capital expenditures to $56 billion in 2026 and $75 billion in 2027, driven by sustained AI semiconductor demand. CoWoS advanced packaging capacity will expand from approximately 70,000 wafers per month at end-2025 to 120,000 by end-2026 and reach 200,000 by end-2027, while SoIC capacity is projected to grow from 14,000 to 40,000 monthly units across the same period.

The demand reflects the broader AI infrastructure buildout: the top 14 global cloud service providers are projected to spend close to $1.3 trillion on cloud capital expenditures through 2027, translating into sustained orders for GPU, ASIC, and HBM semiconductors. Morgan Stanley estimates AI-related wafer consumption could exceed $46 billion by 2027, with Nvidia remaining the largest buyer but Google, Amazon AWS, Microsoft, Meta, and AMD also commanding significant production allocations. Advanced packaging and testing equipment represent critical bottlenecks, as chip integration complexity outpaces manufacturing capacity growth.