Morgan Stanley recently released a latest research report showing that in the competition for TSMC’s CoWoS advanced packaging production capacity, Nvidia will still be the largest customer in 2027. AI GPUs such as NVIDIA's Blackwell and Rubin all use TSMC's CoWoS-L packaging solution, and their production capacity is estimated to reach 910,000 units in 2027, a year-on-year increase of 40%. Its Vera CPU is packaged in CoWoS-R, and shipments are expected to double.
Based on these order increases, Morgan Stanley expects Nvidia's data center revenue to increase by 52% year-on-year in 2027.
Behind Nvidia, AMD is accelerating to catch up. Morgan Stanley predicts that AMD's next-generation EPYC Venice CPU shipments will reach 6.75 million units by 2027, which is about 17% higher than Nvidia's Vera CPU's 5.75 million units.
It is reported that EPYC Venice uses TSMC’s 2nm process, is based on Zen 6 architecture, and is oriented to AI and high-performance computing scenarios.
Global CoWoS demand is experiencing explosive growth. Morgan Stanley predicts that global CoWoS demand will rise from 689,000 pieces in 2025 to 1.394 million pieces in 2026, and further climb to 2.694 million pieces in 2027.
CoWoS has become an indispensable manufacturing link for high-end GPUs, AI ASICs and some server CPUs. TSMC’s CoWoS monthly production capacity is expected to rise to 200,000 wafers by the end of 2027.
It is worth noting that cloud vendors such as Google and Amazon are accelerating their investment in self-developed chips. The competition for CoWoS is evolving from a single NVIDIA GPU story to an industry chain expansion driven by GPU, CPU, TPU and self-developed ASIC.
