[Demand is strong, production capacity is tight! TSMC is rumored to be planning to increase the price of advanced packaging services by up to 20%.] On October 27, it was reported that due to the explosion of AI demand and the overall tight production capacity of the semiconductor supply chain, TSMC plans to increase the price of advanced chip packaging services by up to 20%. According to reports, TSMC and other foundry, packaging and testing (OSAT) practitioners are planning a new round of price increases and are preparing to increase the quotation of CoWoS packaging by 10% to 20%. This packaging technology is widely used in high-end AI processors. Currently, the demand for CoWoS has extended from graphics processing units (GPUs) to server central processing units (CPUs) and customized application-specific integrated circuits. At the same time, the AI ​​chip testing cycle is longer, further exacerbating the supply pressure on packaging and testing production capacity. The delivery time of chip equipment has also been lengthened, from the previous 3 to 6 months to 6 to 8 months. On the one hand, chip manufacturers are competing for delivery schedules; on the other hand, equipment suppliers are struggling to expand production quickly. According to industry insiders, TSMC’s downstream customers have no time to bargain and “will place orders as long as they can promise delivery.”