UBS: CoWoS Capacity Expansion Faster Than Expected, Expected to Increase by 20% to 30% by 2026

UBS analysts said that the expansion of semiconductor CoWoS advanced packaging capacity is faster than imagined, expected to reach 45,000 wafers per month by the end of this year and 65,000 wafers per month by the end of next year. By 2026, more companies will embark on capacity expansion, which could further increase production capacity by 20% to 30%. Analyst Lin Lijun said that the industry has begun to plan for capacity expansion in 2026, indicating that the visibility and demand for cloud accelerators are constantly increasing. The shipments of mobile phones and personal computers (PCs) declined significantly last year, with a slight growth this year, and it can be expected that generative artificial intelligence will accelerate the replacement cycle.