Morgan Stanley predicts TSMC's packaging allocation will shift in 2027.
AMD's CoWoS usage will rise, Nvidia's share will fall.
This is due to agentic AI demand.
What happened
Morgan Stanley expects TSMC's advanced packaging allocation to shift in 2027, with AMD's CoWoS usage rising and Nvidia's share shrinking, as agentic AI drives processor demand.
Why it matters
This shift reflects TSMC's growing capacity and broader industry demand, potentially altering the competitive balance in AI chips—AMD gains more packaging capacity, while Nvidia may face tighter supply.
What to watch
The 2027 timeline is key; watch how TSMC expands capacity and whether AMD can capitalize on the increased CoWoS allocation to challenge Nvidia's dominance.
Ask the AI about this article →
Morgan Stanley's projection highlights a strategic rebalancing in TSMC's advanced packaging capacity, driven by growing demand from agentic AI—AI systems that can act autonomously. The shift is not abrupt but planned for 2027, allowing TSMC to expand capacity while meeting diverse client needs. For AMD, this could be a competitive opportunity to secure more packaging for its AI processors, potentially narrowing the gap with Nvidia. However, the actual impact depends on TSMC's execution and market dynamics. The report, cited by Wccftech, underscores how packaging, not just chip design, is becoming a critical bottleneck in AI supply chains.
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