TSMC faces tight capacity for 3nm, 2nm, and CoWoS as AWS and MediaTek adjust allocations

As of late Q3 2026, TSMC continues to face supply shortages for its advanced 3nm, 2nm, and CoWoS packaging processes. NVIDIA and Apple remain the primary holders of these resources, but Amazon AWS has increased its 3nm capacity allocation for its Annapurna AI chips. MediaTek is also competing for 2nm/3nm and CoWoS capacity to support Google TPU orders. Reports indicate that TSMC has adjusted its capacity allocation; MediaTek's next-generation TPU v9 will utilize both TSMC CoWoS-L and Intel EMIB-T, leading to a fine-tuning of MediaTek's 3nm and 2nm schedules. TSMC is accelerating expansion, with monthly 2nm capacity at Hsinchu Baoshan Fab 20 and Kaohsiung Fab 22 reaching 100,000 wafers by late October, while 3nm capacity at Tainan Fab reached 185,000 wafers. Overall capacity utilization stands at 96.2%, with advanced nodes running at full capacity. The CoWoS shortage is driving overflow orders to ASE Technology (Siliconware Precision Industries), Amkor, and Powertech Technology, with Powertech's capacity fully booked through 2028.