UBS Report: CoWoS Capacity Raised to 270kwpm, ASIC and CPU Demand Driving Expansion

UBS has raised its 2027 year-end industry capacity forecast for Chip-on-Wafer-on-Substrate (CoWoS) from 260kwpm to 270kwpm, citing sustained demand from ASIC and CPU sectors. Despite potential competition from Intel's EMIB-T and TSMC's CoPoS by 2028, ASIC and CPU requirements remain heavily tied to the CoWoS ecosystem. TSMC remains the primary capacity holder, but OSAT providers like ASE Technology (日月光) are expanding aggressively, with their share of incremental capacity expected to rise from 12% in 2026 to 26% in 2027. UBS also noted upward revisions in shipment estimates for Broadcom, Marvell, Nvidia, and AMD, while maintaining a buy rating for TSMC with a target price of NT$3,650.