NVIDIA's CoWoS orders at TSMC have reached a new high, according to UBS, driven by current-gen Blackwell AI chips, as well as future Rubin products.
NVIDIA's AI GPU Production Is Anticipated to See a Huge Rise, Giving Firms Like TSMC Little Time To Adjust
The demand for AI hardware isn't waning anytime soon, based on multiple reports, and with that, NVIDIA has already started to prepare the supply chain, as, according to UBS analyst notes, it is revealed that Team Green has sees demand for 678,000 CoWoS wafers in 2026, which marks almost a 40% increase from the figure of this year, indicating that the firm anticipates massive AI chip orders coming ahead. UBS reports (via Jukan) that the demand is mainly driven by NVIDIA's Blackwell and Blackwell Ultra products, which are expected to see a 30% QoQ shipment growth, along with Rubin volume ramp-up.
While NVIDIA might have been restricted to orders from China, the firm sure has seen a massive rise in demand from multiple customers, mainly driven by the adoption of next-gen architectures, as well as growing interest in current ones. It is claimed that NVIDIA anticipates a massive demand for the next-gen Rubin family, which will bring additional CoWoS demand, as it utilizes CoWoS-L packaging. More importantly, the newly announced Rubin CPX platform is also claimed to bring in more CoWoS orders at TSMC, due to the chip's nature to be an inference-focused option.
As a result, UBS anticipates that NVIDIA's total GPU production will shift towards 7.4 million units in 2026, which is also a decent YoY rise. Overall, it is clear that neither the AI industry nor firms like TSMC are seeing a 'slowed' demand as the AI bandwagon progresses, but instead, the momentum has grown tremendously, to the point where TSMC cannot fulfill the flow of semiconductor and packaging orders coming in from tech giants.
NVIDIA's Blackwell Ultra rack-scale solutions are currently the mainstream offerings by the firm, with Rubin expected to debut by early 2026, which means that Big Tech has massive computing power coming their way.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
Follow Wccftech on Google to get more of our news coverage in your feeds.
