Taiwan Semiconductor Manufacturing Co. (TSM) is redirecting advanced packaging orders to Intel’s Malaysian facility. This move addresses unprecedented demand for Chip on Wafer on Substrate (CoWoS) technology that currently exceeds TSM’s internal capacity. The collaboration marks a significant shift in semiconductor industry norms, signaling increased interdependence among major chipmakers to satisfy AI sector requirements.
The broader semiconductor industry currently maintains high pricing power due to intense demand for AI chips. While this partnership supports TSM’s advanced process shipments, it also underscores the operational difficulty of scaling production to meet market growth.
TSM’s Taiwan-listed shares fell 1.26% on August 19, 2026. This decline mirrored a broader market downturn triggered by losses in U.S. technology stocks.