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UBS Raises CoWoS Capacity Forecast on ASIC and CPU Demand, Bullish on 11 Taiwan Tech Stocks
Electronic Technology · Semiconductors · economic_daily · 2026-09-23
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UBS has upgraded its 2027 global CoWoS capacity forecast to 270,000 units per month, citing strong AI chip demand and naming 11 Taiwan-based firms as top picks.
What Happened
Capacity Forecast Upgrade: UBS Securities has revised its 2027 year-end global CoWoS monthly capacity forecast upward to 270,000 units, up from the previous estimate of 260,000. This significant increase reflects the sustained and robust demand for advanced AI chip packaging, far exceeding the 160,000 units projected for the end of 2026.
Key Growth Drivers: The report identifies ASIC and CPU demand as the primary catalysts for the ongoing expansion of CoWoS capacity. UBS notes that even with the potential entry of competing technologies like Intel's EMIB-T, the outlook for cloud AI chip demand remains strong enough to necessitate further capacity growth through 2028.
Supply Chain Diversification: As the need for outsourced semiconductor assembly and test (OSAT) services grows, the CoW supply chain is becoming increasingly diversified. ASE Technology is leading this expansion, with plans to reach a monthly capacity of 70,000 units by late 2027, while TSMC is expected to bring in new OSAT partners by 2028.
Bullish on Taiwan Tech: UBS maintains a positive outlook on the Taiwanese semiconductor ecosystem, issuing 'Buy' ratings for 11 companies, including TSMC, Alchip, ASPEED, ASE Technology, and KYEC. These firms are expected to benefit significantly from their strategic positions in the AI and advanced packaging markets.