Taiwan Semiconductor Manufacturing (TSMC) CEO C.C. Wei hinted during the company's third-quarter earnings call that the chipmaker could step in if customers struggle to secure enough advanced-packaging supply from Intel. The remarks came after Morgan Stanley analyst Charlie Chan asked whether TSMC would support customers that initially chose Intel's EMIB-T packaging technology but later faced supply constraints. Wei stated that TSMC's number one priority is ensuring customers' products can be introduced into the market smoothly. TSM stock fell nearly 4% in morning trade amid broader market weakness as concerns around AI spending and hotter-than-expected producer prices weighed on markets. The comments highlight intensifying competition in advanced packaging, where TSMC's Chip on Wafer on Substrate technology competes with Intel's EMIB-T approach to connect chip components and high-bandwidth memory into integrated systems used in AI computing.
TSMC CEO Confirms Customer Support Priority in Packaging Supply
Wei addressed the question during the Q3 earnings call, stating: "I try to avoid answering it directly, but let me say that, yes, we will be. Number one priority I already indicated is that TSMC's customer's product can be introduced into the market smoothly. That's a number one priority. Okay? And that gives you enough of a hint." Intel's EMIB-T and TSMC's CoWoS are competing approaches to advanced packaging that connect chip components and high-bandwidth memory into integrated systems used in AI computing. A shortage of packaging capacity can delay deliveries even when the underlying chips are available. During Intel's second-quarter earnings call in July, CEO Lip-Bu Tan stated that EMIB-T orders were growing and yield and reliability targets were being met, with the company preparing to scale production to support customers' 2027 ramps. INTC stock fell over 5% in morning trade on Thursday.
TSMC Reports 5x Reticle Size Production with Excellent Yields
Wei said TSMC is already producing packages five times the standard reticle size, with plans to expand to nine times and eventually 14 times that size. "We are in the real-world production of 5x reticle size. I don't believe that anybody can do that today except at TSMC, and the yield is excellent," he said. "So our customers are very satisfied with the result." Wei added that the company is also working to reduce packaging costs, stating that its CoWoS technology remains customers' preferred option. On Stocktwits, retail sentiment behind the chip supplier to companies like Nvidia and Apple improved to 'extremely bullish' from 'bullish' territory over the past day. Platform data showed a 666% increase in chatter in the same time period.
TSMC Reports Q3 Earnings Beat with 50% Revenue Growth
TSM stock fell in morning trade on Thursday despite reporting a Q3 earnings and revenue beat. Earnings per share came in at $0.91, according to Koyfin, beating Wall Street expectations of $0.89 per share. Revenue rose 50% year-over-year to $46.12 billion, beating analysts' forecast of $45.69 billion. This was the company's sixth consecutive quarter of record earnings. It forecast fourth-quarter revenue would rise as much as 61% as compared to a year ago. TSM stock has gained over 36% this year. It's currently trading around 14% below its record high of over $487 seen earlier this month.
FAQ
What did TSMC CEO C.C. Wei say about supporting customers facing Intel packaging supply issues?
During TSMC's third-quarter earnings call, CEO C.C. Wei stated that TSMC's number one priority is ensuring customers' products can be introduced into the market smoothly. When asked by Morgan Stanley analyst Charlie Chan whether TSMC would support customers that initially chose Intel's EMIB-T packaging technology but later faced supply constraints, Wei responded: "I try to avoid answering it directly, but let me say that, yes, we will be."
What are TSMC's current advanced packaging production capabilities?
TSMC is already producing packages five times the standard reticle size with what CEO C.C. Wei described as "excellent" yields. Wei stated: "We are in the real-world production of 5x reticle size. I don't believe that anybody can do that today except at TSMC, and the yield is excellent." The company has plans to expand to nine times and eventually 14 times that size. Wei added that TSMC is working to reduce packaging costs and that its CoWoS technology remains customers' preferred option.
How did TSMC perform in its third-quarter earnings?
TSMC reported third-quarter earnings per share of $0.91, beating Wall Street expectations of $0.89 per share. Revenue rose 50% year-over-year to $46.12 billion, beating analysts' forecast of $45.69 billion. This was the company's sixth consecutive quarter of record earnings. TSMC forecast fourth-quarter revenue would rise as much as 61% as compared to a year ago.
