[UBS Raises 2027 CoWoS Capacity Forecast to 270,000; ASIC and CPU Demand Drive Expansion]
UBS Group's research report has raised the 2027 year-end CoWoS industry capacity forecast from 260,000 to 270,000, with the 2026 year-end capacity at 160,000. TSMC's 2027 year-end capacity is projected at 180,000, ASE from 20,000 to 70,000, and Amkor maintaining 20,000. The share of ASIC in CoWoS wafer demand is expected to rise to 33%, while GPU demand will drop to 67%. NVIDIA's 2027 AI GPU production forecast has been revised up to 8.8 million units, and AMD's CoWoS demand has been raised by 11%. Google's TPU and Amazon's Trainium packaging volumes for 2027 are expected to reach 9 million and 3.2 million units, respectively, with Broadcom and Marvell securing the majority of orders. UBS has given NVIDIA, AMD, and Broadcom an 'Outperform' rating, and TSMC a 'Buy' rating with a target price of NT$3,650. On the equipment side, the target price for GPTC has been lowered to NT$4,300.
