TSMC (2330-TW) Emerges as AI Packaging Powerhouse as CoWoS, CPO, WoW Markets Surge

Morgan Stanley, in a May 2026 report, identified TSMC (2330-TW) as the largest beneficiary of the AI packaging revolution, forecasting a 60% compound annual growth rate for its AI-related revenue from 2024 to 2029, with AI surpassing 30% of total revenue by 2026. The global AI semiconductor market is projected to reach $753 billion by 2030. The chipmaker’s CoWoS advanced packaging capacity is set to expand from 23,000 wafers per month in 2023 to 165,000 by 2027. Nvidia (NVDA) will consume about 60% of the 2026 output, followed by Broadcom (AVGO) at 20% and AMD at 8%. TSMC is also scaling its SoIC 3D stacking technology to 78,000 wafers by 2028 for clients including Apple. Separately, the report sees co-packaged optics (CPO) reaching a $9 billion market by 2030 and wafer-on-wafer (WoW) technology growing at a 257% CAGR to $6 billion, underscoring advanced packaging as the new front in AI semiconductor competition.