TSMC (2330-TW) Glass Substrates Critical for Next-Gen AI Chips, Analyst Kuo States

Analyst Ming-Chi Kuo declares TSMC's (2330-TW) CoWoS glass core substrate a "must-have" for next-gen AI chips, citing its underestimated strategic importance. TSMC presented the innovation on June 11, 2026, developed with Ibiden and Innolux (3481-TW). This technology is crucial for advanced AI computing, attracting interest from NVIDIA (NVDA-US) and other chipmakers. The glass substrate improves power integrity via reduced through-glass via (TGV) resistance and inductance, ensuring stable power delivery. This enables higher transistor integration and clock frequencies, boosting AI processing. Kuo clarifies the "oS" (glass core substrate) is essential for chip manufacturing and durability, addressing warpage and reliability. Despite higher cost, the glass substrate's low single-digit percentage in AI chip BOM and ability to prevent costly yield losses (5-10x substrate cost) makes it economically viable. TSMC targets mass production Q4 2028 to Q1 2029, aligning with NVIDIA's AI chip roadmap. TGV IP is jointly held by TSMC and Innolux.