June 7, according to foreign media reports, the increase in demand for artificial intelligence applications such as ChatGPT has boosted demand for high-performance GPUs such as NVIDIA's H100 and A100, which has also prompted them to increase orders at TSMC, a foundry, to meet customer demand.

NVIDIA's increased orders at TSMC have also pushed up capacity utilization for TSMC's advanced process technology. Previously, sources have revealed that Nvidia's new orders have pushed up the capacity utilization of TSMC's 7/6nm and 5/4nm process families, the latter's capacity is close to saturation.

And the latest media reports show that Nvidia's orders, pushing up not only TSMC fab capacity utilization, but also increased demand for their chip packaging capacity, TSMC has also ordered packaging equipment urgently.

The media is quoting sources from fab tool makers to report that TSMC has urgently ordered packaging equipment.

From the source's disclosure, TSMC booked CoWoS packaging (Chip onWafer on Substrate, wafer-level packaging) equipment, which they ordered urgently to meet the surge in demand for Nvidia's artificial intelligence chips.

It is worth noting that at the end of last month, an industry source revealed that the positive outlook for demand for Nvidia AI chips also favors back-end manufacturers, and related manufacturers are feeling optimistic about their business prospects for 2023 again.

The increase in capacity utilization of advanced process processes, along with the urgent booking of packaging equipment, also means that TSMC will be a major beneficiary of the increased demand for Nvidia AI chips, which can significantly improve their revenue in the context of a still-unpromising chip markets.