Soaring Yearly Demand for NVIDIA’s CoWoS Fueled by Robust Blackwell Orders and Incoming Rubin AI Series

Recent reports from UBS reveal that NVIDIA’s CoWoS orders at TSMC have surged, driven primarily by the current Blackwell AI chips and anticipated future products from the Rubin line.

Predicted Surge in NVIDIA’s AI GPU Production Signals Tight Supply Chains for Partners like TSMC

The demand for artificial intelligence hardware shows no signs of slowing, according to various industry analyses. NVIDIA is proactively responding to this trend by enhancing its supply chain capabilities. As detailed in UBS analyst reports, NVIDIA is forecasting a need for approximately 678, 000 CoWoS wafers by 2026, reflecting an almost 40% increase from this year’s figures. This aggressive outlook highlights NVIDIA’s anticipation of substantial forthcoming orders related to AI chip production.

UBS attributes this increased demand largely to NVIDIA’s Blackwell and Blackwell Ultra series, which are expected to experience a quarter-over-quarter shipment growth of around 30%.Additionally, the upcoming Rubin product line is expected to further boost wafer orders as its CoWoS-L packaging technology becomes more prevalent in the market.

UBS Raises CoWoS Demand Forecasts for NVIDIA and Broadcom, With Rubin and CPX as Key Growth Drivers. UBS (T. Arcuri, Oct 8, 2025) has revised its forecasts for TSMC’s CoWoS capacity… pic.twitter.com/hpDhkezpdG

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Despite previous restrictions on orders from China, NVIDIA has witnessed a significant rise in demand from a diverse range of customers. This surge is primarily attributed to growing interest in both existing architectures and next-generation technologies. The forthcoming Rubin family is expected to generate even greater CoWoS demand, particularly as it integrates CoWoS-L packaging. Moreover, the recently introduced Rubin CPX platform is projected to contribute substantially to orders at TSMC, as it is optimized for inference tasks.

NVIDIA Rubin CPX | Image Credits: NVIDIA

UBS estimates that NVIDIA’s overall GPU production will reach 7.4 million units by 2026, marking a notable year-over-year increase. This trend underscores the fact that both the AI sector and semiconductor companies like TSMC are experiencing escalating demands rather than a slowdown. The technological renaissance fueled by AI innovation is propelling companies forward, overwhelming TSMC’s capacity to manage the influx of semiconductor and packaging orders from major players in the tech industry.

Currently, NVIDIA’s Blackwell Ultra rack-scale solutions represent their flagship offerings, with the Rubin series set to launch in early 2026. This impending release signifies that large tech enterprises are poised to harness tremendous computing power in the near future.

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