Wedbush interprets TSM.US (TSM.US) CoWoS price increase rumor: the “stuck neck” link in the supply chain has returned, and competitive pressure on Intel (INTC.US) has eased

The Zhitong Finance App learned that there are reports that TSM.US is planning to raise the price of CoWOS packaging services. Wedbush believes this news indicates that the technology has once again become a “bottleneck” in the supply chain.

Wedbush analyst Matt Bryson wrote in a report to clients: “Although we are unable to independently verify the reported price increase news, if true, we think this news indicates that CoWoS is likely to once again become a bottleneck in the supply chain (packaging capacity seemed to be under less pressure than other parts supply sectors for some time before).”

The report said that as the world's largest semiconductor foundry, TSMC may raise the price of wafer substrate chips by 10% to 20%. TSMC manufactures OEM chips for companies such as Apple (AAPL.US), Nvidia (NVDA.US), and AMD (AMD.US).

TSMC did not immediately respond to a request for comment.

Bryson further analyzed that if TSMC does raise the CoOS price, this may also mean that the company “feels less pressure from Intel (INTC.US) EMIB-T technology.”

Bryson added, “Overall, given TSMC's obvious pricing capabilities, strong end customer demand, etc., we regard this news as another positive sign for TSMC. For Intel, the impact is likely to be more complex, depending on the specific drivers behind TSMC's decision to raise the CoOS price.”