Summary of the Conference Call Transcript Industry Overview - The report focuses on the **semiconductor industry**, specifically the **CoWoS (Chip on Wafer on Substrate)** technology, which is critical for advanced packaging in cloud AI products expected to ramp up in 2026-2027 [2][3]. Key Points and Arguments Capacity Expansion - The estimated industry's CoWoS capacity is raised to **150kwpm** by the end of **2026**, up from **135kwpm**, and **90kwpm** at the end of **2025**. This aggressive expansion is driven by the demand for new cloud AI products from major companies like **Nvidia**, **Google**, **AMD**, and **Amazon** [2][3]. - **TSMC** is expected to increase its capacity from **70kwpm** at the end of **2025** to **120kwpm** by the end of **2026**. **OSATs** (Outsourced Semiconductor Assembly and Test) like **ASE** and **Amkor** are also projected to ramp up capacity from **20kwpm** to **30kwpm** in the same timeframe [2][3]. Customer Diversification - While **TSMC** remains the dominant supplier, it is anticipated to focus more on higher-end CoWoS-L for larger packages in **2026**. **ASE** and **Amkor** are expected to benefit from the expanding market and customer diversification [3]. - **ASE** may ramp full-process CoWoS for **AMD's Venice CPU** and be involved in **Broadcom's ASIC products**. **Amkor** is expected to revive its CoWoS business through **Nvidia's H200** and other products [3]. Production Forecasts - **Nvidia** is projected to account for **56%** of CoWoS demand in **2026**, down from **65%** in **2025**. The forecast includes **8.7 million** Nvidia AI GPU production units, with **5.5 million** units attributed to **Blackwell** and **2 million** to **Rubin** [4]. - **Broadcom's TPU** unit production is expected to increase to **3.7 million** units in **2026**, with **MediaTek's v8X** ramping to **300k units** in **H226E** [4]. Stock Recommendations - Top picks along the semiconductor supply chain for cloud AI include **TSMC**, **MediaTek**, and **ASE**. Equipment suppliers like **Chroma**, **ASMPT**, and **GPTC** are also recommended. **Amkor** has been downgraded to Neutral due to fair risk/reward [5]. Additional Important Insights - The report highlights the increasing traction of **Intel's EMIB-T** due to TSMC's tight supply and US reshoring demand, indicating a shift in the competitive landscape [3]. - The next generation of AI GPUs and ASICs expected in **2027-2028** may utilize multiple back-end solutions, leveraging TSMC's CoWoS/CoPoS, OSAT's 2.5D packaging, and Intel's EMIB-T [3]. Conclusion - The semiconductor industry, particularly in advanced packaging, is poised for significant growth driven by cloud AI demands. Companies like TSMC, ASE, and Amkor are positioned to capitalize on this trend, while Nvidia remains a key player in the CoWoS market. The evolving landscape suggests a diversification of suppliers and technologies that could reshape competitive dynamics in the coming years.