Changing its Blackwell architectural plan, Nvidia (NVDA, Financials) is reordering its product line and supply chain focus. According to TF International Securities analyst Ming-Chi Kuo, these shifts include lowering dependence on CoWoS-S technology and turning attention to CoWoS-L systems.
The revised road plan presents the 200 Series, which employs dual-die design produced using CoWoS-L technology. Systems in the 300 Series include single-die (CoWoS-S) and dual-die (CoWoS-L). Though Ming-Chi Kuo in the article claims these designations seem to be for marketing reasons, Nvidia refers to them as “Ultra dual-die” and “Ultra single-die” versions.
According to Ming-Chi Kuo, Nvidia’s declining CoWoS-S capacity is part of their plan to match the 200 Series roadmap, which excludes single-die devices. Nvidia intends to provide GB300 NVL72 systems using CoWoS-L first priority starting in the first quarter of 2025. According to Ming-Chi Kuo, the emphasis on CoWoS-L fits Taiwan Semiconductor Manufacturing Company’s (TSM, Financials) approach to market CoWoS-L as a mainstream solution.
According to Ming-Chi Kuo, the changes should affect Nvidia’s supply chain partnersespecially those depending on CoWoS-S technology. Although other vendors have had stock price corrections, Nvidia sees the drop in CoWoS-S capacity as a purposeful change rather than a reaction to diminishing demand, the study said.
The earnings call by TSMC on January 16 should cover these changes. Consistent with Ming-Chi Kuo’s forecast, analysts expect TSMC to confirm its favorable attitude on artificial intelligence and high-performance computing as growth drivers for the year. Ming-Chi Kuo said the change from B200 to B300 systems, which have identical front-end production techniques, is not anticipated to cause disturbance to TSMC’s operations.
This article first appeared on GuruFocus.
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