The global automotive supply chain faced widespread layoffs as mainstream and emerging suppliers struggled with sustained low-profit margins in 2024. With no clear signs of recovery, industry analysts warn that layoffs may extend into 2025, driven by unrelenting financial pressures.

TSMC CEO C.C. Wei has dismissed recent market speculation indicating Nvidia is cutting back its demand for Chip-on-Wafer-on-Substrate (CoWoS) packaging capacity.

The US Department of Commerce announced on January 16, 2025, that the CHIPS Program’s National Advanced Packaging Manufacturing Program (NAPMP) has finalized US$1.4 billion in awards to strengthen US leadership in advanced packaging. This funding will support both the validation and transition of new technologies to large-scale domestic manufacturing, with the goal of creating a self-sustaining, high-volume advanced packaging industry within the US.

Strong AI-related demand will drive TSMC’s 20% compound annual growth rate in revenue over the next five years, according to chairman C.C. Wei during the company’s latest earnings call. This optimistic outlook aligns with broader server supply chain indicators, as order and shipment volumes demonstrate continued momentum in AI server demand, even amid concerns about GB200 shipments.