TSM is integrating Co-Packaged Optics (CPO) into its CoWoS packaging via COUPE technology, with mass production of "COUPE on Substrate" targeted for the second half of 2026. This shift is expected to drive significant demand for ABF substrate, with potential shortages projected by 2027 as AI chips require 5–10x more material than traditional CPUs. Consequently, NVDA may pursue long-term deals or partnerships to secure substrate capacity and prevent supply chain disruptions as CPO penetration in data centers is projected to reach 35% by 2030.