TAICHUNG, Taiwan, Jan 16 (Reuters) - Nvidia's ( NVDA ) demand for

advanced packaging from TSMC remains strong though the kind of

technology it needs is changing, the U.S. AI chip giant's CEO

Jensen Huang said on Thursday, after he was asked whether the

company was cutting orders.

Nvidia's ( NVDA ) most advanced artificial intelligence (AI) chip,

Blackwell, consists of multiple chips glued together using a

complex chip on wafer on substrate (CoWoS) advanced packaging

technology offered by Taiwan Semiconductor Manufacturing Co ( TSM )

, Nvidia's ( NVDA ) main contract chipmaker.

"As we move into Blackwell, we will use largely CoWoS-L. Of

course, we're still manufacturing Hopper, and Hopper will use

CowoS-S. We will also transition the CoWoS-S capacity to

CoWos-L," Huang said on the sidelines of an event by chip

supplier Siliconware Precision Industries in Taiwan's central

Taichung city.

"So it's not about reducing capacity. It's actually

increasing capacity into CoWoS-L."

Hopper refers to Nvidia's ( NVDA ) GPU architecture platform before

it announced Blackwell in March 2024.

Nvidia ( NVDA ) has so far relied mainly on one type of CoWoS

technology, CoWoS-S, to combine its AI chips.

TF International Securities analyst Ming-Chi Kuo on

Wednesday said Nvidia ( NVDA ) was shifting its focus to a newer type of

technology, CoWoS-L, and that suppliers would be affected.

In addition, Taiwan media reported that Nvidia ( NVDA ) was cutting

CoWoS-S orders from TSMC in a potential hit to the Taiwanese

chip foundry's revenue.

Nvidia ( NVDA ) has been selling its Blackwell chips as quickly as

TSMC can make them but packaging has remained a bottleneck due

to capacity constraints.

Still, Huang said that the amount of advanced packaging

capacity was "probably four times" the amount available less

than two years ago.

He declined to answer questions on the new U.S. export

restrictions that limit AI chip exports to most countries except

for a select group of close U.S. allies including Taiwan.

Huang is also expected to attend Nvidia Taiwan's annual new

year party this week in Taipei.

Huang, who was born in the southern city of Tainan, Taiwan's

historic capital, before emigrating to the United States at the

age of nine, is hugely popular in Taiwan with his every move

breathlessly followed by local media.