UICollectionView in UITableViewCell?

Here is a very basic implementation of UICollectionView, using dynamic cell sizing.

class CollectionViewController: UICollectionViewController {

  @IBOutlet var myCollectionView: UICollectionView!

  let tags = [
    "Web Design",
    "ADWE",
    "Busisness functions",
    "Comics",
    "Web",
    "News in the Middle East",
    "Albanian",
    "Possession of machetes",
    "Nuclear physics",
    "Cookery",
    "Cross stitiching"
  ]

  override func numberOfSectionsInCollectionView(collectionView: UICollectionView) -> Int {
    return 1
  }

  override func collectionView(collectionView: UICollectionView, numberOfItemsInSection section: Int) -> Int {
    return tags.count

  }

  override func collectionView(collectionView: UICollectionView, cellForItemAtIndexPath indexPath: NSIndexPath) -> UICollectionViewCell {
    let cell = collectionView.dequeueReusableCellWithReuseIdentifier("dynamicCell", forIndexPath: indexPath)
    cell.layer.borderColor = UIColor.grayColor().CGColor
    cell.layer.borderWidth = 1.0
    cell.layer.cornerRadius = cell.frame.height / 2.0
    let tagLabel = cell.viewWithTag(100) as? UILabel
    tagLabel?.text = tags[indexPath.row]
    return cell
  }

}

extension CollectionViewController: UICollectionViewDelegateFlowLayout {
  func collectionView(collectionView: UICollectionView, layout collectionViewLayout: UICollectionViewLayout, sizeForItemAtIndexPath indexPath: NSIndexPath) -> CGSize {

    let tagLabel = UILabel()
    tagLabel.text = tags[indexPath.row]
    let size = tagLabel.intrinsicContentSize()
    let cellSize = CGSizeMake(size.width + 40, size.height + 20)  //added 40 to width to add space around label.

    return cellSize

  }
}

You would have to clean up the formatting as needed in the sizeForItemAtIndexPath method.

Hope this helps!