ASIA — AI Chip Packaging Race Intensifies as Nvidia, AMD and Broadcom Turn to New Suppliers
The accelerating artificial intelligence boom is fueling a multibillion-dollar investment push in advanced semiconductor packaging, a technology that plays an increasingly vital role in manufacturing high-performance processors.
Major chip companies, including Nvidia, AMD and Broadcom, are exploring alternatives to conventional manufacturing partnerships as demand for AI processors continues to exceed available packaging capacity.
According to research firm Yole Group, revenue from advanced packaging is expected to surpass that of traditional packaging for the first time in 2026. Meanwhile, industry investments in the technology are projected to approach $28 billion.
Taiwan Semiconductor Manufacturing Company (TSMC) remains the leading provider of advanced packaging solutions, particularly its chip-on-wafer-on-substrate technology, commonly referred to as CoWoS.
However, capacity limitations are prompting chip designers to seek additional manufacturing partners. An industry executive told Reuters that Nvidia is supplying billions of dollars in financing to help Siliconware Precision Industries, an ASE Technology subsidiary, increase its CoWoS production capacity.
Meanwhile, Taiwan’s Powertech Technology is pursuing panel-level packaging, a manufacturing approach that uses larger rectangular panels to fit more chips while minimizing material waste.
The company is collaborating with AMD and Broadcom and intends to establish a $400 million advanced-packaging joint venture with Broadcom in Singapore. Production could begin in 2028.
TSMC is also working on an alternative packaging technology based on panels. At the same time, equipment suppliers Applied Materials and Tokyo Electron are stepping up their involvement in the growing sector.
The wave of investment underscores the increasing importance of advanced packaging in the semiconductor supply chain as the global AI industry continues to expand.
Original article
Comments