AI surge pushes advanced chip packaging demand, TSMC capacity limited
The surge in AI is making advanced chip packaging a big deal, as companies like NVIDIA and AMD race to keep up with demand.
Former Intel chief executive Pat Gelsinger, now a partner at Playground Global, even pointed out that advanced packaging could eventually account for as much as half the value of a chip.
TSMC is leading with its chip-on-wafer-on-substrate technology, but since it cannot meet all the demand, other players like Powertech Technology are stepping in to help fill the gap.
NVIDIA expands packaging in Taiwan
Yole Group expects advanced packaging to earn more than traditional methods by 2026, thanks to its ability to combine multiple chips for better performance.
NVIDIA is investing in expanding this technology in Taiwan, while Powertech is working on panel-level packaging for faster production.
All this demand is also pushing growth in semiconductor equipment as the industry gears up for AI and high-performance computing.