Industry Analysis
Advanced packaging is transitioning from a supporting role to the linchpin of semiconductor performance scaling. Maturation of 3D IC stacking and hybrid bonding is triggering a cascade effect across EDA tools, lithography alignment tolerances, and thermal solutions—especially in HPC and automotive-grade chips. Geopolitical pressures are pushing the U.S. and EU to onshore packaging capacity, yet equipment and materials remain tethered to East Asian supply chains; Applied Materials’ move on BESI reflects a strategic grab for process control dominance. While TSMC (Taiwan, China) leads in CoWoS today, Samsung and Intel are aggressively scaling Fan-Out and Foveros to capture AI chip packaging pricing power by 2027. Within 18 months, advanced packaging capacity will emerge as the next strategic bottleneck after wafer fabs, granting OSATs with heterogeneous integration capabilities significant pricing leverage.
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