Advanced Packaging Investments Aim to Reduce Semiconductor Sourcing Risk - Astute Group

As global semiconductor industry competition intensifies, investments in advanced packaging technologies are emerging as a crucial strategy to mitigate supply chain risks. Astute Group's report reveal... Read original →

Advanced packaging is evolving from a performance booster into a geopolitical hedge. Technically, Chiplet and 2.5D/3D integration are forcing EDA, test equipment, and materials suppliers to rapidly align with heterogeneous integration standards, compelling OSATs to overhaul process flows. Regulatory pressures—especially U.S. and EU chip subsidies tied to local capacity—now compel firms to geographically diversify at least 30% of advanced packaging output, sharply increasing capex. TSMC’s (Taiwan, China) CoWoS bottlenecks have already triggered multi-year supply pacts from NVIDIA and AMD, while Intel and Samsung leverage open IP ecosystems to poach clients. Within 18 months, advanced packaging will shift from a backend afterthought to the linchpin of supply chain resilience—whoever controls high-density interconnect and thermal management IP will dictate terms.