AI packaging race heats up: Taiwan OSATs plan US$14.6 billion capex

The surge in AI computing demand is shifting investment focus from advanced wafer fabrication to packaging and testing, with leading OSATs in Taiwan planning a $14.6 billion capex push. This move signals a strategic realignment of the semiconductor value chain, boosting advanced packaging technologies such as 2.5D/3D integration and Chiplet architectures, thereby strengthening global AI chip supply chains. However, escalating geopolitical tensions and U.S. export controls are increasing operational risks, prompting companies to reassess supply chain resilience—possibly accelerating production shifts to Southeast Asia or mainland China. In response to intensified global competition, local players may pursue technological upgrades and M&A strategies to consolidate market share. Over the next 12 to 24 months, the packaging and testing segment is poised to become one of the most dynamic areas in the AI ecosystem, with early-mover advantages likely to yield substantial market gains for leading firms.