Analysis: Advanced packaging shifts from TSMC dominance to industry collaboration - digitimes

The semiconductor industry is undergoing profound transformation as AI chip demand surges. Recent analysis reveals that advanced packaging is shifting from TSMC's dominance to broader industry collabo... Read original →

Soaring AI compute demand is forcing advanced packaging to shift from TSMC’s Taiwan, China-centric monopoly toward a multi-vendor ecosystem. While TSMC still leads in sub-3nm and EUV processes, CoWoS bottlenecks have pushed NVIDIA to actively encourage Samsung, SK Hynix, and Micron to build heterogeneous integration capabilities. U.S. CHIPS Act incentives and export controls are accelerating non-TSMC players to localize advanced packaging, mitigating geopolitical supply risks. Strategically, TSMC benefits short-term from NVIDIA’s endorsement of its premium pricing, but Samsung’s HBM-plus-packaging integration and Micron’s silicon photonics bets signal a redistribution of AI supply chain power. Over the next 12–24 months, 'packaging as platform' will dominate—process leadership alone no longer secures design wins; full-stack co-optimization becomes the new competitive moat.