Cover Story: Why OSAT will always be relevant - KLSE Screener

As AI, electric vehicles, data centers, and high-performance computing drive demand for increasingly powerful chips, advanced packaging has emerged as a critical bottleneck in semiconductor manufactur... Read original →

Advanced packaging has evolved from a back-end afterthought into a performance-defining frontier. The thermal and integration demands of AI accelerators and automotive SoCs now mandate co-design between chip architects and OSATs, collapsing traditional boundaries between front-end and back-end. Malaysia’s geopolitical neutrality and established ecosystem position it as a linchpin in supply chain diversification, though tightening export controls on packaging tools are inflating compliance overhead. ASE and Amkor are racing to scale 2.5D/3D offerings, while IDM players in Taiwan, China and South Korea push vertical integration to reclaim control. Within 18 months, OSATs with proven CoWoS or FOPLP volume capability will command pricing power, accelerating industry consolidation—mid-tier players without anchor customers or state backing face exclusion from the high-end market.