Global market for advanced chip packaging set for rapid expansion

Advanced packaging is shifting from a supporting role to the frontline of compute supremacy. The surge in FOPLP and glass-based substrates forces upgrades across EDA tools, photoresists, and temporary bonding materials, while redefining backend value chains—OSATs lacking front-end integration capabilities risk obsolescence. Geopolitically, U.S. CHIPS Act subsidies favor domestic advanced packaging, pushing TSMC and Samsung to accelerate U.S. investments, yet reliance on Japan and South Korea for glass substrates creates new supply chokepoints. Intel bets heavily on Glass Core, while ASE strengthens collaboration with Taiwan, China–based equipment suppliers to build regional resilience against fragmentation. Within 18 months, the battle over packaging architectures will escalate into a standards war, where early movers in 2.5D/3D heterogeneous integration will dictate the physical limits of AI accelerators.