Shanghai's 15th Five-Year Plan bets on chips, AI, advanced packaging

Shanghai’s 15th Five-Year Plan elevates chips, AI, and advanced packaging as core strategic pillars, signaling a shift from scale to value-added growth. This move will catalyze upstream material and equipment vendors to accelerate investments, particularly in EUV lithography and critical materials. Midstream packaging firms face heightened pressure for capacity upgrades, while downstream AI demand accelerates chip architecture innovation. Compliance risks rise as companies navigate stricter supply chain scrutiny, especially for sensitive technologies, increasing operational costs. Globally, the U.S. and Europe may tighten tech restrictions, pushing domestic firms toward self-reliance. In the short term, Taiwan, China and South Korean players may restructure partnerships to mitigate geopolitical exposure. Over the next two years, this policy will reshape global semiconductor supply chains, especially in advanced packaging and AI chips, creating new competitive moats.