AI boom triggers a global race in advanced semiconductor packaging

The global artificial intelligence boom is creating a new competitive area within the semiconductor industry: advanced chip packaging. While much attention has traditionally focused on processor design and semiconductor manufacturing, packaging technology is becoming equally important for building high-performance AI hardware.

Advanced packaging allows multiple semiconductor components, including processors and high-bandwidth memory, to be integrated into a single package. This approach can improve computing performance, data transfer speeds and energy efficiency, which are essential for AI data centres and high-performance computing systems.

Companies such as Nvidia, AMD and Broadcom are seeking greater access to advanced packaging capacity as demand for AI processors increases. Taiwan Semiconductor Manufacturing Company (TSMC) remains a major player in this area, while other manufacturers are also investing in new technologies and production facilities.

According to estimates cited by Yole Group in the Reuters report, advanced packaging revenue could surpass traditional packaging revenue for the first time in 2026. Industry capital spending is also expected to approach $28 billion.

This competition could reshape the semiconductor supply chain. Countries and companies that can develop advanced packaging capabilities may gain an important advantage in the production of next-generation AI chips.