What is advanced chip packaging and why is it important for AI?

Advanced chip packaging is a critical step in chipmaking that prepares microchips to interact with the outside world, and it is essential for powering artificial intelligence.

Where is most advanced chip packaging capacity currently located?

Currently, almost all of the advanced chip packaging capacity is located in Asia, creating a potential bottleneck.

Which companies are expanding chip packaging capacity in the U.S.?

Taiwan Semiconductor Manufacturing Co. (TSMC) and Intel are expanding their chip packaging capacity in the U.S.

Home / Technology / Chip Packaging Bottleneck Looms for AI

Chip Packaging Bottleneck Looms for AI

8 Apr

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Summary

Advanced chip packaging, crucial for AI, is concentrated in Asia.
TSMC and Intel are expanding U.S. packaging capacity.
Nvidia has reserved most of TSMC's advanced packaging capacity.

A crucial yet often overlooked step in chip manufacturing, advanced packaging, is emerging as a potential bottleneck for the burgeoning artificial intelligence industry. Currently, the vast majority of this essential process occurs in Asia, leading to a global shortage of capacity.

Taiwan Semiconductor Manufacturing Co. (TSMC) is preparing to significantly expand its U.S. presence with new plants in Arizona. Concurrently, Intel is bolstering its custom chip plans, leveraging its advanced packaging technology. Experts warn that a lack of proactive capital investment could exacerbate this bottleneck as fab output surges in the coming years.