AI Chipmakers Expand Advanced Packaging Capacity

Surging demand for AI processors is making advanced chip packaging a major industry bottleneck, prompting chipmakers and suppliers to expand capacity as TSMC’s lead in sophisticated packaging leaves customers seeking alternatives. Industry forecasts point to rapid growth in advanced packaging, which combines multiple chips into a high-performance system, while engineers are also exploring AI, sensors and automation to improve semiconductor manufacturing and defect detection. A planned Korea-U.S. engineering forum will examine AI-driven chip design, advanced packaging and autonomous fabs, alongside challenges such as manufacturing data protection. Malaysia is also pursuing higher-value roles: locally designed chips now target applications including edge AI, storage, vehicles, drones and satellites, while an industry conference is set to discuss AI hardware, packaging and domestic capabilities. Across these efforts, expanding technical capacity must be matched by reliable manufacturing, intellectual-property protection and commercial success.