Advanced packaging refers to an innovative method that can integrate multiple chips, functions, and materials into a compact package. Technologies such as 3D stacking, System-in-Package (SiP), Fan-Out Wafer-Level Packaging (FOWLP), and Chip-on-Wafer (CoW) enable semiconductor manufacturers to meet the growing demands for performance, power constraints, and miniaturization challenges. These technologies have significant advantages in accelerating data processing speed, reducing power consumption, and improving heat dissipation, which are key factors for next-generation devices such as smartphones, self-driving cars, and AI-driven data centers.
The global semiconductor industry is undergoing a transformation driven by the growing demand for more powerful, efficient, and compact chips. At the core of this transformation is advanced packaging technology – a key component that is reshaping the way semiconductors are designed, manufactured, and integrated into next-generation electronic devices. While traditional packaging methods have reached their limits, innovations in advanced packaging are pushing the boundaries of what is possible, enabling applications in fields such as artificial intelligence (AI), 5G, and high-performance computing (HPC). Countries and regions such as the United States, South Korea, Taiwan of China, and Chinese mainland are taking leading positions. The Semiconductor Materials Research Team of ASIACHEM has briefly sorted out the latest progress in advanced packaging in the United States, China, and South Korea.
——The United States provides $300 million in funding for advanced packaging!
On November 21, 2024, the U.S. Biden-Harris Administration announced that the Department of Commerce will provide up to $300 million in funding for advanced packaging research projects in Georgia, California, and Arizona. This funding will be used to accelerate the development of advanced packaging technologies crucial to the semiconductor industry, helping the United States maintain its competitiveness in the global semiconductor market. Recipients of the funding include Absolics in Georgia, Applied Materials in California, and Arizona State University in Arizona.
Each project is expected to receive up to $100 million, aiming to advance the development of advanced substrate technologies. Advanced substrates are physical platforms that integrate multiple semiconductor chips, enabling high-speed, efficient inter-chip communication, power transmission, and thermal management. This technology is crucial for driving innovations in artificial intelligence, high-performance computing, next-generation wireless communications, and power electronics.
However, the United States currently lacks the capability to produce such advanced substrates, which has become a major bottleneck for the U.S. semiconductor industry. Therefore, promoting the development of this technology will help enhance the autonomy of U.S. semiconductor manufacturing and reduce reliance on external suppliers.
The United States has become an important player in the field of advanced packaging, particularly through initiatives such as the CHIPS for America program, which includes significant investments to strengthen the domestic semiconductor supply chain. By funding advanced packaging technologies and the development of new materials, the United States aims to reduce dependence on foreign suppliers.
Leading U.S. companies such as Intel, Micron, and Applied Materials are making significant progress in advancing packaging technologies. For example, Intel has been heavily investing in its Foveros 3D packaging technology, while Micron is focused on integrating DRAM and logic devices into advanced packages for high-performance computing applications. In addition, the U.S. government emphasizes talent cultivation and research cooperation with universities, aiming to lay a solid foundation for the next generation of semiconductor innovation.
——China's Remarkable Progress in Advanced Packaging
On November 23, 2024, Qili Semiconductor officially launched the Phase I factory of its advanced packaging project in Keqiao District, Shaoxing, Zhejiang Province. The project has a planned total investment of up to 3 billion yuan, covering an area of 80 mu, and will be constructed in two phases. Phase I has completed a production line for Chiplet packaging of large-size AI chips with an annual output of 2 million units, mainly including advanced packaging for chips such as GPUs and CPUs.
With the full operation of the Phase II project, the annual sales volume is expected to reach 2 billion yuan. Qili Semiconductor has completed the research and development of Chiplet packaging for a number of domestically leading large-size, high-computing-power XPU chips. Its main products, GPU and CPU chips, will be applied in fields and industries such as big data storage and computing, artificial intelligence, automotive electronics, radar, and communications. In addition, Qili Semiconductor (Shaoxing) Co., Ltd. delivered the first batch of samples on October 2, 2024, more than a month ahead of the scheduled time. This marks an important step for Qili Semiconductor in the field of advanced packaging.
As the world's largest semiconductor market, the demand in the Chinese market has not only injected confidence and vitality into the global semiconductor industry but also become a key driving force for technological innovation and progress. China has made significant progress in advanced packaging technology fields such as 2.5D and 3D packaging, Fan-Out Packaging, and Wafer-Level Chip Scale Packaging (WLCSP). Chinese enterprises have achieved remarkable results, with manufacturers like Changdian Technology, Huatian Technology, and Yongxi Electronics continuously making breakthroughs in advanced packaging technologies such as 2.5D and 3D. Domestic manufacturers including Tongfu Microelectronics, Changdian Technology, and Huatian Technology are expected to play an increasingly important role in the global competition in the advanced semiconductor packaging market.
China actively participates in international cooperation in the global semiconductor packaging field, conducting technical exchanges and cooperative research and development with leading global semiconductor companies and scientific research institutions, which has improved the technical level and innovation capability of domestic enterprises. Policy support and industrial promotion: The Chinese government has introduced a series of policies to support the development of the semiconductor packaging industry, such as the "National Integrated Circuit Industry Development Promotion Outline" and the "Integrated Circuit Industry Development Fund". These policies provide policy and financial support for the development of the industry.
Improvement of the industrial chain and construction of the ecosystem: China has formed a complete industrial chain in the field of semiconductor packaging, with close links between various links from design, manufacturing to testing, providing strong support for the development of the packaging industry. Rapid growth of market scale: The scale of China's advanced packaging market is growing rapidly, and it is expected to rise to 113.7 billion yuan by 2025, indicating that China's share in the global advanced packaging market is gradually increasing.
——Taiwan, China: TSMC's Innovation Leads the Trend
Taiwan Semiconductor Manufacturing Company (TSMC) has established a dedicated advanced packaging supply chain cluster in Taiwan, China, demonstrating its commitment to maintaining its leading position. The plan will focus on several key packaging technologies, including 3D IC, SiP, and FOWLP, to cope with increasingly complex semiconductor designs.
In the vibrant field of semiconductor innovation, TSMC has been leading the development of cutting-edge advanced packaging solutions. These technologies are crucial for improving the performance and efficiency of modern chips, especially in fields such as artificial intelligence (AI), data centers, and high-performance computing (HPC). TSMC's advanced packaging technologies, such as CoWoS (Chip on Wafer on Substrate) and SoIC (System on Integrated Chips), are vital to the future of the chip industry.
Recent reports have highlighted TSMC's efforts to expand its packaging capabilities to meet the growing demand from major players such as Apple, AMD, and NVIDIA. Their innovative 3D packaging and fan-out wafer technologies not only break through performance limits but also reduce the physical space requirements of AI-driven systems. For example, TSMC's Longtan advanced packaging factory has reached full capacity, and the company is currently focusing on expanding its Zhunan AP6 factory to meet the growing demand for ultra-efficient chip stacking.
A notable development is TSMC's recent cooperation with Amkor Technology to establish an advanced packaging factory in Peoria, Arizona, in line with the goals of the U.S. CHIPS Act. This move marks a significant shift in the semiconductor landscape as it helps reduce U.S. reliance on Asian packaging operations, especially those from Taiwan, China, and South Korea. The Arizona factory will focus on fan-out wafer packaging, a key technology used in popular devices such as Apple's iPhone and MacBook.
The strategic location of the factory near TSMC's Phoenix factory reflects the growing importance of packaging in semiconductor manufacturing, an area previously dominated by overseas production.
In addition, TSMC's SoIC technology is rapidly gaining attention. It provides a 3D chip stacking solution that AMD has adopted in its MI300 AI chips, and it is expected to become a key component in Apple and NVIDIA's future high-performance chips. Apple's upcoming M4 Ultra, set to be launched in late 2024, will use 3D packaging technology to build AI-based server CPUs.
In conclusion, TSMC's advanced packaging efforts not only break the limits in terms of chip performance but also play a crucial role in shaping the future of semiconductor production. As the company continues to expand its production capacity and capabilities, it is fully capable of meeting the growing demand of the AI and HPC markets while also contributing to the geopolitical reshaping of the global semiconductor supply chain.
——South Korea: Promoting Packaging Technology and Material Innovation
South Korea, home to major semiconductor giants such as Samsung Electronics and SK Hynix, is also stepping up efforts in advanced packaging innovation. Samsung, a global leader in memory chips and logic devices, has been at the forefront of 3D packaging technology, particularly in Through-Silicon Vias (TSV) and 2.5D/3D IC integration. The company has invested heavily in developing next-generation packaging solutions to support AI, 5G, and HPC applications, helping it maintain a competitive edge over rivals like TSMC.
SK Hynix mass-produces 321-layer NAND flash memory: SK Hynix announced the start of mass production of the world's highest 321-layer 1Tb TLC 4D NAND flash memory and plans to supply it to customers from the first half of next year.
Samsung expands advanced packaging production: Samsung Electronics is expanding domestic and foreign investments to strengthen its advanced semiconductor packaging business, including factories in Suzhou, China, and Cheonan, South Korea.
Samsung Electronics has recently taken a number of important initiatives in the global advanced packaging field. Firstly, Samsung is expanding its domestic and foreign investments, especially in its factory in Suzhou, China. Samsung signed a contract worth about 20 billion won (approximately 104 million yuan) for the purchase and installation of semiconductor equipment to expand the production capacity of this base. As Samsung's only overseas testing and packaging production base, this expansion will help improve packaging process levels and production efficiency.
In South Korea, Samsung is also actively expanding its packaging facilities. The company signed an agreement with South Chungcheong Province and Cheonan City to build an advanced HBM packaging factory in Cheonan, covering an area of 280,000 square meters, which is expected to be completed in 2027. In addition, Samsung is building the Advanced Packaging Lab (APL) in Yokohama, Japan, focusing on the research and development of next-generation packaging technologies to support high-value chip applications such as HBM, artificial intelligence (AI), and 5G technologies.
These expansions are seen as key strategies for Samsung to narrow the technological gap with SK Hynix. As the packaging method of HBM4 shifts from the traditional horizontal 2.5D approach to vertical 3D stacking, Samsung is developing advanced technologies such as hybrid bonding to meet customers' increasingly personalized needs. Industry insiders point out that Samsung hopes to achieve a breakthrough with the 6th generation HBM and will continue to lead in packaging technology and production capacity in the future.
South Korea's ISC launches WiDER-G test socket: South Korea's ISC has launched the world's first test socket WiDER-G applicable to glass substrates, which can also be used for testing advanced packages such as CoWoS.
South Korean government invests in advanced packaging technology research and development: South Korea's Ministry of Trade, Industry and Energy announced the signing of a memorandum of understanding with 10 semiconductor-related enterprises and institutions including Samsung Electronics and SK Hynix, planning to invest 274.4 billion won from 2025 to 2031 to develop advanced semiconductor packaging technologies.
South Korea launches "Semiconductor Advanced Packaging Leading Core Technology Development Project": The South Korean government has launched a major packaging technology research and development project, planning to invest 300 billion to 500 billion won in the next 5-7 years to help enterprises quickly catch up with international leading enterprises in the field of advanced packaging.
In addition to technological innovation, South Korea is also investing heavily in materials and equipment required for advanced packaging. This includes the development of new packaging substrates, bonding materials, and advanced interconnection technologies.
The 2024 Advanced Packaging Technology and Materials Forum will be held in Suzhou on December 25-26. Hosted by ASIACHEM Consulting, this forum will focus on semiconductor advanced packaging technologies and materials, and jointly discuss the development prospects of the advanced packaging industry, the latest technological progress, challenges faced, and future development trends.
Speeches
Challenges and Solutions of China's HBM Market Development Trends to Packaging Technology
—— Asia-Pacific Core Valley Research Institute
Overview of the Advanced Packaging Market
—— SEMI
Research on Key Technologies for Advanced Packaging of Ultra-Integrated Chiplets
—— China Electronics Technology Group
Introduction to Silica Sol for CMP Slurry in Wafer Manufacturing
—— Yongjiang Laboratory
Title to be determined
—— Tongfu Microelectronics Co., Ltd.
Main Failure Mechanisms and Analysis Methods of Advanced Packaging
—— The Fifth Electronics Research Institute of the Ministry of Industry and Information Technology
Research Progress and Challenges in Wafer-Level Warpage Process Simulation Methods
—— Beijing University of Technology
EDA Accelerates Advanced Packaging Design and Simulation for Chiplet Integrated Chips
—— Dr. Huang Xiaobo, Sigrity
Relevant Applications of Chiplet Technology in Packaging Level
—— Suzhou Ruijie Microelectronics Group Co., Ltd.
Key Polymer Materials for High-Density Integrated Circuit Manufacturing and Advanced Packaging
—— Institute of Chemistry, Chinese Academy of Sciences
Negative Thermal Expansion Materials and Their Applications in Advanced Packaging
—— Xi'an Jiaotong University
Development of Advanced Packaging Industry in Nantong Economic and Technological Development Zone
—— Nantong Economic and Technological Development Zone
The 2024 Photomask and Photoresist Technology & Market Forum will be held in Suzhou on December 27, 2024, hosted by ASIACHEM Consulting. This conference will gather leading enterprises, technical experts, scholars and industry analysts in the semiconductor industry, focusing on the key role of photomasks and photoresists in China's and even the global semiconductor industry chain, to jointly discuss the development prospects, latest technological progress, challenges and future trends of the photomask and photoresist industry.
Speeches
Current Status and Development Prospect of Semiconductor Mask Industry
—— China Resources Microelectronics
Application and Development Trend of Photoresist in EUV Technology
—— Shanghai Advanced Research Institute, Chinese Academy of Sciences / Shanghai Synchrotron Radiation Facility
Global Photolithography Materials Market Analysis
—— Linx Consulting
R&D and Industrialization of High-Resolution Photoresist
—— University of Chinese Academy of Sciences / National Science & Technology Tianji Company
Electron Beam Lithography Nanomanufacturing and Applications
—— Fudan University
Title to be determined
—— Nanjing Guanshi Technology Co., Ltd.
Discussion on Semiconductor Photoresist Technology and Progress of Sino-Italian Huaxin
—— Fuyang Sino-Italian Huaxin New Materials Technology Co., Ltd.
Development Progress of Nanoimprint Lithography Resist
—— Xuzhou Bochang Information Chemicals Co., Ltd.
—— College of Chemistry, Beijing Normal University
Application and Challenges of Photoresist Supporting Reagents
—— Zhenjiang Runjing High-Purity Chemical Technology Co., Ltd.
Progress and Development of Photolithography Mask Manufacturing and Testing Technology
—— Suzhou Jingce Core Material Technology Co., Ltd.
Title to be determined
—— Weili International Technology & Trade (Shanghai) Co., Ltd.
Localization Path and Technological Breakthrough of High-End Photomasks
—— Shenzhen Qingyi Optoelectronics Co., Ltd. (to be confirmed)
Development and Application Progress of Domestic High-End Quartz Materials for Semiconductor Lithography, Metrology and Masks
—— Changfei Quartz Technology (to be confirmed)
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About ASIACHEM Consulting
ASIACHEM Consulting is a leading domestic industrial think tank in the fields of emerging energy and materials. Founded in 2008 in Pudong, Shanghai, its business scope includes consulting research, conference training, and industrial intermediary services. It focuses on emerging energy and materials industries such as coal chemical industry, high-end petrochemicals, photovoltaics, hydrogen energy and fuel cells, bioenergy materials, semiconductors, and energy storage.