AI boom turns chip packaging into the next battleground for semiconductors

Reuters reports (Nov 6) that the race to build AI infrastructure is pouring billions into advanced chip packaging, now a critical bottleneck for the most powerful processors. TSMC dominates CoWoS capacity used by Nvidia, AMD and Broadcom; Nvidia is providing billions in financing to expand CoWoS at ASE unit SPIL, while Powertech and others push panel-level packaging as an alternative. Yole Group forecasts advanced-packaging revenue will overtake traditional packaging for the first time in 2026, with capital spending near $28 billion.