Advanced Semiconductor Packaging: Driving Moore’s Law and AI Innovation

Advanced packaging technology is vital for enhancing semiconductor performance, especially for AI. The leading technology, CoWoS, is primarily used by TSMC. Increased demand has led to capacity issues and new market entrants, supported by government localization efforts. While valuations for advanced packaging firms have risen, overcapacity might compress their multiples. Investment exposure is preferred through semiconductor equipment providers like LRCX, AMAT, and KLAC, as traditional chip-making tools are now used for packaging.