Advanced Packaging

Both TSMC and ASML reported strong quarterly earnings driven by AI chip demand. However, muted Wall Street reactions highlight immense market expectations. TSMC’s profits surged 58%, with AI chips dominating revenue. ASML’s shares dipped despite positive results and revised guidance, as projections met existing expectations. This suggests the semiconductor sector faces challenges managing high investor outlooks.

Advanced packaging is becoming a critical bottleneck for AI development. This process integrates chips into functional hardware, with production heavily concentrated in Asia. Demand is surging, prompting investments from companies like TSMC and Intel. Advanced packaging enables multi-die integration, extending Moore’s Law into 3D architectures. Innovations like TSMC’s CoWoS and Intel’s EMIB are crucial for increasing AI hardware density and performance. The industry is actively pursuing 3D packaging and advanced interconnects to meet future demands.

SK Hynix is investing $12.9 billion in a new advanced packaging plant in South Korea to meet soaring AI demand. This facility will produce High-Bandwidth Memory (HBM), crucial for AI processors, enhancing performance and efficiency. The move responds to intense competition and a projected 33% annual growth in the HBM market. This strategic expansion positions SK Hynix to capitalize on the AI revolution, potentially alongside a U.S. stock listing.

Nordson Electronics Solutions will showcase its latest semiconductor manufacturing innovations at SEMICON Taiwan 2025 (September 10-12, booth i2326). They will highlight automated fluid dispensing with the ASYMTEK® Vantage® system, featuring IntelliJet® jet valves for high-volume underfill and sealing applications. Experts will also discuss plasma treatment for impurity removal and surface preparation, bolstering semiconductor package reliability. Nordson’s brands offer solutions for fluid dispensing, conformal coating, plasma treatment, and selective soldering.

Shanghai Xingshang Micro-Assembly, established in February 2025, has delivered its 500th advanced packaging lithography system, marking a significant achievement for China’s semiconductor equipment industry. Its core product excels in resolution, overlay accuracy, and exposure field. Holding a 35% global market share and a dominant 90% in China, the company’s systems cater to technologies like Flip-chip and 2.5D/3D packaging. The 500th system will be deployed at JCET’s Shenghe Microelectronics, supporting wafer-level packaging for high-performance chips.