With the rapid advancement of artificial intelligence (AI) technology, the demand for CoWoS packaging industry is surging. TSMC's CoWoS production capacity is overwhelmed by this boom, and the gap between capacity and demand is becoming more and more obvious.
According to reports, AMD's AI chip technology development has exceeded market expectations, and its new MI300 series has pushed global AI business opportunities to an unprecedented height. However, in this fierce market competition, the key element of supply, advanced packaging capacity, has become a challenge that AMD must face.
Since TSMC's CoWoS packaging capacity has been fully loaded, AMD has to find other manufacturers with CoWoS packaging capabilities to cooperate in order to meet market demand.
Why is AMD in a hurry to find other partners?
Because, in this race, whoever can grasp the pulse of advanced packaging capacity will be able to seize the opportunity in this AI chip war.
In recent years, the AI market has become so hot for all to see. With the rapid development of big data, cloud computing, Internet of Things and other technologies, the application scenarios of AI technology are constantly expanding, from intelligent speech recognition, intelligent recommendation to intelligent driving, etc., AI technology is gradually penetrating into all aspects of people's lives.
This not only provides a broad market space for AI chip companies, but also makes the commercial application of AI technology more and more extensive.
In this process, packaging technology, as a key link in the production of AI chips, is self-evident. Packaging technology directly affects the performance, reliability, and cost of chips. For AI chips, packaging technology is particularly important due to their high level of integration and the need for high-speed communication.
Among the many packaging technologies, CoWoS (Chip-on-Wafer-on-Substrate) stands out with its unique advantages. CoWoS technology packages one chip directly on another chip and then places it on a substrate, which can greatly improve the communication speed between chips and reduce power consumption.
At the same time, CoWoS technology can also achieve higher integration and smaller size, meeting the requirements of high performance, low power consumption and miniaturization of AI chips.
However, TSMC's CoWoS production capacity has long been fully loaded, which undoubtedly brings a lot of pressure to chip companies such as AMD that rely on CoWoS technology.
In order to meet the market demand, AMD had to seek cooperation with other manufacturers with CoWoS-like packaging capabilities. This also provides market opportunities for other packaging companies, such as ASE Group, Amkor, PTI and Jingyuan Electric are expected to become partners of AMD and other companies.
AMD's strategy adjustment: win-win cooperation is the key
Faced with the challenges of packaging technology, AMD adjusted its strategy in a timely manner and sought to cooperate with other vendors with CoWoS-like packaging capabilities. This move will not only help alleviate the problem of insufficient TSMC CoWoS production capacity, but also accelerate the development and time-to-market of AMD AI chips.
Through in-depth cooperation with packaging companies, AMD can better meet market demand and enhance its competitiveness.
In addition, AMD's strategic adjustment is also conducive to promoting the development of packaging companies. With the continuous expansion of the AI market, more and more chip companies have an increasing demand for packaging technology. Through cooperation with well-known companies such as AMD, packaging companies can further improve their technical level and production capacity to better meet market demand.
This win-win cooperation model is expected to become a new trend in the development of the AI industry chain. As the AI market continues to boom, the coordinated development of upstream and downstream enterprises in the industrial chain will become an inevitable trend in the future.
From chip design, manufacturing, packaging and testing, companies need to work closely together to address market challenges. At the same time, the government and industry organizations should also strengthen policy guidance and support to promote the healthy development of the AI industry chain.
In this process, packaging companies are one of the key links, and their technical level and production capacity will directly affect the efficiency and competitiveness of the entire AI industry chain. Therefore, packaging enterprises should increase investment in technology research and development and talent training, and improve their own innovation ability and level.
At the same time, in-depth cooperation with well-known chip companies such as AMD will also become an important way for packaging companies to enhance their market position.
To sum up, with the rapid development of the AI market and the intensification of competition, the coordinated development of upstream and downstream enterprises in the industrial chain will be particularly important. In the context of TSMC's CoWoS production capacity, it is a wise move for AMD to choose to cooperate with other manufacturers with CoWoS-like packaging capabilities.
This is a good market opportunity for packaging companies, but they also need to continuously improve their technical level and production capacity.