TAIPEI (Taiwan News) — Demand for artificial intelligence chips is accelerating growth across the semiconductor industry, with advanced packaging emerging as one of the fastest-expanding segments and a major opportunity for Taiwan’s supply chain.
A recent report by Counterpoint Research shows that the global Foundry 2.0 market, which includes wafer fabrication as well as related processes such as packaging, testing, and photomask production, reached NT$10.26 trillion (US$320 billion) in revenue last year, up 16% from the previous year. Growth was driven largely by steady demand for AI GPUs and AI-specific chips, which rely on both advanced manufacturing processes and advanced packaging technologies, according to CTEE.
The report highlights a structural shift in the semiconductor industry, with AI demand no longer boosting only front-end wafer fabrication. Instead, it is lifting the entire semiconductor chain, particularly packaging and testing.
These are increasingly key factors influencing chip performance, system integration, and production timelines. Competitiveness now depends on a company’s ability to coordinate capabilities across the semiconductor supply chain.
TSMC remains the main growth engine of the Foundry 2.0 ecosystem. This year, TSMC’s advanced packaging capacity is expected to remain tight.
As a result, outsourced semiconductor assembly and test providers such as ASE, its subsidiary Siliconware Precision Industries, and Amkor Technology are taking on spillover orders.
Several Taiwanese equipment suppliers are also expected to benefit from the trend, including Grand Process Technology, All Ring Tech, Gallant Micro Machining, and Scientech. Industry attention is expected to remain focused on Chip-on-Wafer-on-Substrate, an advanced packaging technology developed by TSMC, particularly its CoWoS-S and CoWoS-L variants, according to Business Next.
CoWoS-S, which uses a silicon interposer, is currently the mainstream version of the technology but is relatively expensive to produce. CoWoS-L uses a redistribution layer with localized silicon interconnects, allowing more high-bandwidth memory stacks to be integrated while reducing costs compared with silicon interposer-based designs.
Industry sources say advanced manufacturing and advanced packaging are becoming dual growth engines. As packaging and testing gain importance, the semiconductor industry is shifting toward the more integrated Foundry 2.0 model, with advanced packaging emerging as a key battleground for capacity expansion.
