Why advanced packaging is suddenly everyone’s priority: a look at the latest U.S. and EU investments.
Advanced packaging just had its loudest wake-up call yet. In the span of a few weeks, Nokia, Amkor, TSMC, NVIDIA, and the US Department of Commerce all made moves that treat packaging capacity, not just chip fabrication, as a strategic asset worth billions of dollars. Here, Gabriela Pereira, Senior Technology & Market Analyst, Semiconductor Packaging at Yole Group, breaks down what changed, who is placing the bets, and why the back end of the chip supply chain is finally getting the attention the front end has enjoyed for years.
This analysis is based on Yole Group’s collection of semiconductor packaging reports and monitors. Discover the full analyses from Yole Group now!
For years, the conversation about semiconductor “reshoring” centered almost entirely on the front end: advanced packaging was treated as an afterthought. That is changing fast. A wave of deals and government commitments in the last months suggests the US and Europe are finally waking up to a structural gap: the overwhelming majority of advanced packaging capacity still sits in Asia, even as AI hardware demand explodes. Leading-edge advanced packaging capabilities stay concentrated in Taiwan, and in South Korea for memory devices. China is rapidly scaling mainstream packaging, Japan holds materials and equipment chokepoints, and the US and Europe are building selective onshore capability, still mostly focusing on niche markets like defense and aerospace. The barrier to onshoring is not only the capital investment needed, but also the absence of complete local materials, chemistry, and equipment ecosystems, plus a manufacturing-experienced workforce.
Gabriela Pereira
Senior Market & Technology Analyst, Yole Group
Advanced packaging spent two decades as the line item nobody fought over. That started shifting a few years ago, but in the last few weeks alone, chip designers, foundries, OSATs, and governments have all placed the same bet at once and none of them are betting small.
Currently, domestic efforts in the US and EU target low- to medium-volume and niches like defense, medical and automotive rather than high-volume parity.
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Gabriela Pereira Senior Market & Technology Analyst, Yole GroupAdvanced packaging spent two decades as the line item nobody fought over. That started shifting a few years ago, but in the last few weeks alone, chip designers, foundries, OSATs, and governments have all placed the same bet at once and none of them are betting small.
