AMD to promote packaging ecosystem

AMD is investing $10 billion in Taiwan’s microchip ecosystem over the next three years to expand advanced packaging capacity, targeting AI-driven demand. The funding will support elevated fan-out bridge (EFB) technology alongside existing chip-on-wafer-on-substrate (CoWoS) solutions, ensuring supply for 2026–2029. CEO Lisa Su stated the investment aligns with partners to secure capacity, noting EFB’s potential as a cost-effective alternative to TSMC’s CoWoS, which faces supply constraints due to AI chip demand. The initiative includes collaborations with Taiwanese firms like ASE Technology, Siliconware Precision Industries, and Powertech Technology for EFB development, alongside substrate suppliers Unimicron Technology, Nan Ya Printed Circuit Board, and Kansas Interconnect. Su acknowledged TSMC’s strong CoWoS progress but emphasized proactive planning to avoid future shortages. She dismissed skepticism about AI demand, comparing it to the ‘third inning’ of a nine-inning game, signaling sustained growth opportunities. EFB technology promises higher interconnect bandwidth, improved power efficiency, and cost advantages over traditional silicon interposers, mirroring Intel’s embedded multi-die interconnect bridge approach. AMD’s strategy balances EFB and CoWoS investments based on evolving demand, with local partners accelerating Taiwan’s role in advanced packaging. The move underscores AMD’s commitment to addressing AI infrastructure needs while diversifying supply chains beyond TSMC’s dominant CoWoS capacity.