Advanced chip packaging, a niche semiconductor process dominated by TSMC (95% market share), has become a critical bottleneck for AI hardware. US efforts to reduce reliance on Taiwan failed as a $1.1B packaging R&D center was scrapped by the Trump administration, leaving AI supply chains precarious. This highlights the strategic importance of semiconductor packaging beyond chip fabrication.
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- ›TSMC Market Share in Advanced Packaging: ~95%
- ›CoWoS Production Shortfall vs Demand: ~30%
- ›Target this Data: TSMC accounts for ~95% of advanced chip packaging; CoWoS production is 30% short of demand.
- ›Target this Nodal Body: Taiwan Semiconductor Manufacturing Company (TSMC) - also note Amkor, Intel, Applied Materials as US alternatives.
- ›Target this Legal Point: CHIPS and Science Act 2022 allocated over $50 billion for domestic chip production; $1.1B proposed for packaging R&D center.
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