[News] Two Major Chinese Firms Launch Billion-Dollar Advanced Packaging Projects: How Are Global Giants Progressing?

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Driven by the massive demand for AI chips, advanced packaging is in short supply, and the development of three major advanced packaging technologies CoWoS, SoIC, and FOPLP is booming. In addition, two major billion-dollar projects in China have made recent progress, further advancing the region’s advanced packaging and testing industry.

According to estimates from TrendForce, revenue from 2.5D packaging services offered by foundries is expected to grow by over 120% annually by 2025. Although this segment will account for less than 5% of overall foundry revenue, its importance is steadily increasing.

HT-Tech and Tong Fu Advance Billion-Dollar Advanced Packaging Projects

On September 22, the second phase of the HT-Tech Nanjing Integrated Circuit Advanced Packaging and Testing Industrial Base project broke ground in the Pukou District of Nanjing.

The first phase of this project began production in July 2020, achieving a production value of 2.9 billion yuan in 2023. HT-Tech Group has decided to invest another 10 billion yuan to launch the second phase, aiming to build 200,000 square meters of factories and supporting facilities, introduce high-end production equipment, and create an internationally advanced integrated circuit packaging and testing production line. The products will be widely used in memory, RF, computing power, AI, and other fields.

In addition, two sub-projects of Tongfu’s advanced packaging base have also made progress. Construction of the Tongfu Tongda Advanced Packaging Base project has officially begun, and on the same day, the first piece of equipment for the second phase of Tongfu Tongke’s Memory project was installed.

The total investment in the Tongfu Tongda Advanced Packaging Base project is 7.5 billion yuan, covering 217 acres. The project is expected to be fully operational by April 2029, focusing on communications, memory, computing power, and other application areas, with a particular emphasis on multi-layer stacking, flip-chip, wafer-level, and panel-level packaging, all key products supported by national policy.

The second phase of the Tongfu Tongke Memory project adds 8,000 square meters of cleanroom space, and once operational, will provide 150,000 wafers per month. Additionally, 160 million yuan will be invested in equipment, primarily critical for the mass production of high-end products such as embedded FCCSP and uPOP, better meeting the domestic demand for high-end memory products in mobile phones, solid-state drives, servers, and more.

Progress in Advanced Packaging by TSMC, Amkor, and ASE

After purchasing the fourth factory of Innolux in Southern Taiwan Science Park (STSP) in mid-August, TSMC has swiftly begun construction, aiming to have the first phase of the new factory and equipment ready before the Chinese New Year in 2025. TSMC has integrated the new facility into its CoWoS production plan, striving to double total capacity by 2025.

TSMC expects CoWoS capacity to continue expanding rapidly through 2026, with an annual compound growth rate of over 50% from 2022 to 2026.

In terms of expanding CoWoS capacity, TSMC is also strengthening its cooperation with OSAT (Outsourced Semiconductor Assembly and Test). It is reported that TSMC has outsourced the critical CoW process in the front-end and the WoS process in the back-end to SPIL (a subsidiary of ASE Technology Holding) and Amkor.

At Amkor, the company has reportedly completed investments to expand the 2.5D advanced packaging capacity at its K5 factory in Songdo, Incheon, South Korea, tripling its capacity compared to the second quarter of last year.

At ASE, plans are underway for the Central Taiwan Science Park’s main plant and its second factory. Additionally, ASE’s wholly-owned subsidiary SPIL recently repurchased the Tanzi Factory. Furthermore, existing factories, such as the one in Zhongshan, are being reallocated. Once the cleanrooms are complete, equipment installation will begin, increasing capacity by at least 20%.
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(Photo credit: TSMC)