TSMC Advances Chip Packaging Technology to Boost AI Performance by 2027

Taiwan Semiconductor Preps New Chip Tech To Supercharge AI Performance By 2027 - Taiwan Semiconductor (NYSE:TSM)

Taiwan Semiconductor Manufacturing Co TSM is close to finalizing the specifications for a new approach to chip packaging that will meet the demand for more powerful artificial intelligence chips. The Taiwanese contract chipmaker plans to start small production volumes around 2027, Nikkei Asia reported Tuesday. Taiwan Semiconductor's new technology, known as "panel-level" advanced chip packaging, will use a square substrate to accommodate more semiconductors and thus boost computing performance versus the usual 300-millimeter round wafers. Also Read: China Hits US-Made Chips With Tariffs, But Those Outsourcing To Taiwan Semiconductor Exempt At a White House press conference on Monday, Nvidia Corp NVDA committed $500 billion to building AI infrastructure in the U.S. Nvidia is partnering with Taiwan Semiconductor on the four-year initiative. Production of Nvidia's Blackwell chips is already underway at Taiwan Semiconductor's Phoenix facility, with assembly operations planned for Texas. Advanced Micro Devices Inc AMD chief Lisa Su confirmed Tuesday that the company will manufacture more AI servers in the U.S. and begin chip production at Taiwan Semiconductor's Arizona facility. For context, President Donald Trump shared plans to slap tariffs on imported semiconductors on Sunday. However, he promised flexibility with some companies in the sector. Trump stressed the country's focus on the domestic production of chips and semiconductors. The benchmark S&P 500 index has lost 8% in value since Trump took office on Jan. 20. Additionally, the tariffs could affect the demand-supply balance by making products dearer, thereby affecting companies' profit margins. The tech sector is already reeling from concerns over the sustainability of the massive AI technology investments. Taiwan Semiconductor reported first-quarter revenue growth of 41.6% to 839.25 billion New Taiwan dollars ($25.5 billion). In March, key contract chipmaker chief C.C. Wei announced an additional $100 billion investment in U.S. chipmaking (on top of $65 billion in April 2024) The investment followed Trump's verbal attacks on Taiwan "for stealing" the U.S. semiconductor business, which led to massive trade deficits for Washington. Price Action: TSM stock is down 0.06% to $155.75 premarket at the last check on Wednesday. Read Next: Palantir Stock Jumps 9% After NATO Adopts AI System For Military Ops Image: Shutterstock TSMTaiwan Semiconductor Manufacturing Co Ltd$157.871.30%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum53.93Growth81.95Quality97.60Value50.44Price TrendShortMediumLongOverviewAMDAdvanced Micro Devices Inc$96.482.10%NVDANVIDIA Corp$112.121.27%Market News and Data brought to you by Benzinga APIs

TSMC advances in next-gen packaging for Nvidia, Google AI chips- Nikkei By Investing.com

Investing.com-- Taiwan Semiconductor Manufacturing Co, or TSMC, is close to finalizing specifications for an advanced approach to chip packaging in order to meet demand for more power artificial intelligence chips, Nikkei Asia reported on Tuesday. The world's largest contract chipmaker is developing new technology allowing it to accommodate more semiconductors within a single chip and improve computing performance, Nikkei reported, citing two sources with knowledge of the matter. TSMC is targeting small volumes of production by around 2027, the report said, and is building a production line in the Taiwanese city of Taoyuan. Chip packaging is among the final steps of chip production, where semiconductors are encapsulated in a supporting case- a substrate- to integrate them into an electronic system. TSMC's new packaging method will involve using a square substrate that can potentially accommodate more semiconductors, as opposed to current industry standards for a round substrate. Development of new packaging technologies comes amid a greater demand for computing power from the AI industry, as generative AI expands its capabilities. TSMC's advanced CoWoS packaging technology entails the integration of more semiconductors into a single chip, greatly increasing its processing power. This has been crucial for AI applications, with majors such as Nvidia (NASDAQ:NVDA), Broadcom (NASDAQ:AVGO), Amazon (NASDAQ:AMZN), Google (NASDAQ:GOOGL), and AMD (NASDAQ:AMD) all relying on the technology for their chips. TSMC has benefited greatly from increased chip demand over the past two years, as global companies piled into AI to gain an edge in the fast-growing industry. The Taiwanese chipmaker is the world's biggest contract chipmaker and is a key player in the global chip industry.