Compared to the global semiconductor market trend, the market for advanced packaging of data center AI chips is expanding significantly, from $5.6 billion in 2024 to $53.1 billion by 2030, showing a remarkable 45.5% CAGR. This packaging revenue includes contributions from AI accelerators, AI server CPUs, AI networking processors, and High Bandwidth Memory (HBM).
Technological Backbone and Future Platforms
Most of this growth will be driven by:
*2.5D Packaging: Mostly dominated by CoWoS (Chip-on-Wafer-on-Substrate) and similar technologies, which will still hold the largest revenue share by 2030.
*3D Stacking: Advanced integration is achieved through SoIC (System on Integrated Chips)/SoIC-like stacking and HBM memory stacking.
*Emerging Technologies: Future growth will increasingly be driven by revolutionary platforms such as System-on-Wafer (SoW), Co-Packaged Optics (CPO), and high-end Panel-Level Packaging, such as CoPoS (Chip-on-Panel-on-Substrate).
While CoWoS/CoWoS-like solutions currently dominate the market, their overall share will gradually decline as these high-performance alternatives mature and reach mass production.
The Strategic Imperative: Supply Chain Diversification
The major shifts in the global geopolitical and industrial landscape have made supply chain diversification the primary strategic focus for the advanced packaging industry.
In 2024, critical components—from AI accelerators to HBM and CoWoS—remain concentrated in the hands of Nvidia, SK Hynix, and TSMC. But this landscape is shifting. New technologies and suppliers are rapidly emerging, reinforced by national self-sufficiency policies and the rise of China’s domestic ecosystem. This expanding competitive landscape will create a more diversified and resilient supply chain for AI chips and advanced packaging.
Taiwan's Enduring Leadership
Despite intensifying competition from the U.S., Korea, and China, Taiwan will remain the core of advanced packaging for data-center AI chips by 2030. Anchored by its world-class semiconductor and computing ecosystem, Taiwan functions as a critical hub for both chip integration and AI rack integration. Taiwanese suppliers are expected to maintain a 70% market share of AI chip packaging for data centers by 2030.
Chapter 4 Global and Taiwans Data Center AI Chip Packaging Market Forecast
4.4 Analysis and Forecast of Major Taiwanese Players Data AI Chip Packaging Revenue
Chapter 5 Ecosystem and Market Forecast of the Data Center AI Chip Packaging Industry in Taiwan
Chapter 6 Competitive Landscape in the Data Center AI Chip Packaging Market
6.2 Competitive Landscape Among Semiconductor Segments & Companies
6.3 US-China Tension and Its Impacts on the Advanced Packaging
