Taiwan, US, and China OSAT strategies diverge as industry shifts toward capacity expansion, supply chain restructuring, and next-generation packaging

retained text

Taiwan, US, and China OSAT strategies diverge as industry shifts toward capacity expansion, supply chain restructuring, and next-generation packaging
Abstract
DIGITIMES observes that rapid advances in AI, high-performance computing (HPC), and chiplet architectures have transformed advanced packaging from a back-end manufacturing support function into a core technology that increasingly determines chip performance, cost, yield, and supply chain resilience. The global outsourced semiconductor assembly and test (OSAT) industry is facing pressure not only to expand capacity, but also to strengthen capabilities in heterogeneous integration, advanced testing, thermal management, and design co-optimization. Taiwan, the US and China are gradually pursuing distinct development paths in response to a new phase of semiconductor competition, reflecting their different industrial foundations. Taiwan is accelerating capacity expansion through multiple channels; the US is building a new advanced packaging hub in Arizona; and China may seek to reshape OSAT competition through Huawei’s proposed “Tau Scaling Law.” In this report, DIGITIMES observes how major OSATs in Taiwan, the US, and China are handling their capacity expansions and analyzes the strengths and constraints of their different strategies.

document fetched 2026-08-05 08:41 · canonical https://digitimes.com/news/a20260731RS400/osat-capacity-expansion-packaging-supply-chain-taiwan-ase.html?chid=2