To regain its global lead in semiconductor manufacturing, America’s largest chipmaker plans to quadruple capacity for its most advanced chip packaging services by 2025, including establishing a new facility in Malaysia. This marks the company first overseas facility for advanced 3D chip packaging, with an additional chip assembly and testing factory built in Kulim as part of a $7 billion expansion in Malaysia.
Advanced chip packaging technology combines different chips into a single package, increasing computing power and reducing power consumption. Malaysia is poised to become America’s largest chipmaker’s largest production base for 3D chip packaging, although the company has yet to specify the start of mass production at the Penang facility.
Global tech companies and the US government have committed to utilizing America’s largest chipmaker advanced packaging technology, which will also be integrated into its new central processing unit (CPU) for personal computers. It is set to be shipped this year. Previously considered less crucial and technologically demanding than chip manufacturing, chip packaging has gained importance in pursuing more powerful chips, as traditional approaches face limitations in squeezing more transistors into smaller areas.
The recent surge in generative AI has further heightened interest in advanced chip packaging.