The move could affect several customers and has sparked concerns over a potential AI supply chain crunch.
PSPI is critical in forming RDL (Redistribution Layer) insulation layers in advanced packaging such as HBM and CoWoS. In wafer-level packaging (WLP), PSPI’s photosensitivity and insulation simplify complex multilayer processes like 2P2M and 4P4M, making it essential for many advanced applications.
The PSPI sector has very high entry barriers, with Japanese and American firms dominating the high-end segment, especially for sub-28nm nodes. Current industry leaders include Japan’s Toray, Fujifilm, Asahi Kasei, and HD MicroSystems, which is based in the US and is a DuPont-Hitachi joint venture.
Amid the AI-driven surge in advanced packaging demand, Asahi Kasei’s production hasn’t been able to keep up, which is causing supply shortages and has raised concerns for major players in the advanced packaging sector, like Taiwan’s TSMC, ASE, and Innolux.
Industry insiders believe that TSMC will likely get priority access from Asahi Kasei, keeping the impact low but for the likes of ASE, however, it could cause serious problems at a time when it is aggressively scaling its packaging capabilities.
With strong AI chip demand from NVIDIA stretching TSMC’s CoWoS capacity, ASE has reportedly gained overflow orders in the fourth quarter of 2024. ASE had planned to reach a monthly CoWoS advanced packaging capacity of 10,000 wafers by 2025, aiming to double related revenue to over $1 billion in 2024.
