News

Broadcom qualifies ASE, SPIL, and Amkor for advanced packaging to mitigate TSMC capacity constraints

Thursday, January 1, 2026 at 09:57 AM

Broadcom is reportedly qualifying OSAT partners including ASE Technology, SPIL, and Amkor for advanced packaging services to reduce dependence on TSMC's CoWoS capacity. This shift aims to secure supply chain stability for Google's TPU production ramp.

Context

Amazon is shifting the advanced packaging of its Trainium AI chips from TSMC to major outsourced semiconductor assembly and test (OSAT) providers ASE and Amkor. This transition centers on the use of CoWoS-R technology, which utilizes organic substrates to facilitate easier outsourcing compared to traditional silicon interposers. The move is designed to bypass TSMC's persistent CoWoS capacity bottlenecks as AWS scales its custom silicon footprint to compete with NVIDIA. By 2025, ASE is projected to handle 40-50% of TSMC’s outsourced advanced packaging orders, while Amkor is expected to join the Trainium supply chain in 2H26. This diversification follows a record 1.476 million unit shipment estimate for Trainium chips in 2026. Additionally, Amkor's recent $7 billion investment in its Arizona facility underscores a broader strategy to localize high-volume advanced packaging for domestic cloud giants, ensuring a more resilient and scalable production timeline for Trainium3 and future iterations.

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