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TSMC outlines system-technology co-optimization for advanced packaging
Friday, February 27, 2026 at 02:40 AM
TSMC detailed its latest progress in advanced packaging, focusing on System-Technology Co-Optimization (STCO) for system-level manufacturing efficiency.
Context
TSMC is accelerating its transition to System-Technology Co-Optimization (STCO) to overcome the physical limitations of traditional transistor scaling. Unlike previous design methods focused on individual chips, STCO treats the entire package—including logic, memory, and power delivery—as a single integrated system. This approach is vital for the upcoming 2nm era and beyond, as it enables higher interconnect density and superior thermal dissipation for high-performance computing and AI workloads.
The shift highlights TSMC’s dominance in the advanced packaging market, particularly through its CoWoS and SoIC platforms. The foundry projects that these system-level architectures will allow for silicon interposers to expand to 3.3 times the reticle size by 2025, eventually reaching over 5.5 times by 2027. For investors, this ensures TSMC remains the indispensable partner for major AI players, leveraging a vertically integrated manufacturing model to solve the "memory wall" and "power wall" challenges currently hindering global hardware efficiency.
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