Advanced chip-packaging revenue is forecast to overtake that of the traditional route for the first time in 2026, with capital spending nearing $28 billion, according to Yole Group.

Taiwan’s TSMC dominates chip-on-wafer-on-substrate (CoWoS) technology, and its capacity limits are pushing customers toward alternative suppliers. Nvidia is providing billions of dollars in financing to expand CoWoS capacity at SPIL, a unit of Taiwan’s ASE. Powertech plans to invest $400 million in an advanced-packaging joint venture with Broadcom in Singapore, with production possibly starting in 2028.