AMD backs Taiwan EFB packaging chain to cut CoWoS reliance

AMD’s bet on Taiwan’s EFB packaging ecosystem is a tactical maneuver to circumvent TSMC’s CoWoS bottleneck. This move pressures local OSATs like ASE and SPIL to accelerate high-density interconnect development, triggering upstream upgrades in RDL and substrate materials. However, EFB still lags CoWoS in thermal performance and signal integrity, making it unsuitable for flagship AI chips like MI300X in the near term. Regulatory risk looms: U.S. CHIPS Act restrictions could disqualify AMD’s $10B Taiwan investment from tax credits. NVIDIA will likely stick with CoWoS to preserve performance leadership, while Intel may push Foveros Direct for mid-tier AI accelerators. If EFB achieves >85% yield and design wins within 18 months, it could bifurcate the advanced packaging market into 'premium' and 'cost-optimized' tiers—forcing TSMC to loosen CoWoS allocation or risk fragmentation.