Exclusive: Galatek eyes up to 200% chip growth with Malaysia packaging push

Galatek’s Malaysia-based advanced packaging expansion is a strategic countermove to U.S. export controls and tech decoupling—not merely capacity relocation. It positions Southeast Asia as an emerging hub for 2.5D/3D packaging tools, forcing upstream material suppliers (e.g., ABF substrates, TIMs) to reconfigure regional inventory and pressuring downstream OSATs on tool compatibility and talent scarcity. While sidestepping some China-related restrictions, Galatek faces rising compliance costs and potential FDP rule spillover into packaging. Competitors like ASE and Amkor may accelerate Vietnam or India plays, while Taiwan, China’s OSATs could deepen ties with local equipment vendors. Within 18 months, this will solidify a fragmented, multi-node supply chain where regional equipment density, regulatory alignment, and lead times define competitive advantage.