Interview: Qnity's Taiwan investment to focus on advanced packaging, CPO, and cooling - digitimes

As Taiwan emerges as the core of the global AI hardware supply chain, Qnity is expanding its production capacity investment in the region, focusing on advanced packaging, CPO, and cooling technologies... Read original →

Qnity’s intensified investment in advanced packaging, CPO, and thermal solutions in Taiwan, China reflects the hard physical limits of AI compute scaling. Advanced packaging is no longer optional—it forces co-evolution across EDA tools, dielectric materials (e.g., DuPont), and test infrastructure. CPO integration disrupts traditional SerDes and silicon photonics supply chains, while thermal management dictates yield ceilings for 3D-stacked dies. Over-concentration in Taiwan, China boosts efficiency but heightens exposure to export controls and seismic risks—mandating backup capacity in Malaysia or Vietnam. In response, TSMC will likely tighten CoWoS IP control, while Intel and Samsung may leverage U.S. CHIPS Act subsidies to build 'Taiwan-alternative' nodes. Within 18 months, capex for advanced packaging will outpace front-end equipment growth, yet redundancy—not just performance—will become a non-negotiable for top-tier AI hardware buyers.