TSMC’s Advanced Packaging Surge Drives Boom in Substrate-Like PCB Demand

TSMC is accelerating its advanced packaging capacity to meet AI chip demand, pulling substrate-like PCB makers deeper into its supply chain. The foundry giant’s CoWoS and InFO expansion is straining interconnect substrates, creating openings for makers of high-density, substrate-like PCBs that bridge traditional PCBs and IC substrates.

TSMC’s advanced packaging capacity, particularly for CoWoS, is projected to double again in 2025 after doubling in 2024. This relentless scaling, driven by AI chips from Nvidia, AMD, and others, has exhausted existing IC substrate supply. Substrate-like PCB makers, which produce boards with fine lines and microvias comparable to package substrates, are now being qualified for CoWoS interposers and high-density modules. The shift is fostering new alliances and technology transfers, as TSMC seeks to diversify its supplier base beyond traditional ABF substrate giants.

The demand pull is spurring investments in substrate-like PCB technology, blending HDI any-layer and modified semi-additive processes to achieve line/space below 15μm. This segment, sometimes called ‘SLP,’ is crucial for high-end packaging bridges and EMIB-like structures. With AI server buildouts and edge AI devices expanding, substrate-like PCB manufacturers are racing to add capacity and refine yields. The boom is also creating pricing power and multi-year visibility for qualified suppliers, a striking shift from the traditionally cyclical PCB industry.

For OEMs and engineers sourcing from LT CIRCUIT, the packaging surge reinforces the strategic importance of Substrate Like PCBs and IC Substrate PCBs. These advanced boards, with their fine features and high layer counts, are directly aligned with the interconnect needs of TSMC’s CoWoS and next-generation chiplet designs.