Chengdu Huiyang Investment on CoWoS technology leading advanced packaging, domestic OSAT is expected to benefit – Times Finance – Northern Network
[Demand for AI computing power chips is rising, and advanced packaging is expected to accelerate growth]
The rapid iteration of GPT has significantly increased the amount of parameters and training data, so computing power has become the core infrastructure in the AIGC era. Benefiting from the rapid development of AIGC, computing power demand is expected to continue to accelerate.
From 2021 to 2026, the compound annual growth rate of intelligent computing power is expected to reach 52.3%. In 2024, China’s artificial intelligence chip market is expected to reach 78.5 billion yuan, and may maintain a high growth rate in the future. Powerful AI chips require more advanced manufacturing processes to realize. As chip integration gradually approaches the physical limit, advanced packaging technology is expected to become one of the effective paths to continue Moore’s Law and develop advanced AI chips. We believe that the demand for advanced packaging is expected to increase rapidly with the rapid increase in the volume of computing power chips.
[2.5D packaging is developing rapidly, and CoWoS is expected to lead advanced packaging]
In the process of chip packaging developing from 2D to 3D, a variety of different packaging technologies have been derived. Among them, 2.5D packaging is an advanced heterogeneous chip packaging that can achieve a perfect balance from cost, performance to reliability.
Nvidia’s computing chips currently use TSMC’s CoWoS solution, which is a 2.5D multi-chip packaging technology. This solution has the advantage of providing higher storage capacity and bandwidth, and is suitable for processing storage-intensive tasks such as deep learning. , 5G network, energy-saving data center, etc.
At present, CoWoS packaging technology has become the first choice of many international computing chip manufacturers and is one of the mainstream solutions for high-end performance chip packaging. We believe that the growing demand for NVIDIA computing power chips has significantly increased the packaging demand for CoWos, and CoWos is expected to further accelerate the development of advanced packaging.
[TSMC’s CoWoS production capacity is insufficient, and domestic packaging manufacturers are expected to benefit deeply]
CoWoS is TSMC’s independent trademark for advanced packaging and is the key to getting orders from Nvidia. Products currently packaged with CoWoS are mainly distributed in the consumer and server fields, including computing power chips launched by Nvidia and others. TSMC’s orders have been abundant recently, and it is estimated that the shortage of supply will be gradually alleviated by 2024.
We believe that due to the flourishing of large models and the rapid increase in computing power demand driving HPC growth, TSMC’s insufficient production capacity may cause AI chip manufacturers to turn their attention to other OSATs. Domestic packaging manufacturers with 2.5D packaging technology are expected to benefit from this!
We have screened out the following potential targets:
Kangqiang Electronics (002119)The company’s lead frame and key equipment research and development projects for advanced packaging of extremely large-scale integrated circuits have been provided to packaging users for reliability testing. After the completion of the project, a production line with an annual output of 10 billion pieces of high-precision PRP etched lead frames will be built. The product technology level will reach the internationally advanced level and be used for extremely large-scale integrated circuit packaging. It will replace imports, eliminate risks, and increase sales when the project is accepted. More than 50 million yuan.
Tongfu Microelectronics (002156)The reply on August 1, 2022 stated that the company has layout and reserves in Chip let, WLP, SiP, Fanout, 2.5D, 3D stacking, etc.
Wenyi Technology (600520)The wafer-level packaging equipment being developed by the company is a special process equipment for advanced packaging. It can be used for packaging of third-generation semiconductor materials. Traditional packaging uses lead frames as carriers for packaging. This equipment is based on 12-inch wafers and can be directly plastic-sealed. It is suitable for Encapsulation in FoWLP form.
References:Yongxing Securities-Artificial Intelligence Series Special Report (2): CoWoS technology leads advanced packaging, and domestic OSAT is expected to benefit.pdf
