Advanced packaging technology refers to the packaging of multiple chips in horizontal or vertical arrangements to increase overall transistor density. As technology progresses, packaging techniques have evolved from traditional single-chip packaging to advanced packaging that integrates multiple chips for higher transistor density and performance. Compared to traditional packaging, advanced packaging requires more equipment and techniques from front-end semiconductor processes, such as Through-Silicon Via (TSV) and Redistribution Layer (RDL). The industry even describes these new processes as "mid-end”. As a result, leading outsourced semiconductor assembly and test (OSAT) companies such as ASE and Amkor are investing in advanced packaging. Leading foundries such as TSMC, Intel and Samsung Electronics are also key suppliers of advanced packaging. 

TSMC and Samsung Electronics established advanced packaging R&D centers in Japan in 2022 and 2024, respectively. An analysis of the strategy mapped out by the Ministry of Economy, Trade and Industry (METI) to attract foreign companies to set up advanced packaging R&D centers in Japan and a review of the subsidy programs offered by the New Energy and Industrial Technology Development Organization (NEDO) in Japan help to understand the trends in advanced packaging technology and industry development. 

A. METI's Strategy: Strengthening of International Cooperation

The Japanese government has acted swiftly to expand domestic production capacity in the semiconductor manufacturing industry. In June 2021, METI released the "Semiconductor and Digital Industry Strategy", outlining Japan's semiconductor development strategy and direction for international cooperation. For advanced packaging technology, METI's short-term strategy involves the establishment of domestic advanced packaging R&D centers. In the medium to long term, the focus is on the development of 2.5D/3D advanced packaging technologies and advancing optoelectronic integrated chips and next-generation communications chip technologies to promote applications such as green data centers, base stations, and communication products. 

Some of the technology development projects under METI's advanced packaging strategy are subsidized through the Post 5G Fund, managed and operated by NEDO. The Post 5G Fund is a large-scale project that started in the 2020 fiscal year, with a current overall subsidy budget of 795 billion yen. This project mainly funds the development of Post 5G communication systems (including components) and the semiconductors in them. Statistics on advanced packaging processes and components show that hybrid bonding such as D2W (die-to-wafer), W2W (wafer-to-wafer), large-area packaging, and micro-bump bonding technologies are the most prevalent. In terms of materials technology, the focus is on molding/packaging materials (for solid-state and panel-level packaging (PLP)) and high thermal conductivity/heat dissipation materials.

B. Semiconductor equipment and materials are prioritized for development because of Japan’s strengths 

In light of Japan’s importance as a supplier of semiconductor equipment and materials, the equipment and materials related to advanced packaging have been highlighted by Japanese manufacturers. Japanese equipment manufacturers have recently focused on new technology, product development and cooperative alliances. For example, Tokyo Electron and SCREEN have been developing laser debonding and coating/drying equipment for advanced packaging processes. USHIO has announced a partnership with Applied Materials in digital lithography for 3D packaging. Japanese material manufacturers are focusing on capacity expansion and establishing new R&D centers. For instance, Resonac Semiconductor Materials and ADEKA both announced plans in 2024 to expand production capacity for advanced semiconductor materials and establish new R&D centers in the United States and Japan, respectively. 

The importance and market share of advanced packaging technology is set to continue to increase in tandem with the development of generative AI. In the future, costs and yields will be challenges shared by advanced packaging manufacturers and relevant supply chain companies. This also presents a significant opportunity for Taiwanese enterprises to establish a firm foothold in next-generation packaging processes.