Summary of TSMC's SiC Strategy and Industry Insights Industry and Company Overview - The document focuses on TSMC (Taiwan Semiconductor Manufacturing Company) and its strategy regarding Silicon Carbide (SiC) in the context of advanced packaging and AI chip demands [1][2][3] - Other companies mentioned include NVIDIA, AMD, Google, and AWS, highlighting the competitive landscape in AI and HPC (High-Performance Computing) [22][60] Core Insights and Arguments 1. Challenges in AI Chip Design - The increasing complexity and power demands of AI chips have made traditional power delivery methods inadequate, leading to issues like IR drops and transient voltage droops [5][6] - Single GPUs now require over 1000A of current, pushing legacy power delivery systems to their limits [6][22] 2. Innovative Solutions - Foundries and OSAT providers are proposing solutions like Marvell's PIVR and ASE's VIPack to optimize power delivery and thermal performance [8][9] - TSMC's CoWoS-L platform integrates IVRs and eDTCs to enhance power stability and reduce voltage drop [12][13] 3. SiC's Role in Advanced Packaging - SiC is emerging as a critical material for high-voltage ICs and on-chip power delivery, supporting developments in BSPDN and IVR architectures [19][20] - Its unique properties, such as high thermal conductivity and mechanical strength, position SiC as a key enabler for thermal management and optical interconnects [21][51] 4. Market Dynamics - The demand for ultra-large-scale GPUs and ASICs is driving the need for advanced materials and packaging solutions [22][23] - TSMC is exploring SiC as an interposer material to meet the increasing bandwidth and power demands of AI/HPC packaging [61] 5. Competitive Landscape - TSMC's advancements in SiC could provide a competitive edge over Intel and Samsung, who are also investing in power delivery and packaging technologies [60][61] - The introduction of SiC substrates into TSMC's platforms could reshape the AI semiconductor supply chain [59] Additional Important Insights 1. Bottlenecks in Process and Packaging Technologies - The document identifies three critical bottlenecks: thermal challenges, power delivery bottlenecks, and electro-optical integration demands [26][33][35] - TSMC is addressing these through diversified packaging solutions and exploring next-gen silicon photonics [38][39] 2. Future Directions - The integration of SiC into TSMC's advanced packaging platforms like COUPE could redefine the industry's approach to thermal, electrical, and optical challenges [59] - The document emphasizes the importance of overcoming challenges related to defect density, process compatibility, and cost structure for SiC adoption [66][67] 3. SiC in Optical Applications - SiC is also highlighted for its potential in optical waveguides, particularly for AR glasses, due to its high refractive index and thermal conductivity [68][75] - The combination of SiC with Micro LED technology is seen as a promising pathway for future AR displays [77] 4. Research and Development - Ongoing research is focused on the feasibility of integrating SiC with TSV structures to enhance power integrity and thermal management [64][65] - TSMC's patent portfolio indicates a strong commitment to SiC integration in advanced packaging technologies [65] This comprehensive analysis underscores TSMC's strategic focus on SiC as a transformative material in the semiconductor industry, particularly in the context of AI and HPC advancements.

Summary of Key Points from the Conference Call Industry Overview - The conference focused on the semiconductor industry, particularly advancements in AI chips, heterogeneous integration, advanced packaging, and optical interconnect technologies, reflecting the growing importance of these areas in the market [2][3][20]. Core Findings 1. **TSMC's Capacity Expansion**: TSMC is expected to expand its CoWoS capacity to 100kwpm by the end of 2026, up from 70kwpm at the end of 2025, driven by robust demand for Cloud AI GPUs and ASICs [3]. 2. **AI Computing Demand**: AI computing requirements have surged by 10x in the past year, necessitating advancements in chip scaling, memory, and interconnect technologies [3]. 3. **3.5D Advanced Packaging**: The event highlighted significant discussions around 3.5D advanced packaging, which is anticipated to become mainstream for high-performance computing, improving cost structures and product design speeds [3]. 4. **Heterogeneous Integration**: The trend towards co-packaged optics (CPO) is gaining traction, with expectations for power consumption to be optimized by 2028, allowing for the replacement of copper in AI server integrations [3]. 5. **Testing Innovations**: The complexity of die and package designs is increasing the need for more rigorous testing at the wafer/die level to identify yield issues early [3]. Stock Recommendations - Top stock picks in the Greater China semiconductor sector include TSMC, ASE, MediaTek, Alchip, and Aspeed, all rated as "Buy" due to their structural AI opportunities [4]. Additional Insights - **Optical Interconnects**: Nvidia's advancements in networking infrastructure, particularly with its Spectrum-X CPO solution, promise significant power savings and improved signal integrity [12]. - **AI Data Center Power Consumption**: The power consumption of AI data centers is projected to rise dramatically, with examples like Meta's Hyperion data center expected to consume 2GW by 2030 [16]. - **Challenges in Advanced Packaging**: The industry faces challenges in transitioning to panel-level packaging and CoWoP technologies, which require overcoming technical hurdles related to system design and materials [30][39]. Emerging Technologies - **Silicon Photonics**: TSMC's COUPE platform aims to enhance integration of optics and electrical signaling, addressing bandwidth bottlenecks in computing performance [12]. - **GaN Technology**: GaN is highlighted for its efficiency and potential in powering AI applications, with Texas Instruments and Infineon leading developments in this area [36][38]. Conclusion - The semiconductor industry is at a pivotal point, driven by AI advancements and the need for innovative packaging and integration solutions. Companies like TSMC, Nvidia, and MediaTek are positioned to capitalize on these trends, while challenges in testing and power consumption remain critical areas for development [3][4][16][20].

S. Y. Hou, TSMC TSMC Property CHIPLETS AND ADVANCED PACKAGING/PHOTONICS Advanced CPO Integrated by CoWoS® and COUPE Advanced CPO Integrated by CoWoS® and COUPE Dr. Shang Y. Hou Director, High Performance Packaging Integration TSMC TSMC Property Outline TSMC Property • Heterogeneous chiplet integration • CoWoS® • COUPE • CPO based on CoWoS® and COUPE • Forward-looking of CPO packaging Technology Advancement for Performance Boost 200 MOS Transistors Cu/Low-K SiGe Immersion HKMG >2000 cores 7B >3000 Cores (16F ...

Summary of Key Points from the OCP APAC Summit Industry Overview - The Open Compute Project (OCP) is an industry consortium focused on redesigning hardware technology for data centers, emphasizing efficiency, scalability, and openness. It has over 400 members as of 2025, initiated by Meta in 2011 [3][2]. Core Insights and Arguments AI Data Center Innovations - The OCP APAC Summit highlighted advancements in AI hardware, infrastructure, and networking, with participation from major tech companies like Google, Meta, Microsoft, TSMC, and AMD [2][7]. - Meta is aggressively launching its Hyperion data center, which is expected to significantly benefit server ODMs like Quanta and Wiwynn [4][29]. - AMD's UALink and Ultra Ethernet are set to enhance networking capabilities, enabling larger clusters and improved performance [9][11]. Power and Cooling Solutions - The power consumption of AI servers is projected to double, with NVIDIA's GPUs expected to reach 3,600W by 2027, necessitating a shift to high-voltage direct current (HVDC) systems for efficiency [23][24]. - Liquid cooling is becoming essential for managing the thermal load of high-density AI racks, with designs evolving to accommodate this need [34][23]. Market Dynamics - The AI hardware market is transitioning from proprietary solutions to a more open, collaborative environment, benefiting specialized hardware vendors [10][11]. - The back-end networking market for AI is projected to exceed $30 billion by 2028, driven by the demand for high-bandwidth communication within AI clusters [18]. Important but Overlooked Content - The shift to panel-level processing by ASE is a critical innovation for manufacturing larger AI packages, improving area utilization and cost-effectiveness [13]. - The integration of retimers in cables is essential for maintaining signal integrity in high-density AI racks, addressing challenges posed by traditional passive copper cables [18]. - MediaTek is positioning itself as a leader in on-device AI integration, which is crucial as the demand for edge computing grows [26][30]. Company-Specific Highlights - **Delta**: Target price raised from $460 to $715 due to strong growth momentum driven by AI power needs [21]. - **Google**: Engaging with OCP to upgrade AI infrastructure, including the introduction of the Mt. Diablo power rack for efficient power distribution [24][33]. - **Seagate**: Emphasized the complementary role of HDDs alongside SSDs for high-capacity storage in AI applications [39][41]. - **TSMC**: Focused on co-development of system-level standards to support higher performance compute systems [40]. Conclusion The OCP APAC Summit underscored the rapid evolution of AI infrastructure, highlighting the importance of collaboration among tech giants to address the challenges of power, cooling, and networking in data centers. The insights gained from this event will shape the future landscape of AI technology and its supporting ecosystem.