Nvidia(US:NVDA)2025-08-06 03:33Summary of Key Points from the Conference Call Industry Overview - The discussion centers around the semiconductor packaging industry, specifically focusing on NVIDIA Corporation (NVDA) and its proposed technology shift from CoWoS (Chip-on-Wafer-on-Substrate) to CoWoP (Chip-on-Wafer-on-PCB) packaging technology [1][2]. Core Insights and Arguments 1. CoWoP Technology Proposal: NVDA is considering replacing CoWoS with CoWoP, which utilizes advanced PCB technologies like mSAP and SLP to enhance performance by eliminating the ABF substrate layer [1]. 2. Potential Benefits of CoWoP: - Simplified system structure leading to reduced transmission losses and improved NVLink interconnect range [1]. - Enhanced thermal management and lower power consumption [1]. - Decreased substrate costs, which have been increasing with each generation [1]. - Possible reduction in backend testing steps [1]. 3. Commercialization Challenges: The likelihood of CoWoP being commercialized in the medium term is assessed as low due to significant technological hurdles, including the need for finer line/space dimensions and the current limitations of PCB technology [2]. 4. Current Roadmap Conflicts: NVDA's established roadmap, which includes CoWoS-L and CoPoS, appears contradictory to the new direction of CoWoP, indicating a potential preference for more mature technologies [2]. 5. Supply Chain Implications: If CoWoP is adopted, it could negatively impact ABF substrate players as the value add from substrates may diminish, while PCB makers with advanced capabilities could benefit [7][8]. 6. Testing and Foundry Impact: CoWoP may alter the testing landscape by reducing the number of testing steps but could increase demand for board-level testing, which may lead to a shift in testing equipment spending [11][12]. Additional Important Insights 1. Market Participation: There is limited participation from high-value packaging players like TSMC in the CoWoP development, which may hinder its commercialization prospects [5]. 2. Material Considerations: The high current and voltage requirements of PCBs may exclude certain materials, suggesting that improved versions of mSAP will likely be used for platform PCBs [9][10]. 3. Investment Requirements: Significant investments in clean rooms, automation, and lithography tools will be necessary for the successful implementation of CoWoP, indicating a high barrier to entry for new players [8]. 4. NVIDIA's Leadership: Regardless of the success of CoWoP, NVDA is positioned as a leader in datacenter AI infrastructure, continuing to innovate in packaging technologies and system-level approaches [13]. Companies Discussed - NVIDIA Corporation (NVDA): Focused on advanced packaging technologies and AI infrastructure [20]. - TSMC: Noted for its limited engagement in the CoWoP technology development [12]. - ABF Material Vendors: Companies like Ajinomoto and Ibiden may face negative impacts from the shift to PCB-based technologies [7]. - PCB Manufacturers: Unimicron is highlighted as a strong player due to its involvement in advanced PCB technologies [8][10]. This summary encapsulates the key points discussed in the conference call, providing insights into the potential shifts in the semiconductor packaging landscape and the implications for various stakeholders.