2026-01-19 02:29Summary of Conference Call on Advanced Packaging in the Semiconductor Industry Industry Overview - The global advanced packaging market is projected to exceed $79.4 billion by 2029, with significant contributions from leading companies like TSMC, which is expected to increase its revenue share to around 10% [3][1] - The advanced packaging sector is experiencing a shift from traditional processes to high-performance engines, driven by technological upgrades [1][5] Key Insights and Arguments - Technological Advancements: New technologies such as multi-chip integration are enhancing AI chip performance, with the value of a single COS L chip reaching $15,000 to $17,000, significantly higher than traditional packaging [1][5] - Price Increases: The packaging industry has seen substantial price hikes, with companies like ASE announcing a 5% to 20% increase in backend wafer packaging service prices starting Q1 2026, driven by high-end demand and rising raw material costs [1][6] - Domestic Chip Development: The domestic computing chip market is expected to see a surge in shipments in 2026-2027, which will accelerate the development of the localized supply chain and create significant investment opportunities in the new packaging sector [1][7] Company-Specific Developments - Changdian Technology: The company has achieved mass production of its XDFOI product line, covering advanced fields such as 2.5D/3D heterogeneous integration. Its FOY technology supports multi-chip integration at the 4nm node, with a monthly production capacity expected to reach nearly 3,000 units this year [1][9] - Tongfu Microelectronics: The company is deepening its collaboration with AMD and expanding its production lines in various locations to drive technological upgrades and capacity expansion [4][10] - Yongxi Electronics: The company has made early investments in 2.5D packaging technology and is actively advancing its projects in Ningbo and Malaysia [11][1] Market Trends and Opportunities - Testing Equipment Market: The demand for testing equipment is rapidly increasing due to the AI era, with potential for domestic companies to emerge as billion-dollar enterprises in this sector [4][19] - Third-Party Testing Companies: Companies like Weicai Technology are gaining traction as high-end chip testing needs rise, indicating a significant growth potential for third-party testing firms [12][1] - Investment Recommendations: Companies such as Huicheng Co. and Changdian Technology are highlighted for their strong positions in the AI chip, storage chip, and automotive electronics sectors, making them attractive investment opportunities [8][1] Additional Insights - The advanced packaging equipment market is still in its early stages but is expected to grow rapidly, with significant opportunities for differentiation from traditional equipment [15][16] - The packaging materials market is evolving, with companies traditionally focused on wafer materials now entering the packaging materials space, indicating a trend towards diversification and growth potential in this area [17][1]