Qualcomm Orders Advanced Packaging from UMC to Compete with TSMC’s CoWoS Leadership

Recent reports indicate that Qualcomm has made a significant move by placing orders for “advanced packaging”with United Microelectronics Corporation (UMC), positioning itself as a competitor to TSMC’s long-standing dominance in this crucial sector.

Qualcomm Takes a Bold Step with UMC: A Shift in Advanced Packaging Dynamics

Historically, TSMC has been the go-to provider for advanced packaging solutions, specifically in the CoWoS (Chip on Wafer on Substrate) realm. However, Qualcomm’s decision to engage UMC suggests a shift in the landscape, as highlighted by Taiwan Economic Daily. This collaboration aims to leverage UMC’s packaging technology in applications related to artificial intelligence (AI) and high-performance computing (HPC).

While the reasons behind Qualcomm’s choice to work with UMC over TSMC remain somewhat ambiguous, it’s noted that Qualcomm will continue to depend on TSMC for various semiconductor needs, including its Oryon architecture. The collaboration with UMC is likely to focus on wafer packaging, utilizing innovative approaches such as Wafer-to-Wafer Hybrid bonding. Given that UMC’s offerings are reportedly comparable to mainstream options, Qualcomm’s decision appears to be a strategic maneuver to alleviate the constraints posed by TSMC’s heavily saturated order book.

The semiconductor landscape is evolving, with several major players like TSMC, Intel, and Samsung serving tech companies’ varied needs. However, TSMC’s dominance in advanced packaging poses challenges for customers like Qualcomm, who require a dependable and consistent supply chain—a necessity increasingly difficult to achieve under TSMC’s current order volumes.

Looking ahead, UMC’s packaging solutions for Qualcomm’s chips are anticipated to be operational by 2026, with trial production commencing in mid-2025. This development could herald a new era for UMC and the broader packaging industry, potentially establishing TSMC’s first major rival in this critical market.

Source & Images