Global semiconductor foundries are reconfiguring production lines as demand for artificial intelligence hardware outpaces high-bandwidth memory supply. The shift forces major chipmakers to prioritize advanced packaging over traditional trailing-edge node production.
Capacity Bottlenecks Shift to Packaging
While silicon wafer fabrication capacity remains stable, substrate availability and chip-on-wafer-on-substrate packaging have become primary constraints. Analysts project packaging bottlenecks to persist through mid-2025, delaying server deliveries for enterprise cloud providers.
Capital Expenditure Reallocation
Capital expenditure budgets are adjusting rapidly. Capital allocation for 2025 emphasizes back-end testing facility expansion rather than new cleanroom construction, shifting short-term margin expectations across the supply chain.