Advanced AI Chip Packaging Demand Set to Stay Strong Through 2028

Dow Jones09-11 13:04

0504 GMT - AI semiconductor suppliers are likely to outpace broader cloud spending growth through 2028, as demand for advanced chip packaging remains strong despite expectations for data center investment to moderate, according to Morgan Stanley. The bank expects aggregate advanced packaging capacity to grow about 50% in 2028, even as cloud service provider capital expenditure rises a more modest 12%. Larger AI chip designs and growing use of advanced packaging for CPUs and networking processors are expected to support demand, while supply chain checks point to continued expansion by TSMC and its partners. The report also sees AI custom chip activity as robust, helped by new industry partnerships and inference-related deployments.

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