The global semiconductor packaging sector is witnessing a surge in the adoption of fan-out panel-level packaging (FOPLP), especially in Taiwan. Driven by the growing demand for high-performance AI chips, FOPLP is gaining momentum due to its cost-effectiveness, enhanced heat dissipation, and ability to support smaller, higher-performing chips.

Several Taiwanese companies are leading the charge. ASE Technology, one of Taiwan’s largest semiconductor packaging firms, has been advancing panel-level packaging technologies. By the second quarter of 2025, ASE plans to have panel-level packaging equipment operational, aiming to stay ahead of global competition. Notably, its subsidiary SPIL is investing heavily, recently acquiring NT$8 billion worth of equipment.

Powertech, another major player, has transitioned from wafer-level fan-out packaging to panel-level technologies. This shift allows them to enhance chip output by two to three times while boosting thermal and signal integration performance. Their Hsinchu plant is being adapted for FOPLP, with expectations of expanding further into markets like 5G, AIoT, and automotive chips.

On the equipment front, companies such as Gudeng Precision, GPTC, E&R Engineering, and Mirle are seeing opportunities in this packaging evolution. Gudeng Precision is preparing for mass production of panel-level packaging transport boxes in 2025, while GPTC is supplying major foundries with critical FOPLP tools. E&R Engineering focuses on equipment for glass substrate processing, which is key to FOPLP technologies, whereas Mirle specializes in glass transport systems.

FOPLP combined with Through Glass Via (TGV) drilling is expected to be a game-changer, as it allows for higher chip area utilization and reduces costs. Analysts expect Taiwan’s semiconductor packaging and equipment firms to benefit significantly from these advancements, especially as global chip demand continues to rise.

In summary, the shift towards FOPLP among Taiwan’s leading semiconductor firms represents a broader trend of innovation, addressing the critical demands of AI, 5G, and high-performance computing markets.