[News] Asahi Kasei Rumored to Cut PSPI Supply for Advanced Packaging, Sparks Concern for TSMC, ASE

Amid surging demand for advanced packaging, key materials are now hot commodities for tech giants. According to EE Times China and the Economic Daily News, Japan’s Asahi Kasei, a top PSPI (photosensitive polyimide) supplier to semiconductor firms like TSMC and Samsung, plans to cut PIMEL shipments to some clients, sparking concerns over a potential AI supply chain crunch.

As reported by EE Times China, PSPI is vital in forming RDL (Redistribution Layer) insulation layers in advanced packaging such as HBM and CoWoS. In wafer-level packaging (WLP), PSPI’s photosensitivity and insulation simplify complex multilayer processes like 2P2M and 4P4M, making it essential for many advanced applications, as per the Economic Daily News.

It is worth noting that the value gap is significant—PI in a standard wafer costs around RMB 50–100, while advanced packaging can push PSPI content past RMB 500, EE Times China suggests.

The EE Times China report points out that PSPI sector has high entry barriers, with Japanese and American firms dominating the high-end segment, especially for sub-28nm nodes. Current industry leaders include Japan’s Toray, Fujifilm, Asahi Kasei, and U.S.-based HD MicroSystems, a DuPont-Hitachi joint venture, according to the report.

TSMC Could Get Priority Access

Amid the AI-driven surge in advanced packaging demand, the reports say Asahi Kasei’s production can’t keep up, causing supply shortages. This raises concerns for major players in the advanced packaging sector, like Taiwan’s TSMC, ASE, and Innolux.

As per the Economic Daily News, TSMC hasn’t responded to the rumors, but insiders believe the foundry giant will likely get priority access from Asahi Kasei, keeping impact low. For ASE, however, which is aggressively scaling its packaging capabilities, a PSPI shortage could throw a wrench into its plans, the report adds.

Another Commercial Times report explains that ASE and TSMC have long been partners. With strong AI chip demand from NVIDIA stretching TSMC’s CoWoS capacity, ASE reportedly gained overflow orders in the fourth quarter of 2024. According to the Economic Daily News, ASE plans to reach a monthly CoWoS advanced packaging capacity of 10,000 wafers by 2025, aiming to double related revenue to over $1 billion this year.

(Photo credit: Asahi Kasei)

Read more

• [News] NVIDIA Reportedly Kicks off B300 Production Preparation in May, Boosting TSMC’s 5nm and CoWoS-L