en.Wedoany.com Reported - Powertech Technology has announced a partnership with Broadcom to establish a joint venture in Singapore, investing $400 million (approximately NT$27.1 billion) to jointly develop panel-level packaging (PLP) operations. Powertech is the second-largest semiconductor packaging and testing company in Taiwan, while Broadcom is a global leader in AI ASICs (Application-Specific Integrated Circuits).

This joint venture project has clear order synergies, bringing incremental high-end AI chip packaging and testing business to Powertech. Broadcom holds large AI chip orders from leading cloud providers such as Google, OpenAI, and Meta, and maintains long-term supply partnerships with Apple and Amazon. Leveraging the Singapore joint venture platform, Powertech will directly undertake advanced packaging requirements for Broadcom's high-end chips.

Powertech disclosed that the joint venture will focus on the additive fine-line redistribution layer (RDL) process for advanced packaging substrates, meeting the manufacturing requirements of high-end AI chips and ultra-large-scale packaging products. Related packaging processes and associated intellectual property will remain in Taiwan to balance overseas capacity expansion with the retention of local technology assets.

Powertech has over a decade of technical expertise in panel-level packaging and is one of the few packaging and testing companies with a complete FOPLP (Fan-Out Panel-Level Packaging) mass production line. The company built Taiwan's first specialized FOPLP production base in 2018, accumulating experience in mass production processes, yield management, and customer validation.

From a technical perspective, FOPLP offers advantages over traditional wafer-level packaging in terms of manufacturing cost, production yield, compatibility with ultra-large chips, and high-density packaging. As demand for low-cost, high-density, and large-scale packaging solutions grows for AI accelerators and high-performance computing chips, FOPLP has become a mainstream route for computing chip packaging, attracting increased investment from multiple chip and packaging companies.

Industry analysts believe that the collaboration between Powertech and Broadcom to set up a factory in Singapore represents a case of global division of labor in the advanced packaging industry. Broadcom can leverage Southeast Asian capacity to serve overseas customers locally, while Powertech strengthens its FOPLP technology leadership through anchor orders. With the expansion of AI computing power demand, the panel-level packaging market is expected to continue growing.