TSMC's PLP Packaging Could Enter Mass Production as Early as Next Year, Closing in on Samsung's Lead in AI Chip Packaging
N.R. Finch
TSMC is building out its supply chain for panel-level packaging (PLP) and aims to begin mass production as early as next year — this means the AI chip packaging race is about to shift from Samsung's solo lead to a direct two-way contest.
What is PLP, and why does it beat current packaging?
PLP — panel-level packaging — takes diced chips off a round wafer and transfers them onto a large rectangular panel for packaging. The key advantage: a rectangle wastes almost no edge area.
A standard 600×600 mm panel yields roughly 5 to 6 times more chips than the current mainstream 300 mm round wafer.
In plain terms = a round wafer is like cutting square cookies on a round tray — the edges always leave gaps. A rectangular panel is a square baking sheet: nearly zero wasted space.
Why is TSMC only moving on PLP now?
TSMC had been cautious about PLP — its traditional wafer-level packaging (WLP) already underpinned a strong foundry moat, giving it little urgency to switch tracks.
This reflects a turning point: the explosive growth of the AI semiconductor market changed the calculus — PLP's advantages in boosting AI chip output and enabling larger-area chips pushed TSMC to begin development in 2024.
According to the report, TSMC will build and run a pilot line this year, and after performance validation, enter mass production as early as next year. It has already secured one global AI chip client.
How far ahead is Samsung? Can TSMC catch up?
Samsung Electronics acquired Samsung Electro-Mechanics' PLP business in 2019 and has since applied the technology to mobile processors and power-management chips, accumulating nearly seven years of process experience.
This means → Samsung holds a clear first-mover advantage in PLP, but that experience is concentrated in mobile chips, not AI-grade high-performance computing.
Samsung's next move is to extend PLP into AI semiconductors and other HPC chips, while also exploring glass substrates for the PLP process — the battlefield is migrating from mobile to AI.
How will the competitive landscape shift?
An industry source noted: not just Samsung and TSMC — global OSATs (outsourced semiconductor assembly and test firms) are also entering the PLP market in force.
This means → PLP is no longer an internal experiment for a few giants; it is becoming an open, competitive industry track.
In plain terms = packaging used to be a backstage step. Now, driven by AI chip demand, it is turning into contested ground — whoever runs PLP to volume production first wins the next ticket into the AI chip supply chain.
Content is for reference only, not financial advice.