The AI picks-and-shovels race has moved down a layer—to advanced packaging.

It's not just lithography and HBM capacity that's in short supply. Advanced packaging technologies like CoWoS have become a bottleneck. Some reports say Nvidia is helping packaging companies fund capacity expansions, while AMD has struck multi-billion-dollar partnerships across Taiwan's supply chain. Research firms even say advanced packaging revenue could surpass traditional packaging revenue for the first time this year.

The implications for the secondary market are clear: whoever has packaging capacity, equipment, and materials has pricing power. Just talking about GPUs is no longer enough. Of course, capacity expansion takes time, so short-term narratives can easily get overheated.

Don't just watch the quotes from GPU leaders. The picks-and-shovels battle has moved onto advanced packaging production schedules.

The above content is for reference only and does not constitute investment advice.

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