Indian OSAT players aim for price competitiveness on par with Malaysian rivals, as L&T Semiconductor is scheduled to announce products at CES.

Japanese semiconductor firms are pivoting toward advanced packaging and alternative lithography as TSMC extends its scale advantage in artificial intelligence chips. TSMC’s 3nm and 2nm capacity is largely locked in. Advanced packaging now contributes a growing share of sales. The company is on track to see annual revenue exceed US$250 billion around 2029 or 2030. That widening gap has pushed Japanese companies to focus on panel-level packaging and nanoimprint technologies. Both emerged at SEMICON Japan 2025 as key levers to bypass manufacturing bottlenecks and secure a foothold in the fast-expanding AI accelerator supply chain.

Artificial intelligence continues to be the central force behind the upcoming productivity revolution. Yet in the US, foundational energy constraints threaten to stall progress. The primary obstacle is not a shortage of semiconductor chips or inadequate computing capacity. It is a more fundamental resource: electricity. Increasing demand from AI data centers (AIDCs) is straining the nation’s electric grid. It is testing the limits of social tolerance.