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      AI's Hidden Choke Point: Why US-Made Chips Still Depend On Taiwan

      As the artificial intelligence boom accelerates, a little-known step in chipmaking is emerging as a critical choke point: advanced packaging. Even the most cutting-edge semiconductors manufactured in the U.S. are still being shipped to Asia—primarily Taiwan—for final assembly, exposing a fragile supply chain just as demand from Nvidia Corp. (NASDAQ:NVDA), Intel Corp. (NASDAQ:INTC), and Tesla Inc. (NASDAQ:TSLA) surges.

      Bottleneck Emerges In Advanced Packaging

      Advanced packaging — the step that connects chips into usable systems — is tightening as demand surges and capacity remains concentrated in Asia.

      John VerWey of Georgetown University’s Center for Security and Emerging Technology told CNBC on Wednesday, “It can emerge as a bottleneck very quickly if people are not making the CapEx investments proactively to account for the surge in fab output that’s going to be coming in the next couple of years.”

      At the same time, Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) is seeing rapid demand growth. Its North America packaging solutions head, Paul Rousseau, told CNBC that volumes ...


      Source: Benzinga
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