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AI-driven semiconductor back-end process and packaging trends are deepening, and Japanese materials companies need to transform (Jefferies)

2026-07-23·ima-daily5min-0723-07-b4acce292a

Street Signal | AI-driven semiconductor back-end process and packaging trends are deepening, and Japanese materials companies need to transform (Jefferies)

The Jefferies report pointed out that driven by AI, advanced packaging, chiplet, and co-packaged optics (CPO) technologies are developing rapidly.

Japanese companies have global leading advantages in the field of semiconductor materials, but they have shortcomings in system architecture, packaging design and mass production capabilities, making it difficult to adapt to CPO and other technologies. The industry has entered a stage where "technical advantages" are not enough to determine business success.

Trust rules, frameworks and cooperation ecology have become the core of competition. The report highlights that material manufacturers need to shift from selling only materials to providing comprehensive solutions of "process + evaluation + design" and lay out overseas back-end process co-creation bases.

The market's perception of the traditional advantages of Japanese semiconductor materials companies may be subverted, and their business models and ecological niches need to be re-evaluated. One sentence conclusion: AI and advanced packaging technology are reshaping the semiconductor back-end industry chain.

The traditional advantages of Japanese materials companies are facing challenges. The key to their future success lies in their ability to successfully transform into a partner that provides comprehensive solutions. Positive/negative: Positive for Japanese materials companies that can successfully transform and establish a cooperative ecosystem.

This is bad for companies that stick to a single-material sales model. Industry trends are still evolving, and the relevant impacts may not yet be fully priced in. Catalysts:

1) Selection of material suppliers for major CPO projects;

2) Japanese materials companies’ announcements on new business models and overseas cooperation;

3) Changes in the technology roadmaps of advanced packaging giants such as TSMC and Samsung.

Full text

AI-driven semiconductor back-end process and packaging trends are deepening, and Japanese materials companies need to transform (Jefferies)

The Jefferies report pointed out that driven by AI, advanced packaging, chiplet, and co-packaged optics (CPO) technologies are developing rapidly.

The Jefferies report pointed out that driven by AI, advanced packaging, chiplet, and co-packaged optics (CPO) technologies are developing rapidly. Japanese companies have global leading advantages in the field of semiconductor materials, but they have shortcomings in system architecture, packaging design and mass production capabilities, making it difficult to adapt to CPO and other technologies. The industry has entered a stage where "technical advantages" are not enough to determine business success. Trust rules, frameworks and cooperation ecology have become the core of competition. The report highlights that material manufacturers need to shift from selling only materials to providing comprehensive solutions of "process + evaluation + design" and lay out overseas back-end process co-creation bases. The market's perception of the traditional advantages of Japanese semiconductor materials companies may be subverted, and their business models and ecological niches need to be re-evaluated. One sentence conclusion: AI and advanced packaging technology are reshaping the semiconductor back-end industry chain. The traditional advantages of Japanese materials companies are facing challenges. The key to their future success lies in their ability to successfully transform into a partner that provides comprehensive solutions. Positive/negative: Positive for Japanese materials companies that can successfully transform and establish a cooperative ecosystem. This is bad for companies that stick to a single-material sales model. Industry trends are still evolving, and the relevant impacts may not yet be fully priced in. Catalysts: 1) Selection of material suppliers for major CPO projects; 2) Japanese materials companies’ announcements on new business models and overseas cooperation; 3) Changes in the technology roadmaps of advanced packaging giants such as TSMC and Samsung.

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