Powertech invests $400 million with Broadcom for Singapore advanced packaging venture

Taiwanese semiconductor packaging and testing firm Powertech Technology Inc. (PTI) announced a significant investment of $400 million to form a joint venture in Singapore with U.S. chip giant Broadcom. The collaboration aims to bolster the manufacturing of advanced substrate materials crucial for panel-level advanced packaging.

The joint venture will specialize in additive finer-geometry redistribution layer technology for advanced package substrates. PTI stated that this move is intended to support the demands of international clients and will not affect its existing or future collaborations in the Fan-Out Panel Level Packaging (FOPLP) sector.

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The partnership in Singapore aims to support the demands of international clients and will not affect collaborations with existing and future clients in the FOPLP field.

Powertech emphasized its commitment to continued investment in advanced packaging technology research and development, as well as capacity expansion within Taiwan. The company will maintain control over its core technologies and key intellectual property in its home base.

The decision comes as PTI experiences a surge in demand for AI memory chip packaging, high-end testing, and advanced packaging solutions. Broadcom executives had previously shown support for PTI during the company's annual dinner in February, highlighting the strong existing relationship between the two firms.

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Powertech will continue to invest in advanced packaging technology R&D and capacity expansion in Taiwan, maintaining core technology and key intellectual property in Taiwan.