AI Chips Shifting from Round to Rectangular

By Alan Patterson, EETimes | October 16,2025

The advanced-packaging needs of AI chips are driving a move by the semiconductor tool and material industry to supply rectangular panels aimed at taking market share from the round silicon wafers we are all so familiar with. 

Toolmakers Lam Research and Nikon are among companies selling components for panel production, with an expected business takeoff starting as early as 2027, according to Lam. 

Top foundry TSMC, which has dominated advanced packaging of AI chips for customers like Nvidia and AMD, is likely to yield its hegemony of heterogeneous integration to OSATs (outsourced semiconductor assembly and test companies) that are preparing to grab more of the business, according to Lam. 

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