According to LexisNexis Patent Data, TSMC Takes the Lead in Advanced Chip Packaging Race

TSMC

According to data from LexisNexis, Taiwanese chipmaker TSMC (NYSE:TSM) has emerged as the front-runner in the competitive realm of advanced chip packaging. This crucial technology plays a pivotal role in extracting maximum performance from the latest chip designs, making it a significant factor for chip contract manufacturers vying for business.

The data, released last month by LexisNexis, highlights the significant investments made by TSMC and Samsung Electronics (NASDAQ:SSNLF) in advanced packaging technology over the years. In contrast, Intel (INTC.O) failed to keep pace with its own filings in this domain.

Among the contenders, Taiwan Semiconductor Manufacturing (NYSE:TSM) stands out with an impressive cache of 2,946 advanced packaging patents. Moreover, TSMC leads not just in quantity but also in patent quality, measured by the frequency of citations from other companies, according to LexisNexis.

Samsung Electronics follows closely in second place, boasting 2,404 patents in its advanced packaging portfolio. On the other hand, Intel ranks third, with 1,434 patents dedicated to advanced packaging.

In an interview, Marco Richter, Managing Director of LexisNexis PatentSight, praised TSMC, Samsung, and Intel for driving the field forward and setting the technological standard for others to follow.

The race for advanced packaging technology started around 2015 when all three companies began significantly investing in building their patent portfolios in this area. These tech giants are now the sole players in the world capable of deploying this technology to manufacture the most complex and advanced chips.

Advanced packaging is vital for enhancing semiconductor designs, especially as it becomes increasingly challenging to pack more transistors onto a single silicon piece. With packaging technology, the industry has been able to combine several chips, known as chiplets, either stacked or adjacent to each other, within the same container.

AMD’s (NASDAQ:AMD) chiplet technology, for instance, has been instrumental in gaining an advantage over Intel’s server chips.

While Samsung has been investing in advanced packaging for years, it took a significant step in this direction by establishing a dedicated team to pursue advanced packaging in December 2022, as stated by Moonsoo Kang, the unit’s chief.

Regarding TSMC’s leading patent portfolio, Intel’s Vice President of Intellectual Property Legal Group, Benjamin Ostapuk, refuted the notion that it necessarily indicated superior technology development. Instead, Intel sees its patents as a means to protect its intellectual property rights, and the company is selective in its patent investments.

As for the specifics, TSMC declined to comment on the matter.

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