Three reasons advanced packaging is a structural investment theme right now. **AI and HPC demand is packaging-limited.** You can have wafers, but if you can't package logic plus HBM at scale, you can't ship accelerators. [[Packaging Capacity Bottleneck]] is the constraint, not chip production. **Chiplets are the new scaling path.** Reticle limits and yield economics push designers to split big chips into multiple smaller dies, then stitch them together in the package. This is how you keep improving performance when [[Moore's Law]] slows. [[Chiplets and Heterogeneous Integration]] explains the architecture. **Packaging is a bigger slice of system cost and performance.** Bandwidth, latency, power, and thermals increasingly come from the package, not just the transistor node. [[CoWoS and 2.5D Packaging]] and [[HBM and Package Integration]] drive this shift. The result: packaging becomes the value capture layer in the supply chain. [[OSATs - Outsourced Semiconductor Assembly and Test]] and [[Advanced Packaging Equipment]] providers sit at the center of this. Links: [[Advanced Packaging MOC]], [[What Is Advanced Packaging]], [[The infrastructure layer and AI capex]] --- #semiconductors #investing #deeptech