Chip Packaging Is the Next Battleground for Tech Lead, CEO Says

The US should invest more in cutting-edge semiconductor packaging to ensure it leads in emerging technologies such as artificial intelligence, Cadence Design Systems Inc. Chief Executive Officer Anirudh Devgan said.

Sophisticated chip packaging helped Nvidia Corp. develop industry-leading AI accelerators, but limited suppliers are now proving a bottleneck for the US company. As computing demands grow and advanced chips get more expensive to make as the transistors get smaller, assembling silicon into three-dimensional structures and working around physical limitations are becoming essential.

“Manufacturing is critical, three nanometer, two nanometer, but you also have to invest where the puck is going. ...