TSMC Holds Extensive Patents in Advanced Chip Packaging, Outpacing Samsung and Intel: Report

Taiwan Semiconductor Manufacturing Company Ltd TSM leads in advanced chip packaging patents, followed by Samsung Electronics Co, Ltd SSNLF and Intel Corp INTC.

Advanced chip packaging is vital for squeezing maximum performance from the latest chip designs making it crucial for chip contract manufacturers.

TSMC holds the highest number of advanced packaging patents with 2,946 and is ranked highest in quality based on citation frequency, Reuters cites LexisNexis data.

Samsung ranks second with 2,404 patents, while Intel is third with 1,434 patents in their advanced packaging portfolios.

TSMC, Samsung, and Intel have steadily invested in advanced packaging technology since around 2015, setting the industry standard.

Advanced packaging is essential for improving semiconductor designs due to challenges associated with transistor density on a single chip.

Packaging technology allows for integrating several chips, called "chiplets," stacked or adjacent within the same container.

Advanced Micro Devices, Inc's AMD chiplet technology has provided a competitive edge for its server chips over Intel's.

Samsung established a dedicated team for advanced packaging in December 2022 to further invest in the technology.

Intel disputes that TSMC's more extensive patent portfolio necessarily indicates more advanced technology, stating that its patents protect its intellectual property rights and are carefully selected.

In June, TSMC cut its 2023 capital expenditure outlook amid its struggle with weak demand for smartphones and computing chips amid an uneven post-Covid Chinese economic recovery. The chipmaker shared plans to double its advanced chip packaging capacity.

Price Action: TSM shares traded lower by 1.05% at $97.37 premarket on the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.