How AI is Reshaping Electronic Packaging to Advance at the Component and System Level

By Devan Iyer, Chief Strategist, Advanced Electronic Packaging, Global Electronics Association

Key Summary

• AI is accelerating major changes in component and system-level packaging across advanced electronics.
• Component-level and system-level packaging are parallel domains that must evolve together for next-generation miniaturization.
• AI and data centers require very large packages that integrate GPUs, CPUs, HBM, and co-packaged optics with strong power and thermal solutions.
• Automotive applications rely on wide bandgap semiconductors and specialized substrates for high voltage power module packaging.
• 5G and 6G systems need advanced high frequency device packaging with integrated antenna and low-loss PCB technologies.
• IMPACT highlighted rising packaging complexity, the need for new guidelines, and the critical role of the full supply chain.
• Taiwan’s ecosystem plays a central role in driving packaging innovation and collaboration for global industry needs.

At IMPACT 2025 in Taiwan, a key highlight was the growing influence of AI in electronics packaging design, assembly, and manufacturing. I had the opportunity to lead the session titled “Component to System-Level Integration” alongside experts from AMD, ASE, Kinsus, and Wistron. We explored how packaging technologies are evolving to meet the complexities of today’s AI systems and the future. Additionally, we discussed the critical need for shared guidelines and standards within the industry. 

This discussion captured the goals of the Global Electronics Association’s Technology Solutions team: to collaborate across the industry and identify advanced electronics packaging needs, trends, challenges, and potential paths to solutions, including developing guidelines and standards, highlighting innovations, and driving best practices to keep the industry moving forward. 

There are more than 200 Association members in Taiwan, representing one of Asia’s most advanced packaging ecosystems, and IMPACT is one of Asia’s most influential conferences for advanced packaging dialogue. For the Global Electronics Association, the event provided an opportunity to listen, collaborate, and co-develop solutions that bridge regional innovation with global needs. We supported IMPACT 2025 as a co-organizer, as well as in my role as chair of the session. 

The Pairing of Component + System-Level Packaging

When people discuss component and system-level packaging, they often frame it as a transition from one to the other, as though one replaces the other. These are two parallel domains that must evolve together to enable the next generation of electronic systems miniaturization.

Component-Level Packaging (CLP) focuses on package design, chip-to-package assembly, and testing, which are the foundational building blocks of packaging semiconductor devices ranging from analog and mixed-signal to power and high-speed logic ICs.

System-Level Packaging (SLP) encompasses printed circuit boards (PCBs), printed circuit board assemblies (PCBAs), and subsystems to final system assembly, all of which are essential for high-performance computing, AI data centers, and complex communication and power systems.

Each application area brings unique demands:

• AI /data center applications require large-format packages (as it stands in the range of 120x120- 150x150 mm) that integrate GPUs, CPUs, high-bandwidth memory (HBM), and Co-packaged optical devices and interconnects to transfer data quickly and efficiently. Appropriate power delivery and thermal management solutions are also needed.
• Automotive electronics where power electronics miniaturization plays an important role (along with compute and communication modules), rely on wide bandgap semiconductors (GaN, SiC, and IGBTs), special substrates (Direct Bonded Copper, Anodized Metal Braze, Insulated Metal Substrate, etc.) and die attach processes like sintering, advanced cooler plate attachments, to provide the required high voltage power modules packaging solutions.
• 5G/6G Systems necessitate high frequency (sub THz) device (GaN, GaAs ) packaging and system-level solutions with advanced integrated antenna,  Transmission lines, EMI shields, substrates, and PCBs with low losses.
• Both CLP and SLP technologies are vital for advancing performance, reliability, and system miniaturization. 

For further information on system-level packaging, please consult the Technology Solutions whitepaper, “Advanced Packaging Board Level Integration,” which highlights the technical challenges from a system-level packaging perspective as advanced heterogeneous integrated packages are assembled on the board. 

Takeaways from IMPACT

At this year’s IMPACT conference, three key themes stood out:

1. New guidelines and standards are needed, particularly for large-body package assembly with Co-packaged optics and advanced packages to board assembly supporting AI datacenter architecture.
2. Advanced Packaging complexity continues to rise, driven by system integration across AI & data center applications, and this necessitates advanced co-design methodologies and system-level co-optimization.
3. The supply chain, including EDA, OSATs, PCB, and EMS companies, materials, and equipment suppliers, has a very critical role in these technological and manufacturing advancements, and Taiwan’s ecosystem has a very active participation in pushing the boundaries of system integration. 

At the Global Electronics Association, we play a strategic role in guiding the global transition towards more integrated, scalable packaging ecosystems. Our efforts focus on:

• Developing guidelines and standards for emerging technologies in AI/ Datacenter 5G/6G, and automotive applications.
• Facilitating collaboration across the value chain from OEMs and IDMs to OSATs, EMS, and PCB manufacturers.
• Promotion of updates of existing standards and development of new guidelines/standards, thereby minimizing customization and enabling manufacturing scalability and the industry to achieve scalability and efficiency.

IMPACT was a key platform for the Association to continue a dialogue on advanced electronic packaging in Asia, allowing us to engage directly with regional supply chains, understand local challenges, and share global perspectives. 

We can use this opportunity to co-develop design, assembly, and reliability guidelines with industry partners, which can evolve into formal standards. Taiwan’s strategic role in electronics manufacturing makes it an ideal location for collecting feedback and fostering innovation and collaboration.