U.S. Alliance Targets AI Chip Packaging Shift

US groups expand advanced packaging capacity as AI demand and supply chain risks reshape semiconductor strategy

2 Mar 2026

A new semiconductor alliance is seeking to expand advanced chip packaging capacity in the US, arguing that control over how chips are assembled and integrated will be as important as breakthroughs in silicon design.

Great Lakes Semiconductor and Advanced Printed Electronic Solutions said in late February 2026 that they would combine their capabilities to strengthen domestic packaging and link chip design more closely with final production. The companies plan to centre initial operations in New York, serving defence, aerospace, automotive and medical technology customers.

The move comes as policymakers and industry leaders push to reduce reliance on overseas manufacturing ecosystems. While the US has increased investment in wafer fabrication, much of the world’s most advanced packaging capacity remains concentrated in Asia, raising concerns about supply continuity as demand for artificial intelligence infrastructure rises.

Advanced packaging refers to techniques that integrate multiple smaller chips, or “dies”, into a single system to improve performance and energy efficiency. As shrinking transistors becomes more complex and costly, manufacturers are turning to such methods to deliver gains in computing power. The approach is seen as critical for AI, autonomous vehicles and high performance computing.

By combining Great Lakes Semiconductor’s flexible fabrication model with Advanced Printed Electronic Solutions’ expertise in additive manufacturing, the partners said they aim to shorten development cycles and lower upfront costs. The companies did not disclose financial terms.

Industry analysts expect sustained growth. Research groups including TechInsights and Yole Group project that advanced packaging will expand faster than the broader semiconductor market over the next decade, driven largely by investment in AI data centres and related infrastructure.

The initiative also aligns with federal incentives designed to boost US semiconductor production. Analysts note that while domestic expansion may improve resilience, long term competitiveness will depend on achieving scale and managing rising thermal and integration challenges as chips become more powerful.

For US manufacturers, packaging is increasingly viewed not as a back end process but as a strategic lever in the contest to secure AI supply chains.