Broadcom and Powertech Plan $400 Million Advanced Chip-Packaging Joint Venture in Singapore

Taiwanese chip-packaging firm Powertech Technology plans to invest $400 million in a joint venture with US chipmaker Broadcom to build an advanced chip-packaging plant in Singapore, with production potentially starting in 2028. Reuters reported the plan on Friday, citing Powertech's chairman, in a sign that Broadcom is looking for new manufacturing footholds as demand for AI chips surges. (Archive image: a semiconductor packaging workshop.)

Joint venture targets advanced packaging; output possibly from 2028

The venture will focus on advanced chip packaging — the critical process of integrating AI accelerators with memory and other components in a single package — with production possibly getting underway in 2028. Advanced packaging has become one of the bottlenecks in the AI chip race, with tight capacity directly limiting shipment speed; the joint venture extends Broadcom's packaging footprint to Singapore and adds a manufacturing dimension to its AI business.

$63 billion financing in place; AI racks shipping from 2027

About two weeks ago, Bank of America, Blackstone, Citi and Morgan Stanley unveiled a $63 billion financing structure under which a special-purpose vehicle would buy Broadcom AI chips and networking gear and lease them to AI company Anthropic, with shipments expected to begin in 2027. In a filing with the US Securities and Exchange Commission, Broadcom put its maximum contingent exposure tied to the AI rack leases at about $43 billion once the racks are delivered.

Chip consolidation continues as Marvell buys Lumentum for $115 billion

Consolidation elsewhere in the industry is also accelerating: Marvell agreed on November 2 to acquire optical-components maker Lumentum in an all-stock deal valued at $115 billion including debt. Analysts say the AI infrastructure race has moved beyond the chips themselves to packaging, optical interconnects and financing, with capacity and capital plans across the supply chain advancing in step.