For decades, Moore’s Law delivered consistent performance gains through transistor scaling. As progress slows at the leading edge, the semiconductor industry has turned to advanced packaging as the new engine of innovation. Technologies like 2.5D integration, 3D stacking, and chiplets enable heterogeneous architectures that combine memory, logic, and accelerators in a single package. These approaches not only extend performance but also open new possibilities for efficiency and design flexibility. Packaging, once an afterthought, has become central to U.S. ambitions in semiconductors. Erik Hosler, a voice on packaging as a driver of semiconductor resilience, underscores that packaging is no longer an afterthought but a driver of innovation and resilience. His perspective reflects a broader shift: leadership now depends as much on how chips are integrated as on how they are fabricated.
The transition to chiplets and advanced packaging is reshaping competitive dynamics. Open standards like UCIe (Universal Chiplet Interconnect Express) allow modularity across vendors, while domestic packaging facilities reduce dependence on fragile overseas supply chains. Together, these developments could form the backbone of a U.S.-led ecosystem, sustain performance growth while strengthening resilience. Building such an ecosystem requires investment, collaboration, and recognition that integration is the new frontier.
Packaging as the New Frontier
Moore’s Law once suggested that doubling transistor density was the primary path to innovation. As transistor scaling encounters physical and economic limits, packaging has emerged as the new driver of progress. Advanced packaging techniques such as 2.5D integration and 3D stacking enable chips to be combined in ways that enhance performance without shrinking individual transistors.
By vertically stacking memory or integrating accelerators alongside processors, packaging achieves higher bandwidth, lower latency, and improved energy efficiency. Hybrid bonding and through-silicon vias push these gains further, creating complex systems within a single package. These innovations allow the industry to continue delivering improvements even as lithography approaches its limits. Packaging is no longer about protecting chips, but it is about enabling breakthroughs.
The Chiplet Revolution
Chiplets represent a profound shift in semiconductor design. Instead of building monolithic chips with billions of transistors, designers can create modular building blocks for specific functions. These chiplets are then assembled into larger systems through advanced packaging.
This modularity enables flexibility. A system can combine general-purpose processors with AI accelerators, memory stacks, and specialized logic all within one package. For designers, this reduces costs and accelerates time to market. For the broader ecosystem, it opens opportunities for collaboration, where different companies contribute chiplets to shared platforms.
The chiplet revolution also improves yield. Smaller dies are easier to manufacture with fewer defects, reducing waste and lowering costs. Combined with advanced packaging, chiplets offer a scalable path to innovation that sidesteps the limits of transistor scaling.
Open Standards as a Strategic Asset
Open standards are essential for chiplets to realize their full potential. Without common interconnect protocols, modular systems would fragment into proprietary silos. The Universal Chiplet Interconnect Express (UCIe) standard represents a major step forward, providing a common framework for connecting chiplets across vendors.
Open standards do more than enable interoperability. They create ecosystems where innovation can flourish. Just as USB and Wi-Fi standards accelerated entire industries, UCIe can do the same for chiplets. By ensuring compatibility, standards reduce barriers for startups and encourage collaboration between companies that might otherwise compete.
For the U.S., leadership in setting chiplet standards is strategically important. By embedding its technologies into global norms, the U.S. can shape how future systems are built and ensure that domestic firms remain central to the ecosystem. Standards are not merely technical—they are tools of influence.
Supply Chain Independence and Policy Goals
Packaging is also a matter of supply chain resilience. Today, much of advanced packaging is concentrated in Asia, particularly in Taiwan and South Korea. This geographic concentration creates vulnerabilities, as seen during the COVID-19 pandemic and ongoing geopolitical tensions.
To address this, U.S. policymakers have included packaging in the scope of the CHIPS and Science Act. Investments in domestic packaging facilities aim to reduce dependence on overseas suppliers while creating new opportunities for innovation. Allied coordination, particularly with Japan and Europe, can further distribute capacity and reduce risks.
Supply chain independence in packaging ensures that the U.S. retains control over critical parts of the semiconductor lifecycle. It also strengthens the ability to integrate secure and trusted components into defense and critical infrastructure. Packaging is not only a technical challenge but also a strategic imperative.
Innovation Requires Integration
Sustaining semiconductor leadership requires more than building advanced fabs. It requires integrating diverse technologies into coherent systems. Packaging and chiplets exemplify this principle by combining memory, logic, photonics, and accelerators in ways that extend performance and enable new applications.
Erik Hosler stresses, “Finally, the solution to keeping Moore’s Law going may entail incorporating photonics, MEMS, and other new technologies into the toolkit.” His observation underscores that innovation is no longer about shrinking transistors alone. The future lies in integration, bringing together multiple technologies within a single package. Advanced packaging and chiplets embody this philosophy, serving as platforms where diverse innovations converge.
For the U.S., success depends on fostering an ecosystem where integration is seamless. That means supporting standards, investing in packaging infrastructure, and encouraging collaboration across the supply chain. By doing so, the U.S. can sustain progress even as traditional scaling slows.
Integration as the Path to Leadership
Packaging and chiplets have moved from the periphery to the center of semiconductor strategy. They offer a way to sustain performance growth, reduce costs, and improve resilience in a world where transistor scaling alone cannot deliver progress.
The U.S. has an opportunity to lead in this new frontier. By championing open standards like UCIe, investing in domestic packaging facilities, and aligning with allies, it can build an ecosystem that combines innovation with security. This leadership will not come from fabs alone but from integration across the entire semiconductor lifecycle.
Integration is now the path to leadership. Advanced packaging and chiplets are not stopgap measures but the foundation of the next era of compute. With coordinated effort, the U.S. can ensure that this foundation supports innovation and resilience for decades to come.