Advanced packaging techniques for data center AI chips are expected to see strong market momentum from 2025 through 2030.
Global data center AI chip shipments are projected to grow from 30.5 million units in 2024 to 53.4 million units in 2030, according to the latest report published by DIGITIMES Asia. This data center AI chip category includes high-end and mid-range GPUs, application-specific AI chips such as Google's TPUs, AI server CPUs, and networking and interconnect-related chips including Switch ASICs, rack-scale-up Interconnect Chips, DPUs, and NICs.
The fastest-growing segments by shipment volume include application-specific AI chips, mid-range GPUs that use GDDR DRAM such as Nvidia CPX GPUs, and interconnect-related chips such as NVSwitch ICs. By contrast, high-end GPUs and AI server CPUs are projected to have relatively lower shipment volume growth rates over the 2024–2030 period, with a Compound Annual Growth Rate of only about 10%. However, when considering revenue from high-end packaging and end-market sales, growth rates will be much higher than shipment growth rates, driven by increased content value per chip and the adoption of advanced packaging. AMD recently forecast that the global server CPU revenue Total Addressable Market CAGR will reach 18% between 2025 and 2030, implying that the Average Selling Price CAGR for server CPUs could exceed 7% due to the jump in core count and the adoption of more advanced processes and packaging. For GPUs, despite relatively moderate growth in shipments, wafer foundry and packaging revenue CAGRs are both expected to exceed 40% in 2024–2030, driven by the increasing number of GPU and I/O dies per chip.
Application-specific AI chips like Google's TPU and AWS's Trainium have garnered significant attention for their tailored power-efficiency characteristics, sparking speculation that they might replace GPUs. However, according to DIGITIMES Asia's "Global Data Center AI Chip Packaging Market Forecast 2024–2030" report, the overall revenue share of data center AI chip packaging will remain GPU-centric throughout the 2024–2030 forecast period, with GPU packaging revenue estimated to remain over 40% higher than that of application-specific AI chips by 2030. While AI server CPUs and AI networking-related chips have high shipment volumes, the high-end packaging market will still be overwhelmingly dominated by GPUs and application-specific AI chips.
The global market size for advanced packaging of data center AI chips is forecast to grow from US$5.6 billion in 2024 to US$53.1 billion in 2030, representing a CAGR of over 40%, according to DIGITIMES Asia. This aligns closely with AMD's recent Financial Analyst Day estimate that the global Data Center TAM CAGR will exceed 40% over the next five years.