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As compute demands soar and Moore’s Law slows, the industry can no longer rely solely on shrinking silicon nodes to drive performance. Instead, advanced packaging technologies—such as chiplets, interposers, high-bandwidth memory (HBM), and optics—are becoming central to delivering scalable, high-performance AI systems. These techniques integrate multiple dies into sophisticated substrates, creating a system where the whole outperforms the sum of its parts.

Monolithic designs are reaching physical and cost limits. AI accelerators like NVIDIA’s Grace Hopper, AMD’s MI300, and various hyperscaler ASICs are pushing the boundaries of chip size and complexity. To scale efficiently, the industry embraces 2.5D chiplet architectures, where compute, memory, and I/O dies sit side-by-side on silicon interposers or organic bridges.

This architectural shift unlocks new levels of performance but introduces complexity. Routing thousands of high-speed signals with minimal crosstalk demands precision at the micron level. Thermally, these dense packages generate unpredictable hotspots that challenge traditional cooling methods.

Packaging and power delivery: A new multidimensional challenge

High Bandwidth Memory (HBM) is a prime example of advanced packaging benefits and challenges. When co-packaged with AI chips, HBM delivers up to 5 TB/s of bandwidth but adds vertical bulk, increases thermal density, and imposes mechanical stress on the substrate. Engineers carefully model heat dissipation and use underfills, thermal lids, and custom thermal interface materials (TIMs) to prevent warping or delamination—issues that directly affect performance and reliability.

Optics integration introduces further hurdles. Co-packaged optics (CPO) promises dramatically lower power per bit at 800G+ speeds, but photonic components are extremely sensitive to temperature and vibration. They require sophisticated vibration isolation, temperature stabilization, and low-noise environments. These aren’t optional extras anymore; they’re critical for mission success.

This is an image of chip packaging

In the data and telecom industries, advanced packaging must address even stricter constraints. Limited airflow, ruggedization, vibration resistance, and small form factors all challenge hardware designed for edge and network environments. Systems need low-profile, passively cooled, mechanically compliant packaging that meets NEBS, ETSI, and other environmental standards.

Power delivery is evolving in parallel. Multi-chip modules impose asymmetric and dynamic loads, pushing engineers toward distributed VRM architectures, fine-grained telemetry, and holistic power integrity co-design at the board and package level. PDN design is now a three-dimensional problem, no longer limited to the traditional 2D PCB layout.

Testing and yield also become critical in multi-die modules. One faulty memory or I/O die can render an entire expensive package useless. Engineers rely on known good die (KGD) practices, fault isolation, and modular test hooks to ensure high yield and long-term field reliability.

Ultimately, the product is no longer just a chip—it’s the complete system of silicon, packaging, power delivery, and cooling. AI workloads demand a tightly integrated approach where hardware teams co-engineer across these layers. The teams that master this integration will drive the next wave of AI and telecom infrastructure innovation.

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