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Cloud Computing

Explosive data growth is reshaping the data center — and ASE's advanced packaging is built to meet the performance, bandwidth and power demands that come with it.

Overview

The rapid evolution of cloud computing has transformed the way businesses operate, enabling unprecedented access to data and computational power. As we approach 2025, the demand for data is projected to surge from 1.2 zettabytes in 2010 to a staggering 100 zettabytes, driven by the proliferation of Internet of Things (IoT) devices, smartphones, and streaming services. This explosive growth presents both opportunities and challenges for the semiconductor industry, particularly in the realm of outsourced semiconductor assembly and testing (OSAT).

The landscape of cloud computing is undergoing a significant transformation, marked by key trends such as heterogeneous integration and chiplet architecture. These innovations enable the rapid transfer of large volumes of data among interacting components, but they also introduce challenges related to design complexity, thermal management, and the integration of various components. Another notable trend is the shift towards photonic interconnects, which promise to revolutionize data transmission in data centers; however, this shift necessitates the integration of multiple components within a single package. Additionally, the rapid increase in AI workloads is driving the adoption of high-voltage direct current (HVDC) power delivery systems to meet escalating power demands, presenting challenges in transitioning from traditional lateral configurations to Vertical Power Delivery (VPD) systems.

ASE's advanced packaging technologies, including 2.5D/3D IC, FOCoS, FOCoS-Bridge, and co-packaged optics (CPO) as well as powerSiP™, are well-positioned to address these challenges and support the evolving needs of the semiconductor industry.

Current trends & innovations in cloud computing

Heterogeneous integration and chiplet architecture

Heterogeneous integration is emerging as a key trend in cloud computing, facilitating the combination of diverse chiplets into a single package. This is particularly beneficial for integrating components that require heavy communication, such as processors, accelerators, and high-bandwidth memory (HBM), enabling the rapid transfer of large volumes of data among interacting components. This approach offers greater flexibility, improved performance, and cost reductions. By disaggregating components like I/O and SRAM from the logic die, manufacturers can optimize each element for its specific function, resulting in enhanced overall system efficiency. The adoption of chiplet architectures is expected to accelerate, driven by the increasing demand for scalable solutions that can meet the needs of AI and big data applications.

The shift towards photonic interconnects

The semiconductor industry is experiencing a transition to photonic interconnects, which promise to improve bandwidth and energy efficiency in data centers. As switching capacities are expected to surpass 3.2 Pbps by 2034, the limitations of traditional electronic interconnects become increasingly evident. There is a strong need for PCIe switches, CPUs, and accelerators to adopt photonic I/O to achieve higher bandwidth and enhanced energy efficiency. Solutions like Co-Packaged Optics (CPO) are being investigated to address these requirements, offering significant benefits in power consumption and data transmission speeds.

Moving to an 800 VDC power delivery architecture

The rapid increase in AI workloads is driving higher power demands in data centers. The traditional 54 V power distribution system used in racks, originally designed for kilowatt (kW) scales, is inadequate for the megawatt (MW) levels that modern AI facilities will soon require. To meet these demands, AI data centers are increasingly adopting High-Voltage Direct Current (HVDC) systems, such as ±400 or 800 volts direct current (VDC) power infrastructure, which can support server racks with power requirements of 1 MW and above. The 800V HVDC system streamlines the power chain by allowing a single conversion from utility grid AC to 800V DC, which is then distributed directly to the racks. Final voltage regulation occurs at the xPU packages through integrated voltage regulators (IVRs). This transition is expected to drive innovations in the development of highly efficient and scalable power delivery systems for next-generation AI workloads, ultimately improving reliability and simplifying infrastructure.

Key issues & solutions for OSATs in cloud computing

Integration complexities and thermal management in chiplet architecture

While chiplet architecture presents numerous advantages, it also brings about complexities in design and manufacturing. In particular, connecting multicore processor dies with stacked memory dies requires point-to-point interconnections, with the number of memory dies being proportional to the number of cores on the processor die. This has led to an increased demand for advanced packaging that features a higher number of interconnects and larger body sizes.

In addition, as power densities increase, managing heat dissipation across heterogeneous components is critical to maintaining performance and reliability. Innovations in Thermal Interface Material (TIM), vapor chamber lid, liquid cooling and immersion cooling, are required to meet those challenges.

Assembly complexity and optical coupling issues in CPO implementation

The implementation of Co-Packaged Optics (CPO) introduces significant challenges for OSATs, particularly in assembly complexity. Integrating components such as lasers, optics, fiber array units (FAUs), and silicon integrated circuits (ICs) across different wafer nodes requires meticulous attention to detail, especially in the integration of electronic integrated circuits (EICs) and photonic integrated circuits (PICs). For the integration of EIC and PIC, chip-on-wafer 3D stacking is an effective method to minimize the interconnection distance between the two, thereby significantly improving bandwidth density and energy efficiency.

Another critical issue is optical alignment and coupling, Active Alignment (AA) is often required to optimize optical coupling, but this process can hinder production efficiency. The industry is shifting towards detachable FAU solutions to improve reparability, though achieving sub-micron alignment accuracy remains a challenge. One promising approach involves utilizing wafer-level optical couplers to expand the laser beam size, thereby increasing coupling tolerance and enabling more scalable assembly.

Enhancing system efficiency with vertical power delivery

After high voltage power delivery (e.g., ±400 V or 800V) is introduced into data center facilities, it is converted to lower voltages in multiple stages before being utilized by microprocessors. However, at higher power levels, routing losses from the last DC-DC converter on the power delivery platform to the microprocessor can become significant, negatively impacting overall system efficiency.

To mitigate this issue, the traditional lateral configuration—where power blocks or voltage regulator modules (VRMs) are positioned alongside the processor on the motherboard—is being replaced by Vertical Power Delivery (VPD). This approach positions power conversion components, such as on-board power modules, directly beneath the AI processors (xPUs), allowing power regulation to occur as close to the compute silicon as possible. Additionally, high-frequency, fully integrated voltage regulators (IVRs) must be implemented at the point of load to ensure a rapid response to transients and to achieve switching frequencies that may exceed 100 MHz. By regulating voltage right at the point of load, the system experiences reduced voltage droop during rapid compute transients, enabling AI xPUs to maintain higher clock speeds and deliver more consistent performance.

ASE technology platform

VIPack™ — 2.5D/3D IC, FOCoS & FOCoS-Bridge

The ASE VIPack™ platform delivers a comprehensive set of advanced packaging technologies engineered to meet the performance, bandwidth, and power-density requirements of next-generation AI systems. This platform integrates high-density RDL-based Fan-Out Chip-on-Substrate (FOCoS), Fan-Out Chip-on-Substrate-Bridge (FOCoS-Bridge), and TSV-based 2.5D/3D IC architectures to support highly heterogeneous integration. VIPack™ enables fine-pitch, high-bandwidth horizontal and vertical interconnects critical for tightly coupling disaggregated SoCs with High Bandwidth Memory (HBM) and advanced accelerators. Backed by the Integrated Design Ecosystem™ (IDE), VIPack™ promotes co-design across silicon, package, and system domains, optimizing signal integrity, thermal performance, and power delivery while reducing design iteration cycles and overall time to market.

By utilizing coplanar top-surface structures, the package height can be aligned with that of various chiplets. This design allows for a cold plate to be attached directly to the chiplets, significantly reducing thermal resistance between each chiplet and the lid. Additionally, the package lids can be equipped with micro-channels to support water cooling or evaporative cooling solutions.

ASE FOCoS-Bridge allows the integration of IVR dies that integrates the power transistors and control circuits and Deep Trench Capacitor (DTC) dies in the fan-out layer to enable fine grain power management. The IVR dies are embedded in close proximity to AI chiplets to bypass the majority of the power distribution network (PDN) and associated impedance.

VIPack™ — Photonic 3D

VIPack™ supports advanced networking and co-packaged optics (CPO) integration, enabling higher I/O bandwidth density and lower energy per bit. We have successfully demonstrated a CPO device that overcomes the integration challenge of assembling multiple optical engines with an ASIC in a large-format package. For networking, our CPO solution presents a viable alternative to current faceplate-pluggable (FPP) solutions. For compute applications, it enables the integration of CPUs, GPUs, and XPUs with optics into a single, high-speed co-packaged solution.

ASE provides advanced interconnect technologies, such as micro bumps or Cu pillar bumps, to enable the integration of the EIC on top of the PIC, forming a Photonic 3D architecture. This configuration offers superior thermal management and supports data transmission rates exceeding 200G per lane. In addition, ASE employs a high-accuracy bonding process to precisely attach optical couplers on the PIC wafer at locations aligned with tapered waveguides or grating couplers. This helps to create a detachable optical interface between FAUs and PICs, facilitating wafer-scale testing, supporting detachable FAUs, and reducing sensitivity to wavelength variations, ultimately supporting Dense Wavelength Division Multiplexing (DWDM) systems.

PowerSiP™ — 3D VRM

ASE has introduced powerSiP™, a transformative power delivery platform designed to reduce signal and transmission loss while addressing current density challenges. The powerSiP™ platform enables a vertically integrated multi-stage 3D VRM that reduces voltage droop during rapid compute transients and eliminates the need for large external decoupling networks, freeing up board space when compared to traditional side-by-side configurations.

The 3D VRM typically consists of two substrates to accommodate a variety of components, e.g., power blocks, controllers, and decoupling capacitors. ASE offers a variety of vertically interconnecting technologies, using components such as solder balls, copper blocks, substrate interposers and copper pillars. These flexible options enable the integration of various components with different heights and I/O pitches to fulfill specific design needs.

Conclusion

The rapid evolution of cloud computing presents both opportunities and challenges that require innovative solutions. ASE's advanced packaging technologies are well-positioned to address these challenges and support the evolving needs of the semiconductor industry. Additionally, ASE's expertise in thermal interface materials and advanced cooling solutions can help manage the heat dissipation issues associated with heterogeneous integration and chiplet architectures. The company's focus on integrating photonic interconnects within its packaging solutions further enhances data transmission efficiency, while its commitment to developing VPD solutions ensures that power delivery can meet the demands of next-generation AI workloads. By leveraging these comprehensive solutions, ASE is poised to play a pivotal role in shaping the future of cloud computing and enabling the industry to navigate its complex landscape effectively.

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