Introductio
IBM and Deca Technologies have launched a strategic alliance to bring advanced fan-out wafer-level packaging (FOWLP) technology to North America.
This move marks a significant step in expanding high-performance semiconductor packaging capabilities beyond Asia. IBM aims to establish a new manufacturing line in Bromont, Quebec, that will leverage Deca’s cutting-edge M-Series Fan-out Interposer Technology (MFIT). This partnership is poised to reshape North America’s semiconductor packaging landscape.
5 Key Takeaways
IBM expands packaging capabilities with Deca’s M-Series technology.
New manufacturing line planned at IBM’s Bromont facility in Canada.
Deca’s MFIT offers high-density multi-die fan-out packages for AI and memory applications.
Fan-out wafer-level packaging is crucial for next-gen chip performance and miniaturization.
This alliance strengthens North America’s domestic chip packaging ecosystem.
What is Fan-Out Packaging and Why It Matters
Fan-out wafer-level packaging (FOWLP) enhances chip performance by embedding multiple dies in a compact, protective package.
Unlike traditional packaging, where a chip sits inside a relatively larger enclosure, fan-out packages closely match the chip’s size, enabling more input/output (I/O) connections and better heat dissipation.
Deca’s M-Series Fan-out Interposer Technology (MFIT) takes this further. It supports complex multi-die and 3D packages, embedding high bandwidth memory (HBM), processors, and other devices in a dense, dual-sided routing architecture.
MFIT offers scalable pitches down to sub-10 micrometers through its patented Adaptive Patterning process, making it ideal for AI and memory-intensive computing.
Figure 1: Deca’s MFIT Fan-Out Packaging Features
| Feature | Description |
|---|---|
| Dual-sided routing | Enables dense interconnects |
| Embedded bridge dies | Integrates heterogeneous chiplets |
| Sub-10 µm pitch scalability | High-density chip integration |
| Supports 2.5D and 3D packages | Advanced multi-die packaging |
| Optimized for AI & HBM | Suits memory-intensive workloads |
IBM’s Packaging Legacy and Future Direction
IBM has a storied history in semiconductors, dating back to the 1960s with major innovations like DRAM memory and the first integrated circuits.
While IBM exited chip manufacturing in 2014 by selling its Microelectronics Division to GlobalFoundries, it has continued to innovate in chip design and packaging.
IBM’s Bromont, Quebec, facility stands as North America’s largest outsourced semiconductor assembly and test (OSAT) plant.
For years, the plant has offered flip-chip assembly and testing services. Now, with Deca’s technology, IBM is preparing to add fan-out wafer-level packaging to its portfolio by the second half of 2026.
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Strategic Importance of IBM-Deca Partnership
Currently, most fan-out packaging production is concentrated in Asia, led by companies like TSMC and ASE.
This geographic concentration creates supply chain vulnerabilities for North American chipmakers who prefer local packaging options due to security, logistics, or cost concerns.
IBM and Deca’s collaboration addresses this gap by enabling high-volume fan-out package manufacturing on the continent.
Additionally, U.S.-based foundry SkyWater is also developing fan-out capabilities using Deca’s technology, backed by a $120 million Department of Defense contract.
This growing domestic packaging capacity enhances the U.S. and Canada’s semiconductor supply chains, supporting key industries like AI, automotive, and 5G communications.
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Deca’s Advanced Fan-Out Packaging Technology
Deca’s M-Series family includes several solutions, but MFIT is the most advanced. It enables:
- Dual-sided routing for dense chip interconnections
- Embedded bridge dies for heterogeneous integration
- Fine pitch scaling through Adaptive Patterning
According to Deca CEO Tim Olson, “MFIT uses our Gen 2 technology starting with a 20 µm pitch and has a roadmap to finer pitches.
This technology supports the integration of processors and high bandwidth memory in a compact, high-density package suitable for AI applications.”
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Industry Impact and Market Outlook
The global advanced packaging market, including fan-out wafer-level packaging, is projected to grow at a CAGR of over 10% through 2030, driven by demand for AI, 5G, and high-performance computing chips.
With IBM and Deca’s partnership, North America aims to capture a larger share of this market, reducing reliance on Asian suppliers.
| Year | Global Fan-Out Packaging Market Size (USD Billion) | North America Market Share (%) |
|---|---|---|
| 2023 | 4.5 | 10 |
| 2025 | 6.2 | 15 |
| 2030 | 11.5 | 25 |
Conclusion
IBM’s partnership with Deca Technologies represents a pivotal moment for North America’s semiconductor packaging industry.
By bringing advanced fan-out packaging capabilities closer to home, this alliance addresses supply chain risks and meets the rising demand for complex, high-performance chip packages.
The Bromont manufacturing line will be a key enabler of next-generation AI and memory devices, driving innovation and economic growth in the region.
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