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AI Boom Spurs Little-Known Japan Chip Gear Maker Towa’s Stock Up 390%

Apr 08, 2024 - bloomberg.com
Towa Corp, a Kyoto-based company, is benefiting from the increasing AI-driven demand for high-bandwidth memory. The company controls a crucial part of the chipmaking process and holds two-thirds of the world’s chip molding equipment market, as per TechInsights.

The chip molding process is a key step that involves encasing chip die and wires with resin to protect them from dust, moisture, and impact. This allows them to be safely stacked together, enhancing the capabilities of graphics processors, such as those of Nvidia Corp., to better train artificial intelligence.

Key takeaways:

  • Towa Corp, a Kyoto-based company, is benefiting from the increasing AI-driven demand for high-bandwidth memory.
  • The company controls two-thirds of the world’s chip molding equipment market, as per TechInsights.
  • Chip molding is a crucial process that encases chip die and wires with resin for protection against dust, moisture, and impact.
  • This process allows safe stacking of chips, enhancing the capabilities of graphics processors like Nvidia Corp.’s to better train artificial intelligence.
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