TSMC Thermal Interface Material Evolution: From Graphite to Liquid Metal in Advanced Packaging

July 07, 2025

Key Takeaways:
• Material progression strategy: Systematic evolution from graphite→indium→liquid metal aligns with increasing power densities in R100/Venice/M4/M5 Ultra generation 
• Process complexity amplification: Liquid metal TIM demands UV-curable dielectric coating and six-sided AOI inspection, elevating manufacturing sophistication 
• Supply chain verticalization: In-house TIM control provides competitive differentiation while ensuring process reliability for premium HPC customers

 

ISAIAH Viewpoints:

TSMC's thermal interface material (TIM) roadmap represents a critical inflection point in advanced packaging, driven by exponential heat generation in next-generation HPC chips. The transition from current-generation graphite film TIMs (Showa Denko) to indium-based and liquid metal solutions reflects TSMC's proactive response to thermal density challenges that threaten Moore's Law continuation. The company's decision to keep TIM processes entirely in-house—rather than outsourcing—underscores the strategic importance of thermal management in maintaining yield and performance leadership. Most significantly, the planned liquid metal adoption requires sophisticated conformal coating processes that add 2.2-3.8% to oS processing costs, indicating TSMC's willingness to absorb margin pressure to enable customer performance breakthroughs.

 

Reference

• According to ISAIAH RESEARCH ("MONTHLY_REPORT" in "May 2025"): TSMC develops UV-curable conformal coating for liquid metal TIM adoption, adding 2.2-3.8% cost but preventing electrical shorts

• According to ISAIAH RESEARCH ("MONTHLY_REPORT" in "August 2024"): TSMC TIM evolution spans graphite film (B100) to indium-based solutions (R100/Venice/M4/M5 Ultra) with specialized AOI inspection

The information we shared is only a short excerpt of our monthly report. If you have further interest in our research and findings, we would be happy to provide you with a more detailed and comprehensive report that includes additional insights and data points. Please contact us to access our full insights.

Authors

Eric Tseng

Eric Tseng, CEO at Isaiah Research, is an experienced professional with over 20 years of industry experience, specializing in Apple and Display supply chain research. He holds an MBA from the University of Southern California in the United States. Currently serving as the CEO at Isaiah Research, Eric leads a high-performing Business Development team of more than four members, working closely with some of the most renowned clients in the industry, including Samsung, SK Hynix, Corning, SMIC, BOE, and many others. His strategic thinking and creative problem-solving skills have been instrumental in building strong relationships and driving growth and profitability for the organization. Prior to his current role, Eric held key positions in the procurement departments of Foxconn and HP. His experience in supply chain analysis and market trend forecasting provides invaluable insights to Isaiah’s clients, helping them make informed decisions and stay ahead of the competition.

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