Taiwan's chip materials and specialty chemical makers are getting a new growth wave as advanced packaging takes off — good news for their shareholders.

• Demand is jumping for advanced packaging and testing, with new methods like fan-out panel-level packaging, glass vias, and optical chip links driving orders.
• Analysts are calling several Taiwanese suppliers a buy, including Topco Scientific-linked names, Eternal Materials, Kinik, and Solar Applied Materials.
• Chipmakers increasingly want local suppliers, so the shift to buying Taiwanese has spread from front-end chipmaking into packaging.
• Semiconductor tape is becoming a bigger business, moving from a simple protective material to a higher-value part of the process.
• TSMC's next-generation A16 process starts mass production this quarter, and its backside power delivery technology should boost consumption of diamond discs and control wafers.

Outlook: Orders for local packaging materials should keep climbing as TSMC ramps its newest process and more suppliers move into packaging.