Taipei, Aug. 3 (CNA) Artificial intelligence is reshaping competition in the semiconductor industry, shifting the focus beyond transistor scaling to advanced packaging, materials and system-level integration, experts said at a Taiwan-Japan semiconductor forum on Monday. "Leadership will come from system-level co-optimization, not transistor scaling alone," Tsai said at the 2026 Taiwan-Japan Semiconductor Technology Forum. According to his presentation, TSRI is already collaborating with Japanese partners on three-dimensional heterogeneous integration, advanced packaging, quantum computing, power devices and materials analysis. AI and high-performance computing systems require greater bandwidth and computing power while posing growing challenges in power consumption, latency, cooling and structural stability, he said. The forum, organized by the Taiwan-Japan Semiconductor Technology Association, focused on opportunities for bilateral semiconductor collaboration in the AI era.