Advanced Semiconductor Packaging Market - Forecast(2024 - 2030)

Advanced Semiconductor Packaging Market Overview

The Advanced Semiconductor Packaging Market size is forecasted to reach US$65.18 billion by 2027, growing at a CAGR of 10.2% from 2022 to 2027. This growth can be attributed to the growing demand for consumer electronics, the growth of the semiconductor industry, the incorporation of IoT, technological developments and continuous investments in innovative packaging technologies by major manufacturers. Additionally, the growing demand for the miniaturization of electronic devices drives manufacturers to adopt Advanced Semiconductor Packaging systems. Advanced semiconductor packaging helps in the heterogeneous integration of integrated circuits onto the multi-chip modules by using different technologies such as fan-out wafer level packaging, quilt packaging and system-in-package, thereby making them compact in size while providing superior performance and stability. As a result, the adoption of advanced semiconductor packaging technologies is constantly rising, which in turn drives the Advanced Semiconductor packaging industry forward. Advancements in technologies such as fan-out wafer level packaging, 3D packaging and system-in-package help improve the performance of all electronic systems which are being installed inside smartphones, laptops and other devices. As a result, the demand for advanced semiconductor packaging is increasing, as it aggregates and interconnects components before traditional electronic packaging. This, in turn, positively influences the Advanced Semiconductor Packaging Industry Outlook.

Report Coverage

The report: “Advanced Semiconductor Packaging Industry Outlook – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Advanced Semiconductor Packaging industry.

By Product Type: Ball Grid Array, Chip Scale Package, Land Grid Array, Pin Grid Array and Others.
By Technology: Fan-out Wafer Level Packaging, Fan-in Wafer Level Packaging, 2.5D, 3D, Flip-Chip and Others.
By Applications: NAND Devices, DRAM, Sensors, MEMS, LED and LCD display Drivers, Central Processing Units, Graphical Processing Units and Others.
By End-use Industry: Consumer Electronics, Industrial, Automotive, Healthcare, Aerospace and Defense, Others
By Geography: North America (the US, Canada and Mexico), South America (Brazil, Argentina and Others), Europe (the UK, Germany, France, Italy, Spain and Others), APAC (China, Japan, South Korea, India, Australia and Others) and RoW (the Middle East and Africa).

Key Takeaways

• In the Advanced Semiconductor Packaging market report, the fan-out wafer level packaging segment is analyzed to grow at a CAGR of 11.3% significant rate during the forecast period 2022-2027. This growth is due to increased consumer demand for electronic devices, technological developments and the high performance of these packaging systems.
• In the Advanced Semiconductor Packaging Market report, the Consumer Electronics segment is expected to grow at the highest rate with a CAGR of 10.8% during the forecast period, owing to factors such as technological advancements in the semiconductor industry, growing demand for electronic devices and incorporation of IoT.
• APAC region dominated the market with a share of 46% in the global Advanced Semiconductor Packaging Market size, owing to factors such as the growing semiconductor industry, increased demand for electronics due to high population size and the presence of major manufacturers.

Global Advanced Semiconductor Packaging Market Value Share, by Region, 2021 (%)

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Advanced Semiconductor Packaging Market Segment Analysis - by Technology

By Technology, the Fan-out wafer level packaging segment in the Advanced Semiconductor Packaging Market report is analyzed to grow with the highest CAGR of 11.3% during the forecast period 2022-2027. This growth can be attributed to ever-increasing consumer demand for electronic products, technological developments towards heterogeneous integration and higher performance and stability of Fan-out wafer level packaging (FOWLP). Additionally, advanced integrated circuit packages such as FOWLP have increased reliability, higher levels of integration with multi-chip modules in a small form factor and reduced cost. In November 2020, Samsung developed an RDL Interposer Package as a 2.5D package platform for heterogeneous integration based on fan-out wafer-level packaging. These continuous adoptions of fan-out wafer level packaging would boost the Advanced Semiconductor Packaging Market size.

Advanced Semiconductor Packaging Market Segment Analysis - by End-use Industry

Based on End-use Industry, the Consumer Electronics segment in the Advanced Semiconductor Packaging Market report is analyzed to grow at the highest CAGR of 10.8% during the forecast period 2022-2027. This is due to factors such as technological advancements in the semiconductor industry, growing demand for electronic devices such as smartphones, laptops, tablets and televisions, increasing demand for miniaturized devices and incorporation of IoT. Additionally, advanced packaging systems such as system-in-package technology allows more features to be integrated within integrated circuits of the electronic devices and increase their connectivity and reliability. In the fiscal year 2021, the revenue of the global consumer electronics market amounted to over US$1 trillion which is also expected to increase in recent years. This huge growth in the consumer electronics market would increase the adoption of Advanced Semiconductor Packaging, thereby boosting its market size.

Advanced Semiconductor Packaging Market Segment Analysis - by Geography

APAC dominated the global market for Advanced Semiconductor Packaging with a market share of 46% in 2021 and is also analyzed to have significant growth over the forecasting period. Significant growth in the semiconductor industry, the growing demand for consumer electronics due to the population size of the countries present in this region and continuous research and development initiatives taken for electronic packaging by major manufacturers are driving the Advanced Semiconductor Packaging Industry forward in the APAC region. In September 2021, Taiwan Semiconductor Manufacturing Co (TSMC) announced that it is developing new advanced packaging technologies which would be engaged in developing systems on small outline integrated circuit (SoIC) technology. These factors help bolster the APAC region’s presence in the Advanced Semiconductor Packaging market size.

Advanced Semiconductor Packaging Market Drivers

Growing demand for consumer electronics and continuous R&D investments by major players:

Due to rapid digitalization and technological advancements, the demand for consumer electronics is constantly rising. The miniaturization of electronic devices requires the implementation of integrated circuits onto the multi-chip modules. Advanced semiconductor packaging helps by facilitating that in a smaller form factor with greater reliability and performance. Additionally, constant R&D investments by major players for innovative technologies and better operational efficiency of packaging systems drives the market forward. For instance, in May 2021, Intel announced an investment of US$3.5 billion in its Rio Rancho facility to support its advanced 3D manufacturing and packaging technology, Foveros. These factors would positively influence the Advanced Semiconductor Packaging Industry Outlook.

The growing semiconductor industry and technological advancements in semiconductors:

The semiconductor industry is expected to grow significantly over the forecast period. Semiconductors are the primary component in the formation of any electronic device. Advanced semiconductor packaging is used for interconnection before traditional electronic packaging. It helps in providing better speed and reliability and uses less power. Thus, rapid technological advancements in semiconductors drive the advanced semiconductor packaging market forward. In December 2021, the Indian Government approved a US$10 billion incentive plan to boost the semiconductor industry after the crippling effects of the coronavirus on the industry. These factors would drive the adoption of advanced semiconductor packaging which in turn would boost the market growth.

Advanced Semiconductor Packaging Market Challenges

High cost in designing and manufacturing Advanced Semiconductor Packaging systems and complexities of the integrated circuits:

Advanced Semiconductor Packaging is a very expensive process when compared to conventional packaging solutions used in the semiconductor industry. The cost of designing and manufacturing chips at each new node is costly at certain levels. Furthermore, the cost of wafer fabrication is much higher due to the complexities of the ICs. The packaging of various chips and integrated circuits with complex patterning raises the overall cost of Advanced Semiconductor Packaging and impedes its adoption.

Advanced Semiconductor Packaging Industry Outlook

Product launches, collaborations, and R&D activities are key strategies adopted by players in the Advanced Semiconductor Packaging Market.  The top 10 companies in the Advanced Semiconductor Packaging industry are:

1. Intel
2. Amkor Technology
3. Deca Technologies
4. Siemens
5. Samsung
6. Advanced Semiconductor Engineering Inc
7. Taiwan Semiconductor Manufacturing Company
8. Microchip Technology
9. Synapse Electronique
10. FlipChip International LLC

Recent Developments

• In July 2021, Intel introduced two new 3D packaging technologies - Foveros Direct and Foveros Omni. These are manufactured to optimize power and offer better efficiency and reliability of the integrated circuits. This is poised to increase Intel’s share in the Advanced Semiconductor Packaging Industry.
• In March 2021, Deca, a market-leading pure-play technology provider for Advanced Semiconductor Packaging, introduced its new Adaptive Patterning Design Kit methodology. Deca collaborated with Advanced Semiconductor Engineering Inc. and Siemens Digital Industries Software to develop the solution. This is set to increase the company’s market share in the Advanced Semiconductor Packaging Industry.
• In February 2021, Siemens Digital Industries Software and Advanced Semiconductor Engineering, Inc., announced a collaboration to evaluate multiple complex integrated circuit package assemblies that interconnect in a single system. This would boost the adoption of Advanced Semiconductor Packaging which, in turn, increases the market size.

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