1. Market Research
  2. > Packaging Market Trends
Advanced Packaging Market - Growth, Trends, Forecasts (2020 - 2025)

Advanced Packaging Market - Growth, Trends, Forecasts (2020 - 2025)

  • October 2020
  • 102 pages
  • ID: 5986848
  • Format: PDF
  • Mordor Intelligence LLP
Up to $750 off Until Jan 31st 2021

Summary

Table of Contents

Search Inside

The Advanced Packaging Market was valued at USD 25.62 billion in 2019, and it is expected to reach a value of USD 36.29 billion by 2025, at a CAGR of 7.8% during the forecast period of 2020 to 2025. The innovation in packaging technology is related to the increase in the functional density of large system-on-chip solutions. As a result, the focus on heterogeneous integration and wafer-level packages has prompted the chip industry to lay a new set of solutions, collectively known as advanced packaging.

- Advanced packaging technology has evolved to minimize the cost involved and enhance the overall throughput and performance of ICs. Further, With the augmented adoption of semiconductor ICs in automobiles, the demand for advanced packaging has increased considerably in recent years.
- As people are shifting toward connected devices, an increase in the Internet of Things (IoT) will lead to the growth of semiconductor packaging. The growth in the demand for consumer wearable goods, smartphones, and home appliances will have a positive impact on this industry. With IoT being a significant driver, security is a primary concern for the user. The semiconductor manufacturers have to work to develop more secure chips continually.
- At the start of 2020, TSMC was investing heavily in 5nm fabrication. TSMC’s 7nm process is in its peak, receiving vast numbers of orders from AMD for its Ryzen 3000-series CPUs and Navi graphics cards and other customers include Apple and Huawei. On the 5nm front, TSMC is working with EUV lithography, similar to what Samsung is accomplishing, and the company is expecting 10% of 2020’s year’s revenue to come from its 5nm EUV lines. After the 3nm process will take over, and TSMC expects mass production to start in 2022.
- Moreover, AI is driving the development of 3D TSV and heterogeneous integration technologies. The 3D integration is offering unequaled performances suiting exactly the pressing needs of AI applications. TSMC’s CoWoS advanced packaging technology combines memory chips and logic computing in a 3-D way for high computing products targeting artificial intelligence, cloud computing, data center, and supercomputer applications. This 3-D integration gives way for power-efficient high-speed computing while reducing heat and CO2 emissions.
- With the recent outbreak of COVID 19, the advanced packaging market will witness a decline in growth due to restrictions on the movement of goods and severe disruptions in the semiconductor supply chain. Moreover, the major semiconductor vendors are working with reduced capacity owing to the spread of COVID-19 virus across the world. For instance, Foxconn iPhone production operations located about 300 miles from Wuhan in Zhengzhou operated with 10-20 % capacity due to workforce issues forced by the lockdown of cities.

Key Market Trends
Fan-out Wafer Level Packaging Expected to Witness Significant Growth Rate

- Fan-out wafer-level packaging (FOWLP) has emerged as a promising technology to meet the ever-increasing demands of consumer electronic products. The significant advantages of this type of packaging are specific features such as substrate-less package, lower thermal resistance, and higher performance due to shorter interconnects combined with direct IC connection by thin-film metallization instead of the standard wire bonds or flip-chip bumps and more moderate parasitic effects.
- Fan-out wafer-level packaging (FOWLP) is the latest packaging trend in the field of microelectronics. With various technological developments towards heterogeneous integration, including multiple die packaging, passive component integration in packages and redistribution layers, and other package-on-package approaches, larger substrate formats are targeted with the help of FOWLP. Hence, it is well suited for the packaging of a highly miniaturized energy harvester system consisting of a piezo-based harvester, a power management unit, and a supercapacitor for energy storage.
- The fan-out wafer-level packaging (FOWLP) technology is being perceived as an alternative to 2.5D packaging. Fan-out is capable of multiple dies, as compared to fan-in wafer-level chip-scale package (WLCSP) technology, that handles a single die. Fan-out technology gained popularity in 2016 when Apple integrated its 16 nm A10 application processor with the mobile DRAM in a single package inside the iPhone 7. Apple used TSMC’s Integrated Fan-out (InFO) packaging technology, which the company had been developing since 2014.
- Moreover, TSMC is increasing its InFO-PoP packaging capacity for processing A13 processor chips that power the new iPhone SE devices. Several packaging organizations are moving closer to the production of panel-level fan-out packaging. This next-generation technology is expected to reduce the cost of today’s fan-out packages. Nepes, Samsung, ASE are among the major players that have already installed the equipment in their panel-level fan-out lines with production scheduled in 2019.

Asia-Pacific is Expected to Witness Significant Growth Rate

- Asia-Pacific is expected to grow at a significant rate. It has been a major revenue-generating region during the forecast period, primarily due to the growing population and the customer-side demand. Major semiconductor manufacturing companies present were present from a significant amount of time in the region are fueling the need for advanced semiconductor packaging. By prioritizing enhancements in end-to-end yield, semiconductor companies based in the Asia-Pacific region are managing cost pressures and efficiently sustaining higher profitability. The path forward involves a shift in mindsets, as well as the deployment of advanced packaging solutions.
- Further, China is one of the largest growing economies present with a large population, and according to statistics from China’s semiconductor association, the import of IC was witnessing an increase in the demand for the consecutive years from 2014. The Chinese government has deployed a multi-pronged strategy, which led to the support of domestic IC industry development to achieve the goal of becoming the global leader in all primary IC industrial supply chain segments by 2030. This growth in the semiconductor IC industry in the region is anticipated to stimulate the demand for advanced packaging.
- Japanese companies are expected to continue to have high-end materials, given past and on-going R&D efforts and know-how, providing them leverage to become top suppliers. For instance, Renesas, a Japanese semiconductor manufacturer, leads semiconductor R&D spending in Japan with USD 1.1 billion, followed closely by Sony Semiconductor Solutions USD 1 billion.
- With the outbreak of COVID-19, countries such as China and Japan, enforcing strict lockdown policies, production, and movement of critical raw materials used for the advanced packaging market is highly scarce in the global market. Due to the shortage of laborers, many packages and testing plants in countries such as China have reduced or even stopped operations, which have created a bottleneck for chip companies that rely on such back-end packages and testing capacity. However, the semiconductor operations remained uninterrupted in South Korea, and chip exports grew by 9.4% in February 2020.

Competitive Landscape
The Advanced Packaging Market is witnessing dominance by ten to fifteen significant players like Intel Corporation, Samsung Electronics Co. Ltd. The market is significantly driven by end-user revenue because of the demand for the latest technology and high-speed gadgets. Sustainable competitive advantage is being attained by the companies through innovations in this market, owing to the growing need for differentiated products for various applications. The constant evolution of technological developments in smartphones, tablets, wireless communications, etc., will have a positive impact on this industry.

- April 2020 - TSMC has announced that it has kick-started research and development for the 2nm process in 2019 itself. TSMC has announced that it has kick-started research and development for the 2nm process in 2019 itself. The semiconductor manufacturing company is yet to deliver Apple’s next-gen 5nm mobile chip slated to release in the last quarter of this year. The earliest the company expects it to be ready for the masses is 2025.
- July 2019 - Intel added new technology to advanced packaging with three new technologies co-EMIB, ODI, and MDIO for building chips out of smaller silicon die and boosting the bandwidth between them in a package.

Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 150+ Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
10% Off

$4250

  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.

ReportLinker may already be registered as a supplier with your company. If you want to Order by PO, check with us first and we'll let you know if we are a registered supplier and what the vendor number is. Otherwise, we'll provide you with the necessary information to register ReportLinker as a vendor.

Ahmad helps you find the right report:
Testimonials

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at
Ikea

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at
Ingredion

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

FAQ
  • How we can help
    • I am not sure if the report I am interested in will fulfill my needs. Can you help me?
    • Yes, of course. You can call us at +33(0) 4 37 65 17 03 or drop us an email at researchadvisor@reportlinker.com to let us know more about your requirements.
    • We buy reports often - can ReportLinker get me any benefits?
    • Yes. Set up a call with a Senior Research Advisor to learn more - researchadvisor@reportlinker.com or +33(0) 4 37 65 17 03.
    • I have had negative experiences with market research reports before. How can you avoid this from happening again?
    • We advise all clients to read the TOC and Summary and list your questions so that we can get more insight for you before you make any purchase decision. A research advisor will accompany you so that you can compare samples and reports from different sources, and choose the study that is right for you.

  • Report Delivery
    • How and when I will receive my Report?
    • Most reports are delivered right away in a pdf format, while others are accessed via a secure link and access codes. Do note that sometimes reports are sent within a 12 hour period, depending on the time zones. However, you can contact us to escalate this. Should you need a hard copy, you can check if this option is offered for the particular report, and pay the related fees.
  • Payment conditions
    • What payment methods do you accept?
      1. Credit card : VISA, American Express, Mastercard, or
      2. You can download an invoice to pay by wire transfer, check, or via a Purchase Order from your company, or
      3. You can pay via a Check made out in US Dollars, Euros, or British Pounds for the full amount made payable to ReportLinker
    • What are ReportLinker’s Payment Terms?
    • All payments must normally be submitted within 30 days. However, you can let us know if you need extended time.
    • Are Taxes and duties included?
    • All companies based in France must pay a 20% tax per report. The same applies to all individuals based in the EU. All EU companies must supply their VAT number when purchasing to avoid this charge.
    • I’m not satisfied. Can I be refunded?
    • No. Once your order has been processed and the publisher has received a notification to send you the report, we cannot issue any refund or cancel any order. As these are not ‘traditional’ products that can be returned, reports that are dispatched are considered to be ‘consumed’.
  • User license
    • The license that you should acquire depends on the number of persons that need to access the report. This can range from Single User (only one person will have the right to read or access the report), or Department License (up to 5 persons), to Site License (a group of persons based in the same company location), or Corporate License (the entire company personnel based worldwide). However, as publishers have different terms and conditions, we can look into this for you.
Purchase Reports From Reputable Market Research Publishers

System in Package Technology Market Forecast to 2027 - COVID-19 Impact and Global Analysis By Packaging Technology ; by Packaging Type ; Interconnection technique ; End-User Industry

  • $ 4500
  • December 2020
  • 167 pages

The system in package (SiP) technology market was valued at US$ 13,756.20 billion in 2019 and is projected to reach US$ 22,013.45 billion by 2027. The system in package (SiP) technology market is expected ...

  • World
  • Packaging
  • Integrated Circuit
  • Industry analysis
  • Integrated Circuit Sales
  • Disposable Income

ref:plp2020

Reportlinker.com © Copyright 2021. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.

Make sure you don’t miss any news and follow us on