1. Home
  2. > Packaging Market Trends
Global 2.5D & 3D Semiconductor Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Global 2.5D & 3D Semiconductor Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

  • November 2022
  • 126 pages
  • ID: 6363569
  • Format: PDF
  • Mordor Intelligence LLP

Summary

Table of Contents

Search Inside

The Global 2.5D & 3D Semiconductor Packaging Market is expected to register a CAGR of 16.2% during the forecast period (2022-2027). As 5G, AI, and high-performance computing continue to make inroads into the world, there’s an escalating demand for semiconductor devices that deliver enhanced performance, lower latency, increased bandwidth, and power efficiency, achieved by 2.5D & 3D packaging technologies. In recent years, 2.5D & 3D has gained momentum as an ideal chipset integration platform due to their merits in attaining extremely high packaging density and energy efficiency.

Key Highlights
Semiconductor ICs are deployed in multiple automotive, consumer electronics, and other industries. For instance, the advent of IoT and artificial intelligence (AI) and the proliferation of sophisticated electronics are driving the high-end application segment across the consumer electronics and automotive industries. As Packaging is an early stage in the electronics value chain, the growth of the market studied is directly impacted by the semiconductor market’s growth.
There are several advantages of applying 2.5D & 3D IC Packaging, including Ultra-high routing density, Ultra-high I/O density, Homogeneous/heterogeneous memory, power and optics integration, Interposer capable of embedding decoupling capacitor or active devices feasible, package reliability to meet automotive requirements, etc.
As the semiconductor applications are expanding, the slowdown in CMOS scaling and escalating costs have forced the industry to rely on IC packaging advancement. 3D stacking technologies have emerged as lucrative solutions that meet the required performance of applications like AI, machine learning, and data centers. Therefore, the growing need for high-performance computing applications drives the 3D-TSV (Through Silicon Via) market over the forecast period.
Further, a pandemic like COVID-19 is anticipated to fuel the manufacturing of advanced medical devices and equipment to tackle such crises in the future. For instance, in 2021, GE Healthcare announced that it would increase its manufacturing capacity for medical equipment, including CTs, ultrasound devices, mobile X-ray systems, patient monitors, and ventilators, to cater to the ongoing challenge of treating COVID-19 patients. Since the 2.5D & 3D Semiconductor Packaging has numerous applications in the medical industry, the proliferation of medical equipment manufacturing is expected to drive market growth.
However, the high Initial Investment and Increasing Complexity of Semiconductor IC Designs are expected to restrain the evolution of the market.

Key Market Trends

The Consumer Electronics Segment is Expected to Hold a Major Market Share

Consumer electronics is one of the primary end-user industries for semiconductor vendors. Growth in the smartphone industry, increasing adoption of smart devices and wearables, and increasing penetration of consumer IoT devices in applications like smart homes are significant factors driving the growth of the studied segment. For instance, according to Ericsson, worldwide smartphone subscriptions were 5924 million in 2020 and 6259 million in 2021. It is projected to reach 6567 million in 2022 and 7690 million in 2027.
The consumer electronics industry demands higher power dissipation, faster speeds, higher pin counts, smaller footprints, and lower profiles. The miniaturization and integration of semiconductors have given rise to smaller, lighter, and more portable devices. Each new iteration of consumer electronics products is more innovative, lightweight, and energy-efficient than its predecessors. This creates enormous customer expectations for the next iteration, which is a significant selling point for the producers of consumer electronics. The 2.5D & 3D Semiconductor Packaging technologies satisfy the consumer electronics market’s complex and evolving needs.
With trends like 5G smartphones, biosensors, and more AI features, the market is expected to witness increased smartphone sales in 2022. The deployment of 5G smartphones would also greatly enhance the wireless data communication bandwidth, latency, and density of connected devices. Further, markets like smartwatches and smart speakers gained massive popularity in recent years, owing to their increasing functionalities and features with the help of advanced semiconductor components. Thus, the demand for Wi-Fi and Bluetooth chips skyrocketed.
Moreover, the growing market for gaming consoles and increasing advancement in these products further expand the studied segment’s scope. Over the 4-5 years, gaming console has become high-tech gadgets, and companies like Sony, Microsoft, and Nintendo are increasingly investing in their product development to reach the current 8th generation consoles.
These products utilize high technologies, including Blu-ray, motion sensing, VR, 4K and HD quality video, and online functions. Therefore, these applications need chips with an advanced substrate and added functionality, motivating the studied market vendors to invest in the segment. Such developments provide lucrative opportunities for the growth of the studied market.

The Asia Pacific Region is Expected to Witness a High Market Growth Rate

The increasing smartphone adoption rates have made Asia-Pacific one of the world’s largest mobile markets due to the rising population, increasing disposable income, and growing urbanization. For instance, according to the Ministry of Industry and Information Technology (MIIT), in 2020 and 2021, there were around 112 and 116 mobile phone subscriptions per one hundred inhabitants in China, respectively. The increasing smartphone penetration rate in the region is a significant growth driver for the studied market.
Memory is a crucial market in modern data-centric societies, fueled by important megatrends like mobility, cloud computing, AI, and the IoT. The ramp-up of Chinese memory, the growth of flip-chip DRAM, and 3D-stacking technologies unlock significant opportunities for packaging players.
Additionally, the region is projected to witness rapid growth due to the increased demand for miniaturized circuits and established semiconductor manufacturing companies, OEMs, and ODMs.
Moreover, countries in the region have begun reorganizing supply chains to prioritize their needs, making them resistant to fierce competition. The region is also making preemptive investments to further strengthen its domestic industry ecosystem, so external shocks cannot shake it.
For instance, in May 2021, South Korea announced a plan to spend USD 450 billion over the next ten years on new semiconductor manufacturing capabilities. Semiconductors are Korea’s largest export, most of which are memory products—DRAM and NAND Flash memory. The new plan aims to boost the nation’s advanced logic chip foundry capacity.

Competitive Landscape

The Global 2.5D & 3D Semiconductor Packaging Market is fragmented due to the presence of various significant players like ASE Group, Amkor Technology Inc., Siliconware Precision Industries Co. Ltd (SPIL), etc. The market players must constantly innovate advanced and comprehensive products to stay relevant.

June 2021 - Taiwan’s prominent semiconductor foundry, TSMC, announced its plans to establish an R&D center in Japan’s science city of Tsukuba to develop 3D IC packaging materials in cooperation with its Japanese suppliers. In May 2021, Japan’s Ministry of Economy, Trade, and Industry (METI) and its subsidiary organization, the National Institute of Advanced Industrial Science and Technology (AIST), announced that more than 20 Japanese companies would work with TSMC Japan’s 3D IC R&D Center.
July 2021 - Singapore’s Agency for Science, Technology, and Research (A*STAR’s) Institute of Microelectronics (IME) announced a collaboration with four significant industry players to form a System-in-Package (SiP) consortium. IME would team with Asahi-Kasei, GLOBALFOUNDRIES, Qorvo, and Toray to develop high-density SiP for heterogeneous chiplets integration to meet the semiconductor industry’s challenge 5G applications. The consortium will leverage IME’s FOWLP/2.5D/3D packaging expertise.

Additional Benefits:

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
  • 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.

Grace 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 [email protected] 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 - [email protected] 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

Semiconductor Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

  • $ 4750
  • November 2022
  • 147 pages

The semiconductor packaging market was valued at USD 28.2 billion in 2020 and is expected to reach USD 44.44 billion by 2026, and grow at a CAGR of 7.96% over the forecast period (2021-2026). Packaging ...

  • World
  • APAC
  • Packaging
  • Semiconductor
  • Industry analysis
  • Energy Consumption
  • Smartphone Sales

ref:plp2022

Reportlinker.com © Copyright 2023. 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