Saudi Arabia Semiconductor Advance Packaging Market Overview, 2029

Saudi Arabia Semiconductor Advance Packaging Market Overview, 2029

In comparison to established worldwide markets, Saudi Arabia's semiconductor advanced packaging sector is still in its early stages. The country's focus on diversifying its economy through the Vision 2030 plan has resulted in considerable investments in technology and infrastructure, such as semiconductor manufacturing and packaging. Initially, Saudi Arabia's semiconductor activities were modest, with the majority of modern packaging technologies imported. However, in recent years, there has been an increased emphasis on localising technologies and improving domestic capabilities. Saudi Arabia's semiconductor business began to grow in the early 2010s. Initially, efforts were centred on forming alliances with global technology providers to integrate innovative packaging solutions into local manufacturing processes. 2020: The Saudi General Investment Authority (SAGIA) launched a technological investment program aiming at boosting the semiconductor sector through foreign direct investment (FDI) and local innovation. Saudi Arabia began establishing a semiconductor cluster in King Abdullah Economic City (KAEC), with an emphasis on enhanced packaging capabilities. This effort seeks to become a hub for semiconductor research and manufacture, thereby contributing to Vision 2030's overarching goals. The government adheres to recommendations similar to the International Electrotechnical Commission (IEC) and International Organisation for Standardisation (ISO) standards, which include regulations on material safety, environmental effect, and product reliability. The COVID-19 epidemic had varying effects on Saudi Arabia's semiconductor advanced packaging business. On the one hand, the epidemic affected global supply networks, resulting in delays in technological transfers and industrial processes. On the other hand, it increased Saudi Arabia's ambition for digital transformation and technological localisation.

According to the research report, “Saudi Arabia Semiconductor Advance Packaging Market Outlook, 2029,"" published by Bonafide Research, the Saudi semiconductor advance packaging market is anticipated to add to more than USD 70 Million by 2024–29. A major development is the emphasis on localising semiconductor technology. The Saudi government and corporate sector are making significant investments in developing a semiconductor manufacturing and packaging ecosystem in the nation. This includes building new facilities and enticing multinational technology providers to work with local companies. The establishment of a semiconductor centre in King Abdullah Economic City (KAEC) is a prime example of this movement, which seeks to position Saudi Arabia as a major player in the global semiconductor market. Saudi Arabia is focussing on applications that drive demand for innovative packaging, such as automotive electronics, telecommunications, and IoT devices. The rise of digital transformation and smart technologies is increasing the demand for high-density, high-performance semiconductor packages. Saudi enterprises such as Iberchip are making substantial contributions to the domestic semiconductor packaging sector. STMicroelectronics, a leading participant in the semiconductor sector, has a strong presence in Saudi Arabia. The company offers superior packaging solutions and contributes to the local market through collaborations and investments. These companies are becoming more involved in the development and application of sophisticated packaging technologies. Saudi Arabia sources innovative packaging materials and technologies from worldwide providers including as Intel, Samsung, and TSMC. These foreign suppliers provide crucial materials and technology required for the production of sophisticated semiconductor packages.

In Saudi Arabia's semiconductor advanced packaging market, various major technologies are used, including Flip Chip, Embedded Die, Fan-in Wafer-Level Packaging (Fi-WLP), Fan-out Wafer-Level Packaging (Fo-WLP), and 2.5D/3D packaging. Fan-out Wafer-Level Packaging (Fo-WLP) now dominates Saudi Arabia's semiconductor advanced packaging business. Its ability to deliver high-density interconnects while preserving a compact form factor makes it ideal for meeting the increased demand for advanced electronics and telecoms components. Flip Chip packaging is renowned for its superior performance and thermal efficiency, making it ideal for high-speed and high-density applications. This approach includes placing semiconductor dies face down on a substrate, with solder bumps providing electrical connections. Embedded Die technology integrates semiconductor dies into the substrate, resulting in small and high-performance packaging. This approach is widely utilised in high-end applications that require tight integration, such as modern automobile electronics and telecommunications equipment. Fi-WLP involves packing a semiconductor die directly at the wafer level and connecting it to the package's exterior connections. This technique is well-known for its tiny size and low cost. It's widely utilised in consumer electronics and IoT devices. 2.5D and 3D packaging technologies stack many semiconductor dies to make a high-performance, multi-layered package. This strategy is used to improve performance and integration, particularly in applications that require a large amount of data bandwidth and computational power.

Several main components are critical in Saudi Arabia's semiconductor advanced packaging market for the creation of high-performance packages: organic substrates, bonding wires, lead frames, ceramic packages, and other materials such as encapsulants and die-attach compounds. Organic substrate is currently the most popular material in Saudi Arabia's semiconductor advanced packaging business. They give electrical and mechanical support to semiconductor devices. Organic substrates are used extensively in Fan-in Wafer-Level Packaging (Fi-WLP) and Fan-out Wafer-Level Packaging (Fo-WLP). Organic substrates are a popular material in Saudi Arabia due to their versatility and the country's ambitions to establish a more localised semiconductor supply chain. STMicroelectronics sources organic substrates from global providers, resulting in their widespread application in local packaging solutions. While bonding wires are necessary, they are less emphasised in advanced packaging methods such as Fan-out Wafer-Level Packaging, which reduces the requirement of wire bonds by embedding connections directly into the package. Despite this, bonding wires remain vital for traditional packaging processes and are employed by Saudi firms like as IBERchip. Lead frames are used to support and connect semiconductor chips inside packages. They are typically found in traditional packaging formats such as Dual In-line Packages (DIPs) and Surface-Mount Devices (SMDs). Although lead frames are less common in advanced packaging solutions, they are nevertheless useful in some applications in Saudi Arabia's market, notably in less sophisticated semiconductor devices. Ceramic packets, while more expensive than organic substrates, are praised for their long-term stability. Saudi enterprises are gradually introducing ceramic packages into their offers, backed up by international relationships with giants like Intel.

Consumer Electronics, Automotive, Telecommunication, Healthcare, and others, as well as Data Centres, IoT Devices, Aerospace & Defence, and Industrial applications, drive demand for diverse packaging options in Saudi Arabia's semiconductor advanced packaging industry. The Consumer Electronics sector now leads Saudi Arabia's semiconductor advanced packaging market. This is owing to the widespread use of smart gadgets and consumer electronics, which has increased demand for compact, high-performance packaging. The emphasis on miniaturisation and functionality is consistent with the modern packaging solutions available in the market. Leading domestic businesses such as Iberchip and STMicroelectronics are active in these industries, aided by partnerships with international suppliers such as Intel, TSMC, and Texas Instruments Texas Instruments. The expansion of Saudi Arabia's automotive industry has boosted the demand for advanced semiconductor packages that can survive extreme environmental conditions while also providing excellent dependability. Embedded Die and Ceramic Package technologies are prominent in automotive applications due to their high durability and performance. The telecommunications industry has a considerable demand for high-speed, high-frequency semiconductor packages. Advanced packaging solutions such as 2.5D/3D packaging and Flip Chip are used to address the performance needs of data centres and network infrastructure. The healthcare industry's demand for dependable and miniaturised semiconductor packages is expanding, driven by the increased usage of medical devices and diagnostic equipment. Precision and integration are achieved through the employment of advanced packaging technologies such as Fan-in Wafer-Level Packaging (Fi-WLP) and Embedded Die.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Semiconductor Advance Packaging market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Technology
• Flip Chip
• Embedded Die
• Fi-WLP
• Fo-WLP
• 2.5D/3D

By Material Type
• Organic Substrate
• Bonding Wire
• Lead Frame
• Ceramic Package
• Others (e.g., Encapsulates, Die-Attach Materials)

By End-Use Industry
• Consumer Electronics
• Automotive
• Telecommunication
• Healthcare
• Others (e.g., Data Centres, IoT Devices, Aerospace & Defence and Industrial)
The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Semiconductor Advance Packaging industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.