Global Semiconductor Packaging Market - 2022-2029

Global Semiconductor Packaging Market - 2022-2029

Market Overview

Semiconductor packaging market size is estimated to reach USD million by 2029, growing at a CAGR of 7.2% during the forecast period (2022-2029). Manufacturing and designing semiconductors both require packaging. On a macro level, it impacts cost, performance and power, while on a micro level, it affects all chips' fundamental operation. The package serves as the housing for the semiconductor die. Even if foundries are stepping up their packaging efforts, the packaging may still be handled by a different vendor, the OSAT. Packages were once thought regarded as a rather unimportant aspect of semiconductor design. They are necessary on every level and as complication and profitability rise, foundries and OSATs are vying for a bigger piece of this market. The package links the chip to a board or other chips, shields the die and may also dissipate heat.

An integrated circuit is created around the semiconductor chip to pack a semiconductor. Organic substrates, bonding wires, lead frames, ceramic packages, die-attach materials and other materials are used in semiconductor packaging. The semiconductor market growth directly influences the market under study because the packaging is an early step in the electronics value chain. For instance, the OSATs handle the packaging needs for Qualcomm, a corporation that manufactures semiconductors and telecommunications equipment.

Market Dynamics

The Semiconductor packaging market is propelled by the increased usage of 3D semiconductor packaging and the growing demand for consumer electronics. However, the hefty costs associated with semiconductor packing could impede expansion.

The growing consumer electronics sector

The global semiconductor packaging market is anticipated to increase due to rising consumer electronics usage, rising per capita incomes worldwide and rising electronic equipment affordability due to improving living standards. The expansion of the semiconductor packaging industry is anticipated to be aided by advancements in consumer electronic products, including laptops, tablets, fitness bands, smartwatches and other electronic gadgets that require complicated semiconductor integration.

The link between the integrated circuit and the printed circuit board is provided by electronic packaging (PCB). Another purpose is to give the appropriate mechanical and environmental protection to ensure dependability and performance. Additionally, a rise in the use of artificial intelligence (AI) and the Internet of Things (IoT) in consumer electronics, telecommunication, robotics, automotive, aerospace & defense and other industries for hardware that is compatible with advanced software is anticipated to support the expansion of the semiconductor packaging market size in the forecast period.

The rising adoption of 3D semiconductor packaging

During the projection period, new prospects for expanding semiconductor packaging market share are anticipated to arise from the growing adoption of 3D semiconductor packaging technology. Volumetric system miniaturization and interconnection (VSMI), a semiconductor production method, is required to address the spike in customer demand for smaller, lighter and portable products (such as cell phones, PDAs, digital cameras, and others).

Large copper pillars and through-silicon vias (TSVs) are increasingly used in 3D packaging to connect already-finished chips vertically. Benefits of 3D semiconductor packaging include increased product compactness over conventional semiconductor packaging. Additionally, it makes direct chip-to-chip connections possible and simplifies system-level circuit routing, which lowers system costs. These elements are anticipated to expand this Semiconductor packaging market potential.

High capital investment

The development of the semiconductor packaging market may be constrained by the significant upfront costs associated with designing, developing and setting up semiconductor packaging units to meet the demands of various industries, including consumer electronics, automotive, healthcare, IT & telecommunication, aerospace & defense and others. Additionally, it is projected that the lack of technical knowledge in semiconductor packaging will impede the market's expansion.

COVID-19 Impact Analysis

It is envisaged that a pandemic like COVID-19 will encourage the production of cutting-edge medical tools and equipment to address such crises. Companies in the semiconductor sector used AI-supported technology to monitor product demand levels during the pandemic and alter their production schedules to satisfy urgent needs. The market may recoup the losses in the forecast term due to the increased focus on methods to reduce the impact of Covid-19 on the semiconductor packaging market.

The market will be driven by rising medical device output as well. For instance, to address the persistent difficulty of treating COVID-19 patients, GE Healthcare said it would enhance its manufacturing capacity for medical equipment, including CTs, ultrasound devices, mobile X-ray systems, patient monitors and ventilators. However, because China is one of the main producers of raw materials and final goods, it is anticipated that the COVID-19 epidemic will substantially impact electronic devices.

Segment Analysis

By end-user, the semiconductor packaging market is segmented into consumer electronics, automotive, healthcare, IT & telecommunication, aerospace & defense and others.

The rising spending on consumer electronics

Consumer spending, where electronic items need more than just performance and speed, is driving the consumer electronics market sector. Packaging is key in providing solutions to address these needs since it affects how products look and feel, function, time to market and cost. With materials playing a significant role in enabling the development of innovative packaging technologies, consumer electronics are redefining the ways semiconductor devices are thinned, die attached, bonding wired and encased.

To satisfy demand, some wafer manufacturing businesses have expanded capital investment due to the expanding consumer electronics penetration in the world's high-growth countries. Therefore, this market's expansion will be fueled by consumer demand for chips devoid of flaws. TSMC said it would invest $100 billion to enhance its semiconductor capacity in April 2021.

Cellphones are one of the biggest drivers of the consumer electronics sector's semiconductor usage. According to the Consumer Technology Association (CTA), smartphone shipments will increase by 3% from 2021 to reach 154.1 million devices (US$74.7 billion in shipment revenues) in 2022. Given the likelihood that this pattern will persist, it is anticipated to fuel semiconductor demand, which will fuel the packaging business's expansion.

Geographical Analysis

The rapidly rising semiconductor market in North America

The demand for semiconductor packaging is anticipated to increase in North America due to the widespread use of MEMS-based semiconductors in end-user industries, including healthcare. With more than 80 wafer production facilities dispersed across 19 states, U.S. is also at the forefront of innovation in semiconductor packaging. One of the world's fastest-growing markets is U.S. For instance, global sales of semiconductors totaled US$556 billion in 2021, with US$258 billion, or 46% of that amount, coming from U.S. semiconductor companies. American semiconductor companies also made a record-breaking US$50 billion investment in R&D to stay competitive in the market.

In addition, significant companies' investments in the nation are anticipated to stimulate the semiconductor packaging market. For instance, Cree Inc. declared plans to spend more than US$1 billion to build a new semiconductor facility in U.S. in 2019. By 2022, this semiconductor manufacturing should be operational. Additionally, it is anticipated that the region's semiconductor industry will continue to innovate, given the growing popularity of Chinese semiconductor products. Additionally, one of the biggest drivers of semiconductor usage in the consumer electronics sector is the use of cell phones. The sale of smartphones in U.S. has consistently increased in recent years.

Competitive Landscape

There are numerous packaging solution vendors for the semiconductor sector, so the packaging market for semiconductors is expected to be moderately fragmented. Players employ product innovation, expansions and alliances to keep one step ahead of the competition and broaden their market reach.

Samsung unveiled its new chipset range for its fifth-generation (5G) solutions and products in June 2021. These include the Compact Macro, Massive MIMO radios and baseband units, all of which will be marketed commercially in 2022.

The strategic partnership between ASE Group and Apple Inc. to gradually increase energy efficiency and transition to greener production was finalized in July 2020. This cooperation also helps the supply chain's clean energy program and its suppliers. Additionally, it will build a strong brand reputation for this business.

Major global semiconductor packaging market companies include Amkor Technology, Inc., ASE Group, Fujitsu Ltd, Jcet/Stats Chippac Ltd, Siliconware Precision Industries Co. Ltd (Spil), Powertech Technology, Inc., Tianshui Huatian Technology Co. Ltd, Chipmos Technologies, Inc., Chipbond Technology Corporation and Samsung Electronics Co. Ltd.

Amkor Technology, Inc.

Overview: Amkor Technology, Inc. is one of the biggest international suppliers of outsourced semiconductor packaging and testing services. Amkor, founded in 1968 and pioneered the outsourcing of IC packaging and test, is today a critical manufacturing partner for the top foundries, semiconductor OEMs and electronics firms worldwide. Amkor's production facilities, product development centers and sales & support offices are distributed throughout major electronics manufacturing hubs in Asia, Europe and U.S.

Product Portfolio: Amkor Technology, Inc. offers more than 3000 unique package sizes and formats to meet customer needs. Traditional Leadframe integrated circuits (ICs) for through-hole and surface mounting are one package type. Still, others are needed for high pin count and high-density applications such as stacked die, wafer level, MEMS, Optical, Flip Chip, Through Silicon Via (TSV) and 3D Packaging. For power discrete, the company provides products to various industries, including automotive, communications and industrial.

Key Development:

In November 2021, Amkor Technology, Inc. revealed its intention to develop a state-of-the-art smart factory in Bac Ninh, Vietnam. The new factory's initial phase will concentrate on offering Advanced System in Package (SiP) assembly and test solutions to the top semiconductor and electronic manufacturing firms around the globe. It has space for the initial phase and potential extension on the Bac Ninh site, around 230,000 square meters, or roughly 57 acres and is situated in the Yen Phong 2C Industrial Park.

Why Purchase the Report?
• Visualize the composition of the semiconductor packaging market segmentation by technology, material, end-user and region, highlighting the critical commercial assets and players.
• Identify commercial opportunities in the semiconductor packaging market by analyzing trends and co-development deals.
• Excel data sheet with thousands of semiconductor packaging market-level 4/5 segmentation points.
• Pdf report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Product mapping in excel for the key product of all major market players

The global semiconductor packaging market report would provide access to an approx. 61 market data table, 56 figures and 209 pages.

Target Audience 2022
• Semiconductor Packaging Service Providers/ Buyers
• Industry Investors/Investment Bankers
• Education & Research Institutes
• Emerging Companies
• Semiconductor Packaging Manufacturers