Global Advanced Packaging Market Size, Share & Trends Analysis Report, By Packaging Type, By Application, By Region Forecasts, 2023 – 2030

Global Advanced Packaging Market Size, Share & Trends Analysis Report, By Packaging Type, By Application, By Region Forecasts, 2023 – 2030

The Advanced Packaging Market was amounted at US$ 30.21 billion in 2022 and is projected to grow to US$ 62.87 billion by 2030 at CAGR of 7.05% during 2023-2030.

Throughout the forecast period, a number of critical factors are expected to propel the expansion of the global advanced packaging market. These include device miniaturisation and growing MEMS use. Additionally, it is anticipated that the growing trend of advanced design in electronic devices combined with advantageous laws and regulations in developing nations would support market expansion. However, over the projected time, the market's expansion is hampered by the high cost of advanced packaging. The packaging industry has a lot of room to develop thanks to things like new packaging technologies and fan-out wafer level packaging trends. The worldwide Advanced Packaging industry is likely to face challenges due to the impact of market consolidation on overall profitability.

“Flip chip segment, by packaging type, to be dominating market from 2023 to 2030.”

Their widespread use, especially in high-end tablets and smartphones that have to meet strict power and space management requirements, is largely responsible for this increase. Fan-out WLP, however, is anticipated to have the fastest CAGR, at roughly 7.46%. Fan-out wafer-level packaging, or FOWLP, is the most recent development in packaging in the microelectronics sector. Due to many technological breakthroughs 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 sought for with the use of FOWLP. As a result, it is perfect for encasing a very small energy harvesting system consisting of a piezo-based harvester, a power control unit, and a supercapacitor for energy storage.

“Consumer electronics segment, by application, to be dominating market from 2023 to 2030.”

The market is predicted to become dominant because to an increase in demand for consumer electronics such cell phones, laptops, and air conditioners. Furthermore, there are a tonne of growth opportunities due to the requirement for electronic equipment to be smaller. Furthermore, the growing trend of sophisticated connected homes is predicted to boost consumer electronics sales. Appliances with voice assistance, Bluetooth, and Wi-Fi connectivity—modern conveniences—should be highly sought after by millennials. As income levels rise globally, so does the need for the newest, most technologically advanced items to furnish one's home. These components might benefit consumer electronics' sophisticated packaging.

“Asia Pacific to be largest region in advanced packaging market.”

Because there are a significant number of semiconductor manufacturing activities in the Asia Pacific area, the region has a major market share. The region's pure-play manufacturers are raising their manufacturing capacity to satisfy the rising demand from suppliers of fabless goods. China is also trying to bring the substrate production sector together. Manufacturers in the Asia-Pacific region focus on growing their clientele in North America as demand for data centres and artificial intelligence (AI) rises. For example, Ibiden wants to reduce its Flip Chip business, which serves the local smartphone market, while increasing sales from Semicon majors like Intel. Ibiden boosted the capacity of its Japanese plant by 50% by the end of 2020 by focusing on silicon bridges, which connect memory semiconductors with CPUs and GPUs.

In addition, China has a substantial population and one of the fastest-growing economies in the world. The Chinese Semiconductor Association reports that since 2014, there has been a consistent increase in demand for IC imports. The Chinese government has promoted the expansion of the domestic IC industry through a variety of strategies in an effort to become the global leader in all significant IC industrial supply chain segments by 2030. The demand for sophisticated packaging is expected to rise in the region as the semiconductor IC industry expands. Additionally, businesses in the area take advantage of market expansion through organic growth initiatives. For instance, Taiwan Semiconductor Manufacturing Co. worked with Google and other US tech firms in 2020 to develop a novel approach to boosting chip power. According to TSMC's statement, the business is expanding chip packing both horizontally and vertically by employing a new 3D technology called SoIC. It makes it possible to link and stack a variety of chip types, such as memory, CPUs, and sensors, onto a single package.

Advanced Packaging Competitive Landscape

The competitive landscape of the Advanced Packaging market involves assessing the competitive landscape to understand the strengths, weaknesses, opportunities, and threats of the industry. There are many large to small players in the advanced packaging market. The market for advanced packaging will rise as a result of major players in the industry investing heavily in research and development to broaden the scope of their products. In order to broaden their global reach, market players are also taking part in a variety of strategic activities. Notable advancements in the industry include the launch of new products, agreements, mergers and acquisitions, increased investments, and partnerships with other companies.

The Advanced Packaging market is highly competitive, with numerous companies vying for market share. Prominent companies in the Advanced Packaging Market include:

Advanced Semiconductor Engineering Inc., Amkor Technology, Inc., Analog Devices, ASE Group, Chipbond Technology Corporation, Brewer Science, Inc., Chipmos Technologies Inc., Intel Corporation, Microchip Technology Inc., International Business Machine Corporation, Powertech Technology Inc., Qualcomm Corporation, Renesas Electronics, Sanmina Corporation, Siliconware Precision Industries Co., Ltd., Samsung Electronics Co. Ltd, Stats Chippac Pte. Ltd, Taiwan Semiconductor Manufacturing Company, Toshiba Corporation, Süss Microtec SE, Texas Instruments, Universal Instruments Corporation and others.

Recent developments:

Amkor Technology declared in October 2022 that it will assist initiatives in the European automotive sector. In order to accelerate the development of technologies for the automobile industry, such as infotainment and sophisticated driver support systems, the business plans to increase semiconductor production.

August 2022: The Meteor Lake, Arrow Lake, and Lunar Lake processors were made using Foveros technology, according to the American integrated circuit maker Intel Corporation. The latest high-end graphics processing units (GPUs) were built using embedded multi-die interconnect bridge (EMIB) and cutting-edge Foveros technology.

In February 2021, Siemens Digital Industries Software announced that it has collaborated with Advanced Semiconductor Engineering, Inc. (ASE) to develop two new enablement solutions. These solutions will help the mutual customers of the two companies create and evaluate a variety of complex integrated circuit (IC) package assemblies and interconnect scenarios in a data-robust graphical environment prior to and during the physical design implementation phase.

August 2020: Samsung Electronics announced their silicon-proven 3D IC packaging technology, eXtended-Cube (X-Cube), available for most advanced production nodes. To help satisfy the demanding performance needs of modern applications including 5G, artificial intelligence, high-performance computing, mobiles, and wearables, X-Cube offers noticeable gains in speed and power efficiency.

May 2020: Synapse Electronique, a Canadian supplier of equipment electronics and EMS, merged two Universal Instruments Fuzion Platform production lines at its factory in Shawinigan, Quebec. Each line includes the Fuzion2-60 and FuzionXC2-37 Platforms, which provide Synapse with the performance and adaptability required to achieve both the long-term OEM throughput requirements and the challenges of contract manufacturing.