System in Package Die Market Assessment, By Packaging Technology [2D Integrated Circuit, 2.5D Integrated Circuit, 3D Integrated Circuit], By Packaging Method [Flip Chip, Wire Bond and Die Attach, Fan-Out Wafer Level Packaging, System-in-Package-on-Package

System in Package Die Market Assessment, By Packaging Technology [2D Integrated Circuit, 2.5D Integrated Circuit, 3D Integrated Circuit], By Packaging Method [Flip Chip, Wire Bond and Die Attach, Fan-Out Wafer Level Packaging, System-in-Package-on-Package, Others], By Application [Consumer Electronics, Automotive, Healthcare, Industrial, Telecommunication, Others], By Region, Opportunities and Forecast, 2017-2031F

Global system in package die market is projected to witness a CAGR of 8.52% during the forecast period 2024-2031, growing from USD 10.11 billion in 2023 to USD 19.45 billion in 2031. The market is experiencing strong development driven by the increasing demand for miniaturized and exceptionally integrated electronic gadgets across different industries such as consumer electronics, automotive, and healthcare, which is propelling the market extension.

System-in-Packages (SiP) innovation empowers the combination of various electronic parts into a single package, offering improved usefulness and a diminished structure factor. In this way, it meets the evolving needs of current electronic gadgets. Also, advancements in packaging advancements, including fan-out, fan-in, and 2.5D/3D SiP, are driving innovation and reception in the market.

Additionally, the multiplication of IoT gadgets and the organization of trend-setting innovations, such as 5G, are further fueling the demand for SiP answers for empowerment availability, sensor integration, and proficient information processing. Besides, the growing pattern towards heterogeneous integration and the development of new applications, such as computer-based intelligence, edge computing, and independent vehicles, are creating extra learning experiences for the system in the package die market, ensuring its continued extension.

Miniaturization is a key driver of revenue development in the system in package die market. There is a growing demand for more modest, more integrated parts to squeeze into restricted space constraints as electronic gadgets become increasingly minimal and compact. SiP innovation tends to the need by consolidating various chips or dies into a single package, consequently reducing the general footprint of the gadget while maintaining or, in any event, enhancing its usefulness. The miniaturization pattern empowers manufacturers to deliver more modest, lighter, and more energy-effective gadgets, appealing to consumers who focus on compactness and accommodation.

Also, miniaturization reduces material use and intricacy, resulting in cost savings. As a result, SiP configurations are popular in a variety of industries, including consumer electronics, automotive, and healthcare, which is driving the revenue growth of global system in package die market.

For instance, in December 2023, JCET collaborated with industry clients to provide top-notch UWB gadgets to further develop vehicle safety. According to ICV, UWB innovation has advantages, for instance, quicker information transmission rates and more accuracy and is supposed to arrive at a market worth of USD 2.256 billion in 2027.

Proliferation of IoT Devices Promoting the Global System in Package Die Market Growth

The expansion of IoT gadgets is a major factor driving the growth of global system in the package die market. There is an increasing demand for reduced and power-productive SiP arrangements that can empower consistent availability and sensor integration as the IoT ecosystem continues to quickly expand. IoT gadgets frequently require a combination of various parts, including processors, sensors, memory, and remote network modules, pressed into a small form factor. SiP innovation tends to meet the need by integrating various capabilities into a single package, subsequently reducing the general size and power utilization of IoT gadgets while enhancing their presentation. The pattern drives the reception of SiP arrangements across different IoT applications, including smart home gadgets, wearable innovation, industrial sensors, and associated vehicles, driving the development of the system in the package die market as manufacturers look to fulfill the evolving needs of the IoT landscape.

For instance, in May 2023, ASE declared advancement FOCoS-Bridge innovation, integrating two application-explicit integrated circuits and eight high bandwidth memory gadgets in a huge 70mm x 78mm package. The adaptable arrangement offers high-density die-to-die associations, high I/O counts, and high-speed signal transmission, catering to artificial intelligence and elite performance computing demands for quicker information transfer rates and upgraded interconnectivity.

Adoption of 5G Technology Fueling the Growth of Global System in Package Die Market

The adoption of 5G innovation is a major factor moving the package die market into the forecast period. There is a growing demand for SiP arrangements fit for supporting high speed data transmission and processing minimal form factors for 5G associations. 5G innovation empowers quicker data speeds, lower latency, and increased network capacity, driving the requirement for cutting edge SiP solutions to power the coming age of 5G-empowered gadgets. SiP technology plays an important role in enabling the integration of multiple components, such as CPUs, memory, RF modules, and power management units, into one package. The integration considers the advancement of minimized and power-effective gadgets equipped for handling the demanding prerequisites of 5G networks. Accordingly, the expansion of 5G innovation is driving huge development in the system in package die market as manufacturers try to fulfill the increasing need for elite performance, 5G-empowered gadgets across different industries.

Demand for Wearables Drives the System in Package Die Market Sales

The rising demand for wearable gadgets is one of the major factors driving the sales of global systems in the package die market. Wearable gadgets, such as smartwatches and wellness trackers, have gained critical ubiquity due to their comfort and usefulness. There is a growing requirement for miniaturized SiP arrangements that can convey elite performance while fitting into small form factors as consumers look for smaller and more lightweight wearables. SiP innovation empowers the integration of various parts, including processors, sensors, memory, and network modules, into a single package. The integration permits producers to make reduced and power-proficient wearable gadgets that deal with progress and usefulness. The system in package die market has seen significant extension, as manufacturers try to adapt to the changing demands of the wearable innovation area. Health and fitness tracking, smart notifications, and lifestyle monitoring are some of the factors fueling the surge in demand for wearable devices.

For instance, in October 2023, Advanced Semiconductor Engineering, Inc., a part of ASE Innovation Holding Co., Ltd., introduced its Integrated Plan Ecosystem (IDE), a cooperative design toolkit intended to further develop advanced package design all through its VIPack platform systematically. The smart procedure empowers a smooth change from single-die SoC to multi-die disaggregated IP blocks, including chiplets and memory, for integration by means of 2.5D or advanced fanout designs.

Government Initiatives Fostering Revenue Growth

Government initiatives play a vital part in fostering revenue development in the system in package die market by providing aid and incentives for research, improvement, and innovation in the semiconductor industry. Governing bodies all over the regions perceive the essential significance of semiconductor advances in driving monetary development, innovation, and competitiveness. Accordingly, they frequently carry out strategies, funding projects, and initiatives to help facilitate the turn of events and adoption of cutting-edge packaging advancements such as SiP. For instance, in the United States, organizations such as the National Science Foundation (NSF) and the Department of Defense (DoD) give funding to innovative work projects centered on semiconductor packaging innovations. Essentially, government in nations such as Japan, South Korea, Taiwan, and China additionally offer incentives and supportive initiatives to empower investment and innovation in the semiconductor industry, including advanced packaging technologies like SiP. These administration initiatives assist with driving revenue development in the system in the package die market by fostering and encouraging an environment for research, improvement, and commercialization of innovative SiP arrangements.

For instance, in December 2023, The CHIPS and Science Act expected to restore the United States' semiconductor dominance. The Act speeds up expected consumptions, reaching USD 230 billion in the wake of declining to a minimal over 10% of the overall result. These actions are projected to impact the SiP die market and the entire semiconductor industry as SiP is a significant innovation in semiconductor packaging.

Asia-Pacific Dominates Global System in Package Die Market Share

Asia-Pacific is leading the system in package die market as the region is home to a portion of the world's biggest semiconductor manufacturing center points, including Taiwan, South Korea, and China, which have broad skill and infrastructure in semiconductor packaging and assembly. Moreover, Asia-Pacific benefits from a huge pool of skilled workers and a vigorous supply chain ecosystem, facilitating effective production and deployment of SiP solutions. Moreover, the region's growing consumer electronics market, driven by increasing disposable incomes and technological advancements, provokes huge interest for miniaturized and profoundly integrated electronic gadgets, driving the adoption of SiP innovation. Besides, government initiatives and investments in innovative work further help the development of the system in package die market in Asia-Pacific, positioning it as a key player in the global semiconductor industry.

For instance, in September 2023, Microchip Technology Inc. accomplished a USD 800 million venture to significantly increase the creation limit at its Gresham, Oregon site, supporting increased manufacturing in the United States in the midst of rising semiconductor demand.

In June 2024, Siemens Digital Industries Software, a subsidiary of Siemens Aktiengesellschaft in Asia-Pacific, introduced Calibre 3DThermal, advanced software for thermal analysis, and debugging in 3D integrated circuits, combining Siemens’ Calibre verification tools with Simcenter Flotherm for improved chip design.

Future Market Scenario (2024 – 2031F)

The system in the package die market is supposed to observe sustained development in the coming years, driven by increasing demand for miniaturized and exceptionally integrated electronic gadgets across different industries.

Ongoing headways in SiP packaging advancements, for instance, 3D integration and heterogeneous integration, will empower more elevated levels of integration and performance, further fueling the market development.

The expansion of Internet of Things (IoT) gadgets will continue to drive the demand for reduced and power-proficient SiP solutions to empower availability and sensor integration in IoT applications.

The widespread deployment of 5G organizations will drive the requirement for SiP arrangements equipped to support fast data transmission and processing in small form factors, driving the market extension.

Key Players Landscape and Outlook

The system in package die market is led by prominent players driving the advancements in technology and product innovation, pushing the boundaries of SiP solutions. They pioneer new packaging technologies and integration techniques, enabling higher levels of performance, miniaturization, and efficiency in SiP devices through substantial investments in research and development. Their expertise and market presence ensure the delivery of cutting-edge solutions which cater to the evolving demands of various industries, including consumer electronics, automotive, healthcare, and telecommunications. These key players play a pivotal role in shaping the competitive landscape and driving the growth of the system in package die market globally by leveraging their technological prowess and strategic partnerships.

In February 2024, Infineon Technologies AG and Honda Motor Co., Ltd. signed a Memorandum of Understanding to work strategically. Infineon will be Honda's semiconductor partner, helping to synchronize future products and technology roadmaps. The agreement intends to improve supply stability and reduce time-to-market for automotive technologies by using Infineon's expertise and product range.

In September 2023, Amkor Technology, a prominent provider of semiconductor packaging and testing services, entered the PHLX Semiconductor Sector Index (SOX), demonstrating its strategic emphasis and financial turnaround. It demonstrates Amkor's development trajectory and value generation for shareholders in the global system in package die market.