Advanced Packaging Market (By Type: Flip Chip CSP, Flip-Chip Ball Grid Array, Wafer Level CSP, 5D/3D, Fan Out WLP, Others; By End-use: Consumer Electronics, Automotive, Industrial, Healthcare, Aerospace & Defense, Others) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2022 - 2030

The global Advanced Packaging market gathered revenue around USD 25.2 billion in 2021 and market is set to grow USD 52.75 billion by the end of 2030 and is estimated to expand at a modest CAGR of 8.1% during the prediction period 2022 to 2030.

Growth Factors:

The emergence in the advanced packaging technology has minimized the installation cost of ICs and enhances the output and efficiency of ICs and this factor is expected to drive the market growth. Also, with augmentation of IC in the automobiles, the demand for advanced packaging surged and this contributed positively towards the growth of the Advanced Packaging Market. For instance, on 10th May 2021, Veeco Instruments Inc. announced that it has received an order for its AP300 Lithography System used in the production ramp of advanced packaging chips. This advanced packaging devices will be used to meet increasing demand for 5G system-on-a-chip, graphic processors (GPUs) and high performance computing applications. The AP300 systems were selected due to its industry-leading uptime and performance along with low ownership cost. This order indicates the fostering market demand for Veeco’s lithography systems.

With the development in packaging technology, the functional density of large system-on-chip solutions has increased and this fosters the market growth. Moreover, the continuous research and developmental activities are performed in order to develop new and innovative packaging solutions and this will accelerate the growth of the advanced packaging market. Also, the rising demand for improving the performance of the electronic devices is estimated to fuel the growth of advanced packaging market. For instance, on 30th March 2021, YES (Yield Engineering Systems, Inc.), a leading manufacturer of process equipment for life sciences, semiconductor advanced packaging and AR/VR applications announced that it has received a large volume purchase order for the VertaCur XP from Taiwan-based OSAT Powertech Technology, Inc. The systems, which will be utilized for flip chip and wafer-level-packaging in high volume manufacturing, and it is expected to be delivered in the first half of 2021 to address growing production demands.

Report Scope of the Advanced Packaging Market

 Key Market Trends

Fan-out Wafer Level Packaging Expected to Witness Significant Growth Rate

The redistribution technology was primarily developed out of necessity to enable fan-in area array packaging (bumping) to take hold when a few chips were being designed for the area array. In the intervening years, this technology has been instrumental in developing multiple newer packaging technologies such as wafer-level packaging (WLP), fan-out packaging, and TSV-based interposers and chip stacks.

• Fan-out wafer-level packaging (FOWLP) has emerged as a promising technology to meet the ever-increasing demands of consumer electronic products. The significant advantages of this type of packaging are specific features such as substrate-less package, lower thermal resistance, and higher performance due to shorter interconnects combined with direct IC connection by thin-film metallization instead of the standard wire bonds or flip-chip bumps and more moderate parasitic effects.
• Fan-out wafer-level packaging (FOWLP) is the latest packaging trend in the field of microelectronics. With various technological developments 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 targeted with the help of FOWLP. Hence, it is well suited for packaging a highly miniaturized energy harvester system consisting of a piezo-based harvester, a power management unit, and a supercapacitor for energy storage.
• The vendors in the market are also innovating their processes to expand their technology. For instance, in November 2020, Samsung presented a paper titled “Advanced RDL Interposer Packaging Technology for Heterogeneous Integration.” The company stated that it had developed an RDL Interposer package as a 2.5D package platform that was based on RDL-first fan-out wafer level package (FOWLP).
• There has been a never-ending drive for improved performance in electronic devices for multiple applications such as mobile, consumer, automotive, or industrial applications. Fan-Out Wafer-Level Packaging (FOWLP) was primarily developed to enable higher performance and functionality, with increased reliability and higher levels of integration in a small form factor; all of this was done while targeting significant cost reductions as compared to the exiting packing technologies.
• All advanced IC packages, including the fan-out wafer-level packages (FOWLP), can only be made profitably and reliably by making use of special electronic solutions, such as conductors and insulators, to form the best electrical connections.

Asia Pacific is Expected to Witness Significant Growth Rate

By region, the Asia Pacific region is accounted for the largest market share of 64.01% in 2020 and is also expected to witness the highest CAGR, amounting to 8.21%, over the forecast period. The Asia Pacific holds a prominent share of the market due to a significant number of semiconductor manufacturing operations happening in the region. The pure-play manufacturers operating in the region are increasing their production capacity to cater to the growing demand from fabless vendors. China is also trying to consolidate its substrate manufacturing market.?

 Manufacturers in the Asia-Pacific region focus on increasing their customer base in North America due to increasing demand from data centers and AI. For example, Ibiden is working toward boosting its sales from Semicon players, such as Intel, while scaling down the Flip Chip business that serves domestic smartphone markets and plans to increase the capacity in its Japanese plant by 50% by the end of 2020 by focusing on silicon bridges which connect memory semiconductors with CPUs and GPUs.?Further, China is one of the largest growing economies present with a large population, and according to statistics from China’s semiconductor association, the import of IC was witnessing an increase in the demand for the consecutive years from 2014. The Chinese government has deployed a multi-pronged strategy, which led to the support of domestic IC industry development to become the global leader in all primary IC industrial supply chain segments by 2030. This growth in the semiconductor IC industry in the region is anticipated to stimulate the demand for advanced packaging.

Japan holds a significant position in the semiconductor industry as it is home to some of the major IC chipset manufacturers and electronics industry. Moreover, in May 2020, a new report suggested that the country is planning on attracting semiconductor manufacturers, such as Taiwan Semiconductor Manufacturing Company (TSMC) and Intel. The government is expected to start an investigation to look into future prospects to bring the major chipmakers to the country.

Players in the region involve themselves with organic growth initiatives, which are leveraging market growth. For instance, in November 2020, Taiwan Semiconductor Manufacturing Co. announced that it was working with Google and other US tech giants to develop a new way of making semiconductors more powerful. According to the company, TSMC is taking chip packaging vertically and horizontally using a new 3D technology that it dubs SoIC. It makes it possible to stack and link several different types of chips, such as processors, memory, and sensors, into one package.

With the rapid growth in the advanced packaging market, domestic packaging material suppliers are expanding with the industry and starting to serve leading international packaging houses. The consumption of semiconductors is rapidly increasing in China, compared to other countries, owing to the continuing transfer of global, diverse electronic equipment to China, where the product is necessary. Also, the country is home to three of the top five largest smartphone companies globally, posing tremendous opportunities for semiconductor adoption and advanced packaging.

Some of the prominent players in the Advanced Packaging Market include:  Amkor Technology Inc., ASE Technology Holding Co. Ltd., China Wafer Level CSP Co., Ltd., ChipMOS Technologies, Inc., FlipChip International LLC, HANA Micron Inc., Jiangsu Changjiang Electronics Technology Co., Ltd., King Yuan Electronics Corp. (KYEC), Nepes Corporation, Powertech Technology, Inc., Samsung Semiconductor, Inc., SIGNETICS, TianshuiHuatian Technology Co.Ltd., TongFu Microelectronics Co., Ltd., TSMC Ltd., UTAC Holdings Ltd. and Veeco Instruments Inc. 

Segments Covered in the Report

This research report offers market revenue, sales volume, production assessment and prognoses by classifying it on the basis of various aspects. Further, this research study investigates market size, production, consumption and its development trends at global, regional, and country level for the period of 2017 to 2030 and covers subsequent region in its scope:

By Type

• Flip Chip CSP
• Flip-Chip Ball Grid Array
• Wafer Level CSP
• 5D/3D
• Fan Out WLP
• Others

By End-use

• Consumer Electronics
• Automotive
• Industrial
• Healthcare
• Aerospace & Defense
• Others

By Geography

North America

• U.S.
• Canada

Europe

• Germany
• France
• United Kingdom
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

Latin America

• Brazil
• Rest of Latin America

Middle East & Africa (MEA)

• GCC
• North Africa
• South Africa
• Rest of Middle East & Africa

Key Points Covered in Advanced Packaging Market Study:

• Growth of Advanced Packaging in 2022
• Market Estimates and Forecasts (2017-2030)
•  Brand Share and Market Share Analysis
•  Key Drivers and Restraints Shaping Market Growth
•  Segment-wise, Country-wise, and Region-wise Analysis
•  Competition Mapping and Benchmarking
•  Recommendation on Key Winning Strategies
•  COVID-19 Impact on Demand for Advanced Packaging and How to Navigate
•  Key Product Innovations and Regulatory Climate
•  Advanced Packaging Consumption Analysis
•  Advanced Packaging Production Analysis
•  Advanced Packaging and Management