The innovation in the semiconductor packaging technology largely depends on the size of wafer. Hence, the increasing focus on wafer-level packages is resulting in chip industry to come up with advanced packaging solutions. The Fan-Out Wafer-Level Packaging (FO-WLP) technology is emerging as an alternative to the 2.5D packaging. Moreover, Fan-out wafer-level packaging can manage multiple dies as compared to the fan-in wafer-level packaging that can handle only single die. Fan-out packaging technology is also witnessing significant growth as it eliminates the need for process flows including wafer fluxing, bumping, cleaning, curing, flip-chip assembly, and underfill dispensing.
Manufacturers are also focusing on producing larger diameter wafers due to increasing demand this is likely to cut down manufacturing cost and will also lead to the development of advanced semiconductor packaging solution.
A study by Transparency Market Research (TMR) is expecting the global market for advanced semiconductor packaging to experience robust growth. It also projects the market to increase to 10.9% CAGR throughout the forecast period. The global market for advanced semiconductor packaging is also likely to bring in US$ 67,208.2 million revenue towards 2026 end.
Flip Chip (FC) to Account for Maximum Revenue Share as the Packaging Type
Compared to other types of advanced semiconductor packaging, Flip Chip (FC) is likely to account for maximum revenue share. By the end of 2026, Flip Chip (FC) packaging is estimated to reach close to US$ 45,700 million revenue. Owing to the lighter, smaller, and thinner consumer products, smaller package types are being used on a large scale. Compared to other packaging types, flip chip offers faster signal transfer, lower profile, and high I/O density.
Advanced Semiconductor Packaging to find Largest Application in Central Processing Units/Graphical Processing Units
Advanced semiconductor packaging is likely to find the largest application in Central Processing Units/Graphical Processing Units. Towards 2026 end, Central Processing Units/Graphical Processing Units is likely to bring in more than US$ 11,500 million revenue. Meanwhile, Dynamic Random Access Memory is also likely to witness robust growth between 2017 and 2026.
Consumer Electronics to be the Largest End Users of Advanced Semiconductor Packaging
Among various industries as end users of advanced semiconductor packaging, consumer electronics is likely to emerge as the largest end user. By 2026 end, consumer electronics are estimated to bring in nearly US$ 15,600 million revenue. Increasing demand for various devices including tablets, smartphones, wearable devices and other connected consumer electronics, is resulting in the advanced semiconductor packaging technologies. Meanwhile, System-In-Package (SIP) technology is also gaining momentum as it allows more features to be integrated into small form factors such as medical implants and wearable devices.
APEJ to Emerge as the Leading Region in Terms of Revenue in the Global Market for Advanced Semiconductor Packaging
Asia Pacific Excluding Japan (APEJ) is anticipated to emerge as the major revenue contributor to the advanced semiconductor packaging market between 2017 and 2026. Prominent semiconductor manufacturing companies present in the region are fueling the demand for advanced semiconductor packaging. Moreover, companies are also investing heavily in the research and development activities for developing new semiconductor packages with advanced features.
AMD, Intel Corp, Amkor Technology, STMicroelectronics, Hitachi Chemical, Infineon, Avery Dennison, Sumitomo Chemical Co. Ltd., ASE Group, and Kyocera, are the leading market players in the global market for advanced semiconductor packaging.
Global Advanced Semiconductor Packaging Market- Overview
Semiconductor packaging prevents physical damage and corrosion of the chips that are to be connected to the circuit boards. In the recent years, semiconductor packaging has evolved giving rise to advanced semiconductor packaging technologies. Manufacturers are moving towards new packaging options such as 2.5D integrated circuits and 3D integrated circuits. Meanwhile, manufacturers are also focusing on developing an alternative to the 2.5D packaging.
Internet of Things (IoT) is also expected to have a significant impact on the advanced semiconductor packaging market. Hence, new packaging technologies supporting IoT driven semiconductor industry are being introduced. Miniaturization of devices and thermal dissipation are leading towards the growth of the advanced semiconductor packaging market. Meanwhile, the requirement for less power consumption, improved efficiency is driving the adoption of 3D semiconductor packaging in the advanced semiconductor packaging market.
Global Advanced Semiconductor Packaging Market- Research Methodology
The report on the global advanced semiconductor packaging market offers key insights on the market with help of the data obtained from primary and secondary research. The report has used top-down and bottom-up approach to provide expected market size. The report also offers insights on all the major factors playing an important role in the market growth. The report also includes key trends, market opportunities, factors driving the global market and factors hampering the growth of the market.
During the primary research interview of industry experts was conducted and information provided by them was crosschecked with various data sources. Both micro-economic and macro-economic factors were also taken into account to provide important information on the global as well as regional advanced semiconductor packaging market.
The report also offers segment-wise analysis and region-wise analysis of the global advanced semiconductor packaging market. The secondary research was done to gather data on the market. Sources used in the secondary research included investor presentations, annual reports and financial reports of the major companies. Absolute dollar opportunity is also provided in the report to identify various market opportunities.
The report comprises vital information on the key companies operating in the global advanced semiconductor packaging market. The report enlightens on the key business strategies, developments, new product launch by the key market players. The report also includes details on the regulations in the market across the globe. The report also focuses on the technological advancements in the market and how new technologies will impact the growth of the market in future.
Global Advanced Semiconductor Packaging Market- Segmentation
The global advanced semiconductor packaging market is segmented based on packaging type, application, end user, and region. On the basis of packaging type, the advanced semiconductor packaging market is divided into Fan-Out Wafer-Level Packaging (FO WLP), Fan-In Wafer-Level Packaging (FI WLP), Flip Chip (FC), and 2.5D/3D.
On the basis of application, the market is divided into application processor/ baseband, central processing units/graphical processing units, dynamic random access memory, NAND, image sensor, and other applications.
Based on the end user, the market is divided into telecommunications, automotive, aerospace and defense, medical devices, consumer electronics, and other end users.
Region-wise the global market for advanced semiconductor packaging is segmented into Japan, Asia Pacific Excluding Japan (APEJ), Europe, North America, Latin America, and the Middle East and Africa (MEA).
Some of the key players in the global advanced semiconductor packaging market are Intel Corp, AMD, Amkor Technology, Hitachi Chemical, STMicroelectronics, Infineon, Sumitomo Chemical Co. Ltd., Avery Dennison, Kyocera, and ASE Group.