Valued to be $50.6 Billion by 2026, Semiconductor Advanced Packaging Slated for Robust Growth Worldwide
SAN FRANCISCO, Feb. 23, 2022 /PRNewswire/ -- A new market study published by Global Industry Analysts Inc., (GIA) the premier market research company, today released its report titled "Semiconductor Advanced Packaging - Global Market Trajectory & Analytics". The report presents fresh perspectives on opportunities and challenges in a significantly transformed post COVID-19 marketplace.
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Edition: 10; Released: February 2022
Executive Pool: 432
Companies: 87 - Players covered 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; Tianshui Huatian Technology Co., Ltd.; TongFu Microelectronics Co., Ltd.; TSMC Ltd.; UTAC Holdings Ltd.; Veeco Instruments Inc. and Others.
Coverage: All major geographies and key segments
Segments: Technology (Flip Chip Packaging, 2.5D/3D Packaging, FI WLP, FO WLP); (Consumer Electronics, Industrial, Automotive, Aerospace & Defense, Other End-Uses)
Geographies: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.
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ABSTRACT-
Global Semiconductor Advanced Packaging Market to Reach US$50.6 Billion by the Year 2026
The semiconductor advanced packaging market growth is driven by the growing trend of miniaturization. Constant transitions and miniaturization of nodes were regular features that the industry faced, and now ULSI fabrication resulting in increased wafer sizes are further driving market growth. With many companies focusing more on R&D, there is rise in the number of manufacturers who offer innovative products. Factors such as growing numbers of consumers using electronic appliances, consumer preference for lighter, thinner, and smaller products driving the need for electronic products with advanced architecture, and the growing demand for connected devices such as tablets and smartphones are also driving growth of semiconductor advanced packaging market. Growing interest in device miniaturization in various sectors is driving market gains. Further, the growing use of 2.5D packaging in chips and 3D IC in smartphones and other mobile devices is anticipated to spur advanced packaging demand.
Amid the COVID-19 crisis, the global market for Semiconductor Advanced Packaging estimated at US$36.7 Billion in the year 2022, is projected to reach a revised size of US$50.6 Billion by 2026, growing at a CAGR of 7.7% over the analysis period. Flip Chip Packaging, one of the segments analyzed in the report, is projected to grow at a 7.3% CAGR to reach US$40.2 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the 2.5d/3d Packaging segment is readjusted to a revised 10.2% CAGR for the next 7-year period. This segment currently accounts for a 9.6% share of the global Semiconductor Advanced Packaging market. An incremental step from traditional 2D IC packaging technology, 2.5D packages enable finer lines and spaces. 2.5D packages are commonly used in high-end ASICs, FPGAs, GPUs, and memory cubes. Demand for high-speed flip chip packages creates an opportunity for highly integrated, multi-chip modules (MCM's) and 2.5D/3D silicon (Si) interposer packages.
The U.S. Market is Estimated at $3.3 Billion in 2022, While China is Forecast to Reach $14.3 Billion by 2026
The Semiconductor Advanced Packaging market in the U.S. is estimated at US$3.3 Billion in the year 2022. The country currently accounts for a 9.48% share in the global market. China, the world's second largest economy, is forecast to reach an estimated market size of US$14.3 Billion in the year 2026 trailing a CAGR of 9.8% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 5.3% and 6% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 5.4% CAGR while Rest of European market (as defined in the study) will reach US$1.5 Billion by the end of the analysis period. North America is an important market for advanced packaging technologies, where growth is supported by the existence of several semiconductor companies, and increasing initiatives by the government to encourage the semiconductor and electronics manufacturing sector. Increasing demand for wireless sensor/mobile, fingerprint sensors, and CIS is expected to fuel the growth of WLCSP and Copper pillar in the Asia Pacific region. Further, the rising IoT penetration in several areas, supportive government policies in various countries, and the growing focus on smart infrastructure and smart city are fueling market growth in the region.
Cost in the Spotlight
The Moore's Law is guiding the semiconductor technology advancements both in terms of performance enhancement and economics. The reduction in cost per gate and per wafer does not follow further than the earlier trend of 22nm Si node. Currently, semiconductor manufacturers are gradually using the advanced packaging technologies, for example, 3D/2.5D integration with TSVs and interposers and fan-out wafer level packaging (FOWLP), to address the increasing demand for greater functionality, miniaturization, cost reduction and enhanced performance. The modern packaging applications necessitate advanced materials to support powerful manufacturing processes, lower cost and deliver highly consistent final package products. The areas that require high-performance novel materials include TSVs materials and processes, temporary bonding materials and processes, substrates types for 2.5D adoption and dielectric materials.
When it comes to questions about reducing the costs of advanced packaging it is not just about the multiple die. It has already been realized that the technology used for multiple die heterogeneous integration can be used for single die also. If the 7 nm is considered, silicon cost is very high, compelling customers to shrink die and for shrinking the die, usually, the die pad pitch needs to be shrunk. And, for achieving which a higher cost substrate is needed for the package. For this reason, the FoCoS or (fan out chip on substrate) technology is being used for fanning out the fine pitch upon the 7 nm die and placing it on low cost substrate. Cost of this solution is lesser than when using the 7 nm die with high cost substrate. This way advanced packaging cost with single die can be reduced. And, with regard to the approach for multiple die, the answer is based on the device type - whether it is a logic-limited or I/O-limited design. In an I/O-limited device design there are several SerDes. While creating a SerDes design, if the goal is to target a finer pitch, the SerDes-macro design can be designed for supporting the fine pitch. However, if the device is I/O-limited, it will tend to minimize the die size. Therefore, it is important to know what would be used in the near future before creating any type of SerDes technology, for 7nm. This way the design flexibility and cost can both be improved.
A few companies are also developing 600mm capability, for fan-out. Systems that go into the 600 mm will have capability of 2µ lines & spaces for enabling doing of higher density products. ASE is also developing a 300 mm-panel capability which can do 2µ lines & spaces, which would enable doing of the solutions at much cheaper cost due to its high efficiency. It enables more efficient lines & spaces usage in large panels when compared to 300 mm, round application. Over time, the costs will come down and with increased volume scale of efficiencies would also increase. These are highly complex technologies. However, a greater solution would be to eliminate silicon-interposers and opt for fan-out, provided the performance requirements are met. The 2.5D technique, an organic-interposer, attached to substrate, can be a cheaper technique because there are diverse sources which make it. If certain improvement in manufacturing capability is added to it, it can prove to be an effective concept.
FI WLP Segment to Reach $3.2 Billion by 2026
In the global FI WLP segment, USA, Canada, Japan, China and Europe will drive the 5.8% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$1.6 Billion will reach a projected size of US$2.5 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$2 Billion by the year 2026. More
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