Advanced Packaging Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 32.64 Billion |
| Market Size (2029) | USD 45 Billion |
| CAGR (2024 - 2029) | 6.63 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Advanced Packaging Market Analysis
The Advanced Packaging Market size is estimated at USD 32.64 billion in 2024, and is expected to reach USD 45 billion by 2029, growing at a CAGR of 6.63% during the forecast period (2024-2029).
- Advanced packaging refers to the aggregation and interconnection of components before traditional integrated circuit packaging. It allows multiple devices, such as electrical, mechanical, or semiconductor components, to be merged and packaged as a single electronic device. Unlike traditional integrated circuit packaging, advanced packaging employs processes and techniques that are performed at semiconductor fabrication facilities. It sits in between fabrication and traditional packaging, and it includes various technologies like 3D ICs, 2.5D ICs, fan-out wafer-level packaging, system-in-package, etc.
- Advanced packaging can achieve performance gains through the integration of multiple chips in a package. By connecting these chips using fatter, such as through-silicon vias, interposers, bridges, or simple wires, the speed of signals can be increased, and the amount of energy required to drive those signals can be reduced. Additionally, advanced packaging allows for the mixing of components developed at different process nodes.
- Advanced packaging techniques, such as 3D integration and heterogenous integration, can significantly improve the performance of integrated circuits and memory chips. These techniques allow for increased feature density, interconnect density, and customization of memory for specific applications. For instance, memory-integrated device manufacturers (IDMs) can use 3D stacking technology to enhance performance in memory chips and customize memory for specific clients.
- Advanced packaging techniques also enable the reduction of the size of electronic components without compromising their performance. Simulation tools and Multiphysics approaches are used in advanced packaging to assess and ensure the thermal reliability and signal integrity of designs. By identifying potential packaging problems early in the design phase, integrated circuit designers can make modifications to improve reliability before prototyping.
- The experience of the global financial crisis changes to regulatory frameworks and the post-crisis market environment has had a significant impact on the advanced packaging market. To remain competitive in the market, OSATs are increasing their M&A activities. This will continue throughout the coming years, with various levels of consolidation among the major players.
- The consolidation will increase as chipmakers are already grappling with the increasing complexity, the loss of a roadmap for future designs as Moore’s Law is becoming more difficult and expensive to sustain, and a flood of new markets with evolving standards and different sets of rules. Acquisitions can have a big impact on product support and servicing of the existing technology. This is particularly troublesome for markets in which the devices are expected to function for about 10 to 20 years. This is expected to restrain the growth of the market..
Advanced Packaging Market Trends
Embedded Die to Witness Significant Growth Rate
- The growth of global embedded die packaging technology is majorly driven by the increasing demand for 5G network technology and consumer electronics. Numerous consumer electronic devices, such as smartphones, laptops, tablets, and portable gaming consoles, incorporate several embedded chips to provide a better user interface and enhanced overall performance. In smartphones, wearable devices, and other consumer electronic appliances, these chips are used primarily in DC-DC converters, power electronic circuitry, and camera circuits.
- Moreover, due to the incorporation of 5G into their architecture, embedded devices used in smart video surveillance systems of automobiles give rapid response times. There is also a critical need for circuit miniaturization in microelectronic devices. Embedded die packaging is a promising technology for emerging microwave applications, owing to its excellent electrical performance at high frequencies. With the reduction in size of electronic devices for ease of access for users, the demand for compact electronic circuitry is on the rise. This demand is met by embedded die packaging technology, which offers advantages such as increased functionality and efficiency of the electronic circuit; reduced size, signal inductance, and power inductance; improved reliability; and higher signal density.
- The increasing adoption of 5G networks would augment the development of the studied market. For instance, according to Ericsson, 5G subscriptions are forecasted to increase drastically worldwide from 2019 to 2028, from over 12 million to over 4.5 billion subscriptions, respectively. Southeast Asia, Northeast Asia, Nepal, India, and Bhutan are expected to have the most subscriptions by region.
- Also, the rollout of 5G technology requires compact and efficient devices to accommodate complex communication systems. Advanced packaging solutions like Wafer Level Chip Scale Package (WLCSP) and fan-out packaging enable smaller form factors, lower power consumption, and enhanced thermal management, making them suitable for 5G devices.
- Furthermore, 3D packaging with embedded die solutions is gaining attention among consumers as an integration tool for next-generation devices, which is likely to become a key trend in the future. Hence, it is anticipated to drive the market over the forecast period.
Understand The Key Trends Shaping This Market
Download PDF
Asia Pacific is Expected to Witness Significant Growth Rate
- The Asia Pacific region is anticipated to emerge as a dominant player in the semiconductor packaging market, owing to the presence of major semiconductor manufacturers, rapid industrialization, and a vast consumer electronics market. The region is renowned for its high-volume production of semiconductors and the adoption of advanced packaging technologies across diverse industries, such as consumer electronics, automotive, and telecommunications. These factors are expected to fuel the growth of the semiconductor packaging market in the Asia Pacific region, thereby presenting lucrative opportunities for market players.
- China has a highly ambitious semiconductor agenda, supported by a substantial funding of USD 150 billion. The nation is developing its domestic IC industry to increase its chip production. The Greater China region, comprising Hong Kong, China, and Taiwan, is a significant geopolitical hotspot. The ongoing US-China trade war has further intensified tensions in this area, which houses all the leading process technology, prompting several Chinese firms to invest in their semiconductor industry.
- For instance, in September 2023, China announced its plans to launch a new state-backed investment fund to raise about USD 40 billion for its semiconductor sector. In December 2022, China announced its commitment to a support package exceeding YUAN 1 trillion (USD 143 billion) for its semiconductor industry. This initiative is a crucial step towards achieving self-sufficiency in chip production and is a response to U.S. actions aimed at hindering China's technological progress. The demand for packaging services is anticipated to rise considerably over the forecasted period, owing to the region's intensified efforts to enhance domestic chip manufacturing.
- Regarding investments from private players, the country has been at the forefront for many such announcements, especially toward evolving packaging technologies, thus presenting it as a major competitor for all national geographies working towards expanding its semiconductor industry. For instance, in August 2023, the National Natural Science Foundation of China (NSFC) announced an investment of USD 6.4 million in 30 Chiplet projects, now considered the next big advanced packaging technology.
- Moreover, in August 2023, Taiwan Semiconductor Manufacturing Company (TSMC) announced investing 90 billion New Taiwan dollars to build an advanced chip packaging plant in Taiwan amid booming global demand. Additionally, Micron stated in June 2023 that it would spend millions of dollars on a factory in China despite the Chinese government having just deemed its goods a security risk. Over the coming years, Micron stated it will upgrade its chip packaging factory in Xi'an with investments totaling YUAN 4.3 billion (slightly over USD 600 million).
Get Analysis on Important Geographic Markets
Download PDF
Advanced Packaging Industry Overview
The Advanced Packaging Market had a semi-consolidated landscape with key players like Advanced Semiconductor Engineering Inc., Taiwan Semiconductor Manufacturing Company Limited, Amkor Technology, Intel Corporation, and JCET Group Co. Ltd. A significant shift was noted as numerous IC manufacturers transitioned to sub-advanced packaging, spurring market demand and heightening competition.
- In July 2023 - Amkor Technology extensively detailed its efforts and achievements in developing and validating wire bond and flip chip packaging for devices manufactured using TSMC's advanced low-k process technologies. Collaborating with multiple clients on low-k product qualification, Amkor aimed for a substantial volume ramp-up in low-k packages during the latter half of the year.
- In November 2022 - Intel Corporation commenced work on a new semiconductor assembly and testing facility in Penang. Comprising two buildings (Plants 4 and 5) totaling 982,000 square feet within the Bayan Lepas Free Industrial Zone, this facility, expected to be finalized by 2025, was anticipated to generate 2,700 job opportunities within the local market.
Advanced Packaging Market Leaders
-
Amkor Technology, Inc.
-
Taiwan Semiconductor Manufacturing Company Limited
-
Advanced Semiconductor Engineering Inc.
-
Intel Corporation
-
JCET Group Co. Ltd
*Disclaimer: Major Players sorted in no particular order
Need More Details on Market Players and Competitors?
Download PDF
Advanced Packaging Market News
- October 2023 - Advanced Semiconductor Engineering Inc. (ASE) announced the launch of its Integrated Design Ecosystem (IDE), a collaborative design toolset optimized to boost advanced package architecture across its VIPack platform systematically. This innovative approach allows a seamless transition from single-die SoC to multi-die disaggregated IP blocks, including chiplets and memory for integration using 2.5D or advanced fanout structures.
- June 2023- Amkor Technology Inc., a significant provider of semiconductor packaging and test services and the automotive OSAT, is innovating advanced packaging to enable the car of the future. The evolution of the enhanced automotive experience has been dramatic over the past few years, a rise evidenced in car-related semiconductor sales. As a frequent automotive OSAT with more than 40 years of automotive experience and a broad geographic footprint supporting global and enabling regional supply chains, Amkor is well-positioned to capture growth from the acceleration of car semiconductor content.
Advanced Packaging Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
- 4.2 Industry Value Chain Analysis
-
4.3 Industry Attractiveness - Porter's Five Forces Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
- 4.4 Assessment of the Impact of COVID-19 and Macro Economic Trends on the Industry
5. MARKET DYNAMICS
-
5.1 Market Drivers
- 5.1.1 Increasing Trend of Advanced Architecture in Electronic Products
- 5.1.2 Favorable Government Policies and Regulations in Developing Countries
-
5.2 Market Restraints
- 5.2.1 Market Consolidation affecting Overall Profitability
6. MARKET SEGMENTATION
-
6.1 By Packaging Platform
- 6.1.1 Flip Chip
- 6.1.2 Embedded Die
- 6.1.3 Fi-WLP
- 6.1.4 Fo-WLP
- 6.1.5 2.5D/3D
-
6.2 By Geography***
- 6.2.1 North America
- 6.2.2 Europe
- 6.2.3 Asia
- 6.2.4 Australia and New Zealand
- 6.2.5 Latin America
- 6.2.6 Middle East and Africa
7. COMPETITIVE LANDSCAPE
-
7.1 Company Profiles
- 7.1.1 Amkor Technology Inc.
- 7.1.2 Taiwan Semiconductor Manufacturing Company Limited
- 7.1.3 Advanced Semiconductor Engineering Inc.
- 7.1.4 Intel Corporation
- 7.1.5 JCET Group Co. Ltd
- 7.1.6 Chipbond Technology Corporation
- 7.1.7 Samsung Electronics Co. Ltd
- 7.1.8 Universal Instruments Corporation
- 7.1.9 ChipMOS Technologies Inc.
- 7.1.10 Brewer Science Inc.
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To Availablity**Subject to Availability
***In the final report, Asia, Australia, and New Zealand will be studied together as 'Asia Pacific' and Latin America and Middle East and Africa will be considered together as 'Rest of the World'
Advanced Packaging Industry Segmentation
Advanced packaging refers to the aggregation and interconnection of components before traditional integrated circuit packaging. It allows multiple devices, such as electrical, mechanical, or semiconductor components, to be merged and packaged as a single electronic device. Unlike traditional integrated circuit packaging, advanced packaging employs processes and techniques at semiconductor fabrication facilities.
The advanced packaging market is segmented by packaging platform and geography. By packaging platform market is segmented into flip chip, embedded die, Fi-WLP, Fo-WLP, and 2.5D/3D. By geography, the market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.
The report offers market forecasts and size in value (USD) for all the above segments.
| By Packaging Platform | Flip Chip |
| Embedded Die | |
| Fi-WLP | |
| Fo-WLP | |
| 2.5D/3D | |
| By Geography*** | North America |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Need A Different Region Or Segment?
Customize Now
Advanced Packaging Market Research Faqs
How big is the Advanced Packaging Market?
The Advanced Packaging Market size is expected to reach USD 32.64 billion in 2024 and grow at a CAGR of 6.63% to reach USD 45 billion by 2029.
What is the current Advanced Packaging Market size?
In 2024, the Advanced Packaging Market size is expected to reach USD 32.64 billion.
Who are the key players in Advanced Packaging Market?
Amkor Technology, Inc., Taiwan Semiconductor Manufacturing Company Limited, Advanced Semiconductor Engineering Inc., Intel Corporation and JCET Group Co. Ltd are the major companies operating in the Advanced Packaging Market.
Which is the fastest growing region in Advanced Packaging Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Advanced Packaging Market?
In 2024, the Asia Pacific accounts for the largest market share in Advanced Packaging Market.
What years does this Advanced Packaging Market cover, and what was the market size in 2023?
In 2023, the Advanced Packaging Market size was estimated at USD 30.48 billion. The report covers the Advanced Packaging Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Advanced Packaging Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Advanced Packaging Industry Report
Statistics for the 2024 Advanced Packaging market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Advanced Packaging analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Advanced Packaging Market Report Snapshots
80% of our clients seek made-to-order reports. How do you want us to tailor yours?
