Fan Out Packaging Market Size (2024 - 2029)

The Fan Out Packaging Market is projected to experience significant growth, driven by advancements in semiconductor technologies and increasing demand across various sectors. This market's expansion is particularly notable in the application of fan-out wafer level packaging in compact devices like smartphones, where there is a shift from traditional packaging solutions. The integration of artificial intelligence and machine learning is further propelling the need for high-performance computing, influencing packaging trends. South Korea's semiconductor industry is making strides in enhancing packaging technologies, aiming for greater performance and integration. Despite challenges posed by the COVID-19 pandemic, which disrupted supply chains and affected growth, the market is expected to recover and expand over the forecast period.

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Market Size of Fan Out Packaging Industry

Global Fan Out Packaging Market CAGR
Study Period 2019 - 2029
Market Size (2024) USD 2.94 Billion
Market Size (2029) USD 6.30 Billion
CAGR (2024 - 2029) 16.50 %
Fastest Growing Market Asia Pacific
Largest Market Asia Pacific

Major Players

Fan Out Packaging Market Major Players

*Disclaimer: Major Players sorted in no particular order

Fan Out Packaging Market Analysis

The Fan Out Packaging Market size is estimated at USD 2.94 billion in 2024, and is expected to reach USD 6.30 billion by 2029, growing at a CAGR of 16.5% during the forecast period (2024-2029).

The expansion of this market is being driven by technological advancements in semiconductor-based technologies and rapidly expanding demand in various sectors.

  • Fan-out wafer level packaging (FOWLP) finds its increased application in footprint-sensitive devices such as smartphones due to the requirement of high-performing, energy-efficient thin- and small-form-factor packages. Further, on average, five to seven wafer-level packages (especially fan-out) can be found in modern smartphones, and the numbers are expected to increase in the future. This is because they are gradually replacing the more traditional package-on-package (PoP) memory-on-logic solutions.
  • Moreover, the increasing application of artificial intelligence and machine learning in various fields has increased the installation of high-performance computing in the market. UHD fan-out technology is expected to be applied to the cloud, 5G, autonomous cars, and AI chips and will lead the packaging trend during the forecast period.
  • South Korea's semiconductor industry is continuing to put in efforts to improve and make 3D TSV (Through-silicon via), packaging and FoWLP (Fan-out Wafer-Level Packaging), and FoPLP (Fan-out Panel-Level Packaging) technologies more effective to raise the performance of semiconductors and the degree of integration.
  • In December 2021, Nepes Laweh corporation announced the successful production of the world's first 600 mm x 600 mm large Panel Level Packaging (PLP) using Deca's M-Series fan-out technologies. The Fan-out-Panel Level Packaging (FOPLP) line passed customer certification in the third quarter, established a consistent yield, and commenced full-scale mass production, according to the business.
  • Because South Korean companies depended on foreign companies for these systems in the past, KOSTEK is expecting a huge import substitution effect in the future. Its temporary wafer bonder and debonding techniques can be used during a fan-out packaging process.
  • With the outbreak of COVID-19, the semiconductor packaging market witnessed a decline in growth due to restrictions on the movement of goods and severe disruptions in the semiconductor supply chain. In Q1 2020, COVID-19 caused low inventory levels for clients of semiconductor vendors and distribution channels. The market is expected to witness a long-term impact due to the coronavirus outbreak.

Fan Out Packaging Industry Segmentation

Fan-Out packaging is any package having connectors fanned out from the chip surface, allowing for additional external I/Os. Instead of putting the dies onto a substrate or interposer, traditional fan-out packaging totally immerses those in an epoxy mold compound. The fan-out packaging market covers the study of Market Type (Core Fan-Out, High-Density Fan-Out, Ultra High-density Fan Out), Carrier Type (200mm, 300mm, Panel), Business Model (OSAT, Foundary, IDM), and Geography (Taiwan, China, United States, South Korea, Japan, Europe).

By Type
Core Fan-Out
High-Density Fan-Out
Ultra High-density Fan Out
By Carrier Type
200 mm
300 mm
Panel
By Business Model
OSAT
Foundary
IDM
Geography
Taiwan
China
United States
South Korea
Japan
Europe
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Fan Out Packaging Market Size Summary

The fan-out packaging market is poised for significant growth, driven by advancements in semiconductor technologies and increasing demand across various sectors. This market is characterized by the adoption of fan-out wafer-level packaging (FOWLP) in devices requiring compact, high-performance, and energy-efficient solutions, such as smartphones. The shift from traditional package-on-package solutions to fan-out technologies is fueled by the need for smaller form factors and enhanced performance. The integration of artificial intelligence and machine learning has further propelled the demand for high-performance computing, with fan-out technology being applied in cloud computing, 5G, autonomous vehicles, and AI chips. South Korea's semiconductor industry is actively enhancing packaging technologies to improve semiconductor performance and integration, while Taiwan's semiconductor manufacturing sector is expanding its production capacity to meet the growing global demand.

The market landscape is moderately fragmented, with key players like Taiwan Semiconductor Manufacturing Company, Amkor Technology, and Samsung Electro-Mechanics leading the charge through innovation and strategic expansions. The COVID-19 pandemic initially disrupted the market, but recovery is underway with advancements in high-density fan-out packaging solutions. Companies are investing in new facilities and technologies to meet the rising demand for advanced semiconductor packaging. Notable developments include TSMC's expansion into inFO-Antenna-in-Package and inFO-on-Substrate technologies, and the introduction of ultra-high-density fan-out packaging by JCET Group. These advancements are expected to drive market growth, offering cost-effective, high-density connectivity and integration solutions for various applications.

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Fan Out Packaging Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Buyers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Intensity of Competitive Rivalry

      5. 1.2.5 Threat of Substitute Products

    3. 1.3 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Core Fan-Out

      2. 2.1.2 High-Density Fan-Out

      3. 2.1.3 Ultra High-density Fan Out

    2. 2.2 By Carrier Type

      1. 2.2.1 200 mm

      2. 2.2.2 300 mm

      3. 2.2.3 Panel

    3. 2.3 By Business Model

      1. 2.3.1 OSAT

      2. 2.3.2 Foundary

      3. 2.3.3 IDM

    4. 2.4 Geography

      1. 2.4.1 Taiwan

      2. 2.4.2 China

      3. 2.4.3 United States

      4. 2.4.4 South Korea

      5. 2.4.5 Japan

      6. 2.4.6 Europe

Fan Out Packaging Market Size FAQs

The Fan Out Packaging Market size is expected to reach USD 2.94 billion in 2024 and grow at a CAGR of 16.5% to reach USD 6.30 billion by 2029.

In 2024, the Fan Out Packaging Market size is expected to reach USD 2.94 billion.

Fan Out Packaging Market Report Snapshots

Fan Out Packaging Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)