What is advanced packaging?
Advanced semiconductor packaging is a series of manufacturing processes that combine multiple semiconductor wafers into a single electronic package. This approach improves functionality and reduces power consumption and cost.
Traditional encapsulation is like constructing a single-story building on a piece of land. Advanced packaging allows you to place several buildings on a smaller plot of land and connect them with bridges, lift shafts and tunnels. If companies can effectively use these technologies, they can gain a competitive advantage in the rapidly growing semiconductor market.
How big is the market?
Semiconductor packaging market
According to Towards Packaging report, the global semiconductor packaging market size reached US$ 41.05 billion in 2023 and is projected to hit around US$ 108.82 billion by 2033, expanding at a CAGR of 10.24% during the forecast period from 2024 to 2033.
Advanced Semiconductor Packaging Market
According to the latest “State of Advanced Packaging 2024” report released by Yole, the advanced packaging market is expected to have a compound annual growth rate of 11% from 2023 to 2029, and the market size will expand to US$69.5 billion.
Common advanced packaging
The most commonly used technologies in advanced packaging are 2.5D, 3D-IC, heterogeneous integration, fan-out wafer-level packaging and system-in-package. Each technology is a different method for taking a single chip from a wafer and placing it with other chips in a single electrically connected component (package) encased in plastic, metal, or glass. Once built, the package is attached to a printed circuit board or elastomeric tape and placed into the electronic device.
Advantages of Advanced Packaging
When semiconductor technology encountered the laws of physics, the technology of putting more transistors into less space also became laborious. For decades, the microelectronics industry has used Intel co-founder Moore’s prediction that the density of transistors in a chip would double every two years to guide its investment and planning to keep up. This pushes each generation of chips toward smaller feature sizes and higher densities, making the electrical connections in the device a performance bottleneck.
Advanced packaging is a powerful way for designers to overcome this limitation. They can eliminate bottlenecks and reduce costs by arranging multiple dies in three dimensions and making direct connections between dies and in the intervening integrated circuits. Another advantage is placing chips with different functions nearby, which reduces power consumption, increases speed and simplifies multi-function devices into a single package.
This single package form factor also reduces manufacturing, transportation and inventory costs by moving integration from post-processing steps involving multiple components to front-end steps in the semiconductor manufacturing plant (also known as a fab) . This method can also significantly reduce packaging labor costs, eliminating the need to set up additional packaging facilities in locations with lower labor costs.
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