Semiconductor packaging market size
Global market
According to the latest “Semiconductor Packaging Market Size, Trends and Forecasts 2023-2033” report released by Towards Packaging, the global semiconductor packaging market will reach US$41.05 billion in 2023 and is expected to reach approximately US$108.82 billion in 2033. From 2024 to 2033 The compound annual growth rate during the forecast period is 10.24%.
Advanced 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.
The packaging field is undergoing a reshuffle
Traditional packaging leader
I mentioned in my post of “The lucrative semiconductor supply chain” that ASE (ticker: ASX), Aker (ticker: AMKR), and JCET Group are currently the world’s traditional semiconductor packaging and testing plants (OSAT). of the top three manufacturers.
However, the more they enter the high-end process, these traditional global semiconductor packaging and testing plants (OSAT) gradually show their weaknesses – they are no longer able to enjoy the previous advantages in the field of high-end semiconductor process.
Packaging market is undergoing big changes
The shift to advanced packaging
Advanced packaging first emerged around 2000 and has recently gained momentum as a key innovation in semiconductor technology. Demand for high-performance, low-power chips is driving demand for advanced packaging, which is critical for emerging technologies such as 5G, autonomous vehicles, IoT and VR/AR. As Moore’s Law slows and the pace of node advancement slows, advanced packaging becomes critical to continued innovation in semiconductors.
Key advanced packaging technologies
Currently, a number of advanced packaging technologies are at the forefront of the industry:
- 2.5-D packaging involves placing the die side by side with an interposer.
- 3-D stacking stacks wafers vertically, with or without interposers.
- Fan-out and fan-in wafer-level packaging arrange electrical connections and solder balls differently to optimize performance.
Traditional techniques such as wire bonding are still useful but face limitations in high-temperature environments. Flip chip has the advantages of smaller form factor and faster signal propagation, making it increasingly popular.
Market trends and growth
Wafer-level packaging is becoming increasingly common, especially in mobile and networking applications.
Fan-out packaging currently dominates the market, driven by high demand from mobile devices and high-performance computing (HPC). 2.5-dimensional stacking is expected to grow significantly in HPC applications, especially in data centers. 3D packaging is growing rapidly in memory applications, especially data centers and graphics accelerators.
Leading companies such as TSMC (ticker: TSM ), Intel (ticker: INTC ) and Apple (ticker: AAPL ) are at the forefront of these advanced packaging technologies.
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