Advanced Packaging Market Size By Packaging Type (Flip-chip, Fan-in Wafer Level (WLP) Packaging, Embedded-die, Fan-out, 2.5 Dimensional / 3 Dimensional), By Application (Consumer Electronics, Automotive, Industrial, Healthcare, Aerospace& Defense), Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2020 – 2026

Published Date: Sep 2020  |  Report ID: GMI4831  |  Authors: Preeti Wadhwani, Shubhangi Yadav

Report Format: PDF   |   Pages: 250   |   Base Year: 2019




Summary Table of Contents Industry Coverage Methodology

Industry Trends

Advanced Packaging Market size exceeded USD 25 billion in 2019 and is estimated to grow at a CAGR of 8% between 2020 and 2026.Rising inclination toward the adoption of the Internet of Things (IoT) and connected technology across the globe will add an impetus to the market.
 

Advanced packaging aids to deliver high power dissipation, low cost, and high radio frequency shielding, supporting various RF standards such as Wi-Fi and Zigbee. Adding to this, several initiatives by the governments toward the adoption of IoT technologies will drive the advanced packaging industry growth.
 

Advanced Packaging Market

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In January 2019, the European Commission announced that it will invest USD 2 billion in an integrated project, covering research on microelectronics that focuses on connected car and IoT technologies. Investments will further propel the demand for advanced packaging in IDM and foundries to deliver advanced semiconductor and microelectronics components for IoT applications.
 

The transition toward More than Moore’s approach with continual change in nodes and wafer size is accelerating the adoption of advanced packaging in foundries. These packaging types aid to deliver a high-speed, compact size, and improved chip performance for various applications including ADAS and 5G devices, among others. Therefore, majority of the foundry owners and Integrated Devices Manufacturers (IDM) to integrate new node technologies to accelerate their position in the industry.
 

The COVID-19 pandemic has led majority of chip manufacturers to face problems while sourcing raw materials and maintaining test operations, declining the advanced packaging market demand. The nationwide lockdown imposed by several governments has resulted in the shutdown of various fab facilities and a shortage of fab operators and engineers. Furthermore, IDMs and foundries are experiencing a declining demand for advanced packaging due to the decreasing production capacity among the consumer electronics, automotive, and other industries.
 

To overcome the bottleneck of trade restrictions and supply chain disruptions, companies are planning to shift their manufacturing plants to more flexible locations, creating growth opportunities for the market.
 

Advanced Packaging Market Report Coverage
Report Coverage Details
Base Year: 2019 Market Size in 2019: USD 25 Billion
Historical Data for: 2016 to 2019 Forecast Period: 2020 to 2026
Forecast Period 2020 to 2026 CAGR: 8% 2026 Value Projection: USD 40 Billion
Pages: 250 Tables, Charts & Figures: 148
Geographies covered (14): U.S., Canada, UK, Germany, France, Italy, Netherlands, China, Japan, South Korea, Taiwan, Brazil, Mexico, Israel
Segments covered: Packaging type, Application, Region
Companies covered (34): Amkor Technology, Inc., ASE Group, Brewer Science, Inc., China Wafer Level CSP Co., Ltd., Chipbond Technology Corporation, ChipMOS Technologies Inc., Deca Technologies, Greatek Electronics Inc., JCET Group Co., Ltd., Powertech Technology Inc., Sanmina Corporation, SFA Semicon, Sigurd Microelectronics Corporation, Siliconware Precision Industries Co., Ltd., Tongfu Mikcroelectronics Co. Ltd., UTAC, ACM Research, Inc., ALTER TECHNOLOGY TÜV NORD S.A.U, Applied Materials, Inc., ASML, BE Semiconductor Industries N.V. (Besi), Canon, CVD Equipment Corporation, EV Group (EVG), Intevac, Inc, Lam Research Corporation, Onto Innovation, SCREEN Semiconductor Solutions Co., Ltd., Shibuya Corporation, SINGULUS TECHNOLOGIES, SUSS MICROTEC SE , Tokyo Electron Limited (TEL), ULVAC, Veeco Instruments Inc.
Growth Drivers:
  • Rising demand for advanced and miniaturized semiconductor components in consumer electronics
  • Increasing demand for automotive components in automotive sector
  • Penetration of 5G technology in developing nations will accelerate the adoption of advanced packaging
  • Increasing development towards 2.5D/3D technology
  • Increasing trend towards IoT and AI technology around the globe
  • Government initiatives to propel semiconductor industry in North America and Europe
Pitfalls & Challenges:
  • High cost of advanced packaging is hampering the adoption

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Rising adoption of flip-chip packaging in automotive applications will accelerate the market growth

The flip-chip type segment dominated the industry with more than 65% market share in 2019 and is projected to expand at 5% CAGR during 2020-2026. The rising adoption of compact semiconductor components used in high-performance applications such as automotive and aerospace & defense will fuel the market demand.
 

Flip-chip advanced packaging offers a small footprint and high input/output density that increases their adoption by several foundries and IDMs. For example, in January 2020, Infineon Technologies AG announced that it will set its new production process for flip-chip packages with high-quality requirements in the automotive market.
 

Rising integration of compact devices to drive demand across consumer electronics industry

U.S. Advanced Packaging Market Share

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Consumer electronics application segment accounted for around 75% advanced packaging market share in 2019 and is estimated to register 7% growth rate through 2026. The growth is majorly attributed to the rising trend of compact electronic devices, increasing demand for advanced packaging. These packaging types aid to reduce packaging size, increase chip connectivity, improve reliability, and offer multi-function integration, accelerating their demand in smartphones and smartwatches.
 

The consumer electronics players in the U.S. are inclined toward the adoption of these advanced packaging technologies in their newly launched models to gain high competitiveness in the market. For example, in April 2020, Apple launched its new iPhone SE that offers a compact design integrated with an A13 bionic chip, which is based on the 7nm process technology. These increasing investments by consumer electronics manufacturers will boost the market revenue.
 

Presence of major foundry players in Asia Pacific region

South Korea Advanced Packaging Market

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The Asia Pacific advanced packaging market captured over 70% revenue share in 2019. Rising production of semiconductor components and consumer electronic devices in China, Taiwan, and South Korea is driving the regional market share. The region also includes some of the major foundry providers, such as Global Foundries, TSMC, and UMC, among others, accelerating market expansion opportunities for advanced packaging.
 

South Korea held majority of the APAC market share due to several initiatives by the government. In July 2018, the Ministry of Trade, Industry and Energy, South Korea announced an investment of USD 1.34 billion for the development of new semiconductor devices and materials for memory chips & contract chip making. These initiatives will further attract global semiconductor and equipment makers toward the region.
 

Focus on business expansion to stay competitive in the market

Major players in the advanced packaging market include ASE Group, ChipMOS Technologies Inc., Sanmina Corporation, Siliconware Precision Industries Co., Ltd., among others.
 

Companies are continuously focusing on technological innovations and business expansion to accelerate their position in the market. For example, in March 2020, Sanmina Corporation has announced the expansion of its new facility in Thailand, which majorly focus on advanced custom packaging and assemblies for manufacturing of advanced optical, and radio frequency microelectronics. This will help the company to improve its market position for data centers, 5G, aerospace & defense and automotive/LIDAR.
 

This market research report on advanced packaging includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2016 to 2026 for the following segments:
 

Market, By Packaging Type

  • Flip-chip
  • Fan-in WLP
  • Embedded die
  • Fan-out
  • 2.5D/3D

Market, By Application

  • Consumer electronics
  • Automotive
  • Industrial
  • Healthcare
  • Aerospace & defense
  • Others

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Netherlands
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • Taiwan
  • LAMEA
    • Argentina
    • Mexico
    • Israel
       

Frequently Asked Questions (FAQ) :

In 2019, the advanced packaging industry size surpassed USD 25 billion and is projected to grow at 8% CAGR through 2026.
The flip-chip type segment dominated the industry with over 65% market share in 2019 and is expected to grow at a CAGR of 5% through 2026.
The consumer electronics application segment accounted for about 75% industry share in 2019 and is anticipated to grow at 7% CAGR through 2026 due to its increased chip connectivity, reduce packaging size, multi-function integration, and improved reliability.
The advanced packaging industry share in the Asia Pacific region accounted for over 70% revenue in 2019 and is expected to witness a substantial growth through 2026.

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Premium Report Details

  • Published Date: Sep 2020
  • Pages: 250
  • Tables: 105
  • Charts / Figures: 43
  • Companies covered: 34
  • Countries covered: 14

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