Fan-Out Wafer Level Packaging Market - By Process Type (Standard-Density Packaging, High-Density Packaging, Bumping), By Business Model (OSAT, Foundry, IDM), By Application (Consumer Electronics, Automotive, Industrial, Healthcare, Aerospace & Defense, IT & Telecommunication), Forecast, 2023 - 2032

Fan-Out Wafer Level Packaging Market Size

Fan-Out Wafer Level Packaging Market size was valued at over USD 2.5 Billion in 2022 and is anticipated to grow at a CAGR of over 10% between 2023 and 2032. The rising demand for advanced and cost-effective packaging technologies as well as increasing digitalization & miniaturization are driving the global fan-out wafer level packaging industry.
 

As technology develops, there is a rising need to make electronic devices more compact and portable. The fan-out wafer level packaging technology places multiple components on the same substrate, making the module smaller and more energy efficient. This fan-out wafer level packaging technique is used in consumer electronic devices, such as smartwatches & smartphones, incorporated with the Internet of Things (IoT) & Artificial Intelligence (AI), and the automotive industry to create features such as Advanced Driving Assistance Systems (ADAS).
 

Fan-out wafer level packaging is an Integrated Circuit (IC) packaging technology. The IC is packaged in a Wafer-level Package (WLP), which is fabricated on a semiconductor wafer. The IC is then separated from the wafer by dicing and the individual packages are separated from the wafer. Following the above processes, the individual packages are then tested and sorted. FOWLP outperforms traditional IC packaging technologies such as wire bonding and flip-chip. Smaller form factors, higher densities, and lower costs are among the benefits of FOWLP.

level packaging market growth. The lack of a specific solution to warping has stifled market growth. Warpage is defined as the distortion that occurs when the surface of a molded part does not conform to the design's intended shape. This causes the wafer surface to deform, rendering it unusable. One of the primary causes of this effect is the differential shrinkage of the material in the molded part, which results in a deformed & warped shape rather than a uniform, compact one.
 

COVID-19 Impacts

Due to restrictions on the movement of goods and severe disruptions in the semiconductor supply chain during the COVID-19 pandemic, the fan-out wafer level packaging market experienced a decline in growth. The outbreak resulted in low inventory levels for clients of semiconductor vendors and distribution channels in Q1 2020. The Coronavirus outbreak is expected to have a long-term impact on the market.
 

Fan-Out Wafer Level Packaging Market Trends

The rising global demand for a wide range of electronic devices as well as the growing trend of miniaturization is expected to drive the demand for fan-out wafer level packaging during the forecast period. The increasing use of semiconductor ICs in IoT devices is propelling the global fan-out wafer level packaging industry statistics. The development of wired & wireless communication technologies, telecommunication standards such as 3G/4G/5G, and government initiatives to implement energy-efficient systems & solutions are driving the demand for these IoT devices. The growing number of IoT applications will increase the demand for IoT chipsets that are integrated into these devices. Wi-Fi modules, RF modules, FOWLP units (MCUs), and sensor modules are among the chipsets used in these IoT devices.
 

Fan-Out Wafer Level Packaging Market Analysis

Based on process type, the fan-out wafer level packaging market is segmented into standard-density packaging, high-density packaging, and bumping. The high-density packaging segment held a market value of over USD 1.5 Billion in 2022. The market has gained momentum owing to increased investments in the development of high-density FOWLP. Multiple market vendors have collaborated and invested in the development of this technology to increase its application scope in various other segments.
 

Based on the business model, the market is divided into OSAT, foundry and IDM. The OSAT business model segment held a market share of over 20% in 2022 and is expected to grow at a lucrative pace by 2032. Traditional pure test players are investing in packaging and assembly capabilities while OSATs are expanding their testing expertise. To capture the test market, top OSAT-based providers are investing in IC testing capacity while pure test houses, such as KYEC & Sigurd Microelectronics, are adding packaging/assembly capabilities to their service offerings through M&As or R&D. Overall, there is a paradigm shift in the packaging/assembly business, which was traditionally dominated by OSATs.
 

Based on application, the fan-out wafer level packaging market is segmented into consumer electronics, automotive, industrial, healthcare, aerospace & defense, IT & telecommunication, and others. The automotive segment held a dominant market share in 2022 and is anticipated to grow at 15% CAGR by 2032. The temperature fluctuations that can occur both inside and outside a vehicle primarily cause problems for automotive electronics. Due to the requirements for reliability, electro-thermal co-simulation is becoming increasingly important in the automobile industry. FOWLP is used at the end of the semiconductor manufacturing process to protect silicon wafers, logic units, and memory from physical damage & corrosion. With advancements in packaging technology, ICs can now be linked to circuit boards.
 

Asia Pacific is the dominant region in the global fan-out wafer level packaging market with over 50% share in 2022. This is due to the presence of numerous foundries and OSAT companies in the region, which are the primary customers of Integrated Device Manufacturers (IDMs) and fabless firms. Another major factor contributing to market expansion is the increasing government initiatives in APAC countries to expand the fan-out wafer level packaging industry. One of the most visible examples is the Chinese government's growing support for the fan-out wafer level packaging industry. Despite being a major consumer electronics manufacturing hub, China primarily imports semiconductor ICs and lacks a strong domestic semiconductor manufacturing capability. To change this, the government has enacted several policies to promote the country's fan-out wafer level packaging industry growth.
 

Fan-Out Wafer Level Packaging Market Share

Some of the major players operating in the fan-out wafer level packaging market are

• Amkor Technology
• ASE Technology Holding Co., Ltd.
• Deca Technologies
• GlobalFoundries Inc.
• JCET Group Co., Ltd.
• Nepes Corporation
• Powertech Technology Inc.
• Siliconware Precision Industries Co., Ltd.

These players focus on strategic partnerships and new product launches & commercialization for market expansion. Furthermore, these players are heavily investing in research, allowing them to introduce innovative processes and garner maximum revenue in the market.
 

Fan-Out Wafer Level Packaging Industry News:

• In March 2023, Advanced Semiconductor Engineering (ASE), a subsidiary of ASE Technology Holding, introduced its most advanced Fan-out Package-on-Package (FOPoP) solution to reduce latency and provide exceptional bandwidth benefits for the dynamic mobile and networking markets. FOPoP, which is positioned beneath the VIPack platform, reduces the electrical path by three and increases bandwidth density by up to eight, allowing engine bandwidth expansion of up to 6.4 Tbps/unit.
   
• In June 2022, SkyWater signed a technology licensing agreement with Xperi Corporation. This agreement will enable SkyWater & its customers gain access to Adeia’s ZiBond direct bonding and DBI hybrid bonding technology & IP to enhance next-generation devices used in commercial & government applications.
   

The fan-out wafer level packaging market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments:

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By Process Type

• Standard-density packaging
• High-density packaging
• Bumping

By Business Model

• OSAT
• Foundry
• IDM

By Application

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

The above information is 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
  • Brazil
  • Mexico
  • Israel