Advanced Packaging Market size worth $40 Bn by 2026
Published Date: October 1, 2020 Authors: Preeti Wadhwani, Shubhangi Yadav
Advanced Packaging Market size is set to surpass USD 40 billion by 2026, according to a new research report by Global Market Insights, Inc.
Increasing penetration of Artificial Intelligence (AI) devices in the market is booting the advanced packaging industry growth. AI chipsets require fast processing cores, small form factors, and energy efficiency driving the market opportunities. Companies are taking strategic decisions to innovate chip package designs for AI. For instance, in August 2020, Synopsys announced a strategic collaboration with TSMC for the development of advanced packaging solutions. The collaboration focuses on developing and integrating Chip-on-Wafer-on-Substrate (CoWoS) and fan-out design for advanced applications, such as AI, High Performance Computing (HPC), and data centers, to offer high functionality and improved system performance.
The proliferation of 5G technology across the globe will also increase advanced packaging market demand. The 5G chipsets are developed using advanced packaging technology, which helps them to achieve high-performance, compact size, and low power consumption in 5G-enabled devices. According to the Mobile Economy 2020 Report by GSM Association, the global 5G adoption will surpass 1.8 billion connections worldwide by 2025 with the majority of users from Asia and North America regions. This will further propel the demand for advanced packaging in IDM and foundries to deliver 5G chipsets.
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The continuous technology innovations to reduce process nodes and the development of 2.5D/3D IC packaging have increased the cost of production. Stringent government regulations implementing trade restrictions and high tariffs are further limiting the sector growth.
Rising adoption of fan-out wafer level packaging in consumer electronics
The fan-out segment is projected to grow at a significant rate of over 10% from 2020 to 2026 driven by the increasing adoption of these packaging technology by major smartphones and wearable device manufacturing companies. Fan-out advanced packaging offers higher number I/O connections and miniaturized footprint compared to other packaging technologies including fan-in WLP.
Companies are integrating chipsets and ICs with this technology in their smartphone products, which is posing a lucrative advantage to the advanced packaging market outlook. The increasing adoption of fan-out packaging technology in smartphones will bring new market growth opportunities.
Browse key industry insights spread across 250 pages with 105 market data tables and 41 figures & charts from the report, “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” in detail along with the table of contents:
Rising development in automotive electronics and vehicle control systems
The automotive application accounted for around 5% market share in 2019 and is projected to observe 10% CAGR through 2026. Rising development in automotive electronics and control system for advanced vehicles will fuel advanced packaging market revenue. The automotive sector is witnessing a high adoption of advanced-packaging chipsets, which are integrated into ADAS, Electric Vehicles (EVs), and other applications. Companies are focusing on developing their automotive solutions by leveraging the advanced packaging technology.
Favorable government initiatives supporting the electronics & semiconductor manufacturing sector in the U.S.
The North America captured more than 10% market share in 2019 and will is poised to register 5% growth rate during 2020 to 2026. Rising government initiatives to propel the electronics & semiconductor manufacturing industry in the region will propel the market growth. North American is witnessing high investments from some of the major foundry providers including TSMC and GlobalFoundries, which will accelerate the market growth opportunities.
Key players in the advanced packaging market include Advanced Semiconductor Engineering, Inc., Deca Technologies, Powertech Technology Inc., Sanmina Corporation, Amkor Technology Inc. and Brewer Science Inc. These players are extensively focusing on research & development activities to increase their market share. For example, in July 2019, Intel Corporation announced to introduce three new advanced-packaging technologies at the SemiCon West Conference. The technology portfolio includes Omni-Directional Interconnect (ODI), Multi-Die I/O (MIDO), and Co-EMIB, helping the company to build chipsets out of smaller die. It helps the company to deliver high performance, low power, and cost-efficient chipsets using advanced packaging technology.