Advanced Packaging Set For Transformative Growth
The advanced packaging industry is set to achieve substantial development, thanks to its unprecedented growth, driven by technological innovation and increasing demand across sectors like electronics, automotive, and telecommunications.
Multiple semiconductor chips are combined into a single chip package using a variety of manufacturing techniques known as advanced semiconductor packaging. The method lowers costs and power consumption while enhancing capabilities.
Commonly-used Method in Advanced Packaging
System-in-package (SiP), fan-out wafer-level packaging (WLP), heterogeneous integration (HI), 2.5D, and 3D-IC are the most widely used methods in advanced packaging. Placing chips with various functionalities in close proximity has added benefits of optimising power consumption, improving speed, and combining multi-function components into a single package.
Leading integrated device manufacturers (IDMs) like Intel, Samsung, and Texas Instruments dominate this sector with innovative platforms tailored for advanced packaging. These platforms offer distinct features and benefits that are shaping the future of the semiconductor industry.
High-performance Electronic Devices to Augment Advanced Packaging
The surge in demand for high-performance electronic devices such as smartphones, wearables, and Internet of Things (IoT) along with the growing adoption of technologies like 5G, artificial intelligence (AI), and IoT are expected to augment the growth of the advanced packaging market during the 2023-2034 forecast period. Advanced packaging techniques are pivotal in meeting these demands.
Autonomous Driving Gets Hot!
The shift towards electric vehicles (EVs) with autonomous driving systems highlights the importance of semiconductor miniaturisation. Autonomous driving is one of the hottest subjects in the automobile industry right now. Sensing a car’s surroundings is one problem addressed by a large number of microelectromechanical systems (MEMS) sensors, which are enhanced by sophisticated packaging techniques. 5G communication systems in EVs enable a variety of features that make driving safer, more convenient, and more efficient.
Growing Demand for Energy-efficient Options
With the explosion of cloud computing and data centre operations, energy-efficient semiconductor designs are critical. Advanced packaging enables smaller, high-performance chips that consume less power and generate less heat, making them ideal for modern data centres.
The growing demand for energy-efficient options in data centres and cloud computing infrastructure, coupled with the growing investments in semiconductor manufacturing and government initiatives supporting domestic semiconductor production will drive the market ahead in the near future.
Cutting-edge Trends Shaping Advanced Packaging
Artificial Intelligence: The power of AI models to generate new information, material, or solutions on their own is demonstrated by the generative AI age. Advanced packaging technologies provide the highly efficient hardware needed in the modern era, which can analyse massive volumes of data and produce complicated algorithms in real time.
5G Technology: The rollout of 5G technology to support complicated communication networks requires the utilisation of small and effective devices. 5G devices benefit immensely from advanced packaging technologies like wafer-level chip scale packaging (WLCSP) and fan-out packaging, which makes possible smaller form factors, reduced power consumption, and better thermal management.
Glass Core Substrates: A promising area for improved IC wafers and advanced packaging is the adoption of glass core substrates. These materials offer unmatched performance and scalability for the next phase of chip designs and packages. Despite the obstacles, as with all new technologies, the combined efforts of both industry pioneers and upstarts have opened the door for glass substrates to be widely used in a variety of end industries, with AI chips and servers receiving special attention.
Consumer Electronics: The surge in consumer electronics due to rising adoption of smaller, faster, and more energy-efficient devices such as smartphones, laptops, and wearable electronics is expected to augment the growth of the market for advanced packaging.
Multi-camera systems, OLED display technology, 3D sensing, 5G modules, AI capability, and AR/VR are important areas of electronic development. Each smartphone incorporates approximately 20 SiPs. For the application processor, three packaging types are frequently used, including fan-out package on package (FOPoP) technology (exclusive to Apple), flip chip package-on-package (fcPoP), and stacked die.
Smartphones, laptops, tablets, wearable devices, and gaming consoles are dominating the consumer market, with users always looking for high-performance features in compact, lightweight designs. Advanced packaging technologies play a crucial role in handling these requirements as they facilitate the integration of greater functionality in smaller form factors while increasing thermal and electrical performance.
The consumer electronics segment held the largest market share of 57.16% in 2023. Increasing demand for streaming platforms and the growing adoption of smart TVs designed to support these services were the main reasons.
The advanced packaging industry is at the heart of technological progress, driving innovations across diverse sectors. From enabling AI-powered applications to supporting the miniaturisation of automotive components, advanced packaging is a key enabler of the future.
Regional Market Growth
Regional advancements in North America and Asia-Pacific further underline the global momentum of this dynamic industry.
Owing to the presence of tech giants and cloud service providers like Google, Microsoft, and Amazon, North America held considerable market share of 29.87% in 2023. Furthermore, the growing R&D investments as well as increasing focus on next-gen packaging technologies is also expected to contribute to the regional market growth.
Asia-Pacific, in comparison, is likely to grow at the fastest CAGR of 9.66% during the forecast period, with China, Japan, South Korea, and Taiwan as major semiconductor manufacturing hubs. The surge in the production and consumption of consumer electronics is also likely to contribute to the regional growth of the market.
Advanced Packaging Sees Growth and Expansion
The advanced packaging market is expected to grow significantly in the coming years, with a CAGR of over 10% from 2024 to 2032. The market was valued at over $34.5 billion in 2023 and is projected to reach $61.3 billion by 2033.
As new technologies like 5G and glass core substrates emerge, the potential for advanced packaging continues to expand. The industry’s growth trajectory is marked by continuous innovation, collaborative efforts, and an unwavering commitment to addressing global technology demands.
