Advanced Semiconductor Packaging Market By Packaging Type (Flip-chip, Fan-in Wafer Level Packaging, Embedded-die, Fan-out, and 2.5 Dimensional/3 Dimensional); By Application (High-performance computing (HPC), Data centers, Autonomous vehicles, 5G Infrastructure, and Others); By Geography, Segment revenue estimation, Forecast, 2024-2032.

The advanced semiconductor packaging market size will witness a CAGR of 6.5%, valued at $34 billion in 2024, expected to appreciate and reach $53.1 billion by 2030. Shrinking devices and booming AI, 5G - advanced packaging keeps pace with tech's ever-growing demands.

 

Advanced semiconductor packaging is a set of manufacturing technologies that combine several semiconductor chips into a single electronics package. This method lowers costs and power consumption while increasing capabilities.

 

More effective and affordable microelectronic devices are required to meet the rising need for processing power and memory to store all the data people produce. There is a growing market for consumer electronics that are more powerful and intelligent, which may offer more capability in smaller, lower-power packages. As a result of the addition of components that can measure (sensors), import data, compute (processor), store data (memory), or export data, gadgets are becoming increasingly intelligent.

 

 

The automobile industry is one of the fastest expanding sector. More robust, cost-effective, and efficient electronic modules with sophisticated packaging are in high demand due to upgraded systems for performance, efficiency, and safety as well as an ever-growing number of sensors.

 

In order to address the growing need for more compact chip designs, system-in-chip applications, and power-efficient and economical packages, next-generation packaging manufacturing must make use of new materials, enhanced automation, and innovative technologies. Leaders in the industry, TSMC, Amkor, and Intel, announced plans to invest $2.9, $3.5, and $2 billion in 2023, respectively, to build new advanced packaging facilities.

 

The semiconductor packaging industry is experiencing significant changes, driven by advancements in technology and the growing demand for more efficient and powerful electronic devices. With the increasing power density of semiconductor devices, effective thermal management is essential. Innovations such as embedded cooling solutions, advanced heat spreaders, and improved thermal interface materials are being developed to manage heat more efficiently.

 

AI Unlocking New Frontiers in Advanced Semiconductor Packaging

Artificial Intelligence (AI) is transforming various industries, driving technological innovations and reshaping the semiconductor industry, particularly in advanced packaging technologies such as 3D Heterogeneous Integration, Wafer Bumping, and Multichip Modules. This relationship is critical in meeting the performance demands of AI applications and is fostering significant market growth.

 

AI technology investments are expected to surpass USD 500 billion by 2024, with significant allocations towards semiconductor advancements.

 

Advanced packaging technologies, driven by AI, are particularly beneficial for high-reliability end-use markets such as Military Aerospace and Defense, Space, Implantable/Wearable Medical Devices, and Oil & Gas/Down Hole Drilling.

 

The interplay between AI and advanced semiconductor packaging is a significant driver of technological advancements in both fields. AI’s demand for high-performance, efficient, and miniaturized semiconductor solutions is fostering innovations in advanced packaging technologies. Conversely, advancements in semiconductor packaging are enabling the deployment of more powerful and efficient AI applications. As AI continues to evolve, the growth and development of advanced semiconductor packaging will play a crucial role in meeting the technological demands of the future.

 

TSMC has recently opened its first all-in-one advanced packaging and testing facility to produce its system-on-integrated-chip & 3DFabric packaging technologies specifically for artificial intelligence applications and data centers. Thanks to ChatGPT, TSMC's cutting-edge packaging technique emerged as the preferred method for Nvidia's popular GPU product lineup during the 2023 AI boom.

 

 

Market Drivers (Miniaturization and Beyond: Pioneering Semiconductor Packaging for Emerging Technologies)

• Miniaturization: The constant need for increasingly sophisticated packaging solutions has been fueled by the ever-increasing size and weight of electronic gadgets, including wearables, smartphones, and Internet of Things sensors. The miniaturization trend in electronic devices is a major driver for the advanced semiconductor packaging market.  Semiconductor packages with a reduced footprint are becoming necessary as consumer electronics like wearables, tablets, and smartphones get smaller and more feature-rich. System-in-package (SiP) and chip-on-chip (CoC) approaches are examples of advanced packaging techniques that allow numerous chips to be included in a single package, lowering total size while improving performance and power efficiency.

 

• Enhanced Performance: Stacking numerous chips within a single package is made possible by advanced packaging techniques such as 2.5D and 3D integration. This results in shorter interconnects and enhanced signal integrity, which raises processing rates and enhances overall performance.

 

• Artificial Intelligence (AI) and Internet of Things (IoT): As these technologies advance, there is an increasing demand for semiconductor packages that are specifically designed to meet the needs of edge computing, machine learning, and sensor applications. These technologies demand highly specialized semiconductor packages that support edge computing, machine learning, and sensor applications. AI applications require advanced packaging solutions that provide high processing power and efficient data handling to enable functionalities like real-time analytics and complex computations. With over 75 billion devices estimated to be connected by 2025, the growth of IoT devices demands semiconductor packages that are small, robust, and low-power.

 

 

Market Restraints (Costly Tech, Fragile Chains, Talent Gap: Obstacles Hinder Advanced Packaging Growth)

• High Cost of Advanced Packaging Technologies: Developing and implementing advanced packaging solutions can be expensive, potentially limiting adoption by cost-sensitive applications.

• Supply Chain Disruptions: Geopolitical tensions and trade wars can disrupt the supply chains for raw materials and packaging components, leading to price fluctuations and production delays.

• Skilled Labor Shortage: The industry may face a shortage of skilled workers with expertise in advanced packaging processes, hindering growth and innovation.

 

Market Opportunity (Driving Growth: Advanced Packaging Solutions for Autonomous Vehicles, Data Centers, and Wearable Electronics)

Expanding applications for advanced packaging in sectors like automotive (autonomous vehicles), data centers (HPC), and wearable electronics offer substantial growth potential. The demand for innovative packaging solutions that ensure reliability & performance in challenging environments increases as technologies like autonomous vehicles require advanced sensors and processing capabilities. Wearable electronics are a major factor in this expansion since the market is moving toward smaller, more versatile gadgets, which calls for effective and compact packaging. The demand for cutting-edge semiconductor packaging that boosts performance and accommodates new capabilities will grow as these industries flourish, offering significant market growth prospects.

 

Unpacking the Landscape: Segmenting the Advanced Semiconductor Packaging Market

The advanced semiconductor packaging market segmentation is done on the basis of application, packaging, and region.

By Application

• Consumer Electronics

• Data Centers and High Level Computing

• Automotive and Transportation

• Others- Medical Devices, Industrial Automation, Aerospace

 

By Packaging Type

• Fan-in Wafer Level Packaging

• Flip-chip

• Fan-out

• Embedded-die

• 2.5 Dimensional/3 Dimensional

 

Global Ambitions, Regional Realities: A Look at Advanced Packaging Market Geography

North America

• US

• Mexico

• Canada

• Rest of North America

 

Europe

• Switzerland

• Russia

• France

• Germany

• U.K

• Finland

• Turkey

• Netherlands 

• Belgium

• Spain

• Italy

• Rest of Europe

 

Asia Pacific

• China

• India

• South Korea

• Japan

• Singapore

• Thailand

• Indonesia

• Malaysia

• Philippines

• Australia

• Rest of Asia-Pacific

 

LAMEA

• Brazil

• Saudi Arabia

• Argentina

• Uruguay

• Rest of LAMEA

 

 

Power, Performance, Perfection: Flip Chip Technology Drives Advanced Packaging

On the basis of packaging type, the Flip Chip segment held the largest market share of the Global Advanced Semiconductor Packaging Market in 2023, valued at USD 17.4 billion. It is expected to maintain a leading position throughout the forecasted period, reaching USD 24.2 billion by 2030 and growing at a CAGR of 4.7%. Flip chip packaging offers better thermal management, higher interconnect density, and superior electrical performance. It also supports the growing need for electronic device miniaturization, enabling more compact and efficient designs. Furthermore, flip chip technology improves signal speed and power efficiency, which are essential for advanced applications in consumer electronics, high-performance computing, and telecommunications.

 

The Embedded Die Packaging is the fastest growing segment projected to grow at a CAGR of 15.8% from 2024 to 2030. This surge is driven by the increasing demand for high-performance computing applications that necessitate this advanced packaging technology.

 

From Phones to Smart Homes: Consumer Electronics Rule the Advanced Packaging Market

On the basis of application, Consumer Electronics segment is dominating the market with 53% of market share in 2023, driven by the demand for smartphones, tablets, and other portable devices. Sophisticated semiconductor packaging is in high demand because of rapid innovation in consumer electronics, driven by the desire for better graphics, longer battery life, higher processing speeds, and improved connection. Furthermore, the consumer electronics market is further propelled by the widespread use of wearable technologies, smart gadgets, and the Internet of Things (IoT).

 

The Powerhouse of Packaging: APAC Rules the Advanced Semiconductor Market

APAC (Asia Pacific) ruled the market with largest revenue share of 65% in 2023 due to the presence of major electronics manufacturers and a growing domestic demand for advanced consumer electronics. This dominance is attributed to the presence of major semiconductor manufacturing hubs like Taiwan and South Korea. These nations have made significant investments in cutting-edge manufacturing facilities as well as research and development to make sure they remain at the forefront of technological breakthroughs. The need for cutting-edge electronics, such as smartphones, tablets, and other portable gadgets, is being driven by a sizable customer base in APAC. This demand calls for complex semiconductor packaging solutions.

 

North America exhibits impressive growth with a CAGR of 6.1%. This is fuelled by the strong presence of leading semiconductor packaging companies, continued innovation in consumer electronics, and the growing demand for high-performance computing solutions.

 

Unveiling the Major Players in Advanced Packaging

• Amkor Technology

• ASE Group Intel Corporation

• Samsung Electronics Co., Ltd.

• Texas Instruments

• STMicroelectronics NV

• FlipChip International LLC

• Broadcom Inc.

• Other Market Players (A flexible list of 20 key players, tailored to specific client needs)

 

Advanced Semiconductor Packaging Market Report Coverage

Report Attribute	Details
Forecast Period	2023 – 2030
Market size value in 2023	USD 34 Billion
Revenue Forecast in 2030	USD 53.1 Billion
Growth rate	CAGR of approximately 6.5 %
Base year for estimation	2022
Historical data	2017 – 2021
Unit	USD Billion, CAGR (2023 - 2030)
Segmentation	By Application, By Packaging Type
By Application	Consumer Electronics, Data Centers and High-Level Computing, Automotive and Transportation, Others (Medical Devices, Industrial Automation, Aerospace)
By Packaging Type	Fan-in Wafer Level Packaging, Flip-chip, Fan-out, Embedded-die, 2.5 Dimensional/3 Dimensional
By Region	Asia Pacific, North America, Europe, LAMEA
Country Scope	U.S., Canada, France, Germany, U.K., China, Japan, India, South Korea, Mexico, Brazil, U.A.E. etc.
Company Usability Profiles	Amkor Technology, ASE Group Intel Corporation, Samsung Electronics Co., Ltd., Texas Instruments, STMicroelectronics NV, FlipChip International LLC, Broadcom Inc., Other Market Players (A flexible list of 20 key players, tailored to specific client needs)
Pricing and purchase options	Avail customized purchase options to meet your exact research needs.

 

 

Recent Development

• In June 2024, The multinational technology giant IBM and the advanced logic semiconductor manufacturer Rapidus Corporation announced a joint development cooperation focused at building mass production capabilities for chiplet packaging. As a result of this collaboration, IBM will provide Rapidus with high-performance semiconductor packaging technology, and the two businesses will work together to drive future innovation in this field.

 

• In July 2024, Resonac Corporation revealed "US-JOINT," a new partnership comprising ten partners for its back-end semiconductor process research and development in Silicon Valley. The firms that manufacture semiconductor materials & equipment are KLA, Azimuth, Kulicke & Soffa, MEC, Moses Lake Industries, ULVAC, TOK, NAMICS, TOWA, & Resonac. US-JOINT, which involves five U.S.-based companies, extends the activities of open consortiums located in Japan and led by Resonac. US-JOINT R&D will be conducted at a brand-new facility in Union City, California, which the partners will co-invest in. This year will see the start of the cleanroom construction and equipment installation, with the facility anticipated to be completely operational by 2025.

 

• In July 2024, The US Department of Commerce issued a Notice of Intent (NOI) to organize a competition for new research & development activities aimed at establishing & accelerating domestic capacity for advanced semiconductor packaging as part of President Biden's Investing in America plan. As per the goal of the National Advanced Packaging Manufacturing Program, the CHIPS for America initiative aims to provide funding for up to USD 1.6 billion in innovation across five research and development disciplines. Through potential cooperation agreements, CHIPS for America would make several awards totaling approximately $150 million in government funding available for each grant in each study field. These grants will supplement the private sector investments provided by business and academia.