APAC Memory Packaging Market by Platform, by Application, by End-Use, by Geography - Market Size, Share, Development, Growth, and Demand Forecast, 2017-2023

Surge in investments in fabrication activities in China, rising demand for smartphones across the region, growing popularity of autonomous driving and in-car entertainment (ICE), and continuous improvements in high-bandwidth memory (HBM) and redistribution layer (RDL) are some of the major factors driving the growth of the APAC memory packaging market.

Insights on Market Segments:

On the basis of packaging platform, the market has been categorized into wire-bond, lead-frame, flip-chip, through-silicon via (TSV), and wafer-level chip-scale packaging (WLCSP). Among these, the wire-bond packaging platform is estimated to contribute the largest revenue share, accounting for more than 75% to the APAC memory packaging market in 2017. Comprehensible program adjustments, easy changeovers, and low engineering costs are backing the demand for wire-bond memory packaging solutions. Even with changes in the package design, the wire-bond memory packaging platform continues to be used as the preferred interconnection platform because of its flexibility, low cost, and reliability.

China stands as the largest APAC memory packaging market

China is estimated to contribute the largest revenue share, accounting for more than 40% to the APAC memory packaging market in 2017. This can be mainly attributed to the broader application areas of memory packaging in various consumer electronics, particularly smartphones and tablets. Also, the presence of major memory packaging vendors in the China, such as Samsung Electronics Co. Ltd., SK hynix Inc., and Intel Corporation, is driving the memory packaging industry.

Increasing demand for smartphones is the key growth driver

Increasing demand for smartphones in APAC is one of the major factors driving the growth of the regional APAC memory packaging market. According to a recent study, the share of smartphone users in China was over 53.3% of the total mobile phone users in the country in 2016, which grew up to over 56% in 2017. With the rising adoption of smartphones, the use of packaged memory chips is also increasing.

The high adoption rate of smartphones in various APAC countries can also be attributed to the sleek aesthetic looks and advanced features of these smartphones. With advancements in memory packaging techniques, the size of smartphones is getting reduced. Effective space utilization offered by memory packaging technologies is one of the key factors propelling the growth of the APAC APAC memory packaging market.

Increasing investments in 3D NAND offers lucrative growth opportunities

With the rising prices of DRAM memory, vendors operating in the APAC memory packaging market are increasingly spending on the development of 3D NAND. According to an article published by SK hynix Inc., companies can no longer keep up with 3D NAND demand, and are required to expand their manufacturing capacity. Increasing spending on 3D NAND, complemented by its growing demand, is expected to create a huge growth opportunity for the players in the market in coming years.

APAC Memory Packaging Market Competitiveness

The APAC memory packaging market of APAC is witnessing many mergers and acquisitions among regional players. In the past few years, acquisitions have been one of the major inorganic growth strategies of the companies to increase their revenue share in the market. Companies such as Samsung Electronics Co. Ltd. and Micron Technology Inc. have been forerunners in acquiring and merging with small regional and adjacent technology-based market peers.

As part of growth strategy, various OSAT players are entering into strategic alliances with memory manufacturers, and regional players are joining hands with global technology providers to increase their reach in the market.