3D IC and 2.5D IC Packaging Global Market Report 2024

The 3D IC and 2.5D IC packaging market size has grown rapidly in recent years. It will grow from $48.6 billion in 2023 to $54.39 billion in 2024 at a compound annual growth rate (CAGR) of 11.9%. The expansion observed in the historical period can be attributed to several factors, including the miniaturization of electronic devices, an increased need for enhanced power efficiency, a growing demand for improved signal integrity, a surge in consumer electronics and gaming devices, and a focus on overall performance enhancement.

The 3D IC and 2.5D IC packaging market size is expected to see rapid growth in the next few years. It will grow to $81.67 billion in 2028 at a compound annual growth rate (CAGR) of 10.7%. The anticipated growth in the forecast period can be linked to the emergence of wearable and portable devices, an escalating demand for energy efficiency, a heightened need for high-performance computing (HPC), a shift towards System-on-Chip (SoC) designs, the increasing complexity of semiconductor devices, and the proliferation of the Internet of Things (IoT). Prominent trends expected in the forecast period encompass advancements in 5G technology, innovative interconnect technologies, increased industry collaboration and adherence to standards, technological strides in semiconductor technology, and ongoing innovations in packaging materials.

The rising demand for consumer electronics is anticipated to fuel the expansion of the 3D IC and 2.5D IC packaging market in the future. Consumer electronics encompass electronic devices designed for purchase and personal, non-commercial use by consumers. 3D IC (Integrated Circuit) and 2.5D IC packaging represent advanced packaging technologies that deliver improved performance, expanded functionalities, and the downsizing of electronic gadgets. The upsurge in demand for consumer electronics and gaming devices is propelled by technological advancements, increased disposable income, the expansion of the gaming industry, digital transformation, remote work trends, entertainment preferences, evolving lifestyles, and the impact of social media and content consumption. As an illustration, LG, a South Korea-based consumer electronics company, reported a 12.9% growth in sales for 2022 in its annual financial report released in January 2023, surpassing approximately $52.70 billion in sales from the previous year. Moreover, the LG Home Appliance & Air Solution Company experienced a remarkable year, generating a revenue of $22.5 billion in 2022, marking a 10.3% surge from the preceding year. Consequently, the escalating demand for consumer electronics is a driving force behind the growth of the 3D IC and 2.5D IC packaging market.

The increasing acceptance of electric vehicles (EVs) is projected to drive the growth of the 3D IC and 2.5D IC packaging market in the foreseeable future. Electric vehicles are automobiles powered, either partially or entirely, by electricity stored in rechargeable batteries. Within electric vehicles, 3D IC technology is utilized to vertically stack integrated circuits, optimizing space and facilitating the integration of power management, motor control, and communication systems in a compact layout. For instance, as per the Global Electric Vehicle Outlook report by the International Energy Agency (IEA) released in May 2022, electric vehicle sales doubled in 2021 compared to the previous year, reaching approximately 6.6 million units. Furthermore, the first quarter of 2022 witnessed a further increase with 2 million electric cars sold globally. Thus, the growing adoption of electric vehicles stands as a key driver behind the expansion of the 3D IC and 2.5D IC packaging market.

Technological advancements stand as a prominent trend gaining traction within the 3D IC and 2.5D IC packaging market. Leading firms engaged in this sector are embracing novel technologies to maintain their market standing. A prime example occurred in June 2022 when ASE Technology Holding Co. Ltd., a semiconductor manufacturing services provider based in Taiwan, introduced VIPack. This cutting-edge packaging platform, an evolution in 3D heterogeneous integration architecture, broadens design parameters while delivering exceptionally high performance and density. VIPack empowers companies to achieve unparalleled innovation by integrating multiple chips into a single package. It leverages advanced redistribution layer (RDL) technologies, embedded integration, and 2.5D and 3D technologies. VIPack encompasses six fundamental packaging technology pillars, complemented by a comprehensive co-design ecosystem. These pillars encompass ASE's high-density through Silicon Via (TSV)-based 2.5D and 3D IC, Co-Packaged Optics processing capabilities, along with Fanout Package-on-Package (FOPoP), Fanout Chip-on-Substrate (FOCoS), Fanout Chip-on-Substrate-Bridge (FOCoS-Bridge), and Fanout System-in-Package (FOSiP)-based technologies.

Key players within the 3D IC and 2.5D IC packaging market are spearheading innovative technologies, particularly focusing on next-generation 2.5D technologies, to gain a competitive edge. 2.5D packaging technology represents an advanced method of semiconductor integration, involving the stacking of multiple integrated circuit (IC) components, such as logic and memory dies, onto a single substrate or interposer. Notably, in May 2021, Samsung Electronics Co. Ltd., a South Korea-based consumer electronics company, unveiled its 2.5D packaging technology, Interposer-Cube4 (I-Cube4). This technology showcases four High Bandwidth Memory (HBM) dies and one logic die on an ultra-thin silicon interposer, succeeding the I-Cube2. I-Cube4 aims to propel chip packaging technology, enhancing communication and power efficiency across diverse applications spanning high-performance computing (HPC), artificial intelligence (AI), 5G, and large-scale data center operations. The thinner interposer facilitates improved thermal management and stable power supply, effectively addressing concerns related to interposer warpage, thereby contributing to heightened product quality and reliability.

In February 2021, Siemens Digital Industries Software, a U.S.-based computer software company specializing in 3D & 2D product lifecycle management software, entered into a collaboration with Advanced Semiconductor Engineering, a Taiwan-based provider of semiconductor assembly and test manufacturing services. This partnership aims to create two new enablement products, tailored to aid shared clients in the seamless development and assessment of diverse integrated circuit (IC) package assembly and interconnect scenarios. These tools are designed to offer an intuitive, data-rich graphical environment, facilitating the exploration and refinement of such scenarios both before and during the physical design execution phase.

Major companies operating in the 3D ic and 2.5d ic packaging market report are Samsung Electronics Co. Ltd., Siemens AG, Intel Corporation, Taiwan Semiconductor Manufacturing Company Limited, SK Hynix Inc., Broadcom Inc., Fujitsu Limited, Toshiba Corporation, ASE Technology Holding Co. Ltd., Texas Instruments Incorporated, STMicroelectronics NV, Infineon Technologies AG, Renesas Electronics Corporation, United Microelectronics Corporation, GlobalFoundries Inc., Amkor Technology Inc., Unimicron Technology Corporation, Jiangsu Changjiang Electronics Technology Co. Ltd., Cadence Design Systems Inc., Siliconware Precision Industries Co. Ltd., Powertech Technology Inc., Ansys Inc., STATS ChipPAC Pte. Ltd., Synopsys Inc, UTAC Holdings Ltd., Tessolve Semiconductor Private Limited, Invensas Corporation, National Center for Advanced Packaging Co. Ltd., Tohoku-MicroTec Co. Ltd, TechSearch International Inc.

Asia-Pacific was the largest region in the 3D IC and 2.5D IC market in 2023. It is expected to be the fastest-growing region in the forecast period. The regions covered in the 3D ic and 2.5d ic packaging market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the 3D ic and 2.5d ic packaging market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The principal categories of 3D IC and 2.5D IC packaging encompass 3D wafer-level chip-scale packaging, 3D Through-Silicon Via (TSV), and 2.5D technology. 3D wafer-level chip-scale packaging entails integrating numerous dies or chips into a singular package at the wafer level. This technology finds applications across diverse sectors such as logic, memory, imaging, optoelectronics, MEMS or sensors, LEDs, and others. It caters to various end-users including telecommunications, consumer electronics, automotive, military and aerospace, medical devices, smart technologies, among others.

The 3D IC and 2.5D IC packaging market research report is one of a series of new reports that provides 3D IC and 2.5D IC packaging market statistics, including 3D IC and 2.5D IC packaging industry global market size, regional shares, competitors with a 3D IC and 2.5D IC packaging market share, detailed 3D IC and 2.5D IC packaging market segments, 3D IC and 2.5D IC packaging market trends and opportunities, and any further data you may need to thrive in the 3D IC and 2.5D IC packaging industry. This 3D IC and 2.5D IC packaging market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The 3D IC and 2.5D IC packaging market consists of revenues earned by entities by providing ultra-high routing density, AI accelerator for AI training, and power or optics integration. The market value includes the value of related goods sold by the service provider or included within the service offering. The 3D IC and 2.5D IC packaging market also includes sales of memory modules, system-on-chip devices, graphics processing units (GPU), electronic components, and single semiconductor wafer. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.