Semiconductor Packaging Market - Forecasts from 2024 to 2029

The semiconductor packaging market is evaluated at US$22.769 billion for the year 2022 growing at a CAGR of 2.48% reaching the market size of US$27.028 billion by the year 2029.

One of the key reasons propelling the growth of the semiconductor packaging market is the expansion of the semiconductor industry globally. The growing demand across numerous end-user industries and the use of packaging to enhance the performance, reliability, and cost-effectiveness of electronic systems all contribute to ongoing improvements in terms of integration, energy efficiency, and product characteristics, which accelerate market growth. The industry is also being affected by the rise in demand for innovative packaging in consumer electronics and industrial items that use mechanical engineering concepts including stress analysis, fluid mechanics, dynamics, and heat transfer. Furthermore, the growth of the semiconductor industry, the rise in disposable income, and the pressing need to reduce the associated costs and improve the overall efficacy of ICs have a beneficial impact on the semiconductor packaging market. Additionally, the emergence of IoT, AI, and the widespread use of advanced electronics in the projection period open up lucrative potential for market participants.

Introduction:

Semiconductor packaging materials are used in the final stages of the production of semiconductor devices to protect them from degradation and other external influences. Organic substrates, solder balls, bonding wires, lead frames, and other materials provide superior performance and are used to guard against corrosion and wear and tear on electronic equipment. Due to the surge in popularity of electronic devices like tablets, mobile phones, and other communication devices during the past few years, there has been an increase in the need for semiconductor packaging market. Due to factors including the increase in demand for consumer electronics, the market for semiconductor, and IC packaging market has seen tremendous expansion. Additionally, the leading competitors in the semiconductor, and IC packaging materials market have tremendous market potential due to the growing awareness of the use of electronic packaging materials.

Drivers:

• Growing consumer interest in advanced electronic devices is boosting market expansion:One of the main factors propelling the semiconductor packaging market is the rising demand for high-tech electronic gadgets like smartphones, tablets, wearables, and IoT devices. Customers are looking for products that are more compact, powerful, and feature-rich, thus there is a need for innovative package ideas that can contain complex features while maintaining maximum performance and dependability.
• Innovations in Technology for Packaging Solutions:The market is expanding as a result of the ongoing improvements in semiconductor packaging technology. To suit the changing needs of the industry, new packaging methods, components, and designs are being invented. The adoption of cutting-edge packaging techniques like fan-out packaging, wafer-level packaging (WLP), and flip-chip, which offer enhanced performance, miniaturization, and cost-effectiveness, are a few reasons aiding in market expansion.
• Greater attention paid to miniaturization and integration:One of the main growth drivers is the tendency for semiconductor components to get smaller and more integrated. There is a need for packaging methods that can fit many processors, passive components, and interconnects within constrained space as devices get smaller and more concise. System-in-package (SiP) and 3D packaging are examples of advanced packaging technologies that offer higher degrees of integration and better functionality.
• Rise in demand for high-performance and low-power solutions:The need for semiconductor packaging solutions that can give high processing power while reducing power consumption is being fueled by the rising need for high-performance computing, artificial intelligence, and edge computing applications. To enable these applications, packaging solutions with improved heat management, power delivery, and signal integrity are highly sought after which is aided by semiconductor packaging thus fueling growth.
• Rise in the usage of 5G technology to fuel market expansion:The need for semiconductors has surged as a result of the widespread deployment of 5G networks, notably for RF (Radio Frequency) and mm-wave devices. For these components to work flawlessly and with dependability in 5G applications, special packaging solutions are required. The requirement for high-performance computing (HPC) solutions has increased due to the growing demand for cloud computing services and the quick growth of data centers. The performance and power efficiency requirements for data centers must be met through the use of advanced packaging technologies, such as 2.5D and 3D packaging.

Products offered by key companies:

• 2.5D Package:I-Cube™ & H-Cube™, Samsung: Parallel horizontal chip arrangement is used by I-Cube to improve performance while reducing heat buildup. Silicon Via (TSV) and Backend-of-the-Line (BEOL) technologies from Samsung serve as a basis for two or more chips to combine their specialized capabilities and become more effective than the sum of their components to provide effective solutions for contemporary electronics. Depending on the interposer type, I-CubeTM is offered in the variants I-CubeSTM and I-CubeETM.
• Leadframe-based packages, ChipMOS:To provide its clients with a variety of packaging choices, ChipMOS delivers a wide selection of package variants. Leadframe-based packages like the small outline package (SOP), thin small outline package (TSOP), and quad flat package (LQFP/TQFP) are among the packages that are offered. Substrate-based packages like FBGA, VFBGA, stacked CSP, TFBGA, LGA, COG, and COF are also available. To ease package design and manufacturing parameter optimization, ChipMOS uses cutting-edge computer-aided engineering (CAE) simulation tools for both electrical and thermal evaluations.

The prominent growth in the ceramic package sector under the Packaging Material Segment

The ceramic package segmentis projected to dominate the market with the highest revenue and is expected to expand at a significant growth rate. Al2O3 makes up 90% to 94% of ceramic packaging, with the remaining ingredients being glass-forming alkaline earth silicates. The package has a silicon chip installed inside, and a glass or metal top secures the package. This sub-segment is anticipated to develop throughout the forecast period due to the large rise in demand for ceramic packaging from the automotive sector as a result of the quick adoption of electronic components in several vehicle parts that include safety features, comfort, stability, and high performance.

The Asia Pacific region is expected to hold a significant share of the Semiconductor Packaging market:

Asia Pacific led the market for semiconductor packaging in terms of revenue share and is anticipated to continue to do so throughout the anticipated period. Asia Pacific has established itself as the hub of semiconductor production globally thanks to countries like China, Taiwan, South Korea, and Singapore. These countries have invested in large infrastructure investments, cutting-edge technology, and skilled labour, creating a favourable environment for the semiconductor supply chain. TSMC (Taiwan Semiconductor Manufacturing Company), Samsung, and SK Hynix are just some of Asia's largest and most cutting-edge semiconductor companies. These companies are paving the path for innovation in semiconductor packaging technologies and setting standards for the industry. To produce semiconductors, Asia Pacific has developed specialized clusters. Taiwan's Hsinchu Science Park, for example, is home to one of the world's most important semiconductor research and development centers. As a result of economies of scale made possible by the sheer volume of semiconductor manufacture in the Asia Pacific region, costs are reduced for local companies. Asia Pacific nations make considerable investments in semiconductor technology research and development, encouraging innovation and keeping the field at the cutting edge of packaging techniques and materials.

Key developments

• A new kind of semiconductor packaging named Foveros Omni is being developed by Intel, and it will be released in September 2023. With the use of the 3D packaging method Foveros Omni, it is possible to stack many dies on top of one another, which can result in considerable performance and power efficiency gains.
• VIPack, an advanced packaging platform created to support vertically integrated packaging solutions, was introduced by ASE Group in June 2022. The VIPack is ASE's next-generation 3D heterogeneous integration architecture, which offers extremely high performance and density while extending design principles.

SEGMENTS:

BY PACKAGING TYPE

• Advanced Packaging
• Flip Chip
• Embedded Die
• Fan-Out Level Packaging (FO-WLP)
• Fan-In Level Packaging (FI-WLP)

BY PACKAGING MATERIAL

• Organic Substrate
• Leadframe
• Ceramic Packaging
• Bonding-Wire
• Others

BY END-USER

• Consumer Electronics
• Aerospace and Defense
• Medical Devices
• Communication and Telecom
• Others

BY GEOGRAPHY

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Italy
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• Japan
• China
• India
• South Korea
• Taiwan
• Thailand
• Indonesia
• Others