Fastest Growing Market:
The advanced packaging market was valued at USD 3716.07 million in 2019, and it is expected to reach a value of USD 7677.29 million by 2025, at a CAGR of 10.66% during the forecast period (2020-2025). The rise in demand for artificial intelligence (AI) will create a huge demand for semiconductors with improvements.
- Presently, electronic devices are readily available in different kinds of package types and include semiconductors (integrated circuits), magnets, capacitors, and resistors. The semiconductor packaging services market has drawn the greatest attention in the investment community. The change in the consumer preference for the latest technology and constant innovations by major players for electronic goods has created a huge market base for the advanced packaging market.
- As people are shifting toward connected devices, so an increase in the Internet of Things (IoT) will lead to the growth of semiconductor packaging. An increase in the demand for consumer wearable goods, smartphones, and home appliances will act as a positive impact on this industry.
- With IoT being a major driver, security is a main concern for the user. The semiconductor manufacturers have to constantly work to develop more secure chips. The industry should also align themselves with the electronics goods industry's value chain. This alignment will increase the total cost of the ICs.
Scope of the Report
IC packaging in the semiconductor industry has witnessed a continuous transformation in terms of characteristics, integration, and energy efficiency of the product, owing to a vast demand across various end-user verticals of the industry. The 2D integrated circuit (2.0DIC) flip-chip and wafer-level packaging technologies witnessed solid growth over the years, owing to a number of mainstream applications, primarily in high-end smartphones and tablets that are expected to meet stringent size and power management requirements.
| By Packaging Platform |
| ||Flip Chip |
| ||Embedded Die |
| ||Fi-WLP |
| ||Fo-WLP |
| Geography |
| || |
| North America |
|United States |
| || |
| Europe |
|United Kingdom |
|Rest of Europe |
| || |
| Asia-Pacific |
|South Korea |
|Rest of Asia-Pacific |
| ||Latin America |
| ||Middle-East & Africa |
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Key Market Trends
Fan-out Wafer Level Packaging to Provide New Opportunities for Market Growth
- Fan-out wafer level packaging (FOWLP) has emerged as a promising technology to meet the ever increasing demands of the consumer electronic products. The main advantages of FOWLP are the substrate-less package, lower thermal resistance, a higher performance due to shorter interconnects together with direct IC connection by thin film metallization instead of wire bonds or flip chip bumps and lower parasitic effects.
- Semiconductor devices with thousands of I/O points can be seamlessly connected via finely-spaced lines as thin as two to five microns, maximizing interconnect density while enabling high bandwidth data transfer. Significant height and cost savings are achieved via the elimination of the substrate.
- According to the Semiconductor Industry Association report 2018, the end-use categories like computer and communications hold major sales value i.e., USD 144.3 billion and USD 151.9 billion respectively.
- The semiconductors enable a wide variety of products for smartphones and computers and the demand for these devices is increasing year on year. A positive outlook for IoT and artificial intelligence are supplementing the growth of the semiconductor industry.
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Asia-Pacific to Witness the Highest Growth in Advanced Packaging Market
- Asia-Pacific is expected to grow at a healthy rate, being a major revenue generating region during the forecast period, primarily owing to the growing population and the customer-side demand. Prominent semiconductor manufacturing companies present in the region are fueling the demand for advanced semiconductor packaging.
- Moreover, China is the largest growing economy with a large population, and according to statistics from China’s semiconductor association, the import of IC is increasing for the consecutive year from 2014. The Chinese government has employed a multi-pronged strategy to support domestic IC industry development in order to achieve the goal of becoming the global leader in all primary IC industrial supply chain segments by 2030. This growth in the semiconductor IC industry in the region is anticipated to stimulate the advanced packaging demand.
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The advanced packaging market is being dominated by ten to fifteen major players like Intel Corporation, Samsung Electronics Co. Ltd, etc. The market is driven by end-user revenue because of the demand for the latest technology and high-speed gadgets. Sustainable competitive advantage can be attained through innovations in this market, owing to the growing need for differentiated products for various applications. A positive outlook for smartphones, tablets, wireless communications, etc., will have a positive impact on this industry.
- March 2019 - Intel showcased edge computing and artificial intelligence technologies guiding manufacturers to realize Industry 4.0 vision. These businesses utilize technology with ultra-low latency connectivity over Intel technology-powered 5G and edge networks will be able to unlock operational efficiencies and safety improvements in tandem with machine-to-machine (M2M) automation, vision, and AI insights.
Table Of Contents
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Introduction to Market Drivers and Restraints
4.3 Market Drivers
4.3.1 Increasing Trend of Advanced Architecture in Electronic Products
4.3.2 Favourable Government Policies and Regulations in Developing Countries
4.4 Market Restraints
4.4.1 Market Consolidation affecting Overall Profitability
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Value Chain / Supply Chain Analysis
5. MARKET SEGMENTATION
5.1 By Packaging Platform
5.1.1 Flip Chip
5.1.2 Embedded Die
5.2.1 North America
22.214.171.124 United States
126.96.36.199 United Kingdom
188.8.131.52 Rest of Europe
184.108.40.206 South Korea
220.127.116.11 Rest of Asia-Pacific
5.2.4 Latin America
5.2.5 Middle-East & Africa
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Amkor Technology, Inc.
6.1.2 Taiwan Semiconductor Manufacturing Company, Limited
6.1.3 Advanced Semiconductor Engineering Inc.
6.1.4 Intel Corporation
6.1.5 STATS ChipPAC Pte. Ltd
6.1.6 Chipbond Technology Corporation
6.1.7 Samsung Electronics Co. Ltd
*List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject to Availability