Global 2.5D & 3D Semiconductor Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Global 2.5D & 3D Semiconductor Packaging Market is segmented by Packaging Technology (3D Wafer-Level Chip-Scale Packaging (WLCSP), 3D TSV, 2.5D), End-User Industry (Consumer Electronics, Aerospace and Defense, Medical Devices, Communications and Telecom, Automotive) and Geography.

Market Snapshot

2.5D and 3D Semiconductor Packaging Market Size
Study Period: 2020-2027
Base Year: 2021
Fastest Growing Market: Asia-Pacific
Largest Market: North America
CAGR: 16.2 %

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Market Overview

The Global 2.5D & 3D Semiconductor Packaging Market is expected to register a CAGR of 16.2% during the forecast period (2022-2027). As 5G, AI, and high-performance computing continue to make inroads into the world, there's an escalating demand for semiconductor devices that deliver enhanced performance, lower latency, increased bandwidth, and power efficiency, achieved by 2.5D & 3D packaging technologies. In recent years, 2.5D & 3D has gained momentum as an ideal chipset integration platform due to their merits in attaining extremely high packaging density and energy efficiency.

  • Semiconductor ICs are deployed in multiple automotive, consumer electronics, and other industries. For instance, the advent of IoT and artificial intelligence (AI) and the proliferation of sophisticated electronics are driving the high-end application segment across the consumer electronics and automotive industries. As Packaging is an early stage in the electronics value chain, the growth of the market studied is directly impacted by the semiconductor market's growth.
  • There are several advantages of applying 2.5D & 3D IC Packaging, including Ultra-high routing density, Ultra-high I/O density, Homogeneous/heterogeneous memory, power and optics integration, Interposer capable of embedding decoupling capacitor or active devices feasible, package reliability to meet automotive requirements, etc.
  • As the semiconductor applications are expanding, the slowdown in CMOS scaling and escalating costs have forced the industry to rely on IC packaging advancement. 3D stacking technologies have emerged as lucrative solutions that meet the required performance of applications like AI, machine learning, and data centers. Therefore, the growing need for high-performance computing applications drives the 3D-TSV (Through Silicon Via) market over the forecast period.
  • Further, a pandemic like COVID-19 is anticipated to fuel the manufacturing of advanced medical devices and equipment to tackle such crises in the future. For instance, in 2021, GE Healthcare announced that it would increase its manufacturing capacity for medical equipment, including CTs, ultrasound devices, mobile X-ray systems, patient monitors, and ventilators, to cater to the ongoing challenge of treating COVID-19 patients. Since the 2.5D & 3D Semiconductor Packaging has numerous applications in the medical industry, the proliferation of medical equipment manufacturing is expected to drive market growth.
  • However, the high Initial Investment and Increasing Complexity of Semiconductor IC Designs are expected to restrain the evolution of the market.

Scope of the Report

2.5D/3D are packing methodologies for including numerous IC inside the same package. In a 2.5D structure, two or more active semiconductor chips are placed side-by-side on a silicon interposer to achieve significantly high die-to-die interconnect density. In 3D structure, active chips are integrated by die stacking for the shortest interconnect and smallest package footprint.

The Global 2.5D & 3D Semiconductor Packaging Market is segmented by Packaging Technology (3D Wafer-Level Chip-Scale Packaging (WLCSP), 3D TSV, 2.5D), End-User Industry (Consumer Electronics, Aerospace, and Defense, Medical Devices, Communications and Telecom, Automotive) and Geography. The segmentation comprises an in-depth coverage of the global revenue generated from the sale of 2.5D & 3D Semiconductor Packaging across the globe.

By Packaging Technology
3D Wafer-Level Chip-Scale Packaging (WLCSP)
3D TSV
2.5D
By End-User Industry
Consumer Electronics
Aerospace and Defense
Medical Devices
Communications and Telecom
Automotive
Others
By Geography
North America
Europe
Asia-Pacific
Latin America
Middle East & Africa

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Key Market Trends

The Consumer Electronics Segment is Expected to Hold a Major Market Share

  • Consumer electronics is one of the primary end-user industries for semiconductor vendors. Growth in the smartphone industry, increasing adoption of smart devices and wearables, and increasing penetration of consumer IoT devices in applications like smart homes are significant factors driving the growth of the studied segment. For instance, according to Ericsson, worldwide smartphone subscriptions were 5924 million in 2020 and 6259 million in 2021. It is projected to reach 6567 million in 2022 and 7690 million in 2027.
  • The consumer electronics industry demands higher power dissipation, faster speeds, higher pin counts, smaller footprints, and lower profiles. The miniaturization and integration of semiconductors have given rise to smaller, lighter, and more portable devices. Each new iteration of consumer electronics products is more innovative, lightweight, and energy-efficient than its predecessors. This creates enormous customer expectations for the next iteration, which is a significant selling point for the producers of consumer electronics. The 2.5D & 3D Semiconductor Packaging technologies satisfy the consumer electronics market's complex and evolving needs.
  • With trends like 5G smartphones, biosensors, and more AI features, the market is expected to witness increased smartphone sales in 2022. The deployment of 5G smartphones would also greatly enhance the wireless data communication bandwidth, latency, and density of connected devices. Further, markets like smartwatches and smart speakers gained massive popularity in recent years, owing to their increasing functionalities and features with the help of advanced semiconductor components. Thus, the demand for Wi-Fi and Bluetooth chips skyrocketed.
  • Moreover, the growing market for gaming consoles and increasing advancement in these products further expand the studied segment's scope. Over the 4-5 years, gaming console has become high-tech gadgets, and companies like Sony, Microsoft, and Nintendo are increasingly investing in their product development to reach the current 8th generation consoles.
  • These products utilize high technologies, including Blu-ray, motion sensing, VR, 4K and HD quality video, and online functions. Therefore, these applications need chips with an advanced substrate and added functionality, motivating the studied market vendors to invest in the segment. Such developments provide lucrative opportunities for the growth of the studied market.
2.5D and 3D Semiconductor Packaging Market Trends

The Asia Pacific Region is Expected to Witness a High Market Growth Rate

  • The increasing smartphone adoption rates have made Asia-Pacific one of the world’s largest mobile markets due to the rising population, increasing disposable income, and growing urbanization. For instance, according to the Ministry of Industry and Information Technology (MIIT), in 2020 and 2021, there were around 112 and 116 mobile phone subscriptions per one hundred inhabitants in China, respectively. The increasing smartphone penetration rate in the region is a significant growth driver for the studied market.
  • Memory is a crucial market in modern data-centric societies, fueled by important megatrends like mobility, cloud computing, AI, and the IoT. The ramp-up of Chinese memory, the growth of flip-chip DRAM, and 3D-stacking technologies unlock significant opportunities for packaging players.
  • Additionally, the region is projected to witness rapid growth due to the increased demand for miniaturized circuits and established semiconductor manufacturing companies, OEMs, and ODMs.
  • Moreover, countries in the region have begun reorganizing supply chains to prioritize their needs, making them resistant to fierce competition. The region is also making preemptive investments to further strengthen its domestic industry ecosystem, so external shocks cannot shake it.
  • For instance, in May 2021, South Korea announced a plan to spend USD 450 billion over the next ten years on new semiconductor manufacturing capabilities. Semiconductors are Korea’s largest export, most of which are memory products—DRAM and NAND Flash memory. The new plan aims to boost the nation’s advanced logic chip foundry capacity.
2.5D and 3D Semiconductor Packaging Market Growth

Competitive Landscape

The Global 2.5D & 3D Semiconductor Packaging Market is fragmented due to the presence of various significant players like ASE Group, Amkor Technology Inc., Siliconware Precision Industries Co. Ltd (SPIL), etc. The market players must constantly innovate advanced and comprehensive products to stay relevant.

  • June 2021 - Taiwan's prominent semiconductor foundry, TSMC, announced its plans to establish an R&D center in Japan's science city of Tsukuba to develop 3D IC packaging materials in cooperation with its Japanese suppliers. In May 2021, Japan's Ministry of Economy, Trade, and Industry (METI) and its subsidiary organization, the National Institute of Advanced Industrial Science and Technology (AIST), announced that more than 20 Japanese companies would work with TSMC Japan's 3D IC R&D Center.
  • July 2021 - Singapore's Agency for Science, Technology, and Research (A*STAR's) Institute of Microelectronics (IME) announced a collaboration with four significant industry players to form a System-in-Package (SiP) consortium. IME would team with Asahi-Kasei, GLOBALFOUNDRIES, Qorvo, and Toray to develop high-density SiP for heterogeneous chiplets integration to meet the semiconductor industry's challenge 5G applications. The consortium will leverage IME's FOWLP/2.5D/3D packaging expertise.

Recent Development

  • February 2022 - Shanghai Micro Electronics Equipment Group (SMEE), a Shanghai-based company, announced that it had delivered China's first advanced 2.5D/3D chip packaging stepper, which matches the advanced products in the same category. SMEE, a state-controlled semiconductor equipment company, reported that the new product aims to satisfy the need for packaging super-large chips used in high-performance computing (HPC) and high-end AI computing.
  • November 2021 - South Korea's Samsung Electronics Co. unveiled a new chip packaging technology called H-Cube, which stacks high-performance chips in smaller sizes. The tech giant said that its latest 2.5D semiconductor chip packaging technology is available for clients in artificial intelligence (AI), data center, high-performance computing (HPC), and networking products that require high-performance, large-area packaging.

Table of Contents

  1. 1. Introduction

    1. 1.1 Study Assumption And Market Defination

    2. 1.2 Scope of the study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Research Framework

    2. 2.2 Secondary Research

    3. 2.3 Primary Research

    4. 2.4 Primary Research Approach And Key Respondents

    5. 2.5 Data Triangulation And Insight Generation

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power Of Suppliers

      2. 4.2.2 Bargaining Power Of Buyers

      3. 4.2.3 Threat Of New Entrants

      4. 4.2.4 Threat Of Substitutes

      5. 4.2.5 Intensity Of Competitive Rivalry

    3. 4.3 Value Chain Analysis

    4. 4.4 Assessment of the Impact of Covid-19 on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Growing Consumption of Semiconductor Devices Across Several Industries

      2. 5.1.2 Increasing demand for compact, high functionality electronic devices

    2. 5.2 Market Restraints

      1. 5.2.1 High Initial Investment and Increasing Complexity of Semiconductor IC Designs

    3. 5.3 Opportunities

      1. 5.3.1 Growing Adoption of High-End Computing, Servers, and Data Centers

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Packaging Technology

      1. 6.1.1 3D Wafer-Level Chip-Scale Packaging (WLCSP)

      2. 6.1.2 3D TSV

      3. 6.1.3 2.5D

    2. 6.2 By End-User Industry

      1. 6.2.1 Consumer Electronics

      2. 6.2.2 Aerospace and Defense

      3. 6.2.3 Medical Devices

      4. 6.2.4 Communications and Telecom

      5. 6.2.5 Automotive

      6. 6.2.6 Others

    3. 6.3 By Geography

      1. 6.3.1 North America

      2. 6.3.2 Europe

      3. 6.3.3 Asia-Pacific

      4. 6.3.4 Latin America

      5. 6.3.5 Middle East & Africa

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 ASE Group

      2. 7.1.2 Amkor Technology Inc.

      3. 7.1.3 Intel Corporation

      4. 7.1.4 Samsung Electronics Co. Ltd

      5. 7.1.5 Siliconware Precision Industries Co. Ltd (SPIL)

      6. 7.1.6 Powertech Technology Inc.

      7. 7.1.7 Jiangsu Changjiang Electronics Technology Co. Ltd.

      8. 7.1.8 Taiwan Semiconductor Manufacturing Company Limited

      9. 7.1.9 GlobalFoundries

      10. 7.1.10 Powertech Technology Inc.

      11. 7.1.11 Tezzaron Semiconductor Corp.

    2. *List Not Exhaustive
  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OF THE MARKET

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Frequently Asked Questions

The Global 2.5D & 3D Semiconductor Packaging Market market is studied from 2020 - 2027.

The Global 2.5D & 3D Semiconductor Packaging Market is growing at a CAGR of 16.2% over the next 5 years.

Asia-Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2021.

ASE Group, Taiwan Semiconductor Manufacturing Company Limited, Amkor Technology Inc., Siliconware Precision Industries Co. Ltd (SPIL), Powertech Technology Inc. are the major companies operating in Global 2.5D & 3D Semiconductor Packaging Market.

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