2.5D & 3D Semiconductor Packaging Market Size

2.5D & 3D Semiconductor Packaging Market Analysis

The 2.5D & 3D Semiconductor Packaging Market size is estimated at USD 9.91 billion in 2024, and is expected to reach USD 18.28 billion by 2029, growing at a CAGR of 13.03% during the forecast period (2024-2029).

• 2.5D and 3D are packaging methodologies for including multiple 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 extremely high die-to-die interconnect density. In a 3D structure, active chips are integrated by die stacking for the shortest interconnect and smallest package footprint. In recent years, 2.5D and 3D have gained momentum as ideal chipset integration platforms due to their merits in achieving extremely high packaging density and high energy efficiency.
• High-performance computing, data center networking, and autonomous vehicles are pushing the adoption rates for the studied market, along with its evolution from a technology point of view. Today, the trend is to have enormous computing resources at the cloud, edge computing, and device levels.
• Further, the studied market has been expanding due to trends like the downsizing of electronic items brought on by technological breakthroughs and growing demand for consumer electronics with higher bandwidth and power efficiency. By utilizing dynamic heat management, high-speed data management, low power consumption, high memory capability, and other features, 3DIC and 2.5D TSV interconnect for advanced packaging in semiconductor chips refine the user experience. This serves as one of the key driving forces behind the market expansion of its consumer electronic applications.
• High initial investment and increasing complexity of semiconductor IC designs act as restraining factors for the studied market. The designers must overcome serious technical and organizational challenges before capturing the benefits of 2.5D/3D packaging and achieving a competitive edge.
• The worldwide semiconductor shortage caused by the COVID-19 pandemic prompted players to focus on increasing production capacity. For instance, the Semiconductor Manufacturing International Corp (SMIC) announced aggressive plans to double its production capacity by 2025, by constructing new chip fabrication plants in various cities, including a September 2021 announcement to establish a new factory in Shanghai's free trade zone. Such an increase in semiconductor production capacities is likely to benefit the studied market.