Global High-end Semiconductor Packaging Market - Growth, Trends, COVID-19 Impact, And Forecasts (2022 - 2027)

Global High-end Semiconductor Packaging Market is segmented by Technology (3D SoC, 3D Stacked Memory, 2.5D interposers, UHD FO, Embedded Si Bridge), by End-user (Consumer Electronics, Aerospace, and Defense, Medical Devices, Telecom and Communication, Automotive) and Geography.

Market Snapshot

high-end semiconductor packaging market size
Study Period: 2020-2027
Base Year: 2021
Fastest Growing Market: Asia-Pacific
Largest Market: North America
CAGR: 19.54 %
high-end semiconductor packaging market share

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Market Overview

The global High-end Semiconductor Packaging Market is analyzed to grow at a CAGR of 19.54% during the forecast period 2022-2027. As front-end modules become smaller, design cost becomes increasingly relevant. These issues can be overcome with advanced packaging (AP) solutions as they are less expensive, improve system performance, and offer reduced latency, more bandwidth, and greater power efficiency.

  • The UHD FO, embedded Si bridge, Si interposer, 3D stack memory, and 3DSoC are platforms for high-end performance packaging. Two options for an embedded Si bridge are LSI from TSMC and EMIB from Intel. There are two types of Si interposers: a conventional one, typically offered by TSMC, Samsung, and UMC, and an active one, Intel's Foveros. Co-EMIB, which Intel's Ponte Vecchio utilizes, is created when EMIB and Foveros are merged. HBM, 3DS, and 3D NAND stack are the three categories that make up 3D stack memory.
  • The rise of IoT and AI and the proliferation of complex electronics are driving the high-end application segment in the consumer electronics and automotive industries. Due to these factors, more advanced semiconductor packaging technologies are being adopted to sustain demand.
  • Further, in June 2022, SEMI Europe, the organization representing the entire European electronics manufacturing and design supply chain, immediately called for the quick passage of the European Chips Act and invited the European Commission, Member States, and Parliament to participate in discussions about the proposed legislation. The Act intends to support the region's transition to a digital and green economy while enhancing Europe's competitiveness and resilience in semiconductor technologies and applications.
  • The growing research activities in the sector further bolstered the market's demand. For instance, Dresden is developing into a renowned hub for semiconductor research. In June 2022, Fraunhofer IPMS and IZM-ASSID announced a collaboration to form the Center for Advanced CMOS & Heterointegration Saxony. The center will provide the entire 300 mm microelectronics value chain, a requirement for high-tech research for upcoming innovations. 
  • Fraunhofer IPMS is positioned in Germany in the field of applied research on the contemporary 300 mm wafer industry standard in the front end of CMOS manufacturing, having invested over EUR 140 million in clean room equipment. Innovative packaging and system integration technologies from Fraunhofer IZM-ASSID supplement this knowledge.
  • The outbreak of COVID-19 has increased the usage of data. However, the electronics devices are impacted significantly by the COVID-19 attack, as China is one of the major suppliers of raw materials and finished products.

Scope of the Report

Semiconductor packaging is a supporting case that prevents physical damage and corrosion to silicon wafers, logic units, and memory during the final stage of semiconductor manufacturing process. It allows the chip to be connected to a circuit board. Global High-end Semiconductor Packaging Market is segmented By Technology (3D SoC, 3D Stacked Memory, 2.5D interposers, UHD FO, Embedded Si Bridge), by End-user(Consumer Electronics, Aerospace, and Defense, Medical Devices, Telecom and Communication, Automotive) and Geography.

By Technology
3D SoC
3D Stacked Memory
2.5D interposers
UHD FO
Embedded Si Bridge
By End-users
Consumer Electronics
Aerospace and Defense
Medical Devices
Telecom and Communication
Automotive
Other End-users
Geography
North America
Europe
Asia-Pacific
Rest of the World

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Key Market Trends

Telecom and Communication Sector is Expected to Boost the Market

  • Datacenter networking, high-performance computing, and autonomous vehicles are driving the adoption of semiconductor demand and this is driving tht need for high-end performance packaging, including its technological progress. Larger computing resources are currently in demand at the device, cloud, and edge computing levels. As a result, the adoption of High-end Performance Packaging is driven by rising demand.
  • Complex electronic systems are needed for advanced communication networks, and manufacturers fulfill the demand for more data to be transmitted in a shorter amount of time. The difficulty of increased heat generated by components and systems where the high-end packaging enables high-speed data transmission is further exacerbated by the rise in 5G technology's data volumes, transmission rates, and processing demands.
  • The growing investments in communication deployment are analyzed to significantly contribute to the market growth rate during the forecast period 2022-2027. In November 2021, the US Government launched Bipartisan Infrastructure Deal, which includes an enormous USD 65 billion investment for broadband deployment in unserved and undeserved areas and adoption by in-need consumers. This investment is the most significant single federal investment in broadband.
  • In March 2021, Samsung, Intel, and TSMC collaborated to develop an advanced chip-packaging and stacking method. Powerful new electronic devices of the next generation will be created using this advanced technology. This is significant since Samsung, Intel, and TSMC are the world's three largest semiconductor production firms.
high-end semiconductor packaging market growth

North America is Expected to Hold Major Share

  • North America is expected to hold the major share in the high-end semiconductor packaging market. It is studied to sustain the position during the forecast period owing to the increased presence of major players and the adoption of advanced technologies in the region. The rising electronics sector and semiconductor solutions in North America are likely to propel the industry forward.
  • United States Government has made significant investments in boosting the penetration of advanced technologies, bolstering the demand for high-end semiconductor packaging. The United States is one of the world's fastest-expanding economies. For instance, the Semiconductor Industry Association estimates that the sales of semiconductors in the United States alone were USD 24.55 billion for the first three months of 2021.
  • In February 2021, President Joe Biden stated that domestic semiconductor manufacturing is a priority for the country’s administration. The new administration is poised to fix growing chip shortages and address lawmakers' concerns that outsourcing chipmaking has made the United States more vulnerable to supply chain disruptions. 
  • In an executive action, Biden began a 100-day review that could boost American chip companies with additional government support and new policies. In an executive action, Biden started a 100-day review that could significantly increase American chip companies with different new policies and government support.
  • In 2021, the United States government called for USD 50 billion in funding to support domestic chip manufacturing. TSMC is weighing plans to pump tens of billions of dollars more into the chip factories in the US state of Arizona than it had previously disclosed. TSMC will likely compete against Intel Corp and Samsung Electronics Co Ltd for subsidies from the US government in building the plants.
  • Intel, a US-based Semiconductor conglomerate innovations push Moore's Law beyond 2025. In December 2021, Intel announced its aims to boost packing density by more than 10x and logic scaling by 30% to 50% while looking beyond conventional silicon transistors at IEEE International Electron Devices Meeting (IEDM). In July, Intel released Foveros Direct, enabling sub-10-micron bump pitches and significantly boosting the connection density for 3D stacking. These factors are analyzed to boost the market in the region.
 high-end semiconductor packaging market report

Competitive Landscape

The market for high-end semiconductor packaging is more consolidated. Companies employ strategies such as product innovation, expansions, and collaborations to keep one step ahead of the competition and broaden their market reach. Several recent market developments include:

  • March 2022- Intel unveiled the first phase of its efforts to invest up to EUR 80 billion in the European Union over the next decade across the semiconductor value chain, from R&D to production to advanced packaging technologies.
  • November 2021- Amkor Technology and Samsung Electronics collaborated to develop the cutting-edge H-Cube solution. Samsung Electronics has revealed the development of Hybrid-Substrate Cube (H-Cube) technology, its most recent 2.5D packaging solution designed specifically for semiconductors for HPC, AI, data center, and network devices that demand high-performance and large-area packaging technology.

Recent Development

  • October 2021- Synopsys and TSMC have expanded their strategic technology partnership to provide 3D-System integration solutions for next-generation high-performance computing architectures. By utilizing the 3DIC Compiler platform from Synopsys, users may quickly access TSMC 3DFabric-based design approaches, significantly advancing high-capacity 3D system design. 
  • May 2021- The Intel Corporation announced an investment of USD 3.5 billion to upgrade its facilities in New Mexico to manufacture advanced semiconductor packaging technologies, such as Foveros, Intel's innovative 3D packaging technology. Intel can create CPUs with computation tiles stacked vertically instead of side-by-side, owing to Foveros' innovative 3D packaging technique, which offers better performance in a smaller package.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definitions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  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 Buyers/Consumers

      2. 4.2.2 Bargaining Power of Suppliers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Industry 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 Industries

      2. 5.1.2 Growing adoption of 3D printing in semiconductor packaging

    2. 5.2 Market Restraints

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

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Technology

      1. 6.1.1 3D SoC

      2. 6.1.2 3D Stacked Memory

      3. 6.1.3 2.5D interposers

      4. 6.1.4 UHD FO

      5. 6.1.5 Embedded Si Bridge

    2. 6.2 By End-users

      1. 6.2.1 Consumer Electronics

      2. 6.2.2 Aerospace and Defense

      3. 6.2.3 Medical Devices

      4. 6.2.4 Telecom and Communication

      5. 6.2.5 Automotive

      6. 6.2.6 Other End-users

    3. 6.3 Geography

      1. 6.3.1 North America

      2. 6.3.2 Europe

      3. 6.3.3 Asia-Pacific

      4. 6.3.4 Rest of the World

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 Intel Corporation

      2. 7.1.2 Taiwan Semiconductor Manufacturing Company

      3. 7.1.3 Advanced Semiconductor Engineering, Inc.

      4. 7.1.4 Samsung Electronics Co. Ltd

      5. 7.1.5 Amkor Technology Inc.

      6. 7.1.6 JCET Group Co., Ltd.

      7. 7.1.7 TongFu Microelectronics Co., Ltd.

      8. 7.1.8 Fujitsu Limited

      9. 7.1.9 Siliconware Precision Industries Co. Ltd

      10. 7.1.10 Powertech Technology, Inc.

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

  9. 9. FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Global High-end Semiconductor Packaging Market market is studied from 2020 - 2027.

The Global High-end Semiconductor Packaging Market is growing at a CAGR of 19.54% over the next 5 years.

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

North America holds highest share in 2021.

Intel Corporation, Taiwan Semiconductor Manufacturing Company, Advanced Semiconductor Engineering, Inc, Samsung Electronics Co. Ltd, Amkor Technology Inc. are the major companies operating in Global High-end Semiconductor Packaging Market.

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