Semiconductor Packaging Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Report Covers Global Semiconductor Packaging Market Trends and is Segmented by Packaging Platform (Advanced Packaging (Flip Chip, Embedded Die, Fan-in Wafer Level Packaging, and Fan-out Wafer Level Packaging) and Traditional Packaging), End-user Industry (Consumer Electronics, Aerospace & Defense, Medical Devices, Communications & Telecom, Automotive, and Energy & Lighting), and Geography. The market size and forecasts are provided in terms of value (in USD million) for these segments.

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Semiconductor Packaging Market Size

Semiconductor Packaging Market Summary
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Study Period 2018 - 2028
Base Year For Estimation 2022
CAGR 7.03 %
Fastest Growing Market Asia Pacific
Largest Market Asia Pacific
Market Concentration Medium

Major Players

Semiconductor Packaging Market Major Players

*Disclaimer: Major Players sorted in no particular order
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Semiconductor Packaging Market Analysis

The semiconductor packaging market size is estimated at USD 95.40 billion in 2023 and is expected to reach USD 133.97 billion by 2028, registering a CAGR of 7.03% during the forecast period (2023-2028).

  • The advanced packaging (AP) industry is currently going through a fascinating phase of significant progress. As Moore’s Law slows down and the advancement of devices under 2nm nodes gains significant research and development investments from industry leaders such as TSMC, Intel, and Samsung, advanced packaging has become a valuable tool for enhancing product value.
  • The development of electronic hardware necessitates the utilization of computing power that is capable of delivering high performance, high speed, and high bandwidth, as well as low latency and power consumption. Additionally, the hardware must be able to provide a wide range of functionalities, as well as be able to integrate at the system level, and must be cost-effective. Advance packaging technologies are ideally suited to meet these diverse performance demands and the intricate heterogeneous integration requirements, thus providing businesses with the opportunity to capitalize on the changing demands of high-performance computing, artificial intelligence, and 5G.
  • Major semiconductor packaging vendors are experiencing significant growth in sales owing to increasing demand for high–performance computing, IoT, and 5G devices. For instance, Amkor’s computing segment, which includes data center, infrastructure, PC/laptop, and storage, registered a 20% share in the total revenue, up from 18% in Q2 2022. The shift toward vehicle electrification is being accelerated by the implementation of policies by governments around the world to reduce emissions and encourage sustainable transportation.
  • A significantly high initial investment is required in the designing, developing, and setting up of semiconductor packaging units as per the requirements of different industries such as automotive, consumer electronics, healthcare, IT & telecommunication, and aerospace and defense. This can restrict the growth of the semiconductor packaging market.
  • The rapid digitalization in the healthcare sector during the pandemic accelerated the demand for semiconductors in medical devices. Moreover, it is anticipated that a pandemic like COVID-19 may encourage the production of cutting-edge medical tools and equipment to address such crises in the future. For instance, GE Healthcare said that it would enhance its manufacturing capacity for medical equipment, including CTs, ultrasound devices, mobile X-ray systems, patient monitors, and ventilators, to address the persistent difficulty in treating COVID-19 patients. Such increasing production of medical devices created a huge demand for semiconductors.

Semiconductor Packaging Market Trends

Consumer Electronics Segment to Hold Significant Market Share

  • In the upcoming years, many semiconductor producers anticipate that 5G smartphones with higher silicon contents will be widely adopted worldwide. The use of semiconductor components per device will rise as a result of the need for 5G smartphones to have higher power efficiency, faster speeds, and more complex functionalities. As a result, the consumer electronics industry is anticipated to experience a significant increase in demand for semiconductor packaging solutions.
  • Additionally, markets for smartwatches and smart speakers have become extremely popular in recent years due to the growing number of features and functionalities they are able to offer, thanks to sophisticated semiconductor components. As a result, demand for Wi-Fi and Bluetooth chips increased dramatically. Manufacturers of consumer electronics are also utilizing semiconductor components to equip their products with IoT and AI models, enhancing user experience and making products smarter.
  • Personal computers and laptops are now essential items for young consumers who are heavily invested in technology. In addition, over the next ten years, innovation and advancement in the electronics sector are anticipated to drive semiconductor packaging sales. Sales of semiconductor packaging are expected to increase globally in both developing and developed markets as a result of the introduction of IoT and AI.
  • Furthermore, gaming has been one of the fastest-growing forms of leisure this year. According to Dataprot, there are 3.24 billion gamers worldwide as of 2023, with about 52% of gamers subscribing to at least one gaming service. Moreover, according to the latest earnings release of Japanese giant Sony, the console just had its strongest quarter yet, with 7.1 million PS5s shipped in the three months leading up to December 31, 2022. That’s almost double the 3.9 million it sold in the same quarter the previous year.
Semiconductor Packaging Market: Market Capitalization of Some of the Largest Gaming Companies Worldwide, USD Billion Dollars, April 2023

Asia Pacific Expected to be the Fastest Growing Market

  • The Asia Pacific region is anticipated to emerge as a dominant player in the semiconductor packaging market, owing to the presence of major semiconductor manufacturers, rapid industrialization, and a vast consumer electronics market. The region is renowned for its high-volume production of semiconductors and the adoption of advanced packaging technologies across diverse industries, such as consumer electronics, automotive, and telecommunications. These factors are expected to fuel the growth of the semiconductor packaging market in the Asia Pacific region, thereby presenting lucrative opportunities for market players.
  • China has a highly ambitious semiconductor agenda, supported by a substantial funding of USD 150 billion. The nation is actively developing its domestic IC industry and aims to increase its chip production. The Greater China region, comprising Hong Kong, China, and Taiwan, is a significant geopolitical hotspot. The ongoing US-China trade war has further intensified tensions in this area, which houses all the leading process technology, prompting several Chinese firms to invest in their semiconductor industry.
  • For instance, In December 2022, China announced its commitment to a support package exceeding YUAN 1 trillion (USD143 billion) for its semiconductor industry. This initiative is a crucial step towards achieving self-sufficiency in chip production and is a response to U.S. actions aimed at hindering China's technological progress. It is anticipated that the demand for packaging services will rise considerably over the forecasted period, owing to the region's intensified efforts to enhance domestic chip manufacturing.
  • Additionally, Micron stated in June 2023 that it would spend millions of dollars on a factory in China despite the fact that the Chinese government had just deemed its goods to be a security risk. Over the coming years, Micron stated it will upgrade its chip packaging factory in the city of Xi'an with investments totaling YUAN 4.3 billion (slightly over USD 600 million). The purpose is to provide Chinese customers with innovative, high-performance packaging and testing tools. The market in the area is anticipated to grow as a result of such foreign vendor initiatives in developing packaging services.
  • As per the China Academy of Information and Communications (CAICT), China's shipments of smartphones compatible with 5G networks rose by 63.5% to 266 million in 2021. Further, 5G smartphone shipments accounted for 75.9% of domestic shipments, higher than a global average of 40.7%. Such trends will accelerate the demand for semiconductor packaging solutions in the region.
  • Furthermore, Taiwan has made significant strides in the chip packaging and fabless segments of the semiconductor value chain, in addition to its foundry services. According to the latest quarterly World Fab Forecast by SEMI, published in June 2022, Taiwan is expected to lead the world in semiconductor manufacturing equipment expenditure in 2022, with a 52% increase to USD 34 billion. These impressive capabilities are expected to drive demand for packaging services, prompting vendors to enhance their offerings.
Semiconductor Packaging Market - Growth Rate by Region

Semiconductor Packaging Industry Overview

The semiconductor packaging market is moderately fragmented as there are various packaging solution providers for the semiconductor market. Players such as Powertech Technology Inc, Siliconware Precision Industries Co. Ltd (Spil), Jcet/Stats Chippac Ltd, ASE Group, and ASE Group adopt strategies like product innovation, expansions, and partnerships to stay ahead of the competition and expand their market reach. The competition will likely only increase considering the anticipated demand from new customers from end-user industries like Consumer Electronics and Automotive.

In May 2023, Tianshui Huatian Technology was selected by the government of China under the move to provide subsidies of more than USD 1.75 Billion to 190 domestically listed semiconductor companies in 2022.

In April 203, Samsung Electronics Co. launched a package turnkey service for contract chip manufacturing with an aim to take on global leader Taiwan Semiconductor Manufacturing Co. (TSMC) amid rapid growth in the artificial intelligence sector.

Semiconductor Packaging Market Leaders

  1. ASE Group

  2. Amkor Technology

  3. Jcet/Stats Chippac Ltd

  4. Siliconware Precision Industries Co. Ltd (Spil)

  5. Powertech Technology Inc.

*Disclaimer: Major Players sorted in no particular order

Semiconductor Packaging Market Concentration

Semiconductor Packaging Market News

  • June 2023 - To meet the rapid growth in the chipset market for mobile and high-performance computing (HPC) applications, Samsung Electronics launched the Multi-Die Integration (MDI) Alliance in collaboration with its partner companies and major players in memory, substrate packaging, and testing. The company launched the MDI Alliance for next-generation packaging technology and continued progress in the foundry ecosystem with Samsung Advanced Foundry Ecosystem (SAFE) partners.
  • June 2023 - Micron Technology announced that it is on the verge of finalizing plans to invest a substantial amount of capital, at least USD 1 billion, in the establishment of a state-of-the-art chip packaging facility in India. This investment by the company marks a notable development in India's efforts to bolster its domestic chip manufacturing capabilities.

Semiconductor Packaging Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    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 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 Industry Value Chain Analysis

    4. 4.4 Assessment of the Impact of COVID-19 and Macroeconomic Factors on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Growing Consumption of Semiconductor Devices Across Industries

    2. 5.2 Market Restraints

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

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Packaging Platform

      1. 6.1.1 Advanced Packaging

        1. 6.1.1.1 Flip Chip

        2. 6.1.1.2 SIP

        3. 6.1.1.3 2.5D/3D

        4. 6.1.1.4 Embedded Die

        5. 6.1.1.5 Fan-in Wafer Level Packaging (FI-WLP)

        6. 6.1.1.6 Fan-out Wafer Level Packaging (FO-WLP)

      2. 6.1.2 Traditional Packaging

    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 Industry

      6. 6.2.6 Energy and Lighting

    3. 6.3 By Geography

      1. 6.3.1 North America

      2. 6.3.2 Europe

      3. 6.3.3 Asia Pacific

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 ASE Group

      2. 7.1.2 Amkor Technology

      3. 7.1.3 Jcet/Stats Chippac Ltd

      4. 7.1.4 Siliconware Precision Industries Co. Ltd (Spil)

      5. 7.1.5 Powertech Technology Inc.

      6. 7.1.6 Tianshui Huatian Technology Co. Ltd

      7. 7.1.7 Fujitsu Semiconductor Ltd

      8. 7.1.8 UTAC Group

      9. 7.1.9 Chipmos Technologies Inc.

      10. 7.1.10 Chipbond Technology Corporation

      11. 7.1.11 Intel Corporation

      12. 7.1.12 Samsung Electronics Co. Ltd

      13. 7.1.13 Unisem (M) Berhad

      14. 7.1.14 Interconnect Systems Inc. (ISI)

    2. *List Not Exhaustive

  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OF THE MARKET

**Subject to Availability

Semiconductor Packaging Industry Segmentation

Semiconductor packaging refers to a casing that contains one or more discrete semiconductor devices or integrated circuits made up of plastic, ceramic, metal, or glass casing. Packaging is crucial for protecting an electronic system from radio frequency noise emission, electrostatic discharge, mechanical damage, and cooling. The rise in the semiconductor industry across the world acts as one of the major factors driving the growth of the semiconductor packaging market. The continuous advancements in terms of integration, energy efficiency, and characteristics of the product because of the growing demand across various end-user verticals of the industry and the use of the packaging for improving the performance, reliability, and cost-effectiveness of electronics systems accelerate the market’s growth.

The semiconductor packaging market is segmented by packaging platform (advanced packaging (flip chip, SIP, 2.5D/3D, embedded die, fan-in wafer level packaging (FI-WLP), and fan-out wafer level packaging (FO-WLP)), traditional packaging), end-user industry (consumer electronics, aerospace and defense, medical devices, communications and telecom, automotive, energy and lighting), and geography (North America, Europe, Asia Pacific). The report offers the value (USD) for these segments.

By Packaging Platform
Advanced Packaging
Flip Chip
SIP
2.5D/3D
Embedded Die
Fan-in Wafer Level Packaging (FI-WLP)
Fan-out Wafer Level Packaging (FO-WLP)
Traditional Packaging
By End-user Industry
Consumer Electronics
Aerospace and Defense
Medical Devices
Communications and Telecom
Automotive Industry
Energy and Lighting
By Geography
North America
Europe
Asia Pacific

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Semiconductor Packaging Market Research FAQs

The Semiconductor Packaging Market is studied from 2018 - 2028.

The Semiconductor Packaging Market is growing at a CAGR of 7.03% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2018 - 2028.

Asia Pacific holds highest share in 2022.

ASE Group, Amkor Technology, Jcet/Stats Chippac Ltd, Siliconware Precision Industries Co. Ltd (Spil), Powertech Technology Inc. are the major companies operating in Semiconductor Packaging Market.

Semiconductor Packaging Industry Report

Statistics for the 2023 Semiconductor Packaging market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Semiconductor Packaging analysis includes a market forecast outlook to for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

Semiconductor Packaging Market Report Snapshots

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