Semiconductor Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

The semiconductor packaging market was valued at USD 28.2 billion in 2020 and is expected to reach USD 44.44 billion by 2026, and grow at a CAGR of 7.96% over the forecast period (2021-2026). Packaging has witnessed a continuous transformation in terms of characteristics, integration, and energy efficiency of the product owing to the growing demand across various end-user verticals of the industry,

• Since 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. Packaging activity can be done in-house by the foundries, or the foundries can outsource it. For instance, Qualcomm, a semiconductor and telecommunications equipment company, outsources its packaging requirements to the OSATs.
• The advent of IoT and artificial intelligence (AI) and the proliferation of sophisticated electronics drive the high-end application segment across the consumer electronics and automotive industries. These dynamics have increased the adoption rate of the latest semiconductor packaging technologies to meet the growing demand.
• Semiconductor packaging technology has evolved to minimize the costs involved and enhance the overall efficacy of ICs. Vendors in the market are under constant pressure to deliver innovative solutions in terms of the size of the packaging, performance, and the "time-to-market" aspect.
• Apart from the wide range of semiconductor packaging applications in the consumer electronics and automotive industry, it also plays an integral role in the Aerospace & Defense sector. US Army researchers are actively engaged in discovering new ways of packaging Silicon Carbide (SiC) power semiconductors that make the most of SiC technologies for high-power military and commercial applications.
• A pandemic like COVID-19 is anticipated to fuel the manufacturing of advanced medical devices and equipment to tackle such crises in the future. The increasing production of medical devices will also drive the market. For instance, GE Healthcare announced that it would increase its manufacturing capacity for medical equipment, that includes CTs, ultrasound devices, mobile X-ray systems, patient monitors, and ventilators, to cater to the ongoing challenge of the treatment of COVID-19 patients.
• However, the electronics devices are expected to be impacted significantly by the COVID-19 outbreak, as China is one of the major suppliers for the raw materials and the finished products.

Scope of the Report

Semiconductor packaging is a casing containing one or more discrete semiconductor devices or integrated circuits made up of metal, plastic, glass, or ceramic casing. Packaging must protect an electronic system from cooling, radio frequency noise emission, mechanical damage, and electrostatic discharge. The Semiconductor Packaging Market is segmented by Packaging Platform (Flip Chip, Embedded DIE, Fan-in Wafer Level Packaging, Fan-out Wafer Level Packaging), End-user Industry (Consumer Electronics, Aerospace, and Defense, Medical Devices, Communications and Telecom, Automotive, Energy and Lighting), and Geography.

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Key Market Trends

Consumer Electronics Industry to Augment the Market Growth

• The electronics market continually demands higher power dissipation, faster speeds, higher pin counts, and smaller footprints, and lower profiles. The miniaturization and integration of semiconductors have given rise to smaller, lighter, and more portable devices, like tablets, smartphones, and the emerging IoT devices.
• Each new iteration of consumer electronics products is smarter, lighter, and more energy-efficient than its predecessors. This creates huge expectations among customers for the next iteration, which is a major selling point for the producers of consumer electronics.
• The rising penetration of consumer electronics in the high-growth regions of the world has led to increased capital investment by several wafer manufacturing companies, in a bid to meet the demand. Therefore, the demand for defect-free chips will drive the growth of this market. Recently, In April 2021, TSMC said that it will invest USD 100 billion to increase its semiconductor output. 
• In addition to this, smartphones are one of the most significant contributors to the consumer electronics segment's semiconductor consumption. According to the Consumer Technology Association(CTA), smartphone sales have been estimated to be 165 million units in 2020. With this trend likely to continue, it is poised to drive the semiconductor demand, in turn, augmenting the packaging market growth

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