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The fan-out wafer level packaging market size is estimated to grow at a CAGR of 17.5% between 2022 and 2027. The size of the market is forecast to increase by USD 3,064.31 million. The growth of the market depends on several factors, including the increased demand for compactly designed electronics, the growing use of semiconductor ICs in IoT, and the rapid adoption of FinFET technology. Miniaturized electronic components are in high demand due to advancements in semiconductor technology that enable the integration of a large number of functions on a smaller footprint. HMI technology integration, wireless communication developments, and telecommunication standard advancements are major factors fueling this demand.
This report extensively covers market segmentation by technology (high density and standard density), type (200 mm, 300 mm, and panel), and geography (APAC, North America, Europe, South America, and Middle East and Africa. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The growing use of semiconductor ICs in IoT is notably driving the market growth, although factors such as the increased production costs because of warpage may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Fan-out Wafer Level Packaging Market Driver
The growing use of semiconductor ICs in IoT is the key factor driving the global fan-out wafer level packaging market growth. The demand for these IoT devices is primarily driven by the developments in wired and wireless communication technologies, telecommunication standards such as 3G/4G/5G, and government initiatives on implementing energy-efficient systems and solutions. The increasing applications of IoT will give rise to the demand for IoT chipsets that are integrated into IoT devices. The chipsets used in these IoT devices include Wi-Fi modules, RF modules, FOWLP units (MCUs), and sensor modules.
Due to the rapid proliferation of mobile and IoT devices, the semiconductor packaging industry is facing strong demand for thin-profile semiconductor ICs and modules with a smaller footprint. This will accelerate the demand for FOWLP technology to package IoT chipsets on a smaller footprint. Thus, the rising adoption of IoT devices will boost the growth of the global market during the forecast period.
Significant Fan-out Wafer Level Packaging Market Trend
The rising panel-level packaging is the primary trend in the global fan-out wafer level packaging market growth. The increasing demand for low-cost, high-performance products has led to many innovations in the semiconductor industry. One of the innovative technologies that have helped in reducing the overall cost of wafer level packaging is the introduction of fan-out panel-level packaging. In this, the whole packaging process is shifted to a large-size panel format, which allows more components on the substrate to be simultaneously packaged and lowers the overall cost of packaging. This technology is highly preferred by OSAT companies, IDMs, substrate manufacturers, and fabless companies as it allows them to reduce manufacturing costs significantly. Further, panel-level packaging enables vendors to achieve high-volume manufacturing, as this is a current market demand owing to the increased demand for electronics across different industries.
Further, the trend toward the integration of a substantial number of functionalities on a single IC gives rise to the need for a packaging technology that can simultaneously provide higher I/O pins and ensure low manufacturing and packaging costs. Therefore, in this market scenario, many market vendors have started developing fan-out panel-level packaging technology, which is expected to drive the global FOWLP market during the forecast period. Therefore, the increasing demand for low-cost, high-performance products will accelerate the growth of the global FOWLP market during the forecast period.
Major Fan-out Wafer Level Packaging Market Challenge
The increased production costs because of warpage is a major challenge for the growth of the global fan-out wafer level packaging market. The non-availability of a specific solution to the problem of warping increases the production costs for players in the global FOWLP market and has impeded the growth of the market. Warpage is defined as the distortion when the surface of the molded part does not follow the intended shape of the design. This leads to a deformation of the wafer surface, thus making it unusable. One of the prominent factors responsible for this effect is the differential shrinkage of the material in the molded part; hence, rather than achieving a uniform, compact shape, it becomes deformed and warped.
The issue of warping occurs several times during FOWLP, which could result in the wastage of wafers and result in high costs for the manufacturer. Thus, warpage issues during the FOWLP process result in a high number of wafers becoming unusable, thus leading to an increase in the overall cost of manufacturing and packaging ICs. Thus, all these may hinder the growth of the global FOWLP market during the forecast period.
Key Fan-out Wafer Level Packaging Market Customer Landscape
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Fan-out Wafer Level Packaging Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
thinkdeca.com - The company offers to Fan out Wafer Level Packaging for M series semiconductor industries. Also, the company offers semiconductor solutions such as M series, adaptive patterning, and patent portfolios.
The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the high-density segment will be significant during the forecast period. The market has witnessed a growth momentum owing to the increased investments in the development of high-density FOWLP. Multiple vendors in the market have partnered and invested in the development of this technology to ensure that it can be used in various other segments. Thus, increased investment in the development of high-density FOWLP will boost the growth of the global FOWLP market during the forecast period.
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The high density segment was valued at USD 1,300.62 million in 2017 and continue to grow by 2021. Generally, smartphone manufacturers choose package-on-package (PoP) technology as the application processor, where the memory package is placed on the top, and the application processor package is at the bottom. But with the increased demand for compact designs in the market, more smartphone vendors are shifting from PoP technology to high-density FOWLP. This shift is led by major smartphone vendors such as Apple Inc. Furthermore, in 2020, Apple launched its A14 bionic and M1 chips for the new Apple devices such as Mac, Mac book, iPad, and iPhone. The A14 bionic chip has a 5 nm fabrication process. It is the most advanced chip in the world. With this innovation, it is expected that multiple new players will soon adopt this technology, which will drive the growth of the market segment during the forecast period.
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APAC is estimated to contribute 77% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In 2022, APAC accounted for the highest market share and was expected to dominate during the forecast period as well. This is due to the presence of many foundries and OSAT companies in the region, which are the major customers of integrated device manufacturers (IDMs) and fabless companies. Another major reason for the growth of the market is the increasing government initiatives for the expansion of the semiconductor packaging industry in APAC countries. One of the most prominent examples is the increasing government support for the semiconductor packaging industry in China. Although China is a major consumer electronics manufacturing hub, the country primarily imports semiconductor ICs and does not have a strong domestic semiconductor manufacturing capability of its own. Therefore, with the aim of changing this, the government has framed numerous policies to advance the growth of the semiconductor industry in the country.
In 2020, the COVID-19 pandemic adversely impacted manufacturing and industrial activities in APAC. However, industries such as automobile and manufacturing started recovering owing to the introduction of COVID-19 vaccines in 2021. This has led to the lifting of lockdown restrictions and the resumption of operations in the automotive industry, which has increased the demand for FOWLP in the region. Therefore, the recommencing of manufacturing and industrial activities will positively impact the growth of the regional FOWLP market during the forecast period.
The Fan-out Wafer Level Packaging market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Fan-out Wafer Level Packaging Market Scope |
|
Report Coverage |
Details |
Page number |
162 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 17.5% |
Market growth 2023-2027 |
USD 3,064.31 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
17.25 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 77% |
Key countries |
US, Taiwan, South Korea, China, and Japan |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Amkor Technology Inc., ASE Technology Holding Co. Ltd., Deca Technologies Inc., Jiangsu Changdian Technology Co. Ltd., nepes Corp., Nordson Corp., NXP Semiconductors NV, Onto Innovation Inc., Panasonic Holdings Corp., Powertech Technology Inc., Renesas Electronics Corp., Singapore Semiconductor Industry Association, SUSS MICROTEC SE, Taiwan Semiconductor Manufacturing Co. Ltd., Unisem M Berhad, UTAC Holdings Ltd., Winbond Electronics Corp., Yield Engineering Systems, Yole Group, and Infineon Technologies AG |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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