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The High-end Semiconductor Packaging Market size is forecast to increase by USD 30.92 billion, at a CAGR of 14% between 2023 and 2028. The market's growth is influenced by various factors, such as the increasing demand for smaller electronic devices, a rise in high-end semiconductor packaging product launches, and the growing adoption of semiconductor ICs in the automotive sector.
The market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about 10 market companies, including Amkor Technology Inc., Analog Devices Inc., Arm Ltd., Chipbond Technology Corp., ChipMOS TECHNOLOGIES INC., Fujitsu Ltd., Intel Corp., Jiangsu Changdian Technology Co. Ltd., King Yuan Electronics Co. Ltd., Kyocera Corp., Microchip Technology Inc., nepes Corp., Powertech Technology Inc., PTI Inspection Systems, Renesas Electronics Corp., Taiwan Semiconductor Manufacturing Co. Ltd., Texas Instruments Inc., Tongfu Microelectronics Co. Ltd., and Samsung Electronics Co. Ltd. Additionally, Advanced Micro Devices Inc offers high-end semiconductor packaging through a metal, plastic, glass, or ceramic casing containing one or more discrete Ics.
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The market is propelled by the escalating demand for compact electronic devices, driving technological innovations in advanced packaging, through-silicon vias, and interposers. Key players like TSMC, Intel, and Samsung contribute to the market's dynamism. The convergence of technologies, including high-performance computing, artificial intelligence, 5G, and IoT, accentuates the demand. However, challenges arise in sustaining advancements aligned with Moore's Law, ensuring Ultra High-density Fan-Out Advanced Packaging, and addressing complexities in HPC applications and vehicle electrification. Navigating these dynamics shapes the trends and challenges in the market landscape. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
Growing demand for compact electronic devices is notably driving the market. The escalating demand for compact electronic devices like smartphones, tablets, wearables, and automotive applications has become pervasive across various sectors. This surge prompts semiconductor IC manufacturers to intensify research and development (R&D) efforts to enhance IC performance and reduce size.
Moreover, the evolution of micro-electromechanical systems (MEMS) and 3D IC chips has become prominent due to this demand. High-end semiconductor packaging, incorporating technologies like advanced packaging, through-silicon vias, and interposers, is on the rise. This packaging approach integrates multiple ICs and components, yielding highly compact solutions with superior performance, aligned with the trend in compact electronic devices. Hence, such factors are driving the market during the forecast period.
An increase in 5G investments is an emerging trend in the market. 5G is the next generation of communication technology, following 4G, and on commercialization, 5G will be able to support data download speeds of 10,000 Mbps. In addition, there have been numerous investments in 5G across the globe. 5G networks are designed to support significantly higher data rates compared to the previous generation. Furthermore, this means that the semiconductor devices used in 5G infrastructure must be capable of processing and transmitting data at much faster speeds.
Moreover, it helps in achieving these high data rates by reducing signal losses and improving signal integrity. In addition, the increasing investments in 5G are creating demand for 5G network infrastructure. Furthermore, this is expected to accelerate the developments in electronic components and modules such as 5G mm-wave antenna modules, 5G multimode modems, 5G base stations, and several 5G RF products. Hence, such factors are driving the market during the forecast period.
The high manufacturing cost of high-end semiconductor packaging due to warping is a major challenge hindering the market. One of the main factors increasing the production cost of high-end semiconductor packaging is warping. In addition, warpage is defined as a distortion where the surface of the molded part does not follow the intended shape of the design. Furthermore, this leads to the formation of a wafer surface, thus making it unusable.
Moreover, the issue of warping occurs several times during semiconductor advanced packaging, which could result in the wastage of wafers and result in high costs for the manufacturer. For example, the issue of warping can occur following the post-mold cure of the reconstituted wafer. In addition, it can also occur after the back grinding of the epoxy mold compound to expose the copper contact pad. Hence, such factors are driving the market during the forecast period.
The consumer electronics segment is estimated to witness significant growth during the forecast period. One of the main end-user sectors for semiconductors is consumer electronics. In addition, a few of the key factors influencing the segment's growth include the expansion of the smartphone market, rising wearable and smart device adoption, and rising consumer IoT device penetration in applications such as smart homes.
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The consumer electronics segment was the largest segment and was valued at USD 7.86 billion in 2018. Moreover, many semiconductor manufacturers predict that 5G smartphones with higher silicon content will be widely used around the world during the forecast period. In addition, due to the need for 5G smartphones to have higher power efficiency, faster speeds, and more complex functionalities, the number of semiconductor components used per device will increase. Therefore, it is anticipated that the demand for these solutions in the consumer electronics sector will rise significantly in the coming years Furthermore, with the increased affordability of electronic equipment and rising living standards, the growth of the industry in the coming years is anticipated to be aided by the increasing adoption of consumer electronics such as laptops, tablets, fitness bands, smartwatches, and other electronic devices that require intricate semiconductor integration. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.
The growing adoption of the 3D SoCs segment will increase market growth during the forecast period. The 3D System on Chip (SoC) segment refers to a packaging technology that integrates multiple layers of semiconductor devices (chips) into a single package, creating a three-dimensional (3D) structure. In addition, 3D SoCs offer many benefits over traditional multi-chip systems. Moreover, a few of these benefits include much less power consumption and miniaturization of an electronic system. Therefore, several electronic products, including laptops and desktops, have been using 3D SoCs for more than two decades. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.
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APAC is estimated to contribute 31% to the growth of the global market during the forecast period. Technavio's analysts have provided extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The presence of several prominent semiconductor foundries, including TSMC, United Microelectronics, Samsung Semiconductor, and Semiconductor Manufacturing International (SMIC), as well as numerous outsourced semiconductor assembly and test (OSAT) vendors, is driving the market in APAC. In addition, these manufacturers are investing heavily in building new fabs in the region. For example, in December 2023, Semiconductor Manufacturing International, a major semiconductor foundry in China, announced the opening of its largest 300mm wafer manufacturing facility in Shanghai by the first half of 2024. Hence, such factors are driving the market in APAC during the forecast period.
The market forecasting report includes the adoption lifecycle of the market research and growth, 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 market growth and trends strategies.
Global Market Customer Landscape
Companies 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.
ASE Technology Holding Co. Ltd: The company offers high-end semiconductor packaging, such as systems in package, It provides automation, and heterogeneous integration in machine and production systems.
Market analysis and report of qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The Market is witnessing substantial growth, driven by factors such as the demand for compact electronic devices, advancements in semiconductor packaging, and the integration of semiconductor ICs in automotive applications. Key technologies like Through-Silicon Vias (TSV), 2.5D IC packages, and Ultra High-density Fan-Out Advanced Packaging play pivotal roles. The influence of Moore's Law, essential for high-performance computing (HPC) and artificial intelligence (AI) industries, shapes the market.
Moreover, the COVID-19 pandemic has accelerated trends in vehicle electrification, emphasizing semiconductor use in automotive electronics, Advanced Driver Assistance Systems (ADAS), and infotainment systems. With a focus on 5G services, the semiconductor industry addresses connectivity demands in smart devices and wearable technologies. The market emphasizes advanced packaging techniques, addressing challenges like power densities and thermal management. System-in-Package (SiP) technologies, 2.5D/3D packaging, and the integration of processors, memory units, and accelerators are optimizing latency and enhancing performance. Mechanical stress, heat sinks, thermal pads, and considerations for electromagnetic interference and compatibility are crucial in this landscape. Silicon interposers and the use of plastic materials like Polyethylene (PE) and Polypropylene (PP) are notable trends. As wearable devices become more prevalent, the market is positioned for sustained growth and innovation.
Similarly, the market's future hinges on innovative packaging techniques, efficient thermal management, and advanced chip designs, such as FinFET transistors and 3D stacked chips. As the industry evolves, Si Interposers, Logic chips, and high-speed memory chips continue to redefine the Market. The Market is experiencing significant growth driven by various factors. Bridges between innovation and demand are being built in this landscape, with the Semiconductor Industry Association playing a pivotal role. The Ultra High-density Fan-Out Advanced Packaging Segment, focusing on advanced technologies like Through Silicon Via (TSV) and the Internet of Things (IoT), is at the forefront. In this dynamic sector, Artificial Intelligence (AI) industry developments, GPU advancements, and the deployment of 5G services through Future Market Insights are shaping the market. Autonomous driving, security monitoring, and the increasing adoption of Advanced Driver Assistance Systems (ADAS) in automotive electronics are key drivers.
Market Scope |
|
Report Coverage |
Details |
Page number |
170 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 14% |
Market Growth 2024-2028 |
USD 30.92 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
13.35 |
Regional analysis |
APAC, North America, Europe, South America, and the Middle East and Africa |
Performing market contribution |
APAC at 31% |
Key countries |
US, Canada, China, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Advanced Micro Devices Inc., ASE Technology Holding Co. Ltd., Amkor Technology Inc., Analog Devices Inc., Arm Ltd., Chipbond Technology Corp., ChipMOS TECHNOLOGIES INC., Fujitsu Ltd., Intel Corp., Jiangsu Changdian Technology Co. Ltd., King Yuan Electronics Co. Ltd., Kyocera Corp., Microchip Technology Inc., nepes Corp., Powertech Technology Inc., PTI Inspection Systems, Renesas Electronics Corp., Taiwan Semiconductor Manufacturing Co. Ltd., Texas Instruments Inc., Tongfu Microelectronics Co. Ltd., and Samsung Electronics Co. Ltd. |
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, and Market condition analysis for the forecast period. |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Technology
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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