Semiconductor Assembly and Packaging Services Market Analysis APAC, North America, Europe, South America, Middle East and Africa - South Korea, Japan, Taiwan, China, US - Size and Forecast 2024-2028

Semiconductor Assembly And Packaging Services Market Size 2024-2028 

The Semiconductor Assembly and Packaging Services Market is estimated to grow by USD 17.89 billion at a CAGR of 6.15% between 2023 and 2028. The market's growth hinges on several critical factors, including the escalating demand for semiconductor wafers, driven by advancements like 3D chip packaging, FIWLP, and FOWLP technology. Additionally, the rapid proliferation of wireless computing devices, fueled by the rise of the Internet of Things (IoT), plays a pivotal role. These trends collectively shape the landscape of the semiconductor industry, driving innovation and fostering market expansion.

The market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about 20 market companies, including Amkor Technology Inc,  ASMPT Ltd., ChipMOS TECHNOLOGIES INC., HANA Micron Co. Ltd., Jiangsu Changdian Technology Co. Ltd., King Yuan Electronics Co. Ltd., KLA Corp., Microchip Technology Inc., Powertech Technology Inc., Promex Industries Inc., Renesas Electronics Corp., Samsung Electronics Co. Ltd., SIGNETICS Corp., Taiwan Semiconductor Manufacturing Co. Ltd., Tokyo Electron Ltd., Toshiba Corp., ULVAC Inc., and Yole Developpement SA . Additionally, ASE Technology Holding Co. Ltd. offers semiconductor assembly and packaging services through Wafer technology or Wafer Level Chip Chip Scale Package for applications such as portable media players, memory cards, and controllers.

What will be the Size of the Market During the Forecast Period?

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Market Dynamics 

The SAPS play a crucial role in the commercial and professional services sector. These services involve the integration of electronic components onto semiconductor substrates and the encapsulation of these components to create functional packages. The SAPS industry group is a significant contributor to the semiconductor industry, providing essential services for the production of microprocessors, memory chips, and other complex electronic components. Marketing in the SAPS industry requires a deep understanding of the latest technologies and trends. Companies offering commercial and professional services in this sector must stay informed about advancements in semiconductor materials, manufacturing processes, and packaging technologies. The market landscape depends on Insulator, Resistance, Integrated circuits. They must also be able to provide customized solutions to meet the unique requirements of their clients. The SAPS industry is characterized by its high level of complexity and rapid pace of innovation. Companies that can effectively market their services and build strong relationships with clients will be well-positioned to succeed in this competitive market. Additionally, the ability to provide advanced packaging solutions, such as 3D stacking and fan-out wafer-level packaging, will be key differentiators for companies in this sector. In conclusion, the SAPS industry is a critical component of the semiconductor industry and requires specialized marketing efforts to succeed in the commercial and professional services sector. Companies must stay informed about the latest technologies and trends and provide customized solutions to meet the unique requirements of their clients. 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. 

Key Market Driver

The growing demand for semiconductor wafers is driving market growth. The semiconductor industry is experiencing robust growth, with a 6.5% CAGR during the forecast period. Semiconductor sales are surging due to the increasing demand for mobile and consumer electronic devices. Emerging technologies, such as IoT, M2M, UHD TVs, hybrid laptops, and vehicle automation, are fueling this growth. The Semiconductor Industry Association reports that production processes are undergoing digital transformation and adopting smart manufacturing practices.

Moreover, semiconductors, including image sensors, microcontrollers, and MEMS-based products, continue to use 200-mm wafers. Key trends include ultra-high-density fan-out packaging, with two-dimensional connections and ultra-high-density I/O. Semiconductor packages, such as FO-on-substrate and FO-embedded bridge, are essential for these advanced technologies. The internet and artificial intelligence industry are driving the need for high I/O density, bandwidth, and IC quality.Thus, the growing demand for semiconductor wafers will drive the growth of the market during the forecast period.

Significant Market Trends

The short product lifecycle of mobile devices is a key market trend. The semiconductor industry is undergoing a significant shift with the adoption of 3D IC packaging, also known as ultra-high-density fan-out (UHD FO). This innovative production process involves stacking multiple chips into a single package, reducing the IC footprint without compromising power efficiency. Foundries, such as TSMC, are capitalizing on this trend by offering advanced packaging services.

Moreover, digital transformation and smart manufacturing practices are driving the demand for SAPS in the commercial and professional services market. The Semiconductor Industry Association reports that semiconductor sales reached USD500 billion in 2020, with semiconductor revenue expected to grow due to the increasing adoption of semiconductors in various industries, including the internet, artificial intelligence, and 5G services. UHD FO packaging offers ultra-high-density I/O, enabling 2µm pitch and 5µm RDL, resulting in improved electrical performance. This, in turn, will increase production at foundries, which will drive the market during the forecast period.

Major Market Challenge

The need for high initial capital investments is challenging market growth. The Semiconductor Industry is experiencing significant growth, driven by the increasing demand for high-performance, portable devices and the proliferation of IoT. Production processes in this sector are undergoing digital transformation through smart manufacturing practices. The Semiconductor Industry Association reports that semiconductor sales reached USD500 billion in 2020, with revenue expected to grow due to the adoption of ultra-high-density fan-out packaging technologies like FO-on-substrate and FO-embedded bridge. These advanced packaging methods enable two-dimensional connections, ultra-high-density I/O, and bandwidth improvements, essential for the artificial intelligence industry and 5G services.

Moreover, heterogeneous dies, with a redistribution layer (RDL) of 5µm, are becoming increasingly common in semiconductor packages. Japan is a major player in this sector, with the WSTS reporting a 12% increase in chip production in 2021. The semiconductor sector's agenda includes funding for research and development, focusing on ultra-high-density fan-out, IC quality, and security monitoring. Thus, the need for high initial capital investments will hinder the growth of the global market during the forecast period.

Market Segmentation 

By Service Type

The assembly services segment will account for a significant share of market growth during the forecast period. The Semiconductor Packaging Market encompasses advanced packaging technologies for chips, including through-silicon vias, interposers, bridges, and wires. These solutions enable improved signals, energy efficiency, and high performance, high speed, and high bandwidth capabilities. In the AP industry, semiconductor packaging plays a crucial role in electronic hardware, providing computing power, high performance, and low latency for various applications. Semiconductor packaging vendors cater to diverse industries, such as data centers, infrastructure, PC/laptop, storage, vehicle electrification, and more.

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The assembly services segment was the largest segment and valued at USD 35.55 billion in 2018. Policies and emissions concerns in sustainable transportation drive the need for initial investment in designing and developing advanced packaging solutions. Key markets include automotive, consumer electronics, healthcare, IT & telecommunication, aerospace and defense, and high-performance computing, artificial intelligence, and 5G technologies. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.

Market Segmentation By Application

The advances in smartphones in the communication segment will increase the market growth. Advances in smartphone technology have increased the demand for ICs with more power and smaller size. Hence, the adoption of smartphones is increasing rapidly. As a result, the demand for SoCs is also increasing. In addition, the demand for other communication devices is increasing. In the hospitality sector, tablets such as point of sale (POS) tablets are used for ticketing and advertising. The smartwatch market is also attracting Companies globally. The introduction of low-cost smartwatches will drive the unit shipment of smartwatches. The integration of advanced functionalities will increase the demand for devices. Therefore, the growing shipments of communication devices, such as smartphones, tablets, and smartwatches, will drive the growth of the global assembly and packaging services market during the forecast period.

Regional Overview

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APAC is estimated to contribute 76% to the growth of the global market during the forecast period. Technavio's analysts have provided an extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The Semiconductor Packaging Market in the APAC region is thriving due to the presence of leading semiconductor foundries like TSMC, UMC, Samsung, and SMIC, along with OSATs. These manufacturers are investing significantly in constructing new fabrication units, with China backed by favorable policies also building new production units. Taiwan, Japan, and South Korea, as semiconductor manufacturing powerhouses, necessitate packaging services. Vendors like SPIL and ASE support advanced packaging processes, including through-silicon vias, interposers, bridges, and wires, for high-performance chips. The market caters to various sectors, including high-performance computing, artificial intelligence, 5G, data centers, infrastructure, PC/laptop, storage, vehicle electrification, and more. Policies focusing on emissions and sustainable transportation drive initial investment in designing and developing semiconductor packaging solutions for IT & telecommunication, automotive, consumer electronics, healthcare, aerospace, and defense industries. Hence, such factors are driving the market in APAC during the forecast period.

Market Customer Landscape

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.

Market Customer Landscape

Market Companies

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.

Intel Corp: The company focuses offers Semiconductor Assembly And Packaging Services. 

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.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• Service Type Outlook
  • Assembly services
  • Testing services
• Application Outlook
  • Communication
  • Computing and networking
  • Industrial
  • Consumer electronics
  • Automotive electronics
• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The SAPS play a crucial role in the electronics industry, particularly in the Commercial and Professional Services sector. These services involve the integration of electronic components onto semiconductor substrates and the encapsulation of these components to protect them from environmental factors. The Semiconductor Assembly and Packaging Industry Group, specifically Commercial and Professional Services, offers various packaging techniques such as Wire Bonding, Flip Chip, and Surface Mount Technology. These techniques enable the creation of complex semiconductor devices with high performance and reliability. Moreover, the industry group employs advanced technologies like Automated Test Equipment (ATE) and Computer-Aided Design (CAD) software to ensure the highest quality and accuracy in semiconductor assembly and packaging.

The use of these technologies also enhances the efficiency and productivity of the manufacturing process. The market is expected to grow significantly due to the increasing demand for advanced electronic devices in various industries, including telecommunications, computing, and consumer electronics. Additionally, the ongoing miniaturization trend in semiconductor technology is driving the need for more sophisticated packaging solutions. In conclusion, the SAPS Industry Group, Commercial and Professional Services, plays a vital role in the electronics industry by providing advanced packaging solutions to meet the evolving demands of the market.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market report forecast during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2024 and 2028
• Precise estimation of the size of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across APAC, North America, Europe, South America, and Middle East and Africa
• Thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of Industry companies

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