Enjoy complimentary customisation on priority with our Enterprise License!
The Semiconductor Assembly and Packaging Services Market is estimated to grow by USD 14.39 billion at a CAGR of 6.51% between 2022 and 2027. 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.
To learn more about this report, Download a FREE Report Sample
Innovations like through-silicon vias, interposers, and bridges are revolutionizing the way signals and energy are transmitted within electronic hardware. These advancements not only enhance computing power but also enable high-performance and high-speed operations at the system level. With a focus on advanced packaging techniques and high-performance computing, the industry caters to diverse sectors such as the automotive industry and the consumer electronics segment, providing chipsets and integrated circuits for devices like smartphones and tablets. As demand for high bandwidth and low latency increases, semiconductor companies continuously strive to reduce power consumption while enhancing the functionality of their products. Through innovations in conductors and insulators, the semiconductor industry remains at the forefront of technological advancement, shaping the future of electronics worldwide.
This market growth analysis report covers the adoption life cycle of the market from the innovator’s stage and the laggard’s stage. It also focuses on the adoption rates of major countries. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Customer Landscape
In semiconductor technology, wires serve as vital conduits for transmitting data within high-speed systems, particularly in data centers and PC/laptop infrastructure. As artificial intelligence continues to advance, the demand for high-performance semiconductor integrated circuits grows, driving innovation in production processes and designing techniques. Companies are challenged to meet the increasing demand for semiconductors and semiconductor sales, particularly in sectors like IT & telecommunication and autonomous driving. Furthermore, initiatives to improve semiconductor IC quality and enhance silicon package design efficiencies are crucial in addressing issues such as the ongoing chip shortage. With the rise of smart television sets, portable electronics, and smart homes, the semiconductor industry plays a pivotal role in shaping modern lifestyles. Our researchers analyzed the data, with 2022 as the base year. A holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
The growing demand for semiconductor wafers is driving market growth. The rise in sales of mobile and consumer electronic devices is supporting the growth of the market. Emerging technologies such as IoT, machine-to-machine (M2M), ultra-high-definition (UHD) TVs, hybrid laptops, and vehicle automation are further propelling the demand for wafers. The increasing demand for semiconductor wafers will have an impact on device manufacturers, which will focus on increasing production capacity.
The need for multi-functional ICs is increasing owing to the increasing functionalities of consumer electronic devices. Semiconductor manufacturers are developing semiconductor ICs with new and complex architecture and design. However, such designs increase the possibility of defects and manufacturing errors, which has created a demand for advanced assembly and packaging services. Thus, the growing demand for semiconductor wafers will drive the growth of the market during the forecast period.
The short product lifecycle of mobile devices is a key market trend. Technological advances and the rise in disposable income are driving the growth of the mobile devices market. Electronic devices such as mobile and consumer devices become obsolete within 1.5 years, as they are replaced by advanced versions frequently.
The integration of AI chips in smartphones is driven by developments in advanced technologies. For instance, in January 2022, OnePlus launched OnePlus 10 Pro in India, powered by a 4-nm Kryo Octa-Core Qualcomm Snapdragon 8-Gen 1 chip with a 3.6 GHz CPU. Similarly, in September 2022, Apple launched the iPhone 14 series, powered by A16 bionic SoC. The demand for semiconductor ICs to manufacture these devices will increase during the forecast period. This, in turn, will increase production at foundries, which will fuel the need for WLP solutions.
The need for high initial capital investments is challenging market growth. Establishing a manufacturing setup requires a significant amount of capital. Therefore, companies with comparatively low production scales outsource manufacturing to foundries and OSATs such as TSMC and ASE. Device manufacturers are investing in R&D to solve manufacturing and packaging challenges.
The growing demand for compact ICs and the emergence of new 3D packaging solutions such as TSV, stacked packaging, and MEMS packaging have transformed the manufacturing process of semiconductor ICs. Manufacturers should invest significantly in manufacturing equipment to produce compact ICs. The manufacturing process is complex, time-consuming, and expensive. Rapid technological changes increase the total cost of ownership of the equipment. Thus, the need for high initial capital investments will hinder the growth of the global market during the forecast period.
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 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.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market Companies, including:
Technavio's market forecasting report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies Companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
This industry caters to a wide array of sectors including automotive, consumer electronics, healthcare, aerospace, and defense. With advancements in technologies like ultra-high-density fan-out, semiconductor packaging vendors are meeting the diverse needs of IT firms and automakers. Additionally, the industry focuses on sustainability, particularly in the context of vehicle electrification and smart manufacturing practices. As demand for electronic hardware continues to surge, semiconductor assembly and packaging services remain pivotal in driving innovation and meeting market demands. The market is witnessing transformative changes driven by advancements in process nodes and the AP industry. As demand for high-speed electronic hardware escalates, innovations in advanced packaging techniques such as through-silicon vias, interposers, and bridges are becoming increasingly vital. These technologies enhance signals transmission efficiency while managing energy consumption. Moreover, the market is evolving to accommodate the growing need for semiconductors and electronic hardware, with a focus on minimizing Resistance and optimizing chips performance.
The WLP segment will account for a significant share of market growth during the forecast period. WLP is considered ideal for analog, linear, and integrated passive components. It is less expensive than die-level packaging, as it can be done on a larger scale.
Get a Customised Report as per your requirements for FREE!
The WLP segment was valued at USD 20.05 billion in 2017 and continued to grow until 2021. There are two types of WLP, namely fan-out wafer-level packaging (FOWLP) and FIWLP. FIWLP solutions are primarily used in manufacturing ICs. FOWLP solutions are mainly used for packaging. The growth of the WLP segment during the forecast period is attributed to factors such as the emergence of 3D architecture. The adoption of advanced packaging techniques such as 2.5D and 3D ICs and advances in complementary metal-oxide (CMOS) technology has further increased the use of WLP technology in most semiconductor devices.
The communication sector segment will account for a significant share of market growth during the forecast period. 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.
For more insights on the market share of various regions View PDF Sample now!
APAC is estimated to contribute 76% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
The growth of the market in APAC is attributed to factors such as the presence of prominent semiconductor foundries along with numerous OSATs. Manufacturers are investing significantly in building new fabrication units in the region. Advanced packages are more affordable in terms of manufacturing and testing. Advanced solutions such as WLPs have higher thermal performance, lower power consumption, and larger package density. They ensure better board-level reliability and electrical performance, shorter interconnections, and a higher degree of packaging design freedom than other technologies. Therefore, advanced packaging technologies are expected to be adopted extensively in chip packaging across end-user industries in APAC.
The innovations like through-silicon vias, interposers, and bridges play pivotal roles. These advancements facilitate the efficient routing of signals and energy within electronic hardware, enhancing computing power and enabling high-performance, high speed operations. The industry caters to diverse sectors such as automotive, consumer electronics, healthcare, aerospace, and defense, with a focus on sustainable transportation and smart manufacturing practices. The packaging vendors leverage ultra-high-density fan-out technologies and heterogeneous dies to meet the evolving demands of IT firms and automakers. With continual digital transformation and the Semiconductor Industry Association's agenda, the sector thrives on funding and collaboration to optimize chip production.
The market research and growth 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.
Industry Scope |
|
Report Coverage |
Details |
Page number |
181 |
Base year |
2022 |
Historic period |
2017 - 2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.51% |
Market growth 2023-2027 |
USD 14.39 billion |
Market structure |
USD Fragmented |
YoY growth 2022-2023(%) |
5.48 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 76% |
Key countries |
US, South Korea, Taiwan, China, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Amkor Technology Inc., ASE Technology Holding Co. Ltd., ChipMOS TECHNOLOGIES Inc., Intel Corp., Jiangsu Changdian Technology Co. Ltd., King Yuan Electronics Co. Ltd., KLA Corp., Microchip Technology Inc., Powertech Technology Inc., Renesas Electronics Corp., Samsung Electronics Co. Ltd., Taiwan Semiconductor Manufacturing Co. Ltd., Tokyo Electron Ltd., Toshiba Corp., ULVAC Inc., ASMPT GmbH and Co. KG, HANA Micron Co. Ltd., Promex Industries Inc., SIGNETICS Corp., and Yole Developpement SA |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, 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. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.