The demand for smaller yet more powerful electronic gadgets has led the semiconductor industry to develop advanced packaging methods. These methods aim to create devices with a reduced form factor, enhanced functionality, and improved performance while keeping costs down. The traditional packaging technologies faced challenges such as limited memory bandwidth, which became a bottleneck for mobile processors, hindering speed and power efficiency for high-performance computing needs.
To overcome these challenges and meet the growing demand for innovative electronic products, the industry has turned to revolutionary approaches in device architecture and packaging technologies. One such technology gaining prominence is 3D TSV (Through Silicon Via) stacking. This technique allows components to be stacked in the z-axis, opening up new possibilities for overcoming current packaging limitations.
The push for these advancements is fueled by the increasing need for smaller electronic devices with improved features at a lower overall cost. Semiconductor manufacturers and research organizations have been actively exploring 3D packaging, particularly the concept of through silicon via (TSV) stacking in the z-axis. This approach is considered highly promising and is believed to effectively address the limitations of existing packaging technologies.
A study conducted by McKinsey revealed significant growth in the semiconductor industry's annual revenue. In 2020, there was a 9% increase, followed by an impressive 23% rise in 2021. This substantial growth far exceeded the 5% reported in 2019. Even before the pandemic, capital markets recognized the industry's increasing profitability, with semiconductor companies delivering total shareholder returns (TSR) averaging 25% annually from the end of 2015 to the end of 2019.
The surge in chip demand, driven by factors such as remote work becoming more prevalent and increased technology spending by both consumers and businesses, further boosted the semiconductor industry's profitability. Shareholders experienced even better profits in the previous year, with average annual returns reaching 50%. This increased profitability played a significant role in driving the 3D IC (integrated circuit) market forward.
Covered Aspects:Report Attribute/Metric | Details |
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Market Opportunities | High-speed data transmission |
Market Dynamics | Increase in demand for advanced electronic productsHigh demand for 3D packaging using TSVs |
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