Advanced Packaging Market Trends

Global Advanced Packaging Market Overview

Advanced Packaging Market Size was valued at USD 35,336.7 Million in 2023. The Advanced Packaging industry is projected to grow from USD 36,608.8 Million in 2024 to USD 56,610.6 Million by 2032, exhibiting a compound annual growth rate (CAGR) of 5.6% during the forecast period (2024 - 2032). Advanced packaging is the aggregation and interconnection of Types before traditional integrated circuit packaging. Advanced packaging allows multiple devices to be merged and packaged as a single electronic device. The advanced packaging market refers to the industry segment that involves developing, designing, and manufacturing innovative and sophisticated packaging solutions for various products. Advanced packaging techniques are employed to enhance packaged goods' performance, functionality, and reliability, ensuring their protection, preservation, and presentation. The increasing miniaturization of devices and the growing adoption of micro-electromechanical systems (MEMS) have also contributed to the renewed demand for embedded die packaging. While the technology has been in the market for some time, its applications have been limited to niche areas due to high costs and low yields. Nevertheless, it holds significant potential for future development. Advancements in Bluetooth, RF modules, and the emergence of WiFi-6 are expected to further stimulate investments in this technology.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Advanced Packaging Market Trends

• 
  

  Growing demand for miniaturization of devices boosts demand for advanced packaging.

  
  

Manufacturers are shifting towards providing small electronic devices in multiple industries, including consumer electronics, healthcare, automotive, and semiconductor IC manufacturing, as technology continues to advance. As part of this trend, companies are reducing the size of integrated circuits to achieve precise patterns on wafers and chips. Moreover, the growing sophistication and advancements in wearable and personalized healthcare devices have led to a rise in demand for nano-sized robotic surgery equipment in the medical device market. This movement towards compact electrical gadgets necessitates a departure from traditional packaging methods and adopting more sophisticated packaging techniques.

The semiconductor industry is experiencing growth in miniaturized electronic devices due to the increasing need for high-performance electronics. Furthermore, the demand for thin wafers is driven by technological advancements such as RFID, MEMS, and other power devices. For instance, the wafer back grinding process reduces wafer thickness from 750 µm to 75-50 µm. Thin wafers reduce package thickness, which is advantageous for smartphones, portable devices, and other small electronic equipment. The emergence of applications in semiconductor technology that utilize ultra-thin and ultra-thin dies has created a significant demand for miniaturized electronic devices, thereby bolstering the Advanced Packaging Market.

Rapid expansion in the electronics sector

The rapid growth of the electronics sector and the escalating demand for various consumer electronics such as wearables, desktops, smartphones, laptops, and miniaturized devices are the primary drivers behind the Advanced Packaging Market. To achieve intricate patterns on wafers, manufacturers are extensively employing advanced packaging techniques, which involve reducing the size of integrated circuits (ICs) in the semiconductor industry. This factor contributes significantly to the market's growth. Furthermore, the increasing adoption of nano-sized robotic surgery equipment and advanced wearable devices has spurred leading companies to prioritize advanced packaging methods over conventional approaches. This shift aims to optimize system performance and is a significant contributing factor to market expansion.

The market is also witnessing a rise in the adoption of fan-out wafer-level packaging, driven by its numerous advantages, including improved thermal performance, increased wafer-level yield, simplified packaging systems, and the acceptance of three-dimensional (3D) circuits. This trend further fuels the growth of the advanced packaging market. Moreover, strategic collaborations among key players to enhance product effectiveness, as well as the widespread utilization of artificial intelligence (AI), deep learning, and machine learning (ML) to integrate processing elements and memories through high-speed interconnect, are additional factors supporting market growth.

Advanced Packaging Market Segment Insights

Advanced Packaging Type Insights

Based on the type, the Advanced Packaging Market is segmented into Flip Chip Scale Package, Flip Chip Ball Grid Array, Wafer Level Chip Scale Packaging, 5D/3D, Fan Out Wafer-level Packaging and Others. The Flip Chip Ball Grid Array type segment is expected to dominate the Advanced Packaging Market during the forecast period. The Flip Chip Ball Grid Array (FCBGA), or Flip-chip BGA, is a semiconductor packaging solution that utilizes the flip chip technology for interconnecting the die and substrate. FCBGA offers high performance at a mid-cost range, enabling higher signal density and functionality in a smaller footprint. It is particularly suitable for applications where performance takes precedence over cost considerations. Standard printed circuit boards can be used to mount Flip-chip BGA packages, and existing repair practices can be employed for replacement. Most Flip-chip BGA packages are assembled on high-density ceramic substrates or organic laminates with two-metal layers or multiple layers. These packages are available in different configurations, including bare die, flat lid, and full lid. They are extensively used in high-performance applications, including ASICs, DSPs, and other semiconductor devices. The adoption of FCBGA packages is widespread among leading semiconductor manufacturers such as Intel, Texas Instruments, and Freescale. These companies incorporate FCBGA packaging in their latest products, such as Intel's Core i7 processors, custom ASICs from Texas Instruments, and processors from Freescale. The FCBGA product line-up caters to diverse markets, including networking, computing, gaming, artificial intelligence, automotive, and consumer electronics. The increasing demand for enhanced functionality and higher processing speeds in these sectors has led to the adoption of flip-chip technology. This technology offers cost-effective and scalable packaging solutions incorporating features like ultra-low K dielectrics, high power integrity, excellent thermal performance, and improved resistance to electromigration (EM). Moreover, FCBGA packages are available in large sizes with fine bump pitches, utilizing Cu pillar and lead-free solder to meet the evolving requirements of these markets.

Figure 1: Advanced Packaging Market, by Type, 2022 & 2030 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Advanced Packaging End-user Insights

Based on the end-user, the Advanced Packaging Market has been bifurcated into Consumer Electronics, Healthcare, Industrial, Aerospace and Defense, Automotive and Other. The Consumer Electronics segment is expected to show maximum growth during the forecast period. The advanced packaging market is anticipated to experience substantial growth in response to the increasing demand for consumer electronics. Consumer electronics encompass a wide range of electronic devices and gadgets designed for regular use by individuals for personal or non-commercial purposes. The demand for advanced packaging is driven by its crucial role in enhancing the sophistication and functionality of these products. An example illustrating this trend is the report from Oberlo, an e-commerce platform based in Lithuania, which stated that the global smartphone user base reached 6.4 billion people in June 2021. This demonstrates the significant influence of the growing demand for consumer electronics on the advanced packaging market. End-user devices such as smartphones, televisions, DVD players, and other consumer gadgets are widely used for personal and commercial purposes. The consumer electronics market is experiencing rapid growth due to the widespread adoption of smart devices across various industry verticals and the introduction of the Internet of Things (IoT). Embedded processors, which are microprocessors utilized in electronic devices like digital watches, digital cameras, MP3 players, and home appliances, play a crucial role in processing data at high speeds. This enables efficient performance in system operations, including continuous and repetitive tasks.

Figure 2: Advanced Packaging Market, by End-user, 2022 & 2030 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Advanced Packaging Regional Insights

The Advanced Packaging Market, based on country, has been divided into North America, Europe, Asia Pacific, South America, and Middle East & Africa. North America consists of US, Canada, Mexico. Europe consists of UK, Germany, France, Italy, and Rest of Europe. Asia-Pacific consists of China, India, Japan, and Rest of Asia-Pacific. South America consists of Brazil, Argentina, and Rest of South America. Middle East & Africa consists of South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa. The Asia-Pacific will hold the maximum share in 2022 and are expected to reach USD 36,528.58 Million by 2030. The market share in the Asia-Pacific region is significant due to the high number of semiconductor manufacturing operations there. Manufacturers in this region are increasing their production capacity to meet the growing demand from fabless vendors, and China is trying to consolidate its substrate manufacturing market.

The North America advanced packaging market is experiencing significant growth due to several factors. Firstly, there is a rising demand for consumer electronics, which directly impacts the market. As people increasingly rely on electronic devices for various purposes, such as communication, entertainment, and productivity, the need for advanced packaging solutions to accommodate these devices' complex and compact designs is growing. Additionally, the growing demand for high-end chips is driving the market forward. High-performance chips are essential in various industries, including telecommunications, automotive, healthcare, and aerospace. These chips require advanced packaging techniques to ensure optimal performance, reliability, and miniaturization. Another important factor contributing to the market's growth is the cost reduction and improved efficiency brought about by advancing packaging technologies.

The Europe Advanced Packaging Market growth can be attributed to the rapid expansion of the advanced packaging market, particularly in wafer level packaging, fueled by the increasing demand for smartphones, electronic devices, and the Internet of Things (IoT). To meet this growing demand, suppliers of advanced packaging are actively developing processes and strategies to reduce the overall cost of advanced packaging and ensure optimal operational efficiency.

The advanced packaging material market in South America is growing steadily, driven by several factors. The increasing demand for advanced electronic devices such as smartphones, tablets, and wearable devices is driving the need for advanced packaging solutions. These devices require smaller, more powerful, and energy-efficient semiconductor chips, which can be achieved through advanced packaging technologies. Furthermore, South America's growing adoption of emerging technologies such as artificial intelligence (AI), Internet of Things (IoT), and 5G connectivity is fueling the demand for advanced packaging materials. These technologies require high-performance and reliable semiconductor chips, which can be achieved through advanced packaging techniques.

The Middle East and Africa (MEA) region is experiencing significant growth in the advanced packaging semiconductor material market. Advanced packaging refers to integrating and encapsulating semiconductor chips compactly and efficiently, enabling higher performance and functionality in electronic devices. The MEA region is witnessing a surge in demand for advanced packaging solutions due to the rapid expansion of industries such as telecommunications, automotive, consumer electronics, and healthcare. These industries require advanced packaging technologies to meet the increasing demand for smaller, faster, and more energy-efficient electronic devices.

Figure 3: Advanced Packaging Market Size By Region 2022 & 2030 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Advanced Packaging Key Market Players & Competitive Insights

The advanced packaging market is a highly competitive landscape, characterized by intense rivalry among key players. The market is witnessing significant growth due to the increasing demand for advanced packaging solutions in various industries, such as electronics, healthcare, automotive, and aerospace.

Several major companies dominate the advanced packaging market, including Amkor Technology Inc., ASE Technology Holding Co. Ltd., China Wafer Level CSP Co. Ltd., ChipMOS Technologies Inc., FlipChip International LLC, HANA Micron Inc, Jiangsu Changjiang Electronics Technology Co. Ltd., King Yuan Electronics Corp, Nepes Corporation, Powertech Technology Inc. and many more. These companies have established themselves as leaders in the industry and are known for their comprehensive product portfolios and strong market presence.

In addition to these industry giants, there are numerous other players competing in the market, ranging from large multinational corporations to smaller regional players. The competition in the advanced packaging market revolves around factors such as product innovation, technological advancements, cost-effectiveness, and customer service. Companies strive to develop cutting-edge packaging solutions that offer higher performance, improved power efficiency, and smaller form factors. They also focus on providing customized solutions to meet the specific requirements of their clients. Partnerships, collaborations, and acquisitions are common strategies employed by companies to strengthen their market position and expand their product portfolios. Companies also invest heavily in research and development to stay at the forefront of technological advancements and maintain a competitive edge. Moreover, market players engage in aggressive marketing and promotional activities to enhance brand visibility and attract new customers. They also strive to build long-term relationships with their clients by providing excellent after-sales support and service.

Key Companies in the Advanced Packaging Market include.

• Amkor Technology Inc.,


• ASE Technology Holding Co. Ltd.,


• China Wafer Level CSP Co. Ltd.,


• ChipMOS Technologies Inc.,


• FlipChip International LLC,


• HANA Micron Inc,


• Jiangsu Changjiang Electronics Technology Co. Ltd.,


• King Yuan Electronics Corp,


• Nepes Corporation,


• Powertech Technology Inc

Advanced Packaging Market Developments

• February 2021: Siemens Digital Industries Software announced a collaboration with Advanced Semiconductor Engineering, Inc. (ASE) to evaluate multiple complex integrated circuit (IC) package assemblies and interconnects in a data-robust graphical environment before and during physical design implementation.


• In October 2022, Amkor Technology declared their dedication to supporting initiatives in the Europe automotive sector. They are predicted to engage in enhanced semiconductor manufacturing in order to speed up the creation of technologies such as advanced driver assistance systems and infotainment for the automobile industry.


• In August 2022, Intel Corporation, a USA-based maker of integrated circuits, announced that the Meteor Lake, Arrow Lake, and Lunar Lake processors were produced by utilizing Foveros technology. The latest high-end graphics processing units 9GPlJs) were built using embedded multi-die interconnect bridge (EMIB) and cutting-edge Foveros technology.

Advanced Packaging Market Segmentation

Advanced packaging Type Outlook (USD Million, 2018-2030)

• Flip Chip Scale Package


• Flip Chip Ball Grid Array


• Wafer Level Chip Scale Packaging


• 5D/3D


• Fan Out Wafer-level Packaging


• Others

Advanced packaging End-user Outlook (USD Million, 2018-2030)

• Consumer Electronics


• Healthcare


• Industrial


• Aerospace and Defense


• Automotive


• Other

Advanced Packaging Market Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• Europe
  
  
  
  • UK
  
  
  • Germany
  
  
  • Italy
  
  
  • France
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • India
  
  
  • Japan
  
  
  • Rest of Asia-Pacific
  
  
  
  


• South America
  
  
  
  • Brazil
  
  
  • Argentina
  
  
  • Rest of South America
  
  
  • Middle East & Africa
  
  
  
  


• Saudi Arabia
  
  
  
  • South Africa
  
  
  • UAE
  
  
  • Rest of Middle East & Africa