Certified Global Research Member
Key Questions Answered
- Global Market Outlook
- In-depth analysis of global and regional trends
- Analyze and identify the major players in the market, their market share, key developments, etc.
- To understand the capability of the major players based on products offered, financials, and strategies.
- Identify disrupting products, companies, and trends.
- To identify opportunities in the market.
- Analyze the key challenges in the market.
- Analyze the regional penetration of players, products, and services in the market.
- Comparison of major players’ financial performance.
- Evaluate strategies adopted by major players.
- Recommendations
Why Choose Market Research Future?
- Vigorous research methodologies for specific market.
- Knowledge partners across the globe
- Large network of partner consultants.
- Ever-increasing/ Escalating data base with quarterly monitoring of various markets
- Trusted by fortune 500 companies/startups/ universities/organizations
- Large database of 5000+ markets reports.
- Effective and prompt pre- and post-sales support.
The global advanced semiconductor packaging market is set to reach US$ 64.96 BN by 2032, at an 8.00% CAGR between years 2023-2032. The dynamics of the Advanced Semiconductor Packaging Market are at conceptually uncharted spaces that exist and can be navigated only at the forefront semiconductor sector. In the process of developing high-complex carrying capacities and functionality, the electronic devices’ size shrinks; thus, advanced semiconductor packaging not only becomes an integral part but also proves to be highly critical in boosting performance, reliability as well as thermal management. Among the main growth factors affecting market dynamics is an unstoppable trend toward smaller and more powerful cases supporting electronics.
Consumers try to get the products that meet new trends with additional functions; consequently, manufacturers of semiconductors strive to create more powerful technologies for modern and smart packaging that can integrate multifarious components involving little space. The result is this initiative being a demand-driven innovation that encourages competition whereby companies strive to provide packaging solutions in response to the changing consumers’ needs within different industries. Technological Improvement is the driving behind Force that is Shaping Advanced Semiconductor Packaging Market. Driven by ongoing demands for more operative solutions and energy-saving figures, semiconductor packaging methods so continue to evolve.
Flip-chip packaging, System-in Package (SiP), as well as 3D packaging are representative nonstandard techniques facilitating enhancement of such key characteristics of semiconductor components like the density and connectivity. A technological contest; along with this, it fulfills the requirements of consumers and allows companies to distinguish themselves from competitors by providing more advanced packaging products. The forces that are external to the global market also include macroeconomic factors and details of supply chain in operation. The changes in the cost of raw materials, geopolitical tensions, and extraordinary disturbances within the supply chain can change the prices that come into play upon manufacturing processes as well as affect availability of packaging materials.
Policies such as a chip shortage, however point out to the precariousness of conducting virtual reality since it is dependent on external factors to deliver products that have been programmed. These therefore suggest the need for strategic planning and conscious capabilities in supplying goods through chain supply. All the sectors in which Advance Semiconductor Packaging Market is involved are vitally intertwined, including electronics manufactures industry, automotive market, health care market and communications industry. On this complex ecosystem working with partners and collaborations can give the essence where different companies bring their professionalism and resources to address market issues.
Notably, arrangements frequently involve research and development projects as organizations join forces in exploiting their resources to foster progressions in semiconductor packaging technology. Indisputably, there is a huge role that regulatory dynamics plays in influencing market trends. International standards and implementation of regulations are essential for reliability, safety, as well as the sustainability of environment of semiconductor packaging processes. The evolution of the regulations may affect the design and manufacture related activities, thereby resulting in innovative changes that create a distinct market outlook within the industry.
Advanced Semiconductor Packaging Market Highlights:
Global Advanced Semiconductor Packaging Market Overview:
Advanced Semiconductor Packaging Market Size was valued at USD 32.5 Billion in 2022. The Advanced Semiconductor Packaging Market industry is projected to grow from USD 35.1 Billion in 2023 to USD 64.96 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.00% during the forecast period (2023 - 2032). The integration of semiconductor components in vehicles will fuel the global semiconductor advanced packaging market growth. The electrification of automobiles as well as the rising demand for automation in vehicles are expected to be a significant market driver for the Advanced Semiconductor Packaging Market.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Advanced Semiconductor Packaging Market Trends
-
Increased consumer electronics usage, driven by rising per capita income and greater affordability of electronic equipment is driving the market growth
Market CAGR for Advanced Semiconductor Packaging is being driven by the increased consumer electronics usage, driven by rising per capita income and greater affordability of electronic equipment. Over the last three years, specific categories within consumer electronics, such as computers (with a 34% increase) and TV sets (with a 12% increase), have experienced faster growth compared to smartphones (with only a 1% increase). This trend is attributed to COVID-19 restrictions and the increased reliance on home-based work and learning. Consequently, the combined sales dollars attributed to smartphones have decreased from 65% to 60%. As of 2021, the global installed base includes approximately 4.3 billion smartphones, 1.4 billion computers, and half a billion tablets. The evolution of consumer electronic products, including laptops, tablets, fitness bands, smartwatches, and other electronic devices requiring intricate semiconductor integration, is anticipated to contribute to the semiconductor packaging industry's growth.
Furthermore, the adoption of the Internet of Things (IoT) and artificial intelligence (AI) in various sectors, spanning consumer electronics, telecommunications, robotics, automotive, aerospace, defense, and others, necessitates hardware that is compatible with advanced software. This shift towards IoT and AI is expected to further propel the expansion of the semiconductor packaging market.
As a result, it is anticipated that throughout the projection period, demand for the Advanced Semiconductor Packaging Market will increase due to the increased consumer electronics usage, driven by rising per capita income and greater affordability of electronic equipment. Thus, driving the Advanced Semiconductor Packaging Market revenue.
Advanced Semiconductor Packaging Market Segment Insights:
Advanced Semiconductor Packaging Packaging Type Insights
The Advanced Semiconductor Packaging Market segmentation, based on Packaging Type includes Fan-out Wafer Level Package (FO WLP), 5D/3D, Fan-in Wafer Level Package (FI WLP), and Flip Chip. The Fan-out Wafer Level Package (FO WLP) segment dominated the market, accounting for 58% of market revenue (18.8 Billion). Due to its compact design, high interconnect density, and excellent electrical performance, FOWLP serves as an optimal platform for packaging Micro-Electro-Mechanical Systems (MEMS) and sensors. This technology facilitates the integration of MEMS components, sensor chips, and signal conditioning circuitry, resulting in the development of compact yet highly efficient sensor modules.
Figure 1: Advanced Semiconductor Packaging Market, by Packaging Type, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Advanced Semiconductor Packaging Application Insights
The Advanced Semiconductor Packaging Market segmentation, based on Application includes Automotive, Aerospace and Defence, Medical Devices, Consumer Electronics, and Others. The Consumer Electronics segment dominated the market, accounting for 60% of market revenue (19.5 Billion). Consumer Electronics are constantly evolving towards smaller and sleeker designs. Advanced packaging techniques allow for the miniaturization of semiconductor components, enabling the creation of compact devices with enhanced performance. Consumers prioritize energy-efficient devices. Advanced packaging contributes to improved energy efficiency, as it allows for better thermal management and power distribution within electronics, reducing energy consumption.
Advanced Semiconductor Packaging Regional Insights
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The anticipated expansion of the Advanced Semiconductor Packaging market in North America can be attributed to several key factors. The North American region boasts the most advanced and well-established technological infrastructure, making it a favorable environment for the semiconductor packaging market. This region's strength is attributed to the presence of highly developed nations like the United States and Canada, which are known for their early adoption of cutting-edge technologies, including the Internet of Things (IoT) and artificial intelligence (AI) in various products. As a result, the North American semiconductor packaging market is anticipated to experience significant growth in the foreseeable future.
Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: Advanced Semiconductor Packaging Market SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe Advanced Semiconductor Packaging Market accounts for the second-largest market share as The European Advanced Semiconductor Packaging market is notably marked by an increasing focus on sustainable and environmentally friendly packaging solutions. As per GFK's 2023 findings, the emphasis on sustainability in Europe's key markets, including France, Germany, Italy, and the UK, is once again on the rise. What's even more noteworthy is that in these nations, over two-thirds of individuals planning to make a significant sustainable purchase in the next 12 months are also expressing their willingness to pay a premium price for such products. The region is proactively investigating eco-conscious packaging materials and methods to curtail environmental footprints and cater to the preferences of environmentally aware consumers. Dominant Market Players – Prominent entities in the European market encompass ASML Holding N.V., Infineon Technologies AG, NXP Semiconductors N.V., and STMicroelectronics N.V. These industry leaders are at the forefront of delivering advanced chip packaging solutions that align with the sustainability objectives of European sectors. Further, the German Advanced Semiconductor Packaging Market held the largest market share, and the UK Advanced Semiconductor Packaging Market was the fastest-growing market in the European region
The Asia-Pacific Advanced Semiconductor Packaging Market is expected to grow at the fastest CAGR from 2023 to 2032. The Asia-Pacific region serves as a major hub for prominent electronic equipment manufacturers. This status is underpinned by the region's well-established industrial and economic infrastructure, particularly in the realm of consumer electronics production. Moreover, Asia-Pacific is home to key semiconductor manufacturing and processing nations, including China, Japan, and Taiwan. In recent years, India, in particular, has witnessed a remarkable surge in the adoption of connected devices, spanning smart home products and wearables. Cisco's projections indicate that by 2023, India is set to host approximately 2.1 billion Internet-connected devices and surpass the 900 million mark in terms of Internet users. This growth can be attributed to the increasing accessibility of affordable smartphones and cost-effective Internet plans. Additionally, the rising per capita income in various countries across the Asia-Pacific region, driven by substantial economic development, has resulted in increased consumer spending on semiconductor-based devices and products. These encompass smartphones, personal computers, high-definition (HD) television sets, and various others. Collectively, these factors are anticipated to propel the growth of the Advanced Semiconductor Packaging market in the Asia-Pacific region. Moreover, China’s Advanced Semiconductor Packaging Market held the largest market share, and the Indian Advanced Semiconductor Packaging Market was the fastest-growing market in the Asia-Pacific region.
Advanced Semiconductor Packaging Market Key Players & Competitive Insights
Leading market players are investing heavily in research and development to expand their product lines, which will help the Advanced Semiconductor Packaging market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Advanced Semiconductor Packaging industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Advanced Semiconductor Packaging industry to benefit clients and increase the market sector. In recent years, the Advanced Semiconductor Packaging industry has offered some of the most significant advantages to the electronics and technology sectors. Major players in the Advanced Semiconductor Packaging Market, including Advanced Semiconductor Engineering, Inc., Intel Corporation, Advanced Micro Devices, Inc. (AMD), Amkor Technology, Hitachi Chemical, Jiangsu Changjiang Electronics Technology (JCET), Infineon, Kyocera, Sumitomo Chemical, China Wafer Level CSP, Ultratech are attempting to increase market demand by investing in research and development operations.
Intel Corporation is a technology company specializing in the design and development of a wide range of products and components. Their product portfolio encompasses microprocessors, chipsets, embedded processors, flash memory, graphics, network and communication solutions, as well as conferencing products. They also provide motherboards, solid-state drives, server products, wireless connectivity solutions, and software applications. Intel's customer base includes original equipment manufacturers, industrial and communications equipment manufacturers, and original design manufacturers. Their products find applications in various devices such as notebooks, tablets, servers, and desktop computers. Intel markets its processors under brand names like Core, Quark, Atom, Celeron, Pentium, Xeon, and Itanium. The company operates in multiple global regions, including China, Singapore, the United States, and Taiwan, with its headquarters situated in Santa Clara, California.
Amkor Technology is a prominent provider of comprehensive semiconductor packaging and testing solutions and services. Their offerings encompass a wide array of services, including semiconductor wafer bump, wafer back-grind, packaging, wafer probe, package design, drop shipment, and system-level and final test services. Amkor caters to a diverse clientele, including fabless semiconductor companies, integrated device manufacturers (IDMs), original equipment manufacturers (OEMs), and contract foundries. Their products and services have applications across various industries, spanning artificial intelligence, automotive, communications, computing, consumer electronics, industrial, internet of things, and networking. Amkor delivers its products and services under brand names such as Amkor, MicroLeadFrame, Amkor Technology, and SWIFT. The company's operational footprint extends across the Americas, Europe, and Asia, with its headquarters situated in Tempe, Arizona, in the United States. In 2019, Amkor Technology, Inc. made a strategic acquisition by purchasing Nanium S.A., a prominent advanced packaging company based in Portugal. This acquisition further solidified Amkor's presence in the European market and expanded its portfolio of advanced packaging solutions.
Key companies in the Advanced Semiconductor Packaging Market include
-
Advanced Semiconductor Engineering, Inc.
-
Intel Corporation
-
Advanced Micro Devices, Inc. (AMD)
-
Amkor Technology
-
Hitachi Chemical
-
Jiangsu Changjiang Electronics Technology (JCET)
-
Infineon
-
Kyocera
-
Sumitomo Chemical
-
China Wafer Level CSP
-
Ultratech
Advanced Semiconductor Packaging Industry Developments
November 2018: Intel Corporation and AMD initiated a strategic partnership to jointly develop chip packaging solutions. This collaboration harnessed the combined semiconductor design and manufacturing expertise of both companies, to advance chip packaging technologies. The primary objective was to enhance the performance and energy efficiency of semiconductor devices.
March 2019: Taiwan Semiconductor Manufacturing Company Limited (TSMC) formed a partnership with ASE Group, focusing on the advancement of cutting-edge chip packaging solutions. Their collaborative efforts concentrated on the enhancement of packaging techniques, including System-in-Package (SiP) and Fan-Out Wafer-Level Packaging (FOWLP), to cater to the growing demand for high-performance and compact electronic devices.
Advanced Semiconductor Packaging Market Segmentation:
Advanced Semiconductor Packaging Packaging Type Outlook
-
Fan-out Wafer Level Package (FO WLP)
-
5D/3D
-
Fan-in Wafer Level Package (FI WLP)
-
Flip Chip
Advanced Semiconductor Packaging Application Outlook
-
Automotive
-
Aerospace and Defence
-
Medical Devices
-
Consumer Electronics
-
Other
Advanced Semiconductor Packaging Regional Outlook
-
North America
-
US
-
Canada
-
-
Europe
-
Germany
-
France
-
UK
-
Italy
-
Spain
-
Rest of Europe
-
-
Asia-Pacific
-
China
-
Japan
-
India
-
Australia
-
South Korea
-
Australia
-
Rest of Asia-Pacific
-
-
Rest of the World
-
Middle East
-
Africa
-
Latin America
-
Leading companies partner with us for data-driven Insights
Kindly complete the form below to receive a free sample of this Report
Tailored for You
- Dedicated Research on any specifics segment or region.
- Focused Research on specific players in the market.
- Custom Report based only on your requirements.
- Flexibility to add or subtract any chapter in the study.
- Historic data from 2014 and forecasts outlook till 2040.
- Flexibility of providing data/insights in formats (PDF, PPT, Excel).
- Provide cross segmentation in applicable scenario/markets.
