Advanced Semiconductor Packaging Market Trends

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

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  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

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  Advanced Semiconductor Engineering, Inc.

  
  


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  Intel Corporation

  
  


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  Advanced Micro Devices, Inc. (AMD)

  
  


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  Amkor Technology

  
  


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  Hitachi Chemical

  
  


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  Jiangsu Changjiang Electronics Technology (JCET)

  
  


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  Infineon

  
  


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  Kyocera

  
  


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  Sumitomo Chemical

  
  


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  China Wafer Level CSP

  
  


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  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

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  Fan-out Wafer Level Package (FO WLP)

  
  


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  5D/3D

  
  


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  Fan-in Wafer Level Package (FI WLP)

  
  


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  Flip Chip

  
  

Advanced Semiconductor Packaging Application Outlook

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  Automotive

  
  


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  Aerospace and Defence

  
  


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  Medical Devices

  
  


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  Consumer Electronics

  
  


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  Other

  
  

Advanced Semiconductor Packaging Regional Outlook

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  North America

  
  
  
  
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    US

    
    
  
  
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    Canada

    
    
  
  
  
  


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  Europe

  
  
  
  
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    Germany

    
    
  
  
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    France

    
    
  
  
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    UK

    
    
  
  
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    Italy

    
    
  
  
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    Spain

    
    
  
  
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    Rest of Europe

    
    
  
  
  
  


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  Asia-Pacific

  
  
  
  
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    China

    
    
  
  
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    Japan

    
    
  
  
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    India

    
    
  
  
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    Australia

    
    
  
  
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    South Korea

    
    
  
  
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    Australia

    
    
  
  
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    Rest of Asia-Pacific

    
    
  
  
  
  


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  Rest of the World

  
  
  
  
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    Middle East

    
    
  
  
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    Africa

    
    
  
  
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    Latin America