Currently, there is an increasing availability of wide range of consumer electronic devices. These devices are available in wide range of package types and includes resistors, capacitors, magnets, and semiconductors (integrated circuits). The global market for advanced semiconductor packaging has been gaining a solid momentum in recent years due to growing interest from the funding and investment community. Evolving consumer preferences and choices in terms of latest gadgets and technology coupled with constant innovation in the field of consumer electronics are some of the key factors that are helping to drive the overall development of the global market. Leading companies in the market are consistently offering new and innovative products to attract more users. This too has worked in favor of the development of the global market.

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As more and more number of consumers are moving towards connected gadgets and devices, and increasing prevalence as well as popularity of Internet of Things (IoT) is also projected to help in the overall development of the global market for advanced semiconductor packaging in coming years. A growing demand for consumer wearable devices, home appliances, and smartphones are also projected to have a highly positive influence on the overall development of the global market. A key trend emerging in the global advanced semiconductor packaging market is of fan-out wafer level packaging (FOWLP).

With Internet of Things emerging as a major growth driver, security has become a prime concern for users. The leading manufacturers in the semiconductor sector are constantly working in order to develop highly secure chips. The global market is also projected to align themselves with the value chain of the electronics goods industry. Thig development is projected to increase the cost of the integrated circuits (ICs). This might pose some problem for the development of the global market in coming years.

The innovation in the semiconductor packaging technology largely depends on the size of wafer. Hence, the increasing focus on wafer-level packages is resulting in chip industry to come up with advanced packaging solutions. The Fan-Out Wafer-Level Packaging (FO-WLP) technology is emerging as an alternative to the 2.5D packaging. Moreover, Fan-out wafer-level packaging can manage multiple dies as compared to the fan-in wafer-level packaging that can handle only single die. Fan-out packaging technology is also witnessing significant growth as it eliminates the need for process flows including wafer fluxing, bumping, cleaning, curing, flip-chip assembly, and underfill dispensing.

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Manufacturers are also focusing on producing larger diameter wafers due to increasing demand this is likely to cut down manufacturing cost and will also lead to the development of advanced semiconductor packaging solution.

A study by Transparency Market Research (TMR) is expecting the global market for advanced semiconductor packaging to experience robust growth. It also projects the market to increase to 10.9% CAGR throughout the forecast period. The global market for advanced semiconductor packaging is also likely to bring in US$ 67,208.2 million revenue towards 2026 end.

global advanced semiconductor packaging market

Flip Chip (FC) to Account for Maximum Revenue Share as the Packaging Type

Compared to other types of advanced semiconductor packaging, Flip Chip (FC) is likely to account for maximum revenue share. By the end of 2026, Flip Chip (FC) packaging is estimated to reach close to US$ 45,700 million revenue. Owing to the lighter, smaller, and thinner consumer products, smaller package types are being used on a large scale. Compared to other packaging types, flip chip offers faster signal transfer, lower profile, and high I/O density.

Advanced Semiconductor Packaging to find Largest Application in Central Processing Units/Graphical Processing Units

Advanced semiconductor packaging is likely to find the largest application in Central Processing Units/Graphical Processing Units. Towards 2026 end, Central Processing Units/Graphical Processing Units is likely to bring in more than US$ 11,500 million revenue. Meanwhile, Dynamic Random Access Memory is also likely to witness robust growth between 2017 and 2026.

Consumer Electronics to be the Largest End Users of Advanced Semiconductor Packaging

Among various industries as end users of advanced semiconductor packaging, consumer electronics is likely to emerge as the largest end user. By 2026 end, consumer electronics are estimated to bring in nearly US$ 15,600 million revenue. Increasing demand for various devices including tablets, smartphones, wearable devices and other connected consumer electronics, is resulting in the advanced semiconductor packaging technologies. Meanwhile, System-In-Package (SIP) technology is also gaining momentum as it allows more features to be integrated into small form factors such as medical implants and wearable devices.

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APEJ to Emerge as the Leading Region in Terms of Revenue in the Global Market for Advanced Semiconductor Packaging

Asia Pacific Excluding Japan (APEJ) is anticipated to emerge as the major revenue contributor to the advanced semiconductor packaging market between 2017 and 2026. Prominent semiconductor manufacturing companies present in the region are fueling the demand for advanced semiconductor packaging. Moreover, companies are also investing heavily in the research and development activities for developing new semiconductor packages with advanced features.

Competition Tracking

AMD, Intel Corp, Amkor Technology, STMicroelectronics, Hitachi Chemical, Infineon, Avery Dennison, Sumitomo Chemical Co. Ltd., ASE Group, and Kyocera, are the leading market players in the global market for advanced semiconductor packaging.

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