Global Advanced Packaging Market: Snapshot
Advanced packaging has opened new paradigm in chip making and has transformed semiconductor fabrication processes. Foundries have increasingly benefitted from the automation of advanced packaging process, especially underpinned by growing initiatives by electronic design automation. Efforts are being made to make advanced packaging meet the various conditions of power dissipation, field operation, and most importantly the cost. The evolution of the advanced packaging market also stems from the need for high-performance chips for a range of consumer electronics. This has bolstered the demand for 3D and 2.5D packaging in chips that are used in smartphones and several other mobile devices. Moreover, advances in panel-level fan-out technologies has also opened new avenues in the advanced packaging market.
Growing adoption of next-generation semiconductor platform is propelling the uptake of different advanced packaging techniques. Over the past few years, an assortment of new system-level chip designs have been developed by key semiconductor packaging companies. Chipmakers are seeing new heterogeneous integration techniques process for combining nodes in chip making, which have enabled them to come out with new designs.
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Global Advanced Packaging Market: Notable Developments
The global advanced packaging market has been witnessing new avenues from technology licensing agreements leading to the expansion in Panel Level Packaging (PLP) and FOWLP technologies. Particularly, this will help providers of advanced packaging solutions to offer new fan-out packaging technologies. Key providers in the advanced packaging market are also expanding their semiconductor lines.
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A Korea-based advanced packaging solution provider Nepes announced in October 2019 that it has decided to license the advanced packaging technology–M-Series—from Deca Technologies Inc., a relatively new wafer-level interconnect foundry. It will also take semiconductor packaging fab. Particularly, it will acquire fan-out wafer-level packaging (FOWLP) production line of Deca Technologies. Such developments considerably expand the potential of the advanced packaging market.
FOWLP is a market characterized by a few players, possibly because it has high-entry barrier. This presents Nepes sizable opportunities to strengthen its foothold there. The company plans to leverage the competitive gains within five years of the acquisition. Acquisitions such as these bolster the prospects of the advanced packaging market by stirring its popularity in mobile chipsets manufacturing.
Some of the prominent players operating in the advanced packaging market are:
Samsung Electronics Co., Ltd.
Intel Corporation
Advanced Semiconductor Engineering Inc.
TSMC
Amkor Technology, Inc.
STATS ChipPAC Pte. Ltd
Samsung Electronics Co. Ltd
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Global Advanced Packaging Market: Key Drivers
Growing need for advanced wafer packaging techniques for fast expanding IoT and next-generation mobile chipsets is driving the advanced packaging market. Rising demands of high-performance gadgets in developing economies has kept the market increasingly lucrative over the years.
Increasing adoption of AI in industrial automation will bolster the demand for high-end chips fabricated using advanced packaging. The advanced packaging market has seen lithography fabrication processes gathering steam. Further, heterogeneous integration techniques are gathering steam among packaging service providers.
Growing popularity of fan-out wafer-level packaging world over has helped underpin new prospects in the advanced packaging market. However, other wafer-level packaging technologies are not growing at an attractive pace. A fast growing logic chip industry in developing regions is also boosting the advanced packaging market. Over the past few years, wafer manufacturing service providers have relentlessly worked on expanding their product portfolio and meet the needs of globally prominent semiconductor manufacturers.
Global Advanced Packaging Market: Regional Assessment
The global advanced packaging market is witnessing sizable revenues in Asia Pacific and North America. Particularly in Asia Pacific, a fast expanding semiconductor industry to meet a wide cross-section of consumer demands for next-generation mobile device. In key economies of the region, IC industry has made rapid strides, thus boosting the revenue generation from the Asia Pacific advanced packaging market. Other key regions are Europe, Latin America, and the Middle East and Africa.
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