The research study covers the present scenario and growth prospects of the global SiP market for 2016-2020. The report considers the use of SiP packages in various end-user segments such as the communications, consumer electronics, computer, automotive, and medical.
The global SiP market is primarily driven by the continuous technological innovation in semiconductor IC packaging. This constant innovation compels packaging vendors such as OSATs and device manufacturers such as IDMs to upgrade the current production line by purchasing new packaging equipment in lieu to the latest packaging technology such as the use of SiP equipment, especially for mobile devices.
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Technavio hardware and semiconductor analysts highlight the following four factors that are contributing to the growth of the global SiP market:
- Need to control rising costs
- Emergence of advanced and compact consumer electronic devices
- Rise in number of fabs
- Increasing number of IoT devices
Need to control rising costs
The increasing requirement in the semiconductor market to offer cost-effective and efficient semiconductor products is driving the demand for SiP packaging technology. The utilization of copper wires instead of the conventional gold wires for the connections within the chips in 3D semiconductor packaging is allowing vendors to reduce their costs significantly. The rising complexity of chip designs for upcoming technologies such as IoT is leading to a rapid rise in design costs. High design costs are limiting semiconductor device manufacturers from adopting aggressive pricing strategies.
Chetan Mohan, a lead semiconductor equipment analyst at Technavio, says, “To control their design costs and to ensure the effective manufacturing of designs on the drawing board, while also reducing packaging cost, companies are increasingly adopting 3D SiP packaging, thereby, driving the growth of the SiP packaging market during the forecast period.”
Emergence of advanced and compact consumer electronic devices
Consumer electronics devices have witnessed massive transformation in the last five years. Feature phones have been replaced by smartphones. PCs were replaced by laptops, and currently, laptops are being replaced by tablets. Cathode ray tube (CRT) TVs are being replaced by LED and smart TVs. Presently, application developers and manufacturers are trying to bring in further transition by interconnecting household devices through a single unit, called smart homes, controlled by applications installed on smartphones. With rapid innovation and the growing demand for better electronics, manufacturers are focusing on offering better consumer products with improved functionalities.
“Such advanced transformation requires manufacturers to continually upgrade their offerings in terms of design, processing power, power consumption, and user-interface, to acquire higher market share. Such upgrades in consumer offerings will require the use of robust technology,” adds Chetan.
Rise in number of fabs
The large-scale requirement of semiconductor devices like sensors and memory from end-user device manufacturers such as consumer electronics, sensor systems, medical devices, and IoT connected devices has propelled the growth of the semiconductor industry substantially. Currently, in 2016 the market is following the cyclical trend of the semiconductor industry. However, in the following years of the forecast period, the market is expected to gain good traction. The slowdown in 2016 is attributed to the slow growth in the Chinese economy, declining sales of tablets and PC, and falling prices of smartphones.
The execution of smart city projects by nations such as India by 2017 will boost the demand for connected devices and devices essential for IoT deployment. In addition, there will be large-scale investment to make driverless cars. All such developments require semiconductor devices, and to meet this considerable demand, semiconductor device manufacturers are increasing the throughput of their production facilities and are planning to construct new fabs. Most the new fab investment will be toward the development of memory and logic ICs, due to their high demand pattern.
Increasing number of IoT devices
End-users across the globe are demanding high-performance devices with reliable and highly portable computing platforms as well as connectivity over wireless networks such as Wi-Fi, 3G, 4G, and Bluetooth for easy data exchange and transfer. The IoT is one of the fastest-growing markets in the world, with an estimated 30 billion connected devices by 2020. It enables devices to collect and transmit data using sensors and actuators from wireless computing devices to a central location on a real-time basis. This empowers the end-users to take an informed decision. The adoption of the technology in market segments such as the consumer electronics, automotive, and medical is expected to drive the wireless device market during the forecast period.
- Amkor Technology
- Jiangsu Changjiang Electronics Technology (JCET)
- Siliconware Precision Industries (SPIL)
- United Test and Assembly Center (UTAC)
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