LONDON--(BUSINESS WIRE)--Technavio’s latest market research report on the global fan-out wafer level packaging (FOWLP) market provides an analysis on the most important trends expected to impact the market outlook from 2017-2021. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline.
Sunil Kumar Singh, a lead analyst from Technavio, specializing in research on embedded systems says, “The global FOWLP market is expected to grow at a CAGR of close to 48% during the forecast period. FOWLP solutions are primarily used to manufacture ICs for electronic devices at the packaging level. The growing demand for electronics is driving the demand for ICs and FOWLPs at a global scale, and this trend is likely to continue during the forecast period.”
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The top three emerging market trends driving the global fan-out wafer level packaging market according to Technavio hardware and semiconductor research analysts are:
- Increase in wafer size
- High adoption of semiconductor ICs in automobiles
- Short replacement cycle of mobile devices
Increase in wafer size
The global semiconductor industry witnessed an increase in the size of silicon wafers, from 100 mm to 300 mm, during 1970-2016. The transition to larger diameter wafers minimizes the cost of manufacturing semiconductor ICs by 20%-25%. At present, the industry predominantly uses 300 mm wafers to manufacturer ICs. This trend is expected to maintain its momentum during the forecast period as companies are investing a substantial amount in the construction and upgradation of fabs to manufacture 300 mm wafers.
High adoption of semiconductor ICs in automobiles
The automation and electrification of automobiles has increased the need for semiconductor wafers. Several types of semiconductor ICs are used in automotive products such as GPS, airbag control, anti-lock braking system (ABS), power doors and windows, car navigation and display, infotainment, collision detection technology, and automated driving. This will propel the demand for WLP solutions for IC packaging in the automobile segment.
“The automotive products market is expected to grow with an increase in car production during the forecast period. This will create the demand for semiconductor devices, which will indirectly trigger the demand for packaging solutions during the forecast period,” says Sunil.
Short replacement cycle of mobile devices
The buying pattern of consumers is changing due to technological advances and an increase in disposable income. Currently, electronic devices are becoming obsolete at a fast rate of around one to one-and-half years. They are replaced with a higher version or better technology model introduced by the OEMs. It is estimated that Apple generates about 70% of its total revenue from replacement sales of iPhone devices and approximately 30% from new customers. The revenue from replacement sales is expected to reach about 80% during the forecast period. This will lead to an increase in the demand for semiconductor ICs and WLP solutions, including FOWLPs during the forecast period.
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