Global Advanced Packaging Market Growth, Trends, Forecasts 2020-2025: Fan-out Wafer Level Packaging Expected to Witness Significant Growth Rate - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "Advanced Packaging Market - Growth, Trends, Forecasts (2020 - 2025)" report has been added to ResearchAndMarkets.com's offering.

The Advanced Packaging Market was valued at USD 25.62 billion in 2019, and it is expected to reach a value of USD 36.29 billion by 2025, at a CAGR of 7.8% during the forecast period of 2020 to 2025.

The innovation in packaging technology is related to the increase in the functional density of large system-on-chip solutions. As a result, the focus on heterogeneous integration and wafer-level packages has prompted the chip industry to lay a new set of solutions, collectively known as advanced packaging.

Advanced packaging technology has evolved to minimize the cost involved and enhance the overall throughput and performance of ICs. Further, With the augmented adoption of semiconductor ICs in automobiles, the demand for advanced packaging has increased considerably in recent years.

As people are shifting toward connected devices, an increase in the Internet of Things (IoT) will lead to the growth of semiconductor packaging. The growth in the demand for consumer wearable goods, smartphones, and home appliances will have a positive impact on this industry. With IoT being a significant driver, security is a primary concern for the user. The semiconductor manufacturers have to work to develop more secure chips continually.

At the start of 2020, TSMC was investing heavily in 5nm fabrication. TSMC's 7nm process is in its peak, receiving vast numbers of orders from AMD for its Ryzen 3000-series CPUs and Navi graphics cards and other customers include Apple and Huawei. On the 5nm front, TSMC is working with EUV lithography, similar to what Samsung is accomplishing, and the company is expecting 10% of 2020's year's revenue to come from its 5nm EUV lines. After the 3nm process will take over, and TSMC expects mass production to start in 2022.

Moreover, AI is driving the development of 3D TSV and heterogeneous integration technologies. The 3D integration is offering unequaled performances suiting exactly the pressing needs of AI applications. TSMC's CoWoS advanced packaging technology combines memory chips and logic computing in a 3-D way for high computing products targeting artificial intelligence, cloud computing, data center, and supercomputer applications. This 3-D integration gives way for power-efficient high-speed computing while reducing heat and CO2 emissions.

With the recent outbreak of COVID 19, the advanced packaging market will witness a decline in growth due to restrictions on the movement of goods and severe disruptions in the semiconductor supply chain. Moreover, the major semiconductor vendors are working with reduced capacity owing to the spread of COVID-19 virus across the world. For instance, Foxconn iPhone production operations located about 300 miles from Wuhan in Zhengzhou operated with 10-20 % capacity due to workforce issues forced by the lockdown of cities.

Key Market Trends

Fan-out Wafer Level Packaging Expected to Witness Significant Growth Rate

• Fan-out wafer-level packaging (FOWLP) has emerged as a promising technology to meet the ever-increasing demands of consumer electronic products. The significant advantages of this type of packaging are specific features such as substrate-less package, lower thermal resistance, and higher performance due to shorter interconnects combined with direct IC connection by thin-film metallization instead of the standard wire bonds or flip-chip bumps and more moderate parasitic effects.
• Fan-out wafer-level packaging (FOWLP) is the latest packaging trend in the field of microelectronics. With various technological developments towards heterogeneous integration, including multiple die packaging, passive component integration in packages and redistribution layers, and other package-on-package approaches, larger substrate formats are targeted with the help of FOWLP. Hence, it is well suited for the packaging of a highly miniaturized energy harvester system consisting of a piezo-based harvester, a power management unit, and a supercapacitor for energy storage.
• The fan-out wafer-level packaging (FOWLP) technology is being perceived as an alternative to 2.5D packaging. Fan-out is capable of multiple dies, as compared to fan-in wafer-level chip-scale package (WLCSP) technology, that handles a single die. Fan-out technology gained popularity in 2016 when Apple integrated its 16 nm A10 application processor with the mobile DRAM in a single package inside the iPhone 7. Apple used TSMC's Integrated Fan-out (InFO) packaging technology, which the company had been developing since 2014.
• Moreover, TSMC is increasing its InFO-PoP packaging capacity for processing A13 processor chips that power the new iPhone SE devices. Several packaging organizations are moving closer to the production of panel-level fan-out packaging. This next-generation technology is expected to reduce the cost of today's fan-out packages. Nepes, Samsung, ASE are among the major players that have already installed the equipment in their panel-level fan-out lines with production scheduled in 2019.

Competitive Landscape

The Advanced Packaging Market is witnessing dominance by ten to fifteen significant players like Intel Corporation, Samsung Electronics Co. Ltd. The market is significantly driven by end-user revenue because of the demand for the latest technology and high-speed gadgets. Sustainable competitive advantage is being attained by the companies through innovations in this market, owing to the growing need for differentiated products for various applications. The constant evolution of technological developments in smartphones, tablets, wireless communications, etc., will have a positive impact on this industry.

Key Topics Covered:

1 INTRODUCTION

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET DYNAMICS

4.1 Market Overview

4.2 Industry Value Chain Analysis

4.3 Industry Attractiveness - Porter's Five Forces Analysis

4.4 Market Drivers

4.4.1 Increasing Trend of Advanced Architecture in Electronic Products

4.4.2 Favourable Government Policies and Regulations in Developing Countries

4.5 Market Restraints

4.5.1 Market Consolidation affecting Overall Profitability

4.6 Impact Of Covid-19 on the Industry

5 MARKET SEGMENTATION

5.1 Packaging Platform

5.1.1 Flip Chip

5.1.2 Embedded Die

5.1.3 Fi-WLP

5.1.4 Fo-WLP

5.2 Geography

6 COMPETITIVE LANDSCAPE

6.1 Company Profiles

6.1.1 Amkor Technology, Inc.

6.1.2 Taiwan Semiconductor Manufacturing Company, Limited

6.1.3 Advanced Semiconductor Engineering Inc.

6.1.4 Intel Corporation

6.1.5 STATS ChipPAC Pte. Ltd

6.1.6 Chipbond Technology Corporation

6.1.7 Samsung Electronics Co. Ltd

6.1.8 Universal Instruments Corporation

6.1.9 SUSS Microtec Se

6.1.10 Brewer Science, Inc.

7 INVESTMENT ANALYSIS

8 MARKET OPPORTUNITIES AND FUTURE TRENDS

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