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Advanced packaging market expected to reach US$57.67bn by 2026

Source:Brand Essence Market Research Date :2021-03-23 Editor :Santosh Salgare

According to a market report from Brand Essence Market Research, Advanced Packaging Market is valued at US$ 28.67 billion in 2019 and expected to reach US$ 57.67 billion by 2026 with the CAGR of 10.5% over the forecast period. Increasing demand of Advanced Packaging for Semiconductor is key growth driving factor of the Advanced Packaging Market.

 

Scope of Advanced Packaging has brought a shift in the chip manufacturing sector and is anticipated to bring transformation semiconductor fabrication methods. Hence, advanced packaging developed as a means of improving device performance while shrinking packages at the same time.

 

Traditional packaging encapsulated each individual chip, requiring more weight in exchange for even more instability. These advanced packaging technologies are the combination of various techniques such as 2.5D, 3D-IC, wafer-level packaging, and many others. This facilitates in the integrated circuits to enclose in the case which prevents the corrosion of the metallic parts and physical damage.


Advanced Packaging Market is expected to reach US$ 57.67 billion by 2026.


The packaging techniques used to rely on various parameters such as power consumption and operating conditions. These technologies are widely used in the industrial and automotive sectors. In addition to this, large-scale acceptance of next-gen semiconductor tool is predicted to scale up the use of myriad advanced packaging methods, thereby steering the industry development technology.

 

To name an example, Nepes, one of the top tiers advanced packaging service providers, licensed the advanced packaging technology from Deca technologies and taken over its semiconductor packaging line. Hence, the Nepes announced in 2019 that it has decided to license the advanced packaging technology M-Series and take over the semiconductor advanced packaging fab from Deca Technologies.

 

Moreover, the Nepes will acquire Deca’s wafer level chip scale production line including Fan-out wafer-level packaging (FOWLP) in support of active customers as well as enter into a technology license agreement.

 

The FOWLP is an innovative back-end technology in semiconductor manufacturing as the evolution of wafer fab technology is currently slowing down. This FOWLP is applied to advanced semiconductors enabling high integration and superior thermal dissipation characteristics and is a fast growing market with revenues expected at around US$ 3 billion in 2025.

 

The FOWLP market has a high entry barrier. These are only 4 OSAT (Outsourced Semiconductor Assembly and Test) companies with FOWLP mass production ability globally including Nepes. However, the Nepes has plans to gain 10% of the market share within 5 years of this acquisition.

 

Nepes is currently strengthening its portfolio to gain leadership in logic chip packaging market. In particular, Deca’s FOWLP technology (M-Series) provides high reliability, suitable for mobile chipsets with enhanced chip protection and stability.



In terms of applicaitons, the rapid increase in demand for miniaturization of devices in providing compact electronic devices in various industry verticals such as consumer electronics, healthcare, automotive is expected to drive the growth of advanced packaging market within the forecast period.

 

In addition, growing necessity for high performing chips in various consumer electronics devices is likely to assist the advanced packaging market growth to gain momentum over the forecast timeline.

 

According to Smart cities World, the US government’s smart city programme, through which 70 cities are awarded US$ 1 million in new investment is well intentioned, but it probably costs each city more than that to repave one mile of a four-lane road.

 

However, High initial costs of advanced packaging with higher maintenance costs of these systems may hinder the market growth of the advanced packaging. In spite of that recent development to produce more innovative advanced packaging can provide an opportunity for the further growth of the market.

 

In addition, advances in panel-level fan-out technologies may also open new opportunities for the advanced packaging market growth.

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Source:Brand Essence Market Research Date :2021-03-23 Editor :Santosh Salgare

According to a market report from Brand Essence Market Research, Advanced Packaging Market is valued at US$ 28.67 billion in 2019 and expected to reach US$ 57.67 billion by 2026 with the CAGR of 10.5% over the forecast period. Increasing demand of Advanced Packaging for Semiconductor is key growth driving factor of the Advanced Packaging Market.

 

Scope of Advanced Packaging has brought a shift in the chip manufacturing sector and is anticipated to bring transformation semiconductor fabrication methods. Hence, advanced packaging developed as a means of improving device performance while shrinking packages at the same time.

 

Traditional packaging encapsulated each individual chip, requiring more weight in exchange for even more instability. These advanced packaging technologies are the combination of various techniques such as 2.5D, 3D-IC, wafer-level packaging, and many others. This facilitates in the integrated circuits to enclose in the case which prevents the corrosion of the metallic parts and physical damage.


Advanced Packaging Market is expected to reach US$ 57.67 billion by 2026.


The packaging techniques used to rely on various parameters such as power consumption and operating conditions. These technologies are widely used in the industrial and automotive sectors. In addition to this, large-scale acceptance of next-gen semiconductor tool is predicted to scale up the use of myriad advanced packaging methods, thereby steering the industry development technology.

 

To name an example, Nepes, one of the top tiers advanced packaging service providers, licensed the advanced packaging technology from Deca technologies and taken over its semiconductor packaging line. Hence, the Nepes announced in 2019 that it has decided to license the advanced packaging technology M-Series and take over the semiconductor advanced packaging fab from Deca Technologies.

 

Moreover, the Nepes will acquire Deca’s wafer level chip scale production line including Fan-out wafer-level packaging (FOWLP) in support of active customers as well as enter into a technology license agreement.

 

The FOWLP is an innovative back-end technology in semiconductor manufacturing as the evolution of wafer fab technology is currently slowing down. This FOWLP is applied to advanced semiconductors enabling high integration and superior thermal dissipation characteristics and is a fast growing market with revenues expected at around US$ 3 billion in 2025.

 

The FOWLP market has a high entry barrier. These are only 4 OSAT (Outsourced Semiconductor Assembly and Test) companies with FOWLP mass production ability globally including Nepes. However, the Nepes has plans to gain 10% of the market share within 5 years of this acquisition.

 

Nepes is currently strengthening its portfolio to gain leadership in logic chip packaging market. In particular, Deca’s FOWLP technology (M-Series) provides high reliability, suitable for mobile chipsets with enhanced chip protection and stability.



In terms of applicaitons, the rapid increase in demand for miniaturization of devices in providing compact electronic devices in various industry verticals such as consumer electronics, healthcare, automotive is expected to drive the growth of advanced packaging market within the forecast period.

 

In addition, growing necessity for high performing chips in various consumer electronics devices is likely to assist the advanced packaging market growth to gain momentum over the forecast timeline.

 

According to Smart cities World, the US government’s smart city programme, through which 70 cities are awarded US$ 1 million in new investment is well intentioned, but it probably costs each city more than that to repave one mile of a four-lane road.

 

However, High initial costs of advanced packaging with higher maintenance costs of these systems may hinder the market growth of the advanced packaging. In spite of that recent development to produce more innovative advanced packaging can provide an opportunity for the further growth of the market.

 

In addition, advances in panel-level fan-out technologies may also open new opportunities for the advanced packaging market growth.

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Advanced packaging market expected to reach US$57.67bn by 2026

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