SEMICON EUROPA 2025

In recent years, the semiconductor supply chain has shown its vulnerability to disruptions caused by COVID-19, geopolitical tensions, and the China–US trade war, largely due to monopolies and regional specialization. In response, governments and corporations have launched initiatives such as the “chip acts” launched since 2022.

These measures have reshaped both MEMS and imaging markets, but in different ways. The MEMS market, valued at $15.4B in 2024 and expected to reach $19.2B by 2030, has returned to growth from 2024, driven by the end of inventories, ongoing company consolidation (e.g., STMicroelectronics’ acquisition of NXP’s MEMS assets), and the expansion of China’s MEMS domestic ecosystem. The imaging market, worth $23.2B in 2024 and projected at $30.1B by 2030, has been less affected, thanks to its reliance on mature nodes. Sony remains dominant, while Chinese firms gain ground. In the thermal imaging segment, export restrictions of devices and raw materials are fostering the emergence of distinct regional ecosystems.

This presentation will outline the evolving MEMS and imaging industry landscapes within the current geopolitical context.

The rapid rise of fabless chipmakers, combined with government interventions such as subsidies, tariffs, and protectionist policies, is reshaping global competition across the semiconductor supply chain. In this volatile environment, companies with manufacturing assets must strike the right balance between technology leadership, operational agility, and cost efficiency to remain competitive.

This presentation examines how European chipmakers can leverage the region’s highly skilled workforce and deep manufacturing expertise to capitalize on emerging disruptive technologies and external market forces to strengthen their position in the global market.

Advanced packaging has become a key differentiator in semiconductor performance and system integration.
By enabling higher density, lower power consumption, and improved thermal management, technologies
such as 2.5D and 3D integration, chiplet architectures, and heterogeneous packaging are reshaping both
product design and manufacturing strategies across the global semiconductor industry.
Based on Yole Group’s continuous market monitoring activities, this presentation provides an updated view
of the advanced packaging market and Europe’s position within it. Global packaging revenues are expected
to exceed $140 billion by 2030, driven by computing, AI, and automotive applications that increasingly rely
on system-level integration. Europe currently represents about 8% of the total market, with strong industrial
bases in automotive, telecom, industrial, and defense sectors. However, most packaging production remains
concentrated in Asia, highlighting both structural dependencies and opportunities for European investment
and collaboration.
The analysis reviews key technology trends, including hybrid bonding, fan-out, and system-in-package
solutions, and their adoption potential across different European ecosystems. It also discusses the strategic
factors shaping Europe’s competitiveness, such as the role of IDMs, OSAT partnerships, materials and
equipment suppliers, and public support mechanisms aimed at reinforcing local value creation.
Ultimately, the presentation shows how advanced packaging is not only a technological enabler but also a
strategic lever to strengthen Europe’s contribution to global semiconductor performance and innovation.