FCCSP packaging market to rise to new heights driven by mobile & consumer

The semiconductor industry has enjoyed unprecedented growth in the last 15 years, fueled by smartphones, big data, 5G, and the AI revolution. As we look into the future, Moore’s law as we know it will continue to slow down as Si transistor scaling continues to be very costly as only a few players remain able to invest in the capital infrastructure necessary. Intel’s 7 nm delays are also evidence that only a select few players will remain as the technology node reduces to sub 5 nm.

FCBGA PACKAGING REVENUE REACH NEW HEIGHTS AS DEMAND FOR SERVERS, AI, AND NETWORKING SKYROCKETS AMID GLOBAL CORONAVIRUS PANDEMIC

FCCSP packages are mainly used in baseband, RF transceivers, memory, and some PMIC applications.
Vaibhav Trivedi, Senior Technology & Market analyst, Semiconductor & Software division at Yole Intelligence, part of Yole Group explains: “Memory DRAM packages used in PC/Datacenter/Automobile are primarily FCCSP based manufactured by top memory makers such as Samsung, Micron, SK Hynix and Winbond.”
FCCSP packages find their place in mobile and consumer markets mainly in smartphone APUs, RF components and DRAM devices used in PC, servers, and automotive applications. FCCSP packages are well suited as they provide low cost and reliable solution like WLCSP without incurring higher cost of fan-out type packages. FCCSP are typically single die with few passive components with less than 13mm x 13 mm BD size and are typically over molded and use molded underfill for solder joint protection. FCCSP packaging market share is controlled mainly by top OSATs such as ASE, Amkor, JCET, and memory suppliers such as Samsung, SK Hynix, and Micron.

RISING CAPEX IN 2021 BY TOP OSATS IN ADVANCED PACKAGING

The semiconductor industry in 2020 was resilient and experienced strong growth as the top OSATs showed unprecedented growth in Q4 2020 and, in fact, throughout 2020 as the global pandemic took shape.  Many OSATs, IDMs, and OEMs experienced +15-20% growth in revenue and increased gross margins compared to 2019…

In the race for heterogeneous integration, key players, such as ASE (w/SPIL & USI), TSMC, Intel, Amkor, and JCET, have announced unprecedented CapEx investment in 2021:
• TSMC is planning to spend an estimated US$2.5-US$2.8 billion CapEx in 2021 to gear up new advanced packaging factories with InFO based devices, CoWoS, and SoIC-based product lines. TSMC generated an estimated $3.6 billion revenue through its advanced packaging offering in 2021 and is poised to reach new heights in the cluster of top OSATs.
• ASE has also announced an estimated US$2 billion CapEx investing specifically in the booming system-in-package business through EMS activities, as well as its wafer-level packaging business. ASE remains a top OSAT after the acquisition of SPIL and USI…
• Finally, Intel has recently announced that it will invest ~US$20 billion in building new fabs in Arizona. It will also invest in advanced packaging collaborations as it expands its Foveros/EMIB “hybrid” packaging manufacturing in its Arizona and Oregon factories…
For more information, discover Vaibhav Trivedi’s article: Advanced Packaging CapEx to exceed US$5 billion in 2021 as top OSATs and foundries continue to crank on all cylinders, on i-Micronews.