Is Fan-Out packaging still popular? Equipment & material companies are the heartbeats of this ecosystem

“Although the inflated excitement has started to plunge after few years of hype, Fan-Out technologies are still very well established in low-end and high-end applications”, asserts Favier Shoo, Technology & Market Analyst at Yole Développement (Yole). “It has proven benefits in terms of form factor with no IC substrates, performances with increased I/O density and reliability with die protection. So, without doubts, interest remains high within the industry to extend Fan-Out packaging into new applications.”

In this new era of digitalization, manufacturers are expected to have a faster time-to-market and reliable capabilities to integrate more functionalities. Fan-Out packaging is so well-positioned to meet new demands due to its nature of the process being able to integrate dies coming from different wafer size and source… Yole announces a comfortable 25% CAGR between 2018 and 2024.

The entire supply chain is fully impacted by this enthusiasm and equipment and materials companies are part of the playground. The market research & strategy consulting company Yole releases this week a dedicated report, Equipment & Materials for Fan-Out. Under this 2019 edition, the company deepens its investigations and proposes a relevant overview of the equipment and materials markets for Fan-Out applications. Based on new sales, made from incremental production volumes, the equipment and materials revenue for Fan-Out packaging is expected to grow from more than US$200 million in 2018 to more than US$700 million in 2024. This industry is showing a 20% CAGR during this period.

“With production players slashing growth projections in 2019, suppliers of Fan-Out packaging are now anticipating a smaller CapEx investment in 2019,” explains Favier Shoo from Yole. “Nevertheless, equipment and materials suppliers are well-positioned in the Fan-Out packaging supply chain to gain business from long-term growth.”

Megatrend-driven demands, in the long run, are expected to provide the impetus to push for an inflection in the equipment and materials revenue… More info.

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