Steady growth in next-gen Fan-Out packaging

FO packaging revenue was US$1.86 billion in 2022. Yole Intelligence, part of Yole Group, expects it to have a CAGR of 12.5% through 2028, reaching US$3.8 billion. UHD FO will experience the fastest growth across all market classes, with a CAGR of 30%, growing from US$338 million in 2022 to US$1,630 million in 2028.

Indeed, as Yole Intelligence’s analysts affirm, the top three OSAT companies, ASE, Amkor, and JCET, together with TSMC, had more than 90% of the fan-out market in 2022.

In this context, Yole Intelligence releases its semiconductor packaging report, Fan-Out Packaging 2023. In this report, the company – part of Yole Group – identifies and describes which technologies can be classified as FO packaging and defines market classes. It also analyzes key market drivers, benefits, and challenges of FO packages for the different applications, the different existing technologies, their trends, and roadmaps and analyzes the supply chain and fan-out packaging market landscape. In addition, this report provides a market forecast for the coming years and estimates future trends.
FO packaging has evolved from a low-end packaging technology into a high-performance integration platform, with growing adoption in the HPC , networking, automotive, and high-end mobile markets. One of the major market trends driving fan-out packaging technology is large die partitioning into chiplets and heterogeneous integration. Fan-out is a cost-effective platform that enables high-bandwidth and high-density die-to-die interconnections through RDL -based processes. UHD FO will take market share from Si Interposers in the future through innovative FO-on-substrate and FO-embedded bridge solutions.

TSMC is the market leader in high-performance FO solutions for high-end computing, networking, and HPC applications. ASE, SPIL, Samsung, JCET, Amkor, PTI, TFME, and Nepes are developing similar solutions with huge potential to compete. Though core FO is the primary OSAT market, the main developments are in HD and UHD FO technologies.

FOPLP has been hyped as the solution for the widespread adoption of FO, especially for large package sizes. However, it still presents technical challenges, and there is a lack of demand to achieve the desired cost benefit.

Yole Intelligence’s semiconductor packaging team invites you to follow the technologies, related devices, applications, and markets on www.yolegroup.com.

In this regard, do not miss the Status of the Advanced Packaging Industry presentation replay made by Jean-Christophe ELOY, President and CEO of Yole Group, during the Silicon Valley & Northeast Virtual Forum 2023, and IC substrate: key element of the Packaging industry – Presentation replay made by Emilie JOLIVET, Semiconductor, Memory and Computing Division Director at Yole Intelligence, during EIPC 2023.

Stay tuned!