YG PRESS NEWS – Advanced packaging: a 13% revenue growth in 2024, driven by HPC and generative AI megatrends

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The advanced packaging revenue saw a 4% increase in Q4 2023, bolstering the strength of the latter half of the year.

  • The advanced packaging revenue is projected to grow from US$37.8 billion in 2023 to US$69.5 billion in 2029, with a 10.7%CAGR from 2023 to 2029.
  • The advanced packaging market is primarily fueled by the mobile and consumer, telecom and infrastructure, and automotive sectors, propelled by megatrends like HPC and generative AI.
  • In 2024, TSMC, Intel, Samsung, ASE, Amkor, and JCET are set to collectively invest about US$11.5 billion in advanced packaging.

According to Yole Group, in the Advanced Packaging Market Monitor Q1 2024, in Q4-2023, advanced packaging revenue hit US$10.7 billion, indicating a modest 4% increase compared to the previous quarter. Despite ongoing soft demand and continued digestion of customer inventories, signs point to a forthcoming recovery in 2024. However, Q1 2024 is anticipated to exhibit the lowest performance of the year, with a projected 13% quarter-over-quarter decline to US$9.1 billion.

Regarding capital expenditure (CapEx), most companies witnessed upticks in Q4 2023 compared to the previous quarter. Notably, the quarter saw substantial investments in advanced packaging both domestically and overseas, with notable announcements from industry leaders such as Silicon Box, ASE, JCET, TSMC, Raytheon, and NHanced Semiconductors. Many of these investments are directed towards the burgeoning field of generative AI, underscoring the growing demand for enhanced capacity and more intricate packaging technologies.

By the end of 2023, key players in the advanced packaging realm—including OSATs, IDMs, and foundries—had collectively invested approximately $9.9 billion in CapEx, representing a 21% decrease from 2022 levels… For more information about this analysis, please contact us!

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