YG PRESS NEWS – Advanced packaging growth exceeds that of the entire semiconductor market

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In 2022, the growth of advanced packaging outpaced that of the semiconductor market, largely due to the industry megatrends of 5G, AI/HPC, and autonomous automotive vehicles.

  • Advanced packaging revenues declined by 7% in Q4 2022 compared to Q3 2022, reaching US$11.5 billion.
  • Q1 2023 is expected to be a weaker than usual quarter, declining by 4% in revenues comparing to the same period in 2022 and decreasing by 16% from the previous quarter.
  • The advanced packaging market will follow the OSAT industry trend, though a growth is still expected for 2023.

According to Yole Intelligence, part of Yole group, in the Advanced Packaging Market Monitor, Advanced packaging (AP) revenue is expected to grow from US$44.3 billion in 2022 to US$78.6 billion by 2028, at a 10% CAGR. In 2022, AP revenue grew by 10%, surpassing the semiconductor market growth rate, which achieved 2%. The AP market showed a 0.3% increase in package units due to weak demand in the mobile and consumer market. The adoption of more advanced and complex packages with high average selling prices (ASPs) is driving the growth of the AP market, which is propelled by megatrends such as AI, HPC, automotive electrification, and 5G adoption. In terms of revenues, flip-chip BGA, flip-chip CSP, and 2.5D/3D are the dominant packaging platforms, with 2.5D/3D technologies exhibiting the highest growth rate. The 2.5D/3D market is projected to grow from US$9.2 billion in 2022 to US$25.8 billion in 2028, achieving a CAGR of 19%. AP units are expected to have a CAGR of 6% from 2022 to 2028, with WLCSP, SiP, and FCCSP leading in terms of the total number of units… For more information about this analysis, please contact us!

Titre du visuel

june 2021

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