Advanced Packaging Market Monitor

Key Features

Advanced packaging revenue increased about 3% quarter-over-quarter in Q4 2025, reaching nearly $15B. In Q1 2026, revenue is expected to decline by around 9% due to normal seasonality. Growth remains concentrated in AI and HPC, especially in 2.5D/3D packaging technologies.

The advanced packaging market is led by foundries such as TSMC and YMTC, IDMs including Samsung, Sony, Intel and SK Hynix, and OSATs such as ASE, Amkor, JCET and TFME. We expect these companies’ advanced packaging revenue growth to continue in 2026, driven by sustained acceleration in AI and HPC.

What's new

• Compilation of Q4 2025 OSAT revenue results and Q1 2026 outlook
• Compilation of the full-year 2025 advanced packaging revenue ranking by player
• Summary of new investments and technology announcements in Q1 2026
• Revised advanced packaging CapEx figures for full-year 2025 and 2026 outlook
• Revised analysis on panel-level packaging revenue and volume figures
• Analysis of the 2.5D interposer market, with a breakdown by different technologies, e.g., CoWoS/CoPoS/CoWoP
• Analysis of the 3D HBM market, including a breakdown by microbump and hybrid bonding technologies

Product objectives

The main objectives of this monitor are the following:

• Provide short-term market dynamics on a quarterly basis.
• Provide capital expenditures (CapEx) and capacity figures per major player.
• Provide market shares of leading OSATs/Foundries/IDMs.
• Provide package ASP figures per given market/platform.
• Provide recent news and strategic moves of key players over the last quarter.

The fan-out, WLCSP/fan-in, 2.5D/3D, FCBGA, FCCSP, and SiP markets are studied from the following angles:

• Supply and demand
• End-user applications and key growth drivers/areas
• Process technologies
• Device application mix
• Production, CapEx, revenue, and package ASP
• 2.5D/3D packages, including Silicon Interposers, Mold Interposers, RDL Interposers, EMIB and other Silicon bridges, HBM, 3D-stacked DRAM, CBA DRAM, 3D NAND, 3D SoC/SoIC with hybrid bonding or microbump (e.g., logic-memory and optical engine) and 3D-stacked CMOS image sensors.
• Revenue and ASPs reflect packaging only. Final test is NOT included.
• WLCSP components used in RF-SiP packages are NOT included in the WLCSP category.
• The SiP package-level market size is given, but the SiP wafer-level market size is not included.

AI Demand Continues to Drive Strong Growth in Advanced Packaging

Q1 2026 advanced packaging revenue down by 9%, but annual outlook remains positive

Advanced packaging revenue increased about 3% quarter-over-quarter in Q4 2025, reaching nearly $15B. In Q1 2026, revenue is expected to decline by around 9% due to normal seasonality, including fewer working days and weaker mobile and consumer demand. Growth remains concentrated in AI and HPC, especially in 2.5D/3D packaging technologies. Although mobile and consumer markets were strong in 2025, smartphone demand is expected to soften in 2026. Advanced packaging CapEx reached nearly $17B in 2025 and is projected to increase by about 40% in 2026, driven by continued demand growth and technology advancement.

Glossary

Advanced Packaging Monitor Scope   

Advanced Packaging Monitor – Market Segmentation  

ID Card  

About The Authors  

Companies Cited  

Packaging Industry Highlights  

Capex Highlights – Investment and Expansion  

Analyst Commentary: Market Dynamics

Key Market Metrics At A Glance  

• Advanced Packaging Market Dynamics – Revenue  
• Advanced Packaging Market Dynamics – Volume
• Advanced Packaging Market Dynamics – Quarterly  
• Advanced Packaging Market by End-Market  

Fan-out Market Dynamics  

• Short-term Fan-out Package Overview  
• Long-term Fan-out Package Overview  
• Short-term Fan-out Package Revenue By End-Market
• Short-term Fan-out Package Shipments By End-Market  
• Fan-out Package Shipments by Supplier
• Fan-out Package Revenue by Supplier
• Fan-out Package Pricing Dynamics
• UHD FO, HD FO, and Core FO Wafer Forecast (300mm Eq.)
• UHD FO, HD FO, and Core FO Revenues
• Fan-out Package Device Mix
• PLP forecast  

WLCSP Market Dynamics 

• Short-term WLCSP Overview  
• Long-term WLCSP Overview  
• Short-term and Long-term WLCSP Wafer Forecast (300mm Eq.)
• Short-term WLCSP Shipments By End-Market  
• Short-term WLCSP Revenues By End-Market  
• WLCSP Shipments by Supplier  
• WLCSP Revenue by Supplier
• WLCSP Pricing Dynamics  
• WLCSP Device Mix  

FCBGA Packaging Market Dynamics  

• Short-term FCBGA Package Overview
• Long-term FCBGA Package Overview
• Short-term FCBGA Wafer Demand by End-Market
• Short-term FCBGA Package Shipments by End-Market 
• Short-term FCBGA Package Revenue by End-Market
• FCBGA Package Shipments by Supplier
• FCBGA Packaging Service Revenue by Supplier
• FCBGA Package Pricing Dynamics
• FCBGA Package Device Mix

FCCSP Packaging Market Dynamics    

• Short-term FCCSP Package Overview 
• Long-term FCCSP Package Overview
• Short-term FCCSP Wafer Demand by End-Market 
• Short-term FCCSP Shipments by End-Market 
• Short-term FCCSP Revenue by End-Market 
• FCCSP Shipments By Supplier    
• FCCSP Packaging Service Revenue By Supplier    
• FCCSP Package Pricing Dynamics    
• FCCSP Device Mix    

2.5D and 3D-stacked Packaging Market Dynamics    

• What has changed this quarter in the 2.5D/3D market forecast    
• 2.5D/3D Packaging Monitor Segmentation     
• Short and long-term 2.5D / 3D Package Unit forecast    
• Short and long-term 2.5D / 3D Revenue forecast    
• Short and Long-term 2.5D / 3D Wafer volume forecast     
• Long-term Wafer volume forecast – focus on 2.5D Interposer    
• Long-term Wafer volume forecast – focus on HBM    
• Short-term 2.5D / 3D package forecast by Interconnect type    
• Short-term 2.5D / 3D package Units and revenue by end-market    
• Short and long-term 2.5D / 3D IC shipments by supplier 
• Short and long-term 2.5D / 3D IC revenues by supplier    
• 2025 Revenue Share by supplier and technology    
• Flip-Chip BGA and IC Substrate revenue for 2.5D and 3D    

SiP Market Dynamics    

• Short-term SiP Package Overview     
• Long-term SiP Package Overview    
• Short-term SiP Shipments By End-Market     
• Short-term SiP Revenue By End-Market    
• SiP Production By Supplier     
• SiP Revenue By Supplier    
• SiP Application Mix    

Supplier Details: Revenues, Shipments and CapEx

• TSMC
• UMC
• Intel
• Sony (Stacked CIS)
• Samsung Electronics 
• Micron
• SK hynix
• YMTC
• ASE (w/o USI and w/SPIL)
• Amkor 
• JCET     
• PTI    
• TFME    
• TianShui Huatian

Conclusion
Appendix 1: Advanced Packaging Platform Definitions
Yole Group Related Products
Yole Group Corporate Presentation

Adeia, Advanced Micro Devices (AMD), Amkor Technology, Analog Devices, AOI Electronics, Apple, Applied Materials, ASE, ASML, Authentec, Broadcom, China Resources Microelectronics, China WLCSP, Chipbond, ChipMOS, CXMT, ECHINT, EugenLight, Forehope Electronic, GlobalFoundries, Hana Micron, Inari Berhad, Infineon, Innolux, Intel, JCET, Kaynes Semicon, King Yuan, KinWong, LG Display, Micron, Mitsui & Co., Murata, Nepes, NVIDIA, Paras Semiconductor, Powertech Technology, Qorvo, Qualcomm, Samsung Electro-Mechanics, Samsung Electronics, SanDisk, Sigurd Microelectronics, SiPLP, Silicon Box, SJ Semiconductor, SK Hynix, Skytech, Skyworks, Sony, Space X, SPIL, STMicroelectronics, Taiwan Semiconductor Manufacturing Company, Taiyo Yuden, TDK, Tesla, Texas Instruments, TianShui Huatian (and HT-Tech), Tongfu Microelectronics, Unimicron, United Microelectronics Corporation, Universal Scientific Industrial (USI), UTAC, Winbond, Wise Road Capital, Wolfspeed, Yangtze Memory Technologies Corp, Zhen Ding Technology and more.