Market and Technology Trends

System-in-Package 2023

By Yole Intelligence — Sep 2023

SiP powered by Chiplet and Heterogeneous integration: from $21.2B in 2022 to $33.8B in 2028.

YINTR23385

SiP market growth driven by 5G, AI, HPC, autonomous driving and IoT trends

Total SiP market revenue reached $21.2B in 2022. It is expected to be worth $33.8B in 2028, growing with an 8.1% CAGR, driven by the growing trends of heterogeneous integration, chiplet, package footprint, and cost optimization in market segments such as 5G, AI, HPC, autonomous driving, and IoT.

The SiP market is strongly dominated by the mobile & consumer segment, which represented 89% of the total revenues in 2022 and will continue to dominate the market in the future, presenting a 6.5% CAGR. It is driven by the growing adoption of 2.5D/3D technologies in handset, high-end PC, and gaming; of HD FO in high-end handset devices; and of more FC/WB SiPs in handset and wearables, including RF and other connectivity modules.

The telecom & infrastructure market is expected to grow 20.2% in the coming years, mainly driven by the AI, HPC, and networking segments and by its increased performance requirements.

The automotive market is growing with a CAGR of 15.3%. It will be driven by vehicle electrification and autonomous driving trends, including applications such as ADAS and LiDAR, in which a higher number of sensors and cameras is needed.

SiP Supply Chain getting competitive and focusing on team up for the best

SiP market share is dominated by Asia, with 77% of the revenues. Japan takes the most (41%), mainly due to Sony’s 3D CIS market. North America, with contributions from Amkor and Intel, takes 21% of the revenue. Europe holds 2% of the remaining market. For FC/WB SiP, it is mainly by OSATs including ASE (with SPIL), Amkor, JCET, TFME, PTI, Huatian, ShunSin, and Inari. FO SiP is dominated by TSMC with its InFO line. 2.5D/3D SiP mainly by Sony’s CIS market, followed by TSMC with its Si interposer, Si bridge, and 3D SoC stacking.
SiP attracted more players to enter the supply chain market driven by chiplet, heterogeneous integration, cost optimization, and footprint reduction trends. More partnership models are being observed between chip and memory players, fabless, and foundries/memory players, to introduce leading-edge technologies like HBM3, AI products, chiplet technology, and hybrid bonding.
SiP in China is showing more footprint, with OSATs and IC substrate businesses being more and more compatible with the rest of the world. Their OSAT/EMS/foundry business models are getting attention in the SiP market. Chinese players aim to develop packaging technologies to address chiplets and hybrid bonding activities to achieve scaling requirements and be able to provide competitive products.

SiP is driven by chiplet and heterogeneous integration

SiP technology trends remain aggressive as industry continues to demand more integration to achieve reduced form factors and higher performance products. In the mobile and consumer market, footprint optimization is highly required because space is limited – this is valid for smartphones, wearables, and other devices. For instance, the penetration of 5G in high-end smartphones has driven the adoption of SiP for RF and connectivity modules with the need to integrate more components and shorten its interconnections to achieve the required performance.
More attention is now being given to chiplet and heterogeneous integration solutions with the rise of AI and HPC. This is driving the adoption of more complex advanced SiP solutions – especially UHD FO and 2.5D/3D packages – for higher density, lower bandwidth, and higher performance requirements.
The roadmap remains challenging with the need for smaller L/S, high-density FO RDLs, and 2.5D/3D technologies like bridge, interposer and 3D stacking with hybrid bonding to integrate more components in a SiP package.

Key Features

Overview of the SiP market
Market forecast for FC&WB SiP, FO SiP and 2.5/3D SiP
Analysis of partnerships for leading edge technologies
SiP market share in 2022
Analysis of China’s SiP Supply Chain
SiP technology trend towards 2.5/3D solutions
Chiplet and heterogeneous integration trends
SiP assembly process flow

What’s new?

Added 2.5D/3D SiP forecast and deep insight of technologies trend for different SiP.

Product objectives

Advanced System-in-Package (SiP) 2023 is an updated report that explores in detail the hottest trends in advanced semiconductor packaging.

The report’s objectives are as follows:

Provide a market forecast for system-in-package revenue (2022-2028)
Focus on flip-chip, wire-bond, fan-out, and 2.5D/3D platform
Explanation of growth for end-markets and end-devices
Market trends
Drivers, by end-market
Market share
Breakdown, by manufacturer
Furnish a full supply-chain analysis of SiP players
SiP manufacturers & key customers
SiP business models - full analysis
Technology trends for SiP technologies
Technical roadmaps

Do you have an account?

Search

System-in-Package 2023

SiP powered by Chiplet and Heterogeneous integration: from $21.2B in 2022 to $33.8B in 2028.

SiP market growth driven by 5G, AI, HPC, autonomous driving and IoT trends

SiP Supply Chain getting competitive and focusing on team up for the best

<img src="https://medias.yolegroup.com/uploads/2023/09/system_in_package_2023-illu2.jpg" data-eio="l" />

SiP is driven by chiplet and heterogeneous integration