Status of the Advanced Packaging Industry 2024

Status of the Advanced Packaging Industry 2024

• Identity Card
• Glossary
• About The Authors
• Report’s Objectives
• Scope Of This Report
• Advanced packaging platforms
• Methodology
• What’s new in Status of Advanced Packaging report 2024
• What We Got Right, What We Got Wrong 

Three-Page Summary 

Executive Summary 

Semiconductor Industry Context

• Global economy in 2023
• End systems demand
• Geopolitics Emerge as Key Force
• U.S. Vs. China tech war – Timeline
• Chip Investments
• US CHIP ACT
• European Chips ACT

Advanced Packaging Market forecasts

• Advanced Vs traditional Packaging overview
• Advanced Packaging revenue forecast 2024-2029
• Advanced Packaging UNIT forecast 2024-2029
• Advanced Packaging wafer forecast 2024-2029
• Breakdown by Market

Advanced Packaging Platforms Summary

Financial Analysis

Advanced Packaging Technology Trends

• Overview of new technological trends within the package
• Technology roadmap: from Nano-scale to micro scale
• Advanced Packaging Roadmap: I/O Pitch and RDL L/S
• High-end packaging roadmap: application-Technology
• Roadmaps
• Advanced packaging in the mobile & consumer
• Additive manufacturing in advanced packaging
• Panel level packaging – the new wafer standard/shift
• Technology Trends: Focus on TSMC, Samsung, Intel, ASE,  Amkor
  • Advanced packaging portfolio
  • Technological roadmaps
  • Back-side Power Delivery Network
  • CPO
• Chiplet and Heterogenous Integration Trends
  • Chiplets comparison
  • 3D Chiplets
  • Interconnects supporting chiplets
  • Lateral communications for chiplets
  • Photonic chiplets and optical interconnects
• Hybrid Bonding
• Thermal management and Advanced Packaging
• Co-Packaged Optics
• Advanced Packaging for Generative AI

Players and Supply Chain

• Expansion map
• New players map
• Consortiums
• Focus on Malaysia, India, and Vietnam
• Chiplet Supply Chain
• CPO Supply Chain
• Advanced Packaging Equipment & Material Suppliers 
• New trends in Adavnced IC substrates

Conclusions

Yole Group - Corporate Presentation

The Advanced Packaging Industry continues to grow despite a correction in 2023

The Advanced Packaging (AP) market is expected to grow at a CAGR of 11% from 2023 to 2029. Advanced Packaging accounted for approximately 44% of the total Integrated Circuit (IC) packaging market in 2023, and its share is steadily increasing due to various megatrends, such as AI, HPC, Automotive, and AIPCs. Following a correction in 2023, the Advanced Packaging Market is set to recover in 2024  and continue its long-term growth. AP’s various sub-markets, including Flip-Chip, SiP, Fan Out, WLCSP, Embedded Die, and 2.5D/3D, are all recording positive growth and pushing the AP industry forward.

New plants, new OSATs, and new consortia changing dynamics of the supply chain

The Advanced Packaging supply chain is transforming quite significantly, led by new investments in expanding facilities by the existing OSATs and IDMs. Meanwhile, new players such as SealSQ, TATA, and Kaynes are seizing the opportunity to enter the semiconductor industry as OSATs in light of the current supply chain constraints and geopolitical tensions. Another development in the supply chain driven by geopolitical tensions and technological growth is the emergence of new consortia like Joint2 and FAMEs to help define system policies.

Advanced Packaging pushing its features to better support the megatrends

Advanced Packaging is becoming increasingly crucial in the semiconductor industry as new markets and trends focus more on device functionality than technology scaling. It adds value by enhancing performance, adding functionality, and reducing costs. Innovative enhancements are redefining the limitations of devices to better meet the requirements of HPC, AI, Automotive, and emerging technology trends. The leading players, such as TSMC, Intel, and Samsung, are adopting chiplet and heterogeneous integration strategies, utilizing Advanced Packaging to complement front-end scaling efforts. Trends include chiplet partitioning and integration using 2.5D or 3D packaging, as well as the promising Hybrid Bonding technology for interconnects. TSMC leads in high-end Advanced Packaging, while Intel and Samsung are also investing in packaging solutions. Advanced Packaging requires different equipment, materials, and processes than traditional packaging, driving investment in new technologies. Overall, heterogeneous integration through Advanced Packaging drives semiconductor innovation, improving system performance and cost-efficiency.

Accretech, Adeia, AMD, Amkor, Amazon, Analog Devices, AOI Electronics, Apple, APACT, Applied Materials (AMAT), Ardentec, Arm, ASE, ASM, ASML, ATS, Ayar Labs, Besi, Biren, Broadcom, Carsem, CEA, China Resources Microelectronic, China WLCSP, ChipBOND, ChipMOS, Chipmore, Chippacking, Cisco, CMC Materials, Corning, Custom Interconnect, Cypress, Daicel, Deca, DISCO, Dupont, ESWIN, EVG, Forehope, Formosa, Foxconn, Fraunhofer, Freescale, FujiFilm, Fujimi, Fujitsu, GC-Power, Globetronics, GlobalFoundries, GUC, Google, Graphcore, Greatek, Haiguang, Hana Micron, Hanmi, Hanwha, HCL, HiSilicon, Hitachi, Hi Tech, HLMC, HUAWEI, Huatian, Hygon, IBM, Imec, Infineon, Inari Berhad, Institute of Microelectronics, Intel, Integra, InPack, JCET, KYEC, Kioxia, KLA, Kulicke & Soffa, Lam Research, LB Semicon, Lingsen Precision, Lockheed Martin, Marvell, Meta, Micron, Micross, Microsoft, Mitsui Chemicals, MKS, Murata, Nanya, NEPES, Nhanced Semiconductor, Northrop Grumman, Nvidia, Okamoto, Omnivision, OSE, Panasonic, Payton, Powertech, Qualcomm, Qorvo, Rapidus, Raytheon, Renesas, Resonac, ROHM, RRP, Sahasra, Samsung, Sanyo, SealSQ, SEMES, SFA Semicon, Sharp, Shibaura, Sigurd, SiP, SK Hynix, Skywater, Skyworks, SMIC, SET, Sony, SPIL, ST microelectronics, Sugon, Sunlune, Suss MicroTec, Taiji Semiconductor, TATA, TDK, TEL, Tesla, Texas Instruments, TianShui Huatian, Tong Hsing, Tongfu Microelectronics, Toray, Toshiba, Tower Semiconductor, TSMC, UMC, UniSem, UTAC, Walton Advanced Engineering, Wisol, Xilinx, Xinhuicheng, Yamaha, YMTC, Ziguang Hongmao, and more.

Key features

• The Advanced Packaging industry attained a market value of $37.8 billion in the year 2023. This market is expected to surpass $69.5 billion by 2029, showcasing a CAGR of 11% during the period from 2023 to 2029.
• The largest market in 2023 was the 'Mobile & Consumer' sector, which accounted for more than 70% of the total revenue. However, it is expected that this share will decrease to 61% by 2029 as the 'Automotive' and 'Telecom & Infrastructure' sectors gain larger market shares. These two sectors are projected to be the fastest-growing markets by 2029, with respective CAGRs of 18% and 10%.
• In terms of packaging technologies, the primary contributors to the market are flip-chip, 2.5D/3D, and SiP, which are expected to hold a combined market share of over 90% by 2029. Additionally, the top three platforms experiencing the highest growth rates are ED, 2.5D/3D, and flip-chip.

What's new?

• New technology platforms added,
• New OSATs mapping
• Thermal Management

Product objectives

The “Status of the Advanced Packaging Industry” is a yearly overview report. The objectives of the report are:

• To provide an overview of the Advanced Packaging market
• Drivers and dynamics
• Future applications
• Disruptions and opportunities
• To present our analysis of the supply chain
• Overview of production by player (IDM, OSAT, foundry)
• Shifting business models
• Financial analysis of TOP 30 OSATs
• To discuss technology trends and forecasts
• Revenue, wafer, and unit forecasts by platform
• Future development by platform
• Impact of front-end scaling
• Scaling and functional roadmaps