Status of the Advanced Packaging Industry 2025

Report 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

Key features:

• Technology portfolio analysis per player for TOP players
• CapEx per Player
• Map of new investments
• Technology Trends
• New technologies
• Technology roadmaps
• New supply chain dynamics

What's new in this edition?

Market Data and Forecasts

• TSMC capacity forecast breakdown by technology
• Chiplet for AI forecast
• Hybrid bonding-based products forecast
• Updated Advanced Packaging market data and forecasts (2020-2030):
  • By revenue, wafer, and unit.
  • By Advanced Packaging platforms: flip-chip, fan-out, fan-in, 3D stacked, System-in-Package, and embedded die.
  • Updated 2020 - 2030 revenue, wafer, and unit forecasts by various application segments: consumer & mobile, automotive & transportation, telecom & infrastructure, medical, industrial, defense & aerospace

Supply Chain

• Analysis of the semiconductor business & supply chain – focus on geopolitical impacts and countries
• Mapping of new OSATs, expanding facilities.
• Updated supply chain analysis with a focus on the production relocation from China and an overview of equipment & material suppliers

Technology and Trends

• Updated the news in the Advanced Packaging market and segmented it into categories.
• Updated technology trends with new product technologies with a focus on the big players.
• New Co-Packaged Optics chapter
• Thermal management & Advanced Packaging
• Updated chiplets chapter

Others

• Deeper technical understanding
• New teardowns (H200 ..etc)

Transveral flexibility of advanced packaging across the end markets

The multiple demands and volumes of Advanced Packaging across different markets contribute to its growth from $38B to $79B by 2030. This growth is driven by varying requirements and challenges, yet follows a continuous upward trend. This versatility enables Advanced Packaging to remain in a state of constant innovation and adaptation, meeting the specific needs of diverse markets in terms of volume, technical requirements, and ASPs.
However, this flexibility also poses a risk for the Advanced Packaging industry when certain markets face downturns or volatility. In 2024, Advanced Packaging benefited from the rapid growth of the data center market, while the recovery of mass markets like mobile was slower.

Advanced packaging ecosystem towards collaboration more than competition

The Advanced Packaging supply chain is one of the most dynamic subsectors of the global semiconductor supply chain. This is due to the involvement of various business models beyond traditional OSATs, the strategic geopolitical importance of the sector, and its critical role in high-performance products.
Each year brings its own constraints and reshapes the Advanced Packaging supply chain mosaic. In 2024, several key factors influenced this transformation: capacity limitations, yield challenges, emerging materials and equipment, CapEx requirements, geopolitical regulations and initiatives, explosive demand in select markets, evolving standards, new players, and raw material fluctuations.
Numerous new consortia were established to collectively and rapidly address supply chain challenges. Key Advanced Packaging technologies were licensed to other players to support smooth transitions to new business models and address capacity limitations. Efforts are increasingly focused on chiplet standardization to encourage broader adoption, unlock new markets, and reduce individual investment burdens.
New countries, companies, facilities, and pilot lines were dedicated to Advanced Packaging in 2024—and this trend continues in 2025.

Multidirectionnel expansion of advanced packaging’ platforms from low to high-end

Advanced Packaging is far from reaching technological saturation. The 2024–2025 period was marked by a record number of breakthroughs and expanded technology portfolios, including powerful new variants of existing AP technologies and platforms such as Intel’s latest EMIB generations and Foveros variants. The packaging of CPO (co-packaged optics) systems is also on the industry's radar, with new technologies being developed to attract customers and scale production volumes.
Advanced IC substrates represent another closely aligned industry, sharing roadmaps, co-design principles, and tooling requirements with Advanced Packaging.
In addition to these core technologies, several "hidden workhorse" technologies enable diversification and innovation in Advanced Packaging: power delivery solutions, embedding technologies, thermal management, new materials (e.g., glass, next-gen organics), advanced interconnects, and new equipment/tool formats.
From mobile and consumer to AI and data centers, Advanced Packaging is adapting its technologies to satisfy the requirements of each market and enable its new-generations as well

Accretech, Adeia, ADI, Alibaba group, Amazon, AMD, Amkor, Applied Materials, ARM, ASE, ASMPT, Atmel, Atos, Baidu, Besi, Biren Technology, Blue Ocean Smart System, Brewer Science, Broadcom, BroadPak, Cambricon, Canon, Casmeit, CEA-Leti, Cerebras, Corning, Cray, Cyber Optics, Cypress, Disco, Dupont, Ebara, Eliyan, Empyrean, Entegris, EVG, Facebook, Foxconn, Fraunhofer IZM, Freescale, Fujitsu, Global Foundries, Gloway, Graphcore, GUC Glink, Hanni, HD Microsystems, Hi-Silicon, HLMC, Hua Tian, Huawei, Ibiden, IBM, IME, imec, Integra, Intel, Infineon, Invensas, ITRI, JCET, Juniper Networks, Kioxia, KLA, Kyocera, Lam Research, Lapis Technology, LB Semicon, Marvell, MediaTek, Meta, Micron, Microsoft, Micross Components, Mitsubishi, NEC, Nepes, Nhanced Semiconductors, Nokia, Nvidia, OmniVision, onsemi, ONTOS TT, Oracle, Panasonic, Plasma Therm, PRC Georgia Tech, Protean Tecs, PTI, PVA Tepla, Qorvo, Qualcomm, Quavo, Raytheon Technologies, Renesas, RISC-V, Rohm, Samsung, Sandia National Laboratories, Sanyo, Semco, Semsysco, Set, Sharp, Shinetsu, Shinko, Showa Denko, Siemens, Silicon Box, SK hynix, Skywater, SMIC, Sony, SPIL, SPTS, ST Microelectronic, Sunlune, Surfx Technologies, TI, Suss MicroTec, Synopsys, TEL, Tencent, Tesla, Tezzaron Semiconductor, TFME, Tokyo Electron, Toshiba, Tower Semiconductor, Nanya, TSMC, UMC, Unimicron, Unity SC, Ventana, Western Digital, Xilinx, Yibu Semi, YMTC and more.