Why semiconductor packaging is the new growth engine – NEPCON 2026 post show report
AI, datacenters, automonous vechicle and new architecture are reshaping the semiconductor roadmap and advanced packaging is now leading the charge.
NEPCON 2026 reported with a total of 78,673 exhibition visitors and 19,738 conference participants, showcased the industry’s growing strategic importance.
Advanced packaging has officially become the hottest topic in semiconductors, overtaking the spotlight once reserved for leading-edge process nodes. Driven by AI, datacenters, and high-performance computing, the market is entering a phase of sustained and strategic growth.
According to Yole Group, the advanced packaging market is forecast to grow at a 9.4% CAGR, reaching nearly $80 billion by 2030.
Gary Huang
Head of Asia Pacific, Research and Business Development at Yole Group
Advanced packaging is being propelled by powerful, long-term drivers, AI, high-performance computing, and datacenters are reshaping system architectures and pushing packaging to the center of value creation. At Yole Group, our role is to help industry players navigate this complexity, connecting technology trends, market dynamics, and competitive landscapes to answer the critical questions our customers are facing today.
Key market dynamics
2.5D/3D advanced packaging is booming, fueled by AI and datacenter demand. The segment is expected to approach USD 35 billion by 2030, growing at a ~19% CAGR between 2024 and 2030.
Fan-Out Panel-Level Packaging (FOPLP) is gaining traction on two fronts:
Cost-efficient manufacturing for PMICs, RF ICs, audio, codecs, and APUs
Supporting larger form factor to meet high-performance packages required for AI and HPC applications
TSMC shared insights on PLP challenges and the growing complexity of CoWoS BOMs, including substrates, interposers, thermal solutions, and HBM.
Intel emphasized EMIB-T (no reticle limit) as a key enabler for future AI, alongside glass core, PLP, vertical power delivery, and CPO integration.
ASE highlighted FOCoS and 2.5D/3D as critical to scale-up/scale-out architectures and advanced power solutions.
SEMCO announced delivery of its first glass core to customers, showcasing roadmap with advanced dielectrics and large-body packaging.
STATChipPac outlined CPO and PLP as its long-term vision.
AOI updated progress on PLP line construction and embedded power packaging for AI/datacenters.
Yik Yee Tan, PhD Principal Technology & Market Analyst, Semiconductor Packaging at Yole Group
Advanced packaging is no longer a supporting technology. It is a central pillar for AI, datacenters, and future system performance.
🎥 NEPCON Day 1 video including Yole Group’s team, Gary Huang, Head of Asia Pacific, Research and Business Development at Yole Group and Milan Rosina, Principal Analyst, Power Electronics and Battery:https://youtu.be/fVO6TfZcRdA
About the author
Yik Yee Tan, PhD is Principal Technology & Market Analyst, Semiconductor Packaging at Yole Group. Based in Malaysia, Yik Yee follows the semiconductor packaging industry and its evolution. Based on her technical expertise and market knowledge, she develops technology & market products and is engaged in dedicated custom projects.
Prior to Yole Group, Yik Yee Tan worked as a failure analyst and interconnect principal at Infineon Technologies (Malaysia) and later as an open innovation senior manager at onsemi (Malaysia). While at onsemi, Yik Yee was deeply involved in numerous innovative advanced packaging projects.
She authored more than 30 papers and wrote 3 patents related to semiconductor packaging technologies.
Yik Yee Tan holds a PhD in Engineering from Multimedia University (MMU, Malaysia).
Gary Huang Head of Asia Pacific, Research and Business Development at Yole GroupAdvanced packaging is being propelled by powerful, long-term drivers, AI, high-performance computing, and datacenters are reshaping system architectures and pushing packaging to the center of value creation. At Yole Group, our role is to help industry players navigate this complexity, connecting technology trends, market dynamics, and competitive landscapes to answer the critical questions our customers are facing today.
Yik Yee Tan, PhD Principal Technology & Market Analyst, Semiconductor Packaging at Yole GroupAdvanced packaging is no longer a supporting technology. It is a central pillar for AI, datacenters, and future system performance.
