Global 2.5D & 3D Semiconductor Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
NEW YORK, Nov. 18, 2022 /PRNewswire/ --
The Global 2.5D & 3D Semiconductor Packaging Market is expected to register a CAGR of 16.2% during the forecast period (2022-2027). As 5G, AI, and high-performance computing continue to make inroads into the world, thereâ€™s an escalating demand for semiconductor devices that deliver enhanced performance, lower latency, increased bandwidth, and power efficiency, achieved by 2.5D & 3D packaging technologies. In recent years, 2.5D & 3D has gained momentum as an ideal chipset integration platform due to their merits in attaining extremely high packaging density and energy efficiency.
With trends like 5G smartphones, biosensors, and more AI features, the market is expected to witness increased smartphone sales in 2022. The deployment of 5G smartphones would also greatly enhance the wireless data communication bandwidth, latency, and density of connected devices. Further, markets like smartwatches and smart speakers gained massive popularity in recent years, owing to their increasing functionalities and features with the help of advanced semiconductor components. Thus, the demand for Wi-Fi and Bluetooth chips skyrocketed.
Moreover, the growing market for gaming consoles and increasing advancement in these products further expand the studied segmentâ€™s scope. Over the 4-5 years, gaming console has become high-tech gadgets, and companies like Sony, Microsoft, and Nintendo are increasingly investing in their product development to reach the current 8th generation consoles.
These products utilize high technologies, including Blu-ray, motion sensing, VR, 4K and HD quality video, and online functions. Therefore, these applications need chips with an advanced substrate and added functionality, motivating the studied market vendors to invest in the segment. Such developments provide lucrative opportunities for the growth of the studied market.
The Asia Pacific Region is Expected to Witness a High Market Growth Rate
The increasing smartphone adoption rates have made Asia-Pacific one of the worldâ€™s largest mobile markets due to the rising population, increasing disposable income, and growing urbanization. For instance, according to the Ministry of Industry and Information Technology (MIIT), in 2020 and 2021, there were around 112 and 116 mobile phone subscriptions per one hundred inhabitants in China, respectively. The increasing smartphone penetration rate in the region is a significant growth driver for the studied market.
Memory is a crucial market in modern data-centric societies, fueled by important megatrends like mobility, cloud computing, AI, and the IoT. The ramp-up of Chinese memory, the growth of flip-chip DRAM, and 3D-stacking technologies unlock significant opportunities for packaging players.
Additionally, the region is projected to witness rapid growth due to the increased demand for miniaturized circuits and established semiconductor manufacturing companies, OEMs, and ODMs.
Moreover, countries in the region have begun reorganizing supply chains to prioritize their needs, making them resistant to fierce competition. The region is also making preemptive investments to further strengthen its domestic industry ecosystem, so external shocks cannot shake it.
For instance, in May 2021, South Korea announced a plan to spend USD 450 billion over the next ten years on new semiconductor manufacturing capabilities. Semiconductors are Koreaâ€™s largest export, most of which are memory productsâ€"DRAM and NAND Flash memory. The new plan aims to boost the nationâ€™s advanced logic chip foundry capacity.
The Global 2.5D & 3D Semiconductor Packaging Market is fragmented due to the presence of various significant players like ASE Group, Amkor Technology Inc., Siliconware Precision Industries Co. Ltd (SPIL), etc. The market players must constantly innovate advanced and comprehensive products to stay relevant.
June 2021 - Taiwanâ€™s prominent semiconductor foundry, TSMC, announced its plans to establish an R&D center in Japanâ€™s science city of Tsukuba to develop 3D IC packaging materials in cooperation with its Japanese suppliers. In May 2021, Japanâ€™s Ministry of Economy, Trade, and Industry (METI) and its subsidiary organization, the National Institute of Advanced Industrial Science and Technology (AIST), announced that more than 20 Japanese companies would work with TSMC Japanâ€™s 3D IC R&D Center.
July 2021 - Singaporeâ€™s Agency for Science, Technology, and Research (A*STARâ€™s) Institute of Microelectronics (IME) announced a collaboration with four significant industry players to form a System-in-Package (SiP) consortium. IME would team with Asahi-Kasei, GLOBALFOUNDRIES, Qorvo, and Toray to develop high-density SiP for heterogeneous chiplets integration to meet the semiconductor industryâ€™s challenge 5G applications. The consortium will leverage IMEâ€™s FOWLP/2.5D/3D packaging expertise.
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