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2020

Packaging Market

Packaging Market For Compound Semiconductor By Packaging Platform (Flip Chip, Embedded Die, Fan-In WLP, and Fan-Out WLP), Application (CS Power Electronics, CS RF/Microwave, CS Photonics, CS Sensing, and CS Quantum), and End User (Digital Economy, Industrial and Energy & Power, Defense/Security, Transport, Consumer Electronics, Healthcare, and Space): Global Opportunity Analysis and Industry Forecast, 2020-2027

SE : Semiconductors

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Author's: Asavari Patil | Sonia Mutreja
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Packaging Market Outlook For Compound Semiconductor – 2027 

The Global Packaging Market size for compound semiconductor was valued at $11.63 billion in 2019, and is projected to reach $25.61 billion by 2027, growing at a CAGR of 10.4% from 2020 to 2027.

A compound semiconductor is composed of elements from two or more different groups of the periodic table, and is synthesized using deposition technologies. Devices made of semiconductors are essential components of most electronic circuits, as they possess unique properties such as wide band gap, high operational temperatures, high current & voltage holding capacity, and ability to generate microwave signals.

Packaging-Market-for-Compound-Semiconductor-2020-2027

Compound semiconductors are produced by laminating the layers composed of two or more elements with a thickness ranging from several nanometers to micrometers and it uses different combinations of elements in each layer. The wafer process differs according to material properties. Moreover, some CS devices contain fragile air bridges, gold bond pads, topographical cavities & trenches, and have a number of unique bulk material properties, which are sensitive to the mechanical and chemical processes associated with standard packaging technique. 

Thus, the standard electronics packaging and interconnection technologies have become the limiting factor determining the performance and efficiency of the new semiconductor components. Whereas, the advanced packaging technology provides several advantages such as prevention from physical damage, maximize operational efficiency, and reduces overall cost.

In addition, in consumer electronics and industrial products advance packaging relies on mechanical engineering principles such as dynamics, stress analysis, heat transfer, and fluid mechanics and protects components from mechanical damage, cooling, RF noise emission, and electrostatic discharge. Thus, in order to improve the performance, reliability, and cost-effectiveness of electronics systems, an advanced packaging technology is being used for packaging of compound semiconductors.  

Compound semiconductors provide significant performance advantages that are absolutely essential for a growing range of technology applications. Compound semiconductors such as GaAs and InP can operate at speeds that are magnitudes higher than silicon. In addition, compound semiconductors can generate and receive a broad range of the electromagnetic spectrum from high frequency ultraviolet through the visible spectrum to long wavelength infrared light. Other properties offered by compound semiconductor materials include the ability to emit and sense light in the form of general lighting (LEDs) and communications (lasers and receivers for fiber-optics).

With rapid growth in the compound semiconductor packaging market, specifically fan out wafer level packaging, along with increase in demand for smartphone and devices and Internet of Things (IoT), compound semiconductor packaging suppliers are developing process and ways to reduce the overall cost of advanced packaging and provide maximum operational efficiency. During the recent times, compound semiconductor packaging is mainly used for high-end products and for applications related to niche-market such as wafer and die production due to its high cost in its operation.

Compound semiconductor packaging technology is expected to increase the value of a semiconductor product by adding functionality in its operation, increasing and maintaining the performance, while lowering the overall cost of packaging. The adoption of advanced compound semiconductor packaging is also creating demand for high performance chips for various consumer electronic products. This augments the demand for 3D and 2.5D packaging chips, used in smartphones and other mobile devices.

Factors such as increase in demand for miniaturization of devices, improved system performance and optimization of compound semiconductor packaging, and emerging trends toward compound semiconductor wafers in the automotive industry are major factors driving the market growth to a certain extent. 

However, high cost of compound semiconductor packaging is hampering its adoption is expected to pose a major threat to the compound semiconductor packaging market globally. However, emerging usage of compound semiconductors in smart technologies and emerging trends of fan-out wafer level packaging is expected to provide lucrative opportunities to the market growth globally.

Packaging Market
By Packaging Platform
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Flip Chip segment is projected to be the most lucrative segment during the forecast period

Segment Review

The global packaging market for compound semiconductor is segmented on the basis of packaging platform, application, end user, and region. Based on packaging platform, the market is divided into flip-chip, embedded die, fan-in WLP, and fan-out WLP. On the basis of application, the packaging market for compound semiconductor is analyzed across CS power electronics, CS RF/Microwave, CS Photonics, CS Sensing, and CS Quantum. The CS power electronics segment dominated the packaging market for compound semiconductor in terms of revenue in 2019 and is expected to follow the same trend during the forecast period. 

Packaging Market
By Application
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CS Power Electronics segment holds a dominant position in 2019 and would maintain the lead during 2020 - 2027

By end user, the market is studies across digital economy, industrial and energy & power, defense/security, transport, consumer electronics, healthcare, and space. The transport segment accounted for the highest market share in 2019, whereas the consumer electronics segment is expected to grow at the highest CAGR from 2020 to 2027. By region, the packaging market trends for compound semiconductor are analyzed across the U.S., the UK, China, and rest of the world. 

Packaging Market
By End User
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Transport segment is expected to secure the leading position throughout the forecast period

The ongoing COVID-19 pandemic has abruptly re-shaped the global economy. Sudden decline in infrastructure development and installation projects is expected to hamper the compound semiconductor market for automotive and industrial and energy & power industry verticals. The global economy has experienced surge in demand for cloud/datacenter services and cloud infrastructure to support distributed workforce. Growth in adoption of 5G networking by corporate individuals due to growing online presence has been placed as a national priority and is opportunistic for the market. 

Packaging Market
By Region
2027
Rest Of World 
U.S.
UK
China

U.S. region would exhibit the highest CAGR of 10.5% during 2020 - 2027

However, slowdown in productions by OEMs and reduction in demand for mobile phones and other consumer electronics have slightly pulled down the packaging market for compound semiconductors. Shortages of critical components and materials have significantly impacted the global supply chains.

Top Impacting Factors

The most prominent factors that drive the packaging market growth for compound semiconductor are increase in demand for miniaturization of devices, improved system performance and optimization of compound semiconductor packaging and emerging trends toward compound semiconductor wafers in automotive industry. 

However, high cost of compound semiconductor packaging is hampering its adoption acts as the major barrier for early adoption. Furthermore, emerging usage of compound semiconductors in smart technologies and emerging trends of fan-out wafer level packaging are the factors anticipated to provide lucrative opportunities for the growth of the compound semiconductor packaging market during the forecast period. 

Competitive Analysis

Competitive analysis and profiles of the major packaging industry for compound semiconductor players, such as Amkor Technology, Taiwan Semiconductor Manufacturing Company, Texas Instruments, Jiangsu Changjiang Electronics Tech Co., ASE Technology, KLA Corporation, Qorvo, Tokyo Electron Limited, Deca Technologies Inc., and Fujitsu Limited are provided in this report. These key players have adopted various strategies, such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations, to increase their market penetration and strengthen their foothold in the industry.

Key Benefits For Stakeholders

  • This study comprises analytical depiction of the global packaging market size for compound semiconductor along with the current trends and future estimations to depict the imminent investment pockets.

  • The overall packaging market analysis for compound semiconductor is determined to understand the profitable trends to gain a stronger foothold.
  • The report presents information related to key drivers, restraints, and opportunities with a detailed impact analysis.
  • The current packaging market forecast for compound semiconductor is quantitatively analyzed from 2019 to 2027 to benchmark the financial competency.
  • Porter’s five forces analysis illustrates the potency of the buyers and the packaging market share for compound semiconductor of key vendors.

Packaging Market Report Highlights

Aspects Details
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By Packaging Platform
  • Flip Chip
  • Embedded Die
  • Fan-In WLP
  • Fan-Out WLP
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By Application
  • CS Power Electronics
  • CS RF/Microwave
  • CS Photonics
  • CS Sensing
  • CS Quantum
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By End Use
  • Digital Economy
  • Industrial and Energy & Power
  • Defense/Security
  • Transport
  • Consumer Electronics
  • Healthcare
  • Space
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By Region
  • U.S. 
  • UK 
  • China 
  • Rest of the World 
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Key Market Players

TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED, Jiangsu Changjiang Electronics Tech Co., Tokyo Electron Limited, Deca Technologies Inc., FUJITSU LIMITED, AMKOR TECHNOLOGY, Advanced Semiconductor Engineering, Inc., KLA Corporation, Qorvo, TEXAS INSTRUMENTS INCORPORATED

Analyst Review

Packaging market for compound semiconductor is expected to leverage high potential for the consumer electronics and automotive vertical by 2027. The current business scenario is witnessing an increase in the demand for smart consumer electronics, particularly in the developing regions such as China and others due to an increase in demand for technological advancements in this sector such as adoption of AI and IoT. Companies in this industry are adopting various innovative techniques such as mergers and acquisition activities to strengthen their business position in the competitive matrix.

The packaging market for compound semiconductor is steadily gaining traction, owing to rise in demand for enhanced technologies in various industry verticals such as integration of IoT, AI, and surge in demand for smart consumer electronics. Furthermore, technological development by the emerging economies in Asia-Pacific boosts the advanced packaging market growth.

The global packaging market for compound semiconductor is competitive, owing to the strong presence of the existing vendors. Compound semiconductor packaging vendors who have access to extensive technical and financial resources are anticipated to gain a competitive edge over their rivals, as they have the capacity to cater to the global market requirements. 

The key players operating in the global flip chip market include Amkor Technology, Taiwan Semiconductor Manufacturing Company, Texas Instruments, Jiangsu Changjiang Electronics Tech Co., ASE Technology, KLA Corporation, Qorvo, Tokyo Electron Limited, Deca Technologies Inc., and Fujitsu Limited. These players have adopted various revenue and business growth strategies to enhance and develop their product portfolio, strengthen their flip chip wallet market share, and help them increase their market penetration. 

Author Name(s) : Asavari Patil | Sonia Mutreja
Frequently Asked Questions?

The Packaging Market For Compound Semiconductor is estimated to grow at a CAGR of 10.4% from 2020 to 2027.

The Packaging Market For Compound Semiconductor is expected to reach $25.61 billion by 2027.

To get the latest version of sample report

Increase in demand for miniaturization of devices, improved system performance & optimization of compound semiconductor packaging, and emerging trends toward compound semiconductor wafers in the automotive industry boosts the Packaging Market Growth For Compound Semiconductor.

The key players profiled in the report include Amkor Technology, Taiwan Semiconductor Manufacturing Company, Texas Instruments, Jiangsu Changjiang Electronics Tech Co., ASE Technology, and many more.

On the basis of top growing big corporations, we select top 10 players.

The Packaging Market For Compound Semiconductor is segmented on the basis of packaging platform, application, end user, and region.

The key growth strategies of Packaging Market Players For Compound Semiconductor include product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations.

Flip Chip segment holds a dominant position throughout the forecast period.

CS Power Electronics segment is expected to secure the leading position throughout the forecast period.

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Packaging Market

Global Opportunity Analysis and Industry Forecast, 2020-2027