Allied Market Research

Packaging Market For Compound Semiconductor Projected to Hit $25.61 Billion By 2027


Report Code : A07196

quote With rapid growth in the 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 packaging and provide maximum operational efficiency. During the recent times, compound semiconductors are 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 quote

Ankit Prajapati
Lead Analyst, Semiconductor and Electronics

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According to a new report published by Allied Market Research, titled, “Packaging Market For Compound Semiconductor By Packaging Platform, Application and End User: Opportunity Analysis and Industry Forecast, 2020–2027”, 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, to register a CAGR of 10.4% during the forecast period.

The packaging market for compound semiconductor is currently in its growth stage and is expected to register substantial growth in the near future, attributed to the high investment in R&D activities by market players and focus of society toward Internet of Things (IoT). Other factors that drive the market growth include increase in demand for automobile & electronics and development of smart cities.

Emerging technologies, such as artificial intelligence (AI) and quantum computing, require compound semiconductors to achieve full commercialization. The UK has a rich heritage of microprocessor design, with companies such as ARM and Imagination Technologies and new start-up companies designing AI processors, such as Bristol-based GraphCore, which is expected to create lucrative opportunities for its market growth globally. 

China is the largest country, in terms of revenue generation, in the global compound semiconductor packaging market. The semiconductor packaging industry is well-established in China and Taiwan, which has led to increased adoption of compound semiconductors. In addition, rapid growth in the sales of consumer electronic products supplements the market growth. Moreover, increase in defense expenditure and widespread use of compound semiconductors in IT & telecommunication, consumer electronics, and automotive industries drive the packaging market growth for compound semiconductor.  

Increase in demand for high speed and compact size electronic products boosts the adoption of flip chip technology in the electronic industry. Internet of Things (IoT) has been gaining popularity, and serves as a key driver of the market. Products used in IoT, such as sensors & actuators, analog & mixed-signal translators, and microcontrollers or embedded processors require efficient and reliable packaging solutions, which can be done using flip chips, contributed highest global packaging market share for compound semiconductor. 

In comparison to customary wire-bond packaging, flip chip offers various benefits such as superior thermal & electrical performance, substrate flexibility for varying performance requirements, remarkable I/O capability, reduced form factors, and well-established process equipment expertise. 

COVID-19 Impact Analysis

Asia-Pacific is the dominant country in terms of number of manufacturers and consumers. In 2019, China’s reduced supply chain operations significantly impacted on companies across the globe and disrupted the electronics value chain. This created new opportunities for industries in other regions to garner high number of consumers. 

Moreover, the outbreak of corona virus constrained governments across the globe to force lockdown initiatives, which reduced the sales and production revenue which in turn disrupted the worldwide economy at a significant extent. Moreover, industries such as manufacturing and construction across the globe have witnessed shortage of labors and various hardware components from supplier side.

Key Findings of the Study

  • By packaging platform, the flip-chip segment held the highest revenue share in 2019.
  • In 2019, the CS power electronics accounted for the maximum revenue and is projected to grow at a notable CAGR of 8.9% during the forecast period.
  • The consumer electronics segment witness highest growth rate of 13.2% during the forecast period.
  • China was the major shareholder in the packaging market analysis for compound semiconductor, accounting for approximately 32.0% share in 2019.

The key players profiled in the report 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 market 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 packaging industry for compound semiconductor.

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quote 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 quote

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