Semiconductor Packaging Market Summary
The global semiconductor packaging market size is expected to reach $60.44 billion by 2030 from $27.10 billion in 2020, growing at a CAGR of 9.10% from 2021 to 2030. This is driven by rising adoption of electric vehicles and strong demand for automated switching devices and power modules. Additionally, advanced technologies, growing demand for smart electronics, and expanding manufacturing industries are expected to fuel this growth.
Market Dynamics & Insights
- The semiconductor packaging industry in Asia-Pacific held a significant share of over 48.4% in 2020.
- The semiconductor packaging industry in U.S. is expected to grow significantly at a CAGR of 7.3% from 2021 to 2030.
- By type, flip chip segment is one of the dominating segments in the market and accounted for the revenue share of over 51.7% in 2020.
- By industry vertical, the healthcare segment is the fastest growing segment in the market.
Market Size & Future Outlook
- 2020 Market Size: $27.1 Billion
- 2030 Projected Market Size: $60.44 Billion
- CAGR (2021-2030): 9.10%
- Asia-Pacific: Largest market in 2020
- Asia-Pacific: Fastest growing market
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 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.
Semiconductor packaging plays an important role in protecting IC chips from the surrounding environment and ensuring the electrical connection for chip mounting on printed wiring boards. High demand for high-speed, high-integration, and low-power consumption of integrated circuits (ICs) complements the rapid progress of electronics technology such as AI and cloud computing. Semiconductor packaging is a supporting case that prevents physical damage and corrosion to silicon wafers, logic units, and memory during the final stage of the semiconductor manufacturing process. It allows the chip to be connected to a circuit board. This packaging involves grouping a variety of distinct techniques, which include 2.5D, 3D packaging, fan-out-wafer-level packaging, and system-in-package. Different ICs have different packaging requirements, thereby providing growth opportunities for the semiconductor packaging market over the traditional packaging process.
In addition, in consumer electronics and industrial products, advanced 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, to improve the performance, reliability, and cost-effectiveness of electronic systems, advanced packaging technology is being used for the packaging of semiconductors.
With the rapid growth in semiconductor packaging market revenue, specifically fan-out wafer level packaging, along with an increase in demand for smartphones, devices, and the Internet of Things (IoT), semiconductor packaging suppliers are developing processes and ways to reduce the overall cost of advanced packaging and provide maximum operational efficiency. In recent times, it is mainly used for high-end products and applications related to niche markets, such as wafer and die production, due to its high cost of operation.
Segmentation Overview
The global semiconductor packaging market share is segmented into type, packaging material, wafer material, technology, industry vertical, and region. Based on type, the market is divided into flip-chip, embedded die, fan-in WLP, and fan-out WLP. Based on packaging material, it is analyzed across the organic substrate, bonding wire, lead frame, ceramic package, die attach material, and others.
By Type
Flip Chip segment is projected as one of the most lucrative segments.
Based on wafer material, the semiconductor packaging market is classified into simple semiconductors and compound semiconductors. The simple semiconductor is further sub-segmented into silicon (Si) and germanium (Ge). The compound semiconductor is further sub-segmented into III-V (Gallium Arsenide (GaAs), Indium Phosphide (InP), Gallium Nitride (GaN), Gallium phosphide (GaP), and others), II-VI (Zinc Sulfide (ZnS) and Zinc Selenide (ZnSe)), and IV-IV (Silicon Carbide (SiC) and Silicon-Germanium (SiGe)). Based on technology, the market is categorized into grid array, small outline package, flat no-leads packages (Dual-flat no-leads (DFN) & Quad-flat no-leads (QFN)), dual in-line package (Plastic Dual Inline Package (PDIP) & Ceramic Dual Inline Package (CDIP)), and others.
By Industry Vertical
Consumer Electronics segment is expected to secure leading position during forecast period.
By industry vertical, the semiconductor packaging market trends are studied across consumer electronics, automotive, healthcare, IT & telecommunication, aerospace & defense, and others. The automotive segment accounted for the highest market share in 2020, whereas the consumer electronics segment is expected to grow at the highest CAGR from 2021 to 2030. By region, the semiconductor packaging market trends are analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By Region
Asia-Pacific region would exhibit the highest CAGR of 10.10% during 2021-2030
Top Impacting Factors
The prominent factors that drive the semiconductor packaging market growth include the growth of Internet of Things (IoT) technology, high adoption of consumer electronics devices, and evolving trends toward semiconductor wafers in the automotive industry. However, the high cost associated with semiconductor packaging materials hampers its adoption, which is expected to pose a major threat to global market growth. However, evolving trends toward fan-out wafer-level packaging are expected to provide lucrative opportunities for market growth.
Competition Analysis
The key players profiled in the semiconductor packaging market report include Amkor Technology (U.S.), ASE Group (Taiwan), ChipMOS Technologies, Inc. (Taiwan), Powertech Technology, Inc. (Taiwan), Intel Corporation (U.S.), Jiangsu Changjiang Electronics Technology Co., LTD (China), Samsung Electronics Co., Ltd. (South Korea), Taiwan Semiconductor Manufacturing Company (Taiwan), Texas Instruments (U.S.), and Fujitsu Limited (Japan). Market players have adopted various strategies, such as product launch, collaboration, product development, agreement, and expansion, to expand their foothold in the semiconductor packaging industry.
Key Benefits for Stakeholders
- This study comprises an analytical depiction of the global semiconductor packaging market outlook, along with the current trends and future estimations to depict the imminent investment pockets.
- The overall semiconductor packaging market analysis is determined to understand the profitable trends to gain a stronger foothold.
- The report presents information related to key drivers, restraints, and semiconductor packaging market opportunities with a detailed impact analysis.
- The current semiconductor packaging market forecast is quantitatively analyzed from 2020 to 2030 to benchmark the financial competency.
- Porter’s five forces analysis illustrates the potency of the buyers and the semiconductor packaging market share of key vendors.
- The report includes the trends and the semiconductor packaging market share of key vendors.
Semiconductor Packaging Market Report Highlights
| Aspects | Details |
 By Type |
|
 By Packaging Material |
|
 By Wafer Material |
|
 By Technology |
|
 By End User |
|
 By Region |
|
 Key Market Players | Amkor Technology, Inc., ChipMOS Technologies, Inc., Samsung Electronics Co., Ltd., ASE Group, Jiangsu Changjiang Electronics Technology Co., LTD, Taiwan Semiconductor Manufacturing Company, Texas Instruments, Powertech Technology, Inc., Fujitsu Ltd., Intel Corporation |
Analyst Review
The semiconductor packaging market is expected to leverage high potential for consumer electronics and automotive verticals. The current business scenario is witnessing an increasing demand for consumer electronics devices, particularly in developing countries such as China, Japan, South Korea, India, and others. Companies in this industry are adopting various innovative techniques, such as merger & acquisition activities, to strengthen their business position in the competitive matrix.
Semiconductor packaging 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 consumer electronics products. Furthermore, technological development by emerging economies in Asia-Pacific boosts the semiconductor packaging market growth. The semiconductor packaging market is competitive, owing to the strong presence of existing vendors. 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 market include Amkor Technology, ASE Group, Applied Materials, Inc., Infineon Technologies AG, Intel Corporation, Microsemi Semiconductor, Samsung Electronics Co., Ltd., Taiwan Semiconductor Manufacturing Company, Texas Instruments, and Fujitsu Limited. These players have adopted various revenue and business growth strategies to enhance and develop their product portfolio, strengthen their market share, and help them increase their market penetration.
The Semiconductor Packaging Market is estimated to grow at a CAGR of 9.10% from 2021 to 2030.
The Semiconductor Packaging Market is projected to reach $60.44 billion by 2030.
Products used in IoT, such as sensors & actuators, analog & mixed-signal translators, and microcontrollers or embedded processors, require efficient and reliable packaging solutions contributed the highest share in the global semiconductor packaging market.
The key players profiled in the report include Amkor Technology (U.S.), ASE Group (Taiwan), ChipMOS Technologies, Inc. (Taiwan), Powertech Technology, Inc. (Taiwan), Intel Corporation (U.S.) and many more.
The Semiconductor Packaging Market is segmented on the basis of type, packaging material, wafer material, technology, industry vertical, and region.
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