2.5D IC Packaging Market: Comprehensive Analysis and Future Estimations 2025

In the manufacturing process of electronics, integrated circuit (IC) packaging is one of the major stages of semiconductor device fabrication in which the small blocks of semiconducting material is encapsulated in a supporting case that prevents physical corrosion and damage. The market is segmented into by application which includes LED, sensors and MEMS, logic, optoelectronics and imaging, memory, among others. The market, by region is segmented into Asia Pacific, North America, Europe, Middle East and Africa and South America.

Lower cost, low power consumption, high speed signal processing and small form factors are some of the prime reasons behind the growing application of 2.5D packaging in smartphone and memory chips. Additionally, high thermal performance is another major feature which is fueling the market for 2.5D integrated circuit packaging globally. In order to increase the efficiency and to cut down the power consumption up to 50%, the usage of 2.5D IC packaging technique is increasing in different processing units which include central processing unit (CPU) and graphics processing unit (GPU). Moreover, application of 2.5D IC packaging technique also reduces latency of different networking equipment.

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Furthermore, it also helps in interconnection with low power consumption and higher bandwidth. Increasing proliferation of minimization of devices, heterogeneous integration and high I/O density are some the prime factors influencing the growth of 2.5D IC packaging market globally. It is cost effective technique and flexible to integrate in any semiconductor and networking devices. High end communication devices, RF wireless modules, LED packages, portable computers, power amplifiers, and other wearable gadgets among others are some of the key application areas of 2.5D IC packaging market. With the rising research and development activities of 2.5D packaging technologies has enabled different ways of producing advanced packages for the advanced devices. Increasing technological advancement in the field of semiconductor fabrication is one of the fueling factors for the market for 2.5D IC packaging. 2.5D IC packaging enable integration of multiple different chips into a system at lower cost. Furthermore, 2.5D IC packaging refers to stacking chips side by side horizontally on the silicon interposer. Design complexity, tool readiness, heat dissipation and potential yield loss may be considered as some of the restraining factor which may inhibit the growth of the 2.5D IC packaging market. However, increasing application of 2.5D IC packaging in high end research laboratory equipment, satellite communication devices and advanced medical devices are some of the opportunities for the market.

In 2016, North America accounted for the largest market share in terms of revenue for the 2.5D IC (integrated circuit) packaging market, followed by Asia Pacific and Europe. The U.S. is leading the market for 2.5D IC packaging across North America. In Asia Pacific, China held the largest market share in terms of revenue across Asia Pacific, followed by Japan, South Korea. Germany, Italy, the U.K. and France among others are influencing the positive growth in the 2.5D IC packaging market. Brazil and Argentina are anticipated to contribute positive development over the forecast period from 2017 to 2025. In Middle East and Africa, there has been considerable advancement, miniaturization and development in the sector of electronics and other industries is stimulating the demand for 2.5D IC packaging market.

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Taiwan Semiconductor Manufacturing Company, Limited (Taiwan), Palomar Technologies (The U.S.), Amkor Technology, Inc. (The U.S.), Texas Instruments Inc. (The U.S.), Samsung Electronics Co., Ltd. (South Korea), Teledyne Technologies Incorporated (The U.S.), Micron Technology, Inc. (The U.S.), Maxim Integrated (The U.S.), Advanced Semiconductor Engineering, Inc. (Taiwan), API Technologies Corporation (The U.S.), Tektronix, Inc. (The U.S.), Toshiba Corporation (Japan) and Intel Corporation (The U.S.) are some of the key players operating in the 2.5D IC packaging market globally. Merger and acquisition and long term and short business alliances with raw material suppliers and component distributers are some of the major strategies abide by the companies in the 2.5D IC (Integrated Circuit) packaging market globally.

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