Advanced Semiconductor Packaging Market Evolving Technology, Trends and industry Analysis 2024

During the final stages of development in a semiconductor, silicon wafer, logic board and memory are wrapped in a supporting case that prevents corrosion and physical damage of the chips that are to be connected to the circuit board.

This process is known as packaging in a semiconductor industry. Packaging has evolved during the last ten years from chip-scale package, system in package and package on package to wafer-level package, 2.5D integrated circuits to 3D integrated circuits.

The major challenge of an integrated-circuit (IC) manufacturer is that changes in wafer sizes and node migrations are slowing down even as capital expenditures are increasing. One way to preserve their edge of the manufacturers on their circuits’ high performance, small size and low costs is to incorporate newer chip-packaging options such as 3-D integrated circuits (3.0DICs) and 2.5-D integrated circuits (2.5DICs) into their production processes.

These advanced-packaging technologies, which are still in their infant stage, promise lower power consumption and greater chip connectivity compared with traditional packaging configurations.

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Application memory and processor chip manufactured using advanced packaging solutions such as 2.5D and 3D technologies is about two to three times faster and 30 to 40 percent smaller than chip based packaging using older technologies. These advanced packaging technologies is dependent upon various factors such as thriving demand for low end tablets, smart phones and wearables and other consumer goods.

The need of the hour is compact, flexible and scalable ICs that allow for design changes at minimal cost. There is an increasing focus of the industry on SoC technologies which are migrating to 40nm and 28 nm process technologies.

According to industry sources, Nvidia, AMD, Qualcomm and MediaTek are migrating to 28nm process and this adds complexity to the chip design and development. Thus reduction of board space and miniaturization electrical and thermal performance improvement, cost reduction and simplification of logistic for OEMs of devise has led towards the development of advanced packaging technologies in semiconductor devices.

Existing 2-D IC (2.0DIC) wafer-level and flip-chip technologies have shown a robust growth during the last five years and are been used for many main-stream applications, generally used in high end smart phones and tablets which should meet power management and stringent size requirements.

Emerging 3.0DIC and 2.5DIC packaging technologies extends the wafer-level and flip-chip packaging technologies by adding multiple dies to stacked up vertically together through the use of “through silicon via (TSV) technology and interposers. This technology allows the manufacturers to pack more functionality in a single chip without increasing its size.

The major drivers influencing the advanced semiconductor packaging market globally is miniaturization of electronic devices and proper thermal dissipation has led towards the growth of advanced semiconductor packaging technologies during the forecast period from 2016 – 2024.

Some of the major restraints of the advanced semiconductor packaging market globally are high adoption time by different electronic devices manufactures and the high cost associated with its manufacturing.

The advanced semiconductor packaging market can be distinguished by technology type and application type. In the technology outlook, there are generally two types; through silicon via (TSV), and interposer technology. The application type segment can be bifurcated into consumer electronics, industrial, and memory products.

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Asia Pacific being the largest semiconductor manufacturer globally also posses the largest market for advanced semiconductor packaging industry. Moreover huge demand for electronic devices from Asia pacific region due to its low labor cost and cheap raw material availability has led towards the growth of advanced semiconductor packaging market in this region. North America led the second largest market for advanced semiconductor packaging market followed by Europe and West of the World.

The major players in this industry are Texas Instruments (U.S.), Infineon Technologies (Germany), Nordson Corporation (U.S.), KLA – Tencor (U.S.), Amkor United States (U.S.), and ASE Group (Taiwan) among others.

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