Advanced Packaging Market Size, Companies, Share, Trends & Industry Analysis (2025 - 2030)

Advanced Packaging Market Analysis

The Advanced Packaging Market size is estimated at USD 34.80 billion in 2025, and is expected to reach USD 47.98 billion by 2030, at a CAGR of 6.63% during the forecast period (2025-2030).

The advanced semiconductor packaging industry is experiencing significant transformation through consolidation and strategic partnerships, as companies seek to remain competitive amid increasing technological complexity. Major advanced packaging companies are pursuing mergers and acquisitions to strengthen their capabilities, with notable examples including ASE Technology's partnership with GlobalFoundries in February 2023 to establish the first at-scale back-end facility in Europe. This consolidation trend is particularly evident as chipmakers grapple with increasing design complexities and the challenges of sustaining Moore's Law, leading to the emergence of new collaborative approaches in advanced packaging solutions.

The industry is witnessing a dramatic shift toward innovative advanced packaging technologies, particularly in response to the growing demand for 5G infrastructure and applications. According to Ericsson's latest forecasts, 5G subscriptions are expected to surge to over 4.5 billion globally by 2028, driving the need for advanced packaging solutions that can support high-frequency applications and improved thermal management. In September 2023, Intel made a significant breakthrough by launching glass substrates for next-generation advanced packaging, offering distinctive properties such as ultra-low flatness and better thermal stability for high-density, high-performance chip packages.

Major investments in advanced packaging capabilities are reshaping the industry landscape, particularly in Asia. In July 2023, Silicon Box announced a USD 2 billion investment in an advanced semiconductor manufacturing foundry in Singapore, while TSMC revealed plans to invest NTD 90 billion in an advanced chip packaging plant in Taiwan. These investments are largely driven by the artificial intelligence boom and the increasing demand for high-performance computing applications, demonstrating the industry's rapid evolution toward more sophisticated advanced packaging solutions.

The industry is seeing a significant shift toward chiplet technology and heterogeneous integration, with companies developing new platforms to address the growing complexity of semiconductor devices. In October 2023, ASE Technology launched its Integrated Design Ecosystem (IDE), enabling seamless transition from single-die SoC to multi-die disaggregated IP blocks. This trend is further supported by Micron's announcement in June 2023 to invest YUAN 4.3 billion in upgrading its chip packaging factory in Xi'an, highlighting the industry's movement toward more advanced packaging solutions for memory and storage applications.

Advanced Packaging Market Trends

Increasing Trend of Advanced Architecture in Electronic Products

The rapid advancement in technology has catalyzed the development of more sophisticated architectures in electronic products, driving significant demand for advanced packaging solutions. These advancements encompass improvements in semiconductor manufacturing processes, component miniaturization, and the development of new materials and technologies. The increasing demand for faster processors, enhanced memory capacity, improved graphics capabilities, and superior connectivity options has created a substantial need for advanced packaging solutions that can support these high-performance requirements.

The rise of applications requiring high computational power, such as artificial intelligence, virtual reality, and data analytics, has further accelerated the need for advanced architectures in electronic products. These applications demand specialized hardware and optimized architectures to deliver the desired performance levels. The growing adoption of cloud computing and the generation of large amounts of data have put additional pressure on electronic products to handle complex computational tasks efficiently. Advanced architectures, such as parallel processing and distributed computing, have become essential for processing and analyzing big data in real-time, driving the need for sophisticated advanced packaging solutions that can support these demanding applications.

Favorable Government Policies and Regulations in Developing Countries

Governments worldwide are actively supporting the semiconductor industry through reduced barriers and increased subsidies for production, research, and development. In July 2023, India's government announced a significant initiative offering 50% financial assistance to technology firms establishing semiconductor manufacturing facilities in the country. This support extends to the identification of 300 colleges for starting semiconductor design courses, demonstrating a comprehensive approach to developing the semiconductor ecosystem. Similarly, China's announcement of a new state-backed investment fund worth USD 40 billion in September 2023 showcases the strong government commitment to advancing domestic semiconductor capabilities.

The implementation of supportive policies extends beyond direct financial assistance to include strategic partnerships and infrastructure development. For instance, in October 2023, Mexico and the United States launched a joint "semiconductor action plan" aimed at making North America the world's most powerful chip-producing region. This collaboration, supported by initiatives like the CHIPS and Science Act, demonstrates how government policies are fostering regional cooperation and development in the semiconductor industry. Additionally, Japan's adoption of major new industrial policies, including the formation of the Leading-Edge Semiconductor Technology Center (LSTC) and collaboration with foreign partners, illustrates the comprehensive approach governments are taking to strengthen their domestic semiconductor capabilities.

Segment Analysis: Packaging Platform

Flip Chip Segment in Advanced Packaging Market

The Flip Chip segment continues to dominate the advanced packaging market, commanding approximately 64% market share in 2024, driven by its widespread adoption in high-performance computing and mobile applications. This technology's prominence is attributed to its superior electrical performance, reduced signal inductance, and ability to handle higher temperatures compared to traditional chip packaging technologies. The segment's leadership position is reinforced by its effectiveness in applications requiring smaller assembly sizes, making it particularly suitable for smartphones, consumer electronics, and automotive applications. Flip chip packaging enables optimized electrical paths for high-frequency signals, making it ideal for RF, baseband, and in-substrate antenna applications, while its ability to bring power directly into the core of the die rather than requiring rerouting to the edges significantly decreases core power noise and improves silicon performance.

Embedded Die Segment in Advanced Packaging Market

The Embedded Die segment is emerging as the most dynamic segment in the advanced packaging market, projected to grow at approximately 30% annually from 2024 to 2029. This remarkable growth trajectory is primarily driven by the increasing demand for 5G network technology and consumer electronics applications. The technology's ability to provide enhanced chip quality, superior reliability, and better security, while consuming no area on the chip, makes it particularly attractive for emerging applications. The segment's growth is further accelerated by the rising implementation of the Internet of Things (IoT), where miniature electronic circuits with requirements for small size, low power consumption, less heat dissipation, and smaller form factors are essential. The technology's excellent electrical performance at high frequencies and its promise for emerging microwave applications position it as a crucial enabler for next-generation devices. Embedded die packaging is pivotal in meeting these demands, ensuring robust performance and integration.

Remaining Segments in Packaging Platform

The advanced packaging market's ecosystem is further enriched by Fi-WLP, Fo-WLP, and 2.5D/3D segments, each serving distinct market needs. The Fi-WLP technology offers advantages for cost and space-constrained mobile devices and emerging applications in automotive and wearable electronics. The Fo-WLP segment has emerged as a promising technology for meeting consumer electronic products' increasing demands, offering substrate-less packages and lower thermal resistance. The 2.5D/3D segment has gained significant traction in high-performance computing applications, enabling multiple dies to be positioned laterally with signal redistribution interconnect layers, particularly beneficial for advanced memory integration and processor-to-memory bandwidth optimization. This segment also leverages through-silicon via and 3D packaging technologies to enhance performance and efficiency. Additionally, wafer-level packaging and panel-level packaging are becoming increasingly relevant in addressing the industry's evolving needs.

Advanced Packaging Market Geography Segment Analysis

Advanced Packaging Market in North America

The North American advanced packaging market continues to be a significant force in the global landscape, commanding approximately 17% of the global advanced packaging market share in 2024. The region's prominence is largely driven by extensive semiconductor packaging capabilities and the rising demand for miniature consumer electronic devices. The United States, in particular, maintains its dominance within the North American region, supported by aggressive government initiatives to boost domestic chip production. The implementation of the CHIPS and Science Act has become a cornerstone for market growth, with a substantial focus on reinvigorating domestic advanced packaging manufacturing and innovation. The National Institute for Standards and Technology's establishment of the National Advanced Packaging Manufacturing Program (NAPMP) demonstrates the region's commitment to developing robust domestic advanced packaging industries. Private investments exceeding $210 billion across 20 states for domestic manufacturing capacity enhancement further underscore the region's strategic importance. The region's technological leadership in developing packages, especially in new and advanced forms of technology, positions it uniquely in the semiconductor packaging industry. Despite having extensive chip production capabilities, the region's strategic focus on reducing dependence on Asian OSAT firms for packaging services is creating new opportunities for market expansion.

Advanced Packaging Market in Europe

The European advanced packaging market has demonstrated robust growth, registering approximately a 6% growth rate from 2019 to 2024, driven by the region's position as a crucial tech hub and significant adopter of modern technology. The European semiconductor industry has established a strong foothold in applications for the automotive, aerospace industries, and industrial automation, complemented by world-class research facilities like Imec in Leuven, Belgium. The European Chips Act has emerged as a transformative initiative, facilitating substantial public and private investments to strengthen Europe's position in production capacities and expertise. The region's commitment to sustainability has positioned it ahead in terms of long-term growth drivers, although it faces challenges in the major growth area of advanced chips. Major semiconductor manufacturers are increasingly investing in European facilities, particularly in countries like Germany, France, and Italy, indicating a strategic shift towards building robust local semiconductor ecosystems. The region's focus on reducing dependency on foreign companies and preventing supply chain disruptions has led to increased support for investments in the semiconductor sector, creating new opportunities for advanced packaging solutions.

Advanced Packaging Market in Asia Pacific

The Asia Pacific advanced packaging market is poised for exceptional growth, with a projected growth rate of approximately 12% from 2024 to 2029, establishing itself as the dominant force in the semiconductor packaging landscape. The region's supremacy is attributed to the presence of major semiconductor manufacturers, rapid industrialization, and a vast consumer electronics market. The region's strength lies in its high-volume production capabilities and the widespread adoption of advanced packaging technologies across diverse industries, including consumer electronics, automotive, and telecommunications. China's ambitious semiconductor agenda, supported by substantial funding and strategic investments in evolving packaging technologies, positions it as a major competitor in the global market. Taiwan's significant strides in chip packaging and fabless segments, coupled with its advanced foundry services, further strengthen the region's dominance. The integration of industry resources through strategic mergers and acquisitions, continuous R&D investments, and the development of new product applications characterize the region's dynamic market environment. The presence of major players and their focus on innovative packaging solutions continues to drive technological advancement and market growth.

Advanced Packaging Market in Rest of the World

The Rest of the World region in the advanced packaging market represents an emerging frontier with significant untapped potential, particularly in the Middle Eastern and African markets. The GCC countries are emerging as qualified candidates for developing semiconductor industries, supported by their robust investment capabilities and access to key raw materials such as silicon, copper, and aluminum. The region benefits from developed infrastructure in specialized zones like Masdar City, Silicon Oasis in the UAE, and Neom in Saudi Arabia, which provide fertile ground for semiconductor industry development. Middle Eastern economies are actively working to position themselves as major players in the global technology scene, with a particular focus on high-technology manufacturing products. The region's strategic focus on localization compared with other manufacturing sectors, combined with its growth potential and the wide-reaching economic effects of supply disruptions, creates unique opportunities for market development. Africa's progress in technology, particularly in countries like South Africa, Egypt, Algeria, and Morocco with significant silicon resources, presents long-term growth potential despite current underutilization of resources.