Semiconductor Packaging Market - Growth, Trends, and Forecast (2019 - 2024).

The market is segmented by Packaging Platform (Flip Chip, Embedded DIE, FI WLP, and FO WLP), End-user Industry (Consumer Electronics, Aerospace and Defense, Medical Devices, Communications and Telecom, Automotive, and Energy and Lighting), and Geography.

Market Snapshot

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Study Period:

2018-2024

Base Year:

2018

Fastest Growing Market:

Asia Pacific

Largest Market:

North America

CAGR:

7.96%

Key Players:

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Market Overview

The semiconductor packaging market was valued at USD 26.12 billion in 2018 and is expected to be worth USD 41.16 billion by 2024, recording a CAGR of 7.96% over the forecast period (2019-2024). Owing to the growing demand across various end-user verticals of the packaging industry, the industry has witnessed a continuous transformation in terms of characteristics, integration, and energy efficiency of the product. Since packaging is in the early stage in the electronics value chain, the growth of the market studied is directly impacted by the growth of the semiconductor market.

  • The advent of IoT and artificial intelligence (AI) and the proliferation of sophisticated electronics are factors driving the high-end application segment across the consumer electronics and automotive industries that have increased the rate of adoption of the latest semiconductor packaging technologies, to meet the growing demand.
  • Semiconductor packaging technology has evolved to minimize the costs involved and enhance the overall efficacy of ICs. Vendors in the market are under constant pressure to deliver innovative solutions in terms of the size of the packaging, performance, and the “time-to-market” aspect.
  • Also, the emergence of 2.5D and 3D packaging mechanism, as of mid-2010, has made semiconductor manufacturers extend their flip-chip and wafer-level capabilities, owing to their enhanced functionality.

Scope of the Report

Semiconductor packaging is a casing containing one or more discrete semiconductor devices or integrated circuits made up metal, plastic, glass, or ceramic casing. Packaging must protect an electronic system from cooling, radio frequency noise emission, mechanical damage, and electrostatic discharge. 

By Packaging Platform
Flip Chip
Embedded Die
Fan-in Wafer Level Packaging (Fi Wlp)
Fan-out Wafer Level Packaging (Fo Wlp)
By End-user Industry
Consumer Electronics
Aerospace and Defense
Medical Devices
Communications and Telecom
Automotive Industry
Energy and Lighting
Geography
North America
Europe
Asia-Pacific
Latin America
Middle East & Africa

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Key Market Trends

High Adoption Rate in Consumer Electronics Segment to Augment the Market Growth

  • The electronics market constantly demands higher power dissipation, faster speeds, and higher pin counts, along with smaller footprints and lower profiles. The miniaturization and integration of semiconductors have given rise to smaller, lighter, and more portable devices, like tablets, smartphones, and the emerging IoT devices.
  • Each new iteration of consumer electronics products is smarter, lighter, and more energy efficient than its predecessors. This advantage creates huge expectations among the customers for the next iteration, which is a significant selling point for the producers of consumer electronics.
  • In addition to this, smartphones are one of the most significant contributors to the semiconductor consumption in the consumer electronics segment. In recent years, the United States has witnessed consistent growth in smartphone sales. With this trend likely to continue, it is poised to drive the semiconductor demand, in turn, augmenting the packaging market growth.

 

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North America Expected to Hold a Significant Share

  • Countries in the region, such as the United States lead the world in the manufacturing, designing, and researching pertaining to the semiconductor industry. The United States is also the frontrunner in semiconductor packaging innovation, boasting of 80 wafer fabrication plants spread across 19 states. Apart from this, investments in the country by major players are set to fuel the semiconductor packaging market.
  • For instance, Intel Corporation in 2017 planned to invest more than USD 7 billion to complete Fab 42, a semiconductor factory, which is expected to be ready in three to four years.
  • Apart from this, the United States is home to some of the major automotive players in the world, which are investing in the electric car segment. This is set to augment the demand for semiconductors in the automotive industry significantly. In turn, it is driving the semiconductor packaging market.
  • For instance, Toyota in 2018 announced CAD 1.4 billion in two factories in central Canada where it plans to build its largest hybrid hub in North America. The government is expected to support the investment with CAD 110 million in Cambridge and Woodstock.
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Competitive Landscape

The competitive landscape of the market is moderately fragmented as there are various packaging solution providers for the semiconductor market. Companies are focusing on following a different path, shifting their focus away from performance and price.

  • December 2018 - Amkor Technology Inc., a leading provider of outsourced semiconductor assembly and test (OSAT) services, announced the extension of its MEMS and sensor package platforms to address the growing optical market.
  • January 2018 - ASE Group began the construction of its new factory building, K25. The building is scheduled to be completed in 2020. This was done as a part of the expansion plan.

 

Major Players

  1. ASE Group
  2. Amkor Technology
  3. Jcet/Stats Chippac Ltd
  4. Siliconware Precision Industries Co. Ltd (Spil)
  5. Powertech Technology, Inc.

* Complete list of players covered available in the table of contents below

Market concentration

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Market Definition

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Introduction to Market Drivers and Restraints

    3. 4.3 Market Drivers

      1. 4.3.1 Growing Consumption of Semiconductor Devices Across Industries

      2. 4.3.2 Need for Miniaturization of Semiconductor Devices

    4. 4.4 Market Restraints

      1. 4.4.1 High Initial Investment and Increasing Complexity of Semiconductor IC Designs

    5. 4.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.5.1 Bargaining Power of Suppliers

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Threat of New Entrants

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

    6. 4.6 Value Chain Analysis

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Packaging Platform

      1. 5.1.1 Flip Chip

      2. 5.1.2 Embedded Die

      3. 5.1.3 Fan-in Wafer Level Packaging (Fi Wlp)

      4. 5.1.4 Fan-out Wafer Level Packaging (Fo Wlp)

    2. 5.2 By End-user Industry

      1. 5.2.1 Consumer Electronics

      2. 5.2.2 Aerospace and Defense

      3. 5.2.3 Medical Devices

      4. 5.2.4 Communications and Telecom

      5. 5.2.5 Automotive Industry

      6. 5.2.6 Energy and Lighting

    3. 5.3 Geography

      1. 5.3.1 North America

      2. 5.3.2 Europe

      3. 5.3.3 Asia-Pacific

      4. 5.3.4 Latin America

      5. 5.3.5 Middle East & Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 ASE Group

      2. 6.1.2 Amkor Technology

      3. 6.1.3 Jcet/Stats Chippac Ltd

      4. 6.1.4 Siliconware Precision Industries Co. Ltd (Spil)

      5. 6.1.5 Powertech Technology, Inc.

      6. 6.1.6 Tianshui Huatian Technology Co. Ltd

      7. 6.1.7 Fujitsu Ltd

      8. 6.1.8 UTAC Group

      9. 6.1.9 Chipmos Technologies, Inc.

      10. 6.1.10 Chipbond Technology Corporation

      11. 6.1.11 Intel Corporation

      12. 6.1.12 Samsung Electronics Co. Ltd

      13. 6.1.13 Unisem (M) Berhad

      14. 6.1.14 Interconnect Systems, Inc. (ISI)

      15. 6.1.15 Carsem

    2. *List Not Exhaustive
  7. 7. INVESTMENT ANALYSIS

  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

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