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Advanced Packaging Market Overview

30/07/2024

The advanced packaging (AP) market is poised for substantial growth, with a projected compound annual growth rate (CAGR) of 11% from 2023 to 2029, reaching an impressive $69.5 billion by the end of this period, according to Yole Group.

In 2023, advanced packaging accounted for around 44% of the total integrated circuit (IC) packaging market. This share is steadily increasing, fueled by megatrends such as Artificial Intelligence (AI), High-Performance Computing (HPC), automotive innovations, and Advanced Intelligent Power Chips (AIPCs).

Key Players in the Market

The supply chain transformation is largely driven by significant investments in facility expansions by existing Outsourced Semiconductor Assembly and Test (OSAT) providers and Integrated Device Manufacturers (IDMs). The top five revenue-generating companies in this space include ASE, Amkor, TSMC, Intel, and JCET. These players continue to innovate and adapt to the evolving demands of the industry.

Market Recovery and Future Growth

After experiencing a market correction in 2023, the advanced packaging sector is set for recovery in 2024. The long-term outlook remains highly positive, with various sub-markets within advanced packaging—including Flip-Chip, System-in-Package (SiP), Fan-Out (FO), Wafer-Level Chip Scale Package (WLCSP), Embedded Die (ED), and 2.5D/3D packaging—showing robust growth potential.

As the demand for more sophisticated and efficient packaging solutions increases, the advanced packaging market is well-positioned to thrive, driven by technological Innovations and the rising importance of high-performance applications across multiple sectors. The next few years promise exciting developments and opportunities for growth in this dynamic field!

Advanced Packaging Market Overview

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