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What’s in Store for Semiconductor Packaging?

Technavio identifies mergers and acquisitions as a key trend driving growth in the semiconductor advanced packaging industry, and predicts 3D ICs will be more commonplace in the next 5 years.

Technavio’s most recent report identifies drivers in the global semiconductor advanced packaging market over the period 2017-2021. Predicting growth in market value from $24.20 billion in 2016 to 36.30 billion in 2021, it analyzes trends by packaging technology, device type, and geography. The report also identifies electric vehicles as a driver for growth in the semiconductor packaging market.

Semiconductor packaging supports and protects chips from damage and corrosion. The technology used during packaging and final form factor may depend on requirements for chips regarding compactness, cost reductions during manufacturing, or final performance requirements for the particular integrated circuit.

Semiconductor packaging has evolved from chip-scale packaging to SiP, PoP, wafer-level package, 2.5D ICs, and 3D ICs over the last ten years. The research from Technovio indicates that development of 3D chip packaging will be a major factor that positively impacts the market’s growth, offering space savings due to the stacked wafers.

The report also predicts an increase in wafer size as manufacturers look to cut production costs. In 2016, several companies were seen investing in 300-mm diameter wafer manufacturing facilities and the report forecasts pilot production of 450-mm wafers to begin during 2019-2020. Still, manufacturing for 200-mm wafers will continue throughout the forecast period for technologies like image sensors, microcontrollers, display drivers, and some MEMS-based products like accelerometers.

The report also identifies mergers and acquisitions as an influencer for growth in the market as vendors strive to increase and enhance their market share. Advanced Semiconductor Engineering, Amkor Technology, Samsung Semiconductor, TSMC are identified as the key vendors in the global semiconductor advanced packaging market. Also, the Asia-Pacific region will be a significant contributor to the semiconductor advanced packaging market

Challenges for the market include wafer size and node migrations, which slow market growth despite overall increases in capital expenditure by vendors. To access the full report, visit Global Semiconductor Advanced Packaging Market 2017-2021.


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