The development of electronic hardware necessitates the utilization of
computing power that is capable of delivering high performance, high speed,
and high bandwidth, as well as low latency and power consumption.
Additionally, the hardware must be able to provide a wide range of
functionalities, as well as be able to integrate at the system level, and
must be cost-effective. Advance packaging technologies are ideally suited to
meet these diverse performance demands and the intricate heterogeneous
integration requirements, thus providing businesses with the opportunity to
capitalize on the changing demands of high-performance computing, artificial
intelligence, and 5G.
Major semiconductor packaging vendors are experiencing significant growth in
sales owing to increasing demand for high-performance computing, IoT, and 5G
devices. For instance, Amkor's computing segment, which includes data
center, infrastructure, PC/laptop, and storage, registered a 20% share in
the total revenue, up from 18% in Q2 2022. The shift toward vehicle
electrification is being accelerated by the implementation of policies by
governments around the world to reduce emissions and encourage sustainable
transportation. Source:
https://www.mordorintelligence.com/industry-reports/semiconductor-packaging-market
A significantly high initial investment is required in the designing, developing, and setting up of semiconductor packaging units as per the requirements of different industries such as automotive, consumer electronics, healthcare, IT & telecommunication, and aerospace and defense. This can restrict the growth of the semiconductor packaging market.
The COVID-19 pandemic forced manufacturing industries to re-evaluate their
traditional production processes, primarily driving digital transformation
and smart manufacturing practices across the production lines. According to
the Semiconductor Industry Association, in 2023, semiconductor sales were
expected to reach USD 515.1 billion worldwide. Semiconductors are crucial
components of electronic devices, and the industry is highly competitive.
The year-on-year decline rate in 2023 was 10.3%, although a swift recovery
is expected in 2024. Notable semiconductor chip makers include Intel and
Samsung Electronics, with Intel generating USD 58.4 billion and Samsung
generating USD 65.6 billion in semiconductor revenue in 2022, placing them
among the largest companies in terms of semiconductor industry revenues.
Source:
https://www.mordorintelligence.com/industry-reports/semiconductor-packaging-market
Semiconductor Packaging Industry Overview
The Semiconductor Packaging Market is semi-consolidated with the presence of
major players like ASE Technology Holding Co., Ltd, Amkor Technology Inc.,
Intel Corporation, Taiwan, Semiconductor Manufacturing Company Limited, and
JCET Group Co. Ltd. Players in the market are adopting strategies such as
partnerships and acquisitions to enhance their product offerings and gain
sustainable competitive advantage.
October 2023 - ASE Technology Holding Co., Ltd announced to launch of its
Integrated Design Ecosystem to enable silicon package design efficiencies
that reduce cycle time by half. Integrated Design Ecosystem (IDE) is a
collaborative design toolset optimized to boost advanced package
architecture across its VIPackTM platform systematically.
August 2023 - Amkor Technology Inc. announced the expansion of its advanced
packaging production capacity. Monthly production of 2.5D packaging is
expected to increase from 3,000 wafers in early 2023 and reach 5,000 wafers
in the first half of 2024. Source:
https://www.mordorintelligence.com/industry-reports/semiconductor-packaging-market
