Semiconductor Packaging Market

Market Overview:

The global semiconductor packaging market size reached US$ 32.4 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 51.7 Billion by 2028, exhibiting a growth rate (CAGR) of 7.78% during 2023-2028. The increasing use of consumer electronics, rising sales of self-driving vehicles, and the growing demand for efficient devices for supplying and transmitting electricity represent some of the key factors driving the market.

Continuous Technological Advancements Fostering Market Growth

The integration of artificial intelligence (AI0, machine learning (ML), deep learning, and the internet of things (IoT) in semiconductor packaging represents one of the major factors strengthening the growth of the market around the world. These advanced technologies enable data sharing and control of the flow of information using very high-speed interconnectivity.

Competitive analysis such as market structure, market share by key players, player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. The market structure is consolidated with a few players holding a significant share in the market. The volume of new entrants is high in the semiconductor packaging industry due to strong government support, technical innovation, low product differentiation, and switching costs.

What is Semiconductor Packaging?

Semiconductor packaging encloses one or more semiconductor devices, such as integrated circuits (ICs), within a protective package to protect them from physical damage and provide electrical connections. It is made of various materials, including ceramics, plastics, and metals, to protect the semiconductor devices from mechanical damage, temperature changes, and moisture. It assists in protecting the electronic system from radiofrequency noise emission, cooling, and electrostatic discharge. It offers a supporting case that prevents physical damage and corrosion to logic units, silicon wafers, and memory devices during the final stage of the semiconductor manufacturing process.

COVID-19 Impact:

The COVID-19 pandemic outbreak caused a significant impact on the semiconductor packaging industry and imposed unprecedented challenges on numerous countries. Many semiconductor packaging companies rely on raw materials and equipment from suppliers in Asia, which were severely impacted by the pandemic. The closure of factories and transportation disruptions caused delays in the delivery of materials, which resulted in production slowdowns and increased lead times. Moreover, the pandemic also led to a decline in demand for different semiconductor devices. With many businesses shutting down and consumers staying home, demand for products like smartphones, laptops, and automobiles decreased. This led to a reduction in orders for semiconductor packaging companies that supply these industries. However, the semiconductor packaging companies had to adopt new strategies to cope with the challenges posed by the pandemic. Many companies implemented remote work policies to ensure the safety of their employees, while others shifted their focus to industries that were experiencing increased demand, such as healthcare and home entertainment. Despite these challenges, the semiconductor packaging industry remained resilient during the pandemic. The need for electronics increased as more people worked from home and attended virtual events, which led to a rise in orders for semiconductor devices. Many companies also enhanced their digital transformation efforts to improve their resilience and agility in the face of future disruptions.

Semiconductor Packaging Market Trends:

The increasing sales of consumer electronics, including gaming consoles, televisions (TVs), smartphones, tablets, laptops, and other compact gadgets, represent one of the key factors driving the demand for semiconductor packaging around the world. Moreover, semiconductor packaging is employed in the automotive industry for safety and entertainment features, such as advanced driver assistance systems (ADAS), infotainment, and electric powertrain systems. This, coupled with the rising demand for self-driving and autonomous vehicles, is favoring the growth of the market. In addition, there is an increase in the use of semiconductor packaging in renewable energy systems like solar panels and wind turbines. This, along with the growing demand for efficient devices for supplying and transmitting electricity across various industries and significant improvements in the information technology (IT) infrastructure, is influencing the market positively. Apart from this, the rising usage of semiconductor packaging in data centers for servers, storage devices, and networking equipment is creating a positive outlook for the market.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the global semiconductor packaging market report, along with forecasts at the global, regional and country level from 2023-2028. Our report has categorized the market based on type, packaging material, technology and end user.

Type Insights:

• Flip Chip
• Embedded DIE
• Fan-in WLP
• Fan-out WLP
   

The report has provided a detailed breakup and analysis of the semiconductor packaging market based on the type. This includes flip chip, embedded DIE, fan-in WLP, and fan-out WLP. According to the report, flip chip represented the largest segment as it is the process of attaching a semiconductor die to a substrate or carrier bond pad side down. It is a conductive bump on the die bond pad that is used to make the electrical connection. It provides a greater I/O count as compared to other connectivity methods.

Packaging Material Insights:

• Organic Substrate
• Bonding Wire
• Leadframe
• Ceramic Package
• Die Attach Material
• Others
   

A detailed breakup and analysis of the semiconductor packaging market based on the packaging material has also been provided in the report. This includes organic substrate, bonding wire, leadframe, ceramic package, die attach material, and others. According to the report, organic substrate accounted for the largest market share as it is the base material to fabricate ICs. Moreover, the growing demand for semiconductor packages, such as ball grid array (BGA), chip scale package (CSP), and system in package (SIP), is influencing the market positively. In addition, the rising demand for thin materials to fabricate sub nano-scale packaged chips is bolstering the market growth.

Technology Insights:

• Grid Array
• Small Outline Package
• Flat no-leads Package
• Dual In-Line Package
• Others
   

A detailed breakup and analysis of the semiconductor packaging market based on the technology has also been provided in the report. This includes grid array, small outline package, flat no-leads package, dual in-line package, and others. According to the report, grid array accounted for the largest market share as it is a form of surface-mount packaging that is used for integrated circuits (ICs) and offers more interconnection pins that can be installed on dual in-line or flat packages. It provides substantial size benefits with respect to traditional surface mount packages. It also offers increased circular speed, small footprint, and enhanced handleability.

End User Insights:

• Consumer Electronics
• Automotive 
• Healthcare
• IT and Telecommunication
• Aerospace and Defense
• Others
   

A detailed breakup and analysis of the semiconductor packaging market based on the end user has also been provided in the report. This includes consumer electronics, automotive, healthcare, IT and telecommunication, aerospace and defense, and others. According to the report, consumer electronics accounted for the largest market share to improve the performance, reliability, and cost-effectiveness of electronics systems. Moreover, the increasing per capita income around the world and increased affordability of electronic equipment are influencing the market positively.

Regional Insights:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others) was the largest market for semiconductor packaging. Rapid industrialization and the increasing sales of electric vehicles (EVs) represent one of the major factors driving the Asia Pacific semiconductor packaging. In addition, the rising demand for smart electronics and the expansion of manufacturing industries is propelling the growth of the market in the region. Besides this, the growing need for semiconductor-based devices and products, such as smartphones, personal computers, high-definition (HD) television sets, and others, is influencing the market positively in the region.

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape in the global semiconductor packaging market. Some of the companies covered in the report include:

• Amkor Technology Inc.
• ASE Group
• ChipMOS Technologies Inc.
• Fujitsu Limited
• Intel Corporation
• International Business Machines Corporation
• Jiangsu Changjiang Electronics Technology Co., Ltd.
• Powertech Technology Inc.
• Qualcomm Incorporated
• Samsung Electronics Co. Ltd.
• STMicroelectronics International N.V.
• Taiwan Semiconductor Manufacturing Company Limited
• Texas Instruments Incorporated
   

Please note that this only represents a partial list of companies, and the complete list has been provided in the report.

Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the semiconductor packaging market from 2017-2028.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global semiconductor packaging market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the semiconductor packaging industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.