ADVANCED PACKAGING INDUSTRY: MARKET FIGURES - SYNAPS

Advanced packaging: Yole announces strong momentum driven by the giants, TSMC, Intel and Samsung

Extracted from: 
•  Status of the Advanced Packaging Industry report, Yole Développement
•  Advanced Packaging Quarterly Market Monitor, Q2, 2020, Yole Développement

OUTLINE:

  • Global advanced packaging market: Yole Développement (Yole) announces a ~US$29 billion market in 2019. It is expected to grow at about 6.6% CAGR between 2019 and 2025.
  • In revenue, mobile & consumer is the biggest market segment with 85% of the total advanced packaging market in 2019. It’ll grow at 5.5% CAGR between 2019 and 2025.
  • Market trends by advanced packaging platform: highest revenue CAGRs expected from 2.5D / 3D stacking IC, Embedded Die, and Fan-Out: 21%, 18% and 16%, respectively.
  • COVID-19 impact:
    Semiconductor business will decline in 2020 due to COVID-19 pandemic. According to Yole’s analysts, it is expected to recover in 2021.
    The advanced packaging market will decrease by 7% in 2020, while the traditional packaging market will decrease by 15%
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“Advanced packaging has entered its most successful era boosted by the need for better integration, the slowdown of Moore’s law and, beyond that, specific industry mega-drivers,” asserts Santosh Kumar, Principal Analyst & Director Packaging, Assembly & Substrates, Yole Korea from Yole Développement (Yole).“These new trends create business opportunities for the various packaging platforms. Indeed, advanced packaging technologies are ideal for fulfilling the various performance requirements and complex heterogeneous integration needs...” (1)
Yole and System Plus Consulting have been covering the advanced packaging for a long time. Step by step, they have developed deep technical and market expertise and present a valuable vision of this industry with an impressive collection of reports including Status of the Advanced Packaging Industry report and a dedicated Quarterly Market Research Monitor.

The two companies also organize, in collaboration with NCAP China their annual advanced packaging symposium, SYNAPS. Taking place in Wuxi, China on September 15, this event is real opportunity to discover the latest trends and meet leading advanced packaging companies.
Dr. Cao Liqiang, GM of NCAP CHINA states: “
2020 is a tough year for the industry with lots of challenges. But just like the ancient poetry says "To the water's ending, See the clouds' rising", we are still full of confidence. Notwithstanding the impact of COVID-19, the passion for AI, 5G and HPC has never faded, and we anticipate that the semiconductor market will recover soon and continue to prosper. Yole and NCAP China wish to promote international communication and global cooperation in the advanced packaging industry to boost the global semiconductor industry by organizing SYNAPS. We look forward to the continuous support and active participation from all the friends and experts of the industry.”
Yole and NCAP China, offer this year again an attractive program. Speakers are from: ASM Assembly Systems, ASM Pacific, Besi, Camtek, Corning, Evatec, EV Group, FormFactor, HiSilicon, JCET, K&S, NCAP China, SPIL, SPTS Technologies, a KLA Company, Tianshui Huatian Electronic, Xiamen Sky Semi., Xiamen Sky Semiconductor, XMC and Yole Développement.
SYNAPS 2020 is sponsored by the following industrial companies: SPTS, a KLA company - BE Semiconductor Industries N.V. (Besi) - Kulicke & Soffa -HANMI - NAURA Technology Group – JSR Corporation (formerly Japan Synthetic Rubber Co., Ltd.) – AMS Pacific Technology Group (ASMPT) - Baihe Instruments - CoreTech System (Moldex3D).
David Butler, General Manager, SPTS Technologies, A KLA Company adds:
“SPTS Technologies, a KLA Company, has been sponsoring and attending the Symposium by Yole Développement (Yole) and NCAP on Advanced Packaging for Semiconductors since 2016, as each year the event brings together a high quality mix of presentations and opportunity to network with attendees across the Advanced Packaging supply chain in China. We’re looking forward to this year’s hybrid live and virtual event providing another quality program.”
Full program & register today!

What is the status of the advanced packaging industry? How has it evolved since last year? What will the future hold? Which platforms are dominating the market? What are the underlying applications and their evolution? What is the impact of the COVID-19 outbreak? …Yole presents today a comprehensive overview of the advanced packaging industry.

The total IC packaging market was worth US$68 billion in 2019. In parallel, the advanced packaging industry was US$29 billion in 2019 and is expected to grow at a CAGR2019-2025 of 6.6% to reach US$42 billion in 2025, states Yole in its new Status of the Advanced Packaging Industry report, 2020 edition. Due to the strong momentum in the advanced packaging market driven by a slowing Moore’s Law and heterogeneous integration along with various megatrends including 5G, AI, HPC, IoTs, etc. the share of advanced packaging in the overall semiconductor market is increasing continuously. According to Yole, it will reach almost 50% of the market by 2025.
At the same time, the raditional packaging market will grow at CAGR2019-2025 of 1.9% and total packaging market will grow at CAGR2019-2025 of 4% to reach US$43 billion and US$85 billion, respectively.

“Due to COVID-19 pandemic, the global advanced packaging market will decrease by 7% in 2020, while the traditional packaging market will decrease by 15%,”
adds Santosh Kumar from Yole.

The highest revenue CAGR is expected from 3D stacking platforms with 21% CAGR between 2019 and 2025. Following after, over the same period, Yole’s advanced packaging team identify Embedded Die and Fan-Out, with CAGRs of 18% and 15.9%, respectively. High volume products will, therefore, further penetrate the market: Fan-Out in mobile, networking and automotive; 3D stacking in AI/ML , HPC , datacenters, CIS , MEMS/sensors; And Embedded Die in mobile, automotive and base stations.
Ruurd Boomsma, Besi’s CTO comments:
“A new era of advanced packaging is at our doorstep. From advanced flip-chip and fan out technologies, now new and more advanced technologies are needed for assembly of double-sided SiP, as well new TCB and hybrid bonding solutions for complex heterogenous packaging are required. This in combination with different carriers for Known Good dies (trays, TnR, reconstructed wafer) and other interposers (wafer, panel, substrate) opens opportunities for new, innovative and cost effective, equipment that offer very high accuracy, high yield and high speed. We see the demand for equipment that offers solutions to these industry demands growing strongly and ha ve a clear focus on supplying such solutions in a timely way. It is great to be one of the leaders in this field.”

Regarding market segments, mobile & consumer revenue constituted 85% of the total advanced packaging revenue in 2019. Yole forecasts a 5.5% CAGR between 2019 and 2025 by when it will generate 80% of the advanced packaging revenue.
Telecom & infrastructure is the fastest growing segment (~13%) of advanced packaging market by revenue and it’ll increase its market share from 10% in 2019 to 14% by 2025. Automotive & transportation segment will grow at 10.6% CAGR between 2019 and 2025 to reach about US$1.9 billion in 2025. However, its market share, within the advanced packaging market, will remain flat, to reach at about 4%.

Status of the Advanced Packaging Industry report and Advanced Packaging Quarterly Market Monitor, both explore in-depth the field of advanced packaging. In parallel, SYNAPS is the place to be to obtain a comprehensive yearly view of the latest market updates and technology developments. Make sure to get a relevant understanding of this industry and follow us on i-Micronews.com.

The LIVE MARKET BRIEFING – Advanced Packaging Landscape in Post COVID Economy, still available on i-Micronews.com.


(1) Source: “Status of the advanced packaging industry ¬- Overview: revolutionary changes happening in advanced semiconductor packaging industry”, Yole Développement for Semiconductor Digest, 2020

Acronyms

CAGR: Compound Annual Growth Rate
IC : Integrated Circuit
AI/ML : Artificial Intelligence/Machine Learning
HPC : High Performance Computing
CIS : CMOS Image Sensor

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