ADVANCED PACKAGING QUARTERLY MARKET MONITOR


Wafer Level Packaging reaches new heights…

MARKET DYNAMICS:

  • WLP market expected to surpass $5B threshold by 2023.

  • The WLP package market will grow at 5.2% as it finds more applications in Mobile/Consumer/IoT segment and driven by 5G deployment.

  • WLCSP remains a mainstream and cost-effective form factor: Q4 2019 was a record quarter as demand recovery seen by OSATs. And 2020 outlook remains positive.

  • Fan-out package market will reach more than US$2B by 2025. Fan-out finds increased heterogenous applications such as Apple APU package on InFO-PoP and upcoming InFO-AiP devices.

  • TO DOWNLOAD THE Q1 2020 MONITOR: ENGLISH


2020 – 2025 WLCSP OUTLOOK
Revenue slightly increased in 2019 due to the new generation of smartphones & to the wearable/IoT ecosystem
“Number of WLCSP packages exceeded 29 billion units in 2019 and many players continue to add capacity and capability in key geographies”,announces Vaibhav Trivedi, Technology & Market Analyst, Advanced Packaging at Yole Développement (Yole).But what are the main market drivers?
First, PMICs, audio-Codecs and connectivity modules lead WLCSP package growth as more devices adopt this platform. In addition, 5G, and IoT remain drivers as WLCSP package count is expected to increase to support high bandwidth applications.
In parallel, the Deca M-Series continues to gain momentum in “fan-in” form as Qualcomm starts adoption with growing need for package side protection and enhanced board reliability. Finally, WLCSP packages will play a critical role in RF package eco-system as many wire bond parts are expected to be converted to flip chip form factors driving additional growth.
In this dynamic context, the 2020-2025 outlook remains strong and robust as new adoption of WLCSP form factors gains wide adoption in all smartphone/luxury phones

COMPANY FOCUS
TSMC goes “all-in”…
TSMC announced unprecedented $1.5B CapEx investment in 2020 for advanced packaging business specifically geared toward SoIC, InFO variants, and the CoWoS product line, with an estimated $300M for the InFO (PoP/AiP/OS/MS) product line.
TSMC started manufacturing Apple APUs on InFO platform in 2016, disrupting the supply chain as substrate suppliers and OSATs lost this Apple APU business to TSMC. TSMC continues to “bite” into traditional OSAT business for Apple APU PoP assembly and AiP module for 5G Apple phones with its InFO product line. TSMC started this journey in 2015 when it invested ~$585M to start-up a new InFO line for Apple application processors. In 2020, TSMC’s advanced packaging CapEx is expected to triple (3x) compared to 2015, to $1.5B. With this strong momentum, TSMC is expected to double its advanced packaging revenue in the next few years as a result of 5G deployment and the need for heterogeneous integration using a wafer level platform…
More on i-Micronews.

WHAT’S NEXT?
The bright future of FO

FO packaging continues to be adopted in high-density applications and high-performance computing, while WLCSP package becomes the mainstream “work horse” for smartphone & consumer applications.
FO packaging began several years ago with limited application, but it has now found a critical role and rightful place in the high-end packaging sector as a mature, reliable package technology. In fact, TSMC’s InFO form-factors brought FO technology to new heights in 2015/2016 when Apple launched its A10 with InFO-PoP. FO packages are primarily used in the mobile and consumer segments, with some proliferation in automotive radar. FO packaging is expected to gain wider adoption as 5G, AI, and autonomous driving take flight in the coming years - and revenue stemming from FO packaging is expected to reach $2.5B by 2025.
The WLCSP packaging market also found a new "M-series” product which provides side mold protection with greater BLR performance. It has been adopted by a major customer. HDFO remains a key growth driver in the FO packaging market…

Yole’s Advanced Packaging Quarterly Market Monitors will be published every beginning of March (Q1), June (Q2), September (Q3) and December (Q4). The aim of Yole’s team is to give a closer look at the main markets and players. In addition to WLCSP and FO, the Advanced Packaging Quarterly Market Monitor will soon cover 2.5/3D and FC packaging.

Yole’s analysts invite you to follow our activities on i-Micronews, especially during this complex period due to the impact of Covid-19.
Stay tuned to i-Micronews to get further info. about our Advanced Packaging activities!


Acronyms
WLP : Wafer Level Packaging
IoT: Internet of Things
WLCSP : Wafer Level Chip Scale Packaging
OSAT : Outsourced Semiconductor Assembly and Test
FO : Fan-Out
APU : Application Processor Unit
PMIC: Power Management Integrated Circuit.