ADVANCED PACKAGING QUARTERLY MARKET MONITOR - Q1 2021


FCCSP packaging market to rise to new heights driven by mobile & consumer

Q1 2021 TECHNICAL DYNAMICS :

  • Market trends:
    Top OSATs saw 15-20% increase in 2020 revenue compare to 2019 and 2021 is expected to shape up as a “Banner Year” for OSATs.
    Total advanced packaging revenue is expected to grow at 7.9% CAGR between 2020 and 2026.
    5G, automotive infotainment/ADAS, AI, Datacenter and wearable application megatrends continue to thrive the semiconductor eco-system.
  • Special focus: FCCSP packaging
    This market segment will reach more than US$10 billion in 2026.
    Those packaging solutions are mainly used for baseband, RF transceivers, memory, and some PMIC applications.
    FCCSP packaging market share is controlled mainly by top OSATs such as ASE, Amkor, JCET, and memory suppliers such as Samsung, SK Hynix, and Micron.
  • TO DOWNLOAD THE Q1 2021 MONITOR, PRESS ANNOUNCEMENT: ENGLISH 


The semiconductor industry has enjoyed unprecedented growth in the last 15 years, fueled by smartphones, big data, 5G, and the AI revolution. As we look into the future, Moore’s law as we know it will continue to slow down as Si transistor scaling continues to be very costly as only a few players remain able to invest in the capital infrastructure necessary. Intel’s 7 nm delays are also evidence that only a select few players will remain as the technology node reduces to sub 5 nm.

FCBGA PACKAGING REVENUE REACH NEW HEIGHTS AS DEMAND FOR SERVERS, AI, AND NETWORKING SKYROCKETS AMID GLOBAL CORONAVIRUS PANDEMIC
FCCSP packages are mainly used in baseband, RF transceivers, memory, and some PMIC applications.
Vaibhav Trivedi, Senior Technology & Market analyst, Semiconductor & Software division at Yole Développement (Yole) explains:
“Memory DRAM packages used in PC/Datacenter/Automobile are primarily FCCSP based manufactured by top memory makers such as Samsung, Micron, SK Hynix and Winbond.”
FCCSP packages find their place in mobile and consumer markets mainly in smartphone APUs, RF components and DRAM devices used in PC, servers, and automotive applications. FCCSP packages are well suited as they provide low cost and reliable solution like WLCSP without incurring higher cost of fan-out type packages. FCCSP are typically single die with few passive components with less than 13mm x 13 mm BD size and are typically over molded and use molded underfill for solder joint protection. FCCSP packaging market share is controlled mainly by top OSATs such as ASE, Amkor, JCET, and memory suppliers such as Samsung, SK Hynix, and Micron.

RISING CAPEX IN 2021 BY TOP OSATS IN ADVANCED PACKAGING
The semiconductor industry in 2020 was resilient and experienced strong growth as the top OSATs showed unprecedented growth in Q4 2020 and, in fact, throughout 2020 as the global pandemic took shape. Many OSATs, IDMs, and OEMs experienced +15-20% growth in revenue and increased gross margins compared to 2019…
In the race for heterogeneous integration, key players, such as ASE (w/SPIL & USI), TSMC, Intel, Amkor, and JCET, have announced unprecedented CapEx investment in 2021:
• TSMC is planning to spend an estimated US$2.5-US$2.8 billion CapEx in 2021 to gear up new advanced packaging factories with InFO based devices, CoWoS, and SoIC-based product lines. TSMC generated an estimated $3.6 billion revenue through its advanced packaging offering in 2021 and is poised to reach new heights in the cluster of top OSATs.
• ASE has also announced an estimated US$2 billion CapEx investing specifically in the booming system-in-package business through EMS activities, as well as its wafer-level packaging business. ASE remains a top OSAT after the acquisition of SPIL and USI…
• Finally, Intel has recently announced that it will invest ~US$20 billion in building new fabs in Arizona. It will also invest in advanced packaging collaborations as it expands its Foveros/EMIB “hybrid” packaging manufacturing in its Arizona and Oregon factories…
For more information, discover Vaibhav Trivedi’s article: Advanced Packaging CapEx to exceed US$5 billion in 2021 as top OSATs and foundries continue to crank on all cylinders, on i-Micronews.

Yole’s Advanced Packaging Monitor is published every beginning of March (Q1), June (Q2), September (Q3) and December (Q4)... Aim of these services is to provide an in-depth coverage of rapidly changing market dynamics and main players’ status and strategy.
This monitor subscription provides quarterly updates on unit shipments, wafer production, and revenue on near-term and long-term basis. It provides capacity, CapEx, and supply chain insights into emerging markets and growth rates in mature markets in addition to providing package level forecast:
• Module I: Fan-Out Package Monitor – Wafer & Panel level (2019 Q4 released)
• Module II: WLCSP / Fan-In Package Monitor (2020 Q1 released)
• Module III: 2.5D/3D Stacked Package (2020 Q3 released)
• Module IV: FCBGA Package (2020 Q4 released)
• Module V: FCCSP Package (2021 Q1) NEW
In addition, the market research and strategy consulting company Yole releases dedicated advanced packaging reports:
5G Packaging Trends for Smartphones
WLCSP/ Fan-In Packaging Technologies and Market
High-End Performance Packaging: 3D/2.5D Integration 2020
Status of the Advanced Packaging Industry
Stay tuned to i-Micronews to get further information about our Advanced Packaging, Semiconductor Manufacturing & Memory activities!


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