ADVANCED PACKAGING QUARTERLY MARKET MONITOR - Q1 2022

The advanced packaging’s time to shine has come

ASE continues to dominate this industry, closely followed by Amkor and Intel. TSMC kept its 5th place, just after JCET Group.

OUTLINE:

  • The total advanced packaging market’s revenue is expected to reach US$57.2 billion in 2027.
  • The biggest revenue growth is happening inside the Chinese OSAT ecosystem.
  • 2021 was a great year for advanced packaging with the top 3 OSATs, ASE, Amkor, and JCET Group, completing the year with a 20% YoY revenue growth.
  • TO DOWNLOAD THE PRESS RELEASE: ENGLISH - JAPANESE - KOREAN - CHINESE

Lyon, France, May 5th 2022 – The market research and strategy consulting company Yole Développement (Yole) has developed comprehensive and accurate advanced packaging expertise for more than ten years. All year long, Yole’s analysts deliver in-depth analyses, including dedicated technology and market reports, reverse engineering and costing analyses, and monitors. More information.
Today, Yole releases the Advanced Packaging Quarterly Market Monitor, Q1 2022 update. With this new analysis, the packaging team offers in-depth coverage of the rapidly changing advanced packaging market dynamics and the main players’ status and strategies. Yole identified many changes during this quarter: the growing Chinese ecosystem, a strong market demand, the evolution of package technologies, and the supply chain disruption… all major events during this quarter have been deeply analyzed.
This Q1 2022 edition provides updates on unit shipments, wafer production, and revenue on a 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 package level forecasts and the annual rankings , based on 2021 revenues.

Gabriela Pereira, Technology & Market Analyst, Semiconductor, Memory & Computing, and part of the packaging team at Yole, asserts: “2021 was a great year for the advanced packaging industry, with ASE continuing to dominate the market, followed by Amkor. Intel kept its third position in the ranking, followed by JCET and TSMC. Furthermore, 2021 had larger YoY revenue growth than 2020, with the fastest-growing OSATs being mainly Chinese.”

The advanced packaging market’s total revenue was US$32.1 billion in 2021, and it is expected to record a 10% CAGR reaching US$57.2 billion in 2027. Megatrends including 5G, automotive infotainment/ADAS , AI , data center, and wearable applications continue to move advanced packaging forward. 2021 was a great year for advanced packaging, with the top 3 OSATs completing the year with a 20% YoY revenue growth.
Stefan Chitoraga, Technology and Market Analyst specializing in Packaging and Assembly at Yole, states:
“The major OSATs saw 15 to 26% YoY increase in Q4 revenue, with sequential quarter growth between 1 and 15%. OSATs identified value opportunity shifting to advanced packaging due to increasing transistor costs at leading-edge nodes and expanding consumer appetites for smaller and thinner electronic devices.”
Leading OSATs are running at full packaging capacity and still face capacity constraints for many product lines. That will continue into 2022. In addition, IDM outsourcing for packaging continues accelerating, particularly for more advanced products, as their investments are more focused on front-end expansion. To conclude, OSATs are slowing down their wire bonding capacity expansions, and for 2022 the CapEx will be allocated mainly to advanced packaging and testing.

Yole’s Advanced Packaging Quarterly Market Monitor also points out the biggest revenue growth inside the Chinese OSAT ecosystem, with Payton Technology, Wafer Level CSP, Chipmore Technology, China Resources Microelectronics, and Forehope leading the way. The government has been heavily investing as it wants to grow and strengthen regional semiconductor development and supply. Today, the top three Chinese OSATs are part of the world’s top 10 and contributed 85% of the top 10 Chinese OSATs’ revenue in 2021. Chinese OSATs are mainly investing in advanced packaging platforms instead of traditional packaging. The leading players are especially targeting high-end technologies for the future.

5G migration, HPC, automotive, and IoT … megatrends set new heights in demand in 2021, and OSATs are well-positioned to enjoy increased profit and sustainable growth in 2021. Yole expects the market supply/demand to return to equilibrium in 2023-2024. Today, severe shortages in global wafer supply, substrate, and lead frame remain, so products relating to 5G, AI, IoT, and ADAS are being delayed. Yole invites you to follow the advanced packaging industry with the Advanced Packaging Quarterly Market Monitor on i-Micronews. Stay tuned!

This press announcement is fully dedicated to the Advanced Packaging Quarterly Market Monitor, Q1 2022.
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Acronyms:
OSAT: Outsourced Semiconductor Assembly and Test
All packaging companies, including foundries – OSATs only…
CAGR: Compound Annual Growth Rate
ADAS: Advanced Driver Assistance Systems
AI: Artificial Intelligence

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