Advanced packaging market growing at pace, says Yole
The advanced packaging market will be worth about US$42.5 billion in 2024 and US$47.5 billion in 2025, according to market analysis company Yole.
Over the period 2023 to 2029 the annual market is expected to have a compound annual growth rate of 11 percent and be worth about US$69.5 billion in 2029. The market is growing faster than the rest of the IC packaging market and is being pushed forward by corporate investment and regional subsidies, Yole said.
Advanced packaging annual revenue by platform 2023 to 2029. Source: Yole.
The market is undergoing a transition as OSATs (outsourced semiconductor assembly and test) and chip makers such as Intel and TSMC invest in the adoption of chiplet and heterogeneous integration.
Yole says the leading five players in advanced packaging by revenue are: ASE, Amkor, TSMC, Intel and JCET.
In 2023, when the advanced packaging market was worth about US$38 billion, it was 44 percent of the total IC packaging market. However, advanced packaging is growing faster than the rump of the market due to trends towards as AI, HPC, automotive, and AI PCs, Yole asserted.
“India is positioning itself as a significant OSAT hub, attracting substantial investments in semiconductor manufacturing, packaging, and testing facilities,” said Bilal Hachemi, in a statement. “Malaysia, with its established semiconductor infrastructure, is becoming a preferred destination for companies relocating from China. Vietnam is also seeing growth in semiconductor investments, particularly in OSAT and packaging, driven by strategic partnerships with the United States following the CHIPS and Science Act.”
TSMC has adopted an integrated business model, combinging front-end manufacturing with advanced packaging, allowing it to catch more of the value of chip manufacturing. Similarly Samsung is using advanced packaging across its memory and foundry businesses. Intel is making advanced packaging a key part of its foundry offering.
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