Advanced packaging to see growth from 5G, IoT, and AI

Advanced packaging to see growth from 5G, IoT, and AI

Technology News |
By Rich Pell

“Advanced packaging is showing a total revenue CAGR higher than the total packaging industry (3-4%), semiconductor industry (4-5%) and generally the global electronics industry (3-4%)”, comments Andrej Ivankovic, Technology & Market Analyst at Yole.

“Companies are today managing production costs and enlarging their portfolio. In parallel, advanced packaging players are expanding their activities toward the emerging markets thanks to mergers and acquisitions…,” he adds.

Drivers of the advanced packaging industry include IoT, automotive, 5G connectivity, AR/VR , and AI, amognst others.

“The fastest growing advanced packaging platform is Flip Out (FO) with 36% followed by 2.5D/3D TSV with 28%”, announces Andrej Ivankovic from Yole. “Therefore FO platforms and 2.5D/3D TSV solutions are expected to exceed respectively US$3 billion and US$ 1.3 billion by 2022.”

The Flip Chip (FC) platform is by far the largest, accounting for 81% of advanced packaging revenue with US$19.6 billion in 2017, however a lower 5% revenue growth indicates that penetration of primarily FO packages will decrease FC market share to 74% by 2022. The revenue forecast translates to an advanced packaging wafer forecast of 8% and a 9% unit count, CAGR during the period 2016-2022.

Advanced packages will continue to dominantly address high-end logic and memory in computing and telecom, with further penetration in analog and RF in high-end consumer/mobile segments, while eyeing opportunities in growing automotive and industrial segments.

The shifts in the semiconductor supply chain are results of preparations for future uncertainty, and search for other value flows. Several mergers and acquisitions have been made in attempt to offer a more complete and diversified portfolio, while keeping control of costs and potential losses. Furthermore, in search of additional revenue, new business models are appearing or expanding.

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