As the semiconductor industry continues to strive for higher bandwidth scalability high performance and heterogeneous integration, the advanced packaging market continues to evolve and grow amid this Coronavirus outbreak.
5G deployment, AI applications, and High Performance Computing market is driving fan-out package growth at 15.9% CAGR for next five years. TSMC, Samsung, and Intel continue to invest in 3D IC package integration as IC packaging has become the means to extend and enhance Moore’s law in achieving “more than Moore” architectures. Top OSATs such as ASE, Amkor, and JCET also continue to invest in fan-out form factors with FoCos, FO-SiP, and enhanced side protection packages such as Deca’s M-Series platform. In this growing market of wafer level packaging, Yole Développement expects that semiconductor industry will experience slight demand reduction in 2H’2020 resulting in 10-20% decrease compare to 2018 levels. Mobile and consumer markets will be mainly impacted while telecom and infrastructure such as HPC, industrial sectors will see steady growth with minimal impact.
As 2020 kicked off to a start, semiconductor industry continued strong momentum achieved in Q4’19 and top OSATs and IDMs reported unseasonably strong Q1 2020 until the coronavirus pandemic shifted the global balance. In Q1 2020, advanced packaging especially system in package grew significantly as more heterogenous integration is required to meet 5G, and AI. In 2019. Wafer level packaging (WLP) that includes fan-out packaging and WLCSP/Fan-In packaging revenue surpassed $3B threshold and is expected to approach close to $6B by 2025. System in Package (SiP), Fan-out packages and upcoming chiplet packages are expected to dominate the market for next few years as thirst for scalability, high bandwidth, and functional integration continues in spite of slowing down of Moore’s law on the Si Front-end. This presentation will provide overview and evolution of key advanced packaging technologies that remains critical for 5G deployment, and will provide insight into new emerging packaging form factors. Will the strong growth experienced by top OSATs and IDMs in Q1 continue into 2H’2020? How will global slow-down reshape the semiconductor industry? If semiconductor market slows down in the 2H’2020, what will the recovery look like?
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Advanced Packaging Quarterly Market Monitor
Despite weak semiconductor demand, Wafer Level Packaging reaches new heights as Fan-Out package revenue to surpass $2B by 2025 and Wafer Level Chip Scale Packaging revenue to peak to $3B by 2025.
Senior Technology & Market Analyst - Advanced Packaging