Semiconductor Packaging Market Size, Share, Opportunities, And Trends By Packaging Type (Advanced Packaging, Flip Chip, Embedded Die, Fan-out Level Packaging (fo-wlp), Fan-in Level Packaging (fi-wlp)), By Packaging Material (Organic Substrate, Leadframe, Ceramic Packaging, Bonding-wire, Others), By End-user (Consumer Electronics, Aerospace And Defense, Medical Devices, Communication And Telecom, Others), And By Geography - Forecasts From 2024 To 2029

  • Published : Jul 2024
  • Report Code : KSI061616099
  • Pages : 140

The Semiconductor packaging market is projected to grow at a CAGR of 7.33% over the forecast period, increasing from US$42.500 billion in 2022 to US$69.733 billion by 2029.

Semiconductors are an important component applicable across multiple industries, like automotive, telecommunications, consumer electronics, healthcare, and aerospace, among others. The semiconductor has various properties like integrated circuits, electronic discrete, and transistors. it. Semiconductors are a sensitive component, so they require a protective packaging case before transporting it to various end-users. The semiconductor packaging offers a protective layer, which further helps prevent the semiconductors from dust, scratch, or any other physical or environmental damage.

The demand for semiconductor packaging is expected to grow with the increasing demand for semiconductors in the global market. Semiconductors act as an important component in automobiles in the global market. The semiconductors offer multiple features, such as enabling the entertainment system and internet connectivity options in vehicles. The semiconductors are also embedded into various safety systems of the automobile, such as the ADAS system and emergency braking systems. The global production of automotives in 2023 reached about 93.546 million units, as stated by the International Organization of Motor Vehicle Manufacturers (OICA). The organization also stated that about 55.115 million of the total vehicles produced globally, were produced in Asia Pacific region, like China and India. The global automotive production witnessed a significant increase, from about 84.830 million units produced in 2022 to about 80.004 million units produced in 2021. Similarly, introducing various new technologies, like artificial intelligence and autonomous driving, has also pushed the demand for semiconductors in the automotive industry.

The semiconductor packaging market is estimated to grow at a moderate rate, owing to the increasing demand for consumer electronics coupled with growing demand for miniaturization and increasing adoption of emerging technologies such as 5G. Additionally, the rising demand for the Internet of Things (IoT) has also had a positive impact on the semiconductor packaging market. There is a rising demand among consumers for miniaturized electronic devices such as smartwatches and wearables, among others. There is an upsurge in demand for semiconductor packaging as manufacturers are looking for solutions to fit everything in limited space. Hence, the above-listed factors are expected to propel the market for semiconductor packaging in the projected period

Semiconductor Packaging Market Drivers

  • Increasing global semiconductor demand is anticipated to propel market growth.

The semiconductor is one of the most applicable components in electrical devices. It enables the use of communications and provides a better computing experience. Semiconductors are applicable in multiple industries, such as healthcare, aerospace, automotive, and consumer electronics. The increasing demand for semiconductors is expected to boost the market size of the global semiconductor packaging market.

The global semiconductor industry has witnessed a massive boost in demand, majorly due to its multi-industry application. The global semiconductor demand increased by about 15.8% from April 2023 to 2024, as conveyed by the Semiconductor Industry Association. The industry is forecasted by the association, to achieve a growth of about 16% in 2024. The semiconductor sales in April 2024 were estimated to be about US$ 46.4 billion, which marked an increase from US$ 40.1 billion in sales in April 2023. In 2024, the Americas region observed the highest growth of about 32.4%, followed by China, which witnessed a growth of about 23.4%. The overall Asia Pacific region observed a growth of 11.1%.

Semiconductor Packaging Market Geographical Outlook

  • The market is projected to grow in the Asia Pacific region.

China’s semiconductor industry is one of the largest in the world. The nation is highly ambitious about semiconductors and is developing its IC industry to produce more chips. The country has one of the boosting semiconductor ecosystems with foundries, packaging equipment, and research institutions, among others.

Additionally, the Chinese government is taking all necessary steps to promote the country’s semiconductor industry. For instance, according to the Semiconductor Industry Association (SIA), the government is making serious efforts to close the gap in the semiconductor industry by investing about US$150 billion from 2014 to 2030. Hence, such booming investments by the government to promote the production of semiconductors are anticipated to have a positive impact on the semiconductor packaging market.

Moreover, in September 2023, China announced an investment of US$40 billion to build a new state-back for the semiconductor industry. This initiative is part of China’s broader strategy to compete with countries like the United States.

China is one of the largest exporters of consumer electronics and other semiconductor-related materials. According to the Observatory of Economic Complexity, the country exported broadcasting equipment worth US$272 billion, computers worth US$181 billion, office machine parts worth US$111 billion, and semiconductor devices worth US$70.2 billion. The major countries where the country exported these goods were the United States, Hong Kong, Germany, and South Korea.

Semiconductor Packaging Key Market Developments:

  • In 2023, Amkor Technology, one of the leading companies in semiconductor packaging and test services, revealed its plan to create an advanced packaging and test facility in Arizona, United States. The facility will contribute to building a resilient supply chain for semiconductor packaging. 

Semiconductor Packaging Market Key Players:

  • Amkor Technology, headquartered in Tempe, Arizona, United States, started its business in Korea in 1968 and is a leader in the Outsourced Semiconductor Assembly and Test (OSAT) industry. Moreover, the company is well known for outsourced (OSAT) semiconductor design, packaging, and test services. The offerings include IC semiconductor packaging, advanced packaging and testing of semiconductors, among others.
  • Fujitsu Semiconductor Limited specializes in manufacturing LSI and provides highly reliable solutions tailored to various customers who need LSI, such as FeRAM (Ferroelectric RAM). The company aims to make the world a better place by building new sustainable products with innovation. It provides FeRAM (Ferroelectric RAM), ReRAM (Resistive RAM), and Catalogs & Datasheets.
  • Intel Corporation is one of the major developers of process technology and one of the leading semiconductor manufacturers. The company’s mission is to shape the future of technology to help create a better future. Popular product category includes Intel® Evo™ Laptops., Intel vPro® for Business., Gaming Systems, Intel ® Arc™ Discrete Graphics, Intel® Wi-Fi Products, Thunderbolt™ Technology, Intel® Unison™ Software, and Chipsets among others

The Semiconductor Packaging Market is segmented and analyzed as:

  • By Packaging Type
    • Advanced Packaging
    • Flip Chip
    • Embedded Die
    • Fan-Out Level Packaging (FO-WLP)
    • Fan-In Level Packaging (FI-WLP)
  • By Packaging Material
    • Organic Substrate
    • Leadframe
    • Ceramic Packaging
    • Bonding-Wire
    • Others
  • By End-User
    • Consumer Electronics
    • Aerospace and Defence
    • Medical Devices
    • Communication and Telecom
    • Others
  • By Geography
    • North America
      • USA
      • Canada              
      • Mexico
    • South America
      • Brazil
      • Argentina
      • Others
    • Europe
      • UK
      • Germany
      • France
      • Italy
      • Others
    • Middle East and Africa
      • Saudi Arabia
      • UAE
      • Others
    • Asia Pacific
      • China
      • Japan
      • India
      • South Korea
      • Thailand
      • Indonesia
      • Others

Frequently Asked Questions (FAQs)

The semiconductor packaging market is projected to reach a total market size of US$69.733 billion in 2029.
The global semiconductor packaging market is projected to grow at a CAGR of 7.33% over the forecast period.
Semiconductor Packaging Market was valued at US$42.500 billion in 2022.
The major market driver for semiconductor packaging is the wide variety of applications of semiconductors across various industries, such as consumer electronics like smartphones, televisions, tablets, and others.
The Asia Pacific region is expected to hold a significant share of the semiconductor packaging market.

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key benefits for the stakeholders

2. RESEARCH METHODOLOGY

2.1. Research Design

2.2. Research Process

3. EXECUTIVE SUMMARY

3.1. Key Findings

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View

5. SEMICONDUCTOR PACKAGING MARKET BY PACKAGING TYPE

5.1. Introduction 

5.2. Advanced Packaging

5.3. Flip Chip

5.4. Embedded Die

5.5. Fan-Out Level Packaging (FO-WLP)

5.6. Fan-In Level Packaging (FI-WLP)

6. SEMICONDUCTOR PACKAGING MARKET BY PACKAGING MATERIAL

6.1. Introduction 

6.2. Organic Substrate

6.3. Leadframe

6.4. Ceramic Packaging

6.5. Bonding-Wire

6.6. Others

7. SEMICONDUCTOR PACKAGING MARKET BY END-USER

7.1. Introduction 

7.2. Consumer Electronics

7.3. Aerospace and Defence

7.4. Medical Devices

7.5. Communication and Telecom

7.6. Others 

8. SEMICONDUCTOR PACKAGING MARKET BY GEOGRAPHY

8.1. Introduction

8.2. North America

8.2.1. By Packaging Type

8.2.2. By Packaging Material

8.2.3. By End-user

8.2.4. By Country

8.2.4.1. United States

8.2.4.2. Canada

8.2.4.3. Mexico

8.3. South America

8.3.1. By Packaging Type

8.3.2. By Packaging Material

8.3.3. By End-user

8.3.4. By Country

8.3.4.1. Brazil

8.3.4.2. Argentina

8.3.4.3. Others

8.4. Europe

8.4.1. By Packaging Type

8.4.2. By Packaging Material

8.4.3. By End-user

8.4.4. By Country

8.4.4.1. Germany

8.4.4.2. United Kingdom

8.4.4.3. France

8.4.4.4. Spain

8.4.4.5. Others

8.5. Middle East and Africa

8.5.1. By Packaging Type

8.5.2. By Packaging Material

8.5.3. By End-user

8.5.4. By Country

8.5.4.1. Saudi Arabia

8.5.4.2. UAE

8.5.4.3. Others

8.6. Asia Pacific

8.6.1. By Packaging Type

8.6.2. By Packaging Material

8.6.3. By End-user

8.6.4. By Country

8.6.4.1. China

8.6.4.2. Japan

8.6.4.3. South Korea

8.6.4.4. India

8.6.4.5. Thailand

8.6.4.6. Indonesia

8.6.4.7. Others

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. ASE

10.2. Amkor Technology

10.3. Powertech Technology Inc.

10.4. Fujitsu Semiconductor Limited

10.5. ChipMOS TECHNOLOGIES INC.

10.6. Intel Corporation

10.7. Samsung Electronics Co. Ltd

10.8. Unisem (M) Berhad

10.9. ISI - Interconnect Systems

10.10. Jiangsu Changjiang Electronics Technology Co. Ltd (JCET)


ASE 

Amkor Technology

Powertech Technology Inc.

Fujitsu Semiconductor Limited

ChipMOS TECHNOLOGIES INC.

Intel Corporation

Samsung Electronics Co. Ltd

Unisem (M) Berhad

ISI - Interconnect Systems

Jiangsu Changjiang Electronics Technology Co. Ltd (JCET)


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