As per the current market research conducted by CMI Team, the global Advanced Chip Packaging Market size is expected to record a CAGR of 8.2% from 2023 to 2032. In 2022, the market size is projected to reach a valuation of USD 35.6 billion. By 2032, the valuation is anticipated to reach USD 71.8 billion.

Advanced Chip Packaging Market: Growth Factors and Dynamics

  • Increasing Demand for Miniaturization: The growing need for smaller, lighter, and more powerful electronic devices has driven the demand for advanced chip packaging solutions. These packaging technologies enable the integration of more functionalities into smaller form factors, supporting the trend of miniaturization in various industries.
  • Shift towards System Integration and Multi-Chip Solutions: As technology advances, electronic devices are increasingly embracing system integration and multi-chip solutions. Advanced chip packaging allows different chips and components to be combined in a single package, resulting in smaller devices with improved connectivity and easier assembly. This integration leads to compact and versatile devices that offer enhanced performance and functionality.
  • Rising Complexity of Semiconductor Devices: As semiconductor devices become more complex and advanced, traditional packaging methods may not meet the performance requirements. Advanced chip packaging techniques, such as 2.5D and 3D packaging, offer higher interconnect density and improved electrical performance, addressing the challenges posed by complex semiconductor designs.
  • Demand for Higher Data Transfer Rates: With the rise in data-intensive applications and high-speed connectivity, the demand for advanced chip packaging solutions with better signal integrity and thermal management has surged. Packaging technologies like flip-chip and wafer-level chip scale packaging (WLCSP) enable higher data transfer rates and efficient heat dissipation.
  • Focus on Energy Efficiency: Energy efficiency is a key consideration for modern electronic devices. Advanced chip packaging technologies, such as fan-out wafer-level packaging (FOWLP) and system-in-package (SiP) solutions, enable the integration of power management and heterogeneous components, enhancing energy efficiency and prolonging battery life.
  • Innovation and Technological Advancements: Continuous innovation in packaging materials, design techniques, and manufacturing processes is driving the advanced chip packaging market. New materials, such as fan-out molding compounds and organic substrates, and innovative manufacturing methods are contributing to improved performance, reliability, and cost-effectiveness of advanced chip packaging solutions.

Advanced Chip Packaging Market: Partnership and Acquisitions

  • Qualcomm Technologies and Samsung Electronics (2020): In 2020, Qualcomm Technologies collaborated with Samsung Electronics to develop advanced chip packaging solutions for 5G smartphones. The partnership aimed to seamlessly integrate Qualcomm’s 5G modems with Samsung’s Exynos processors using innovative packaging techniques, enabling enhanced 5G connectivity in smartphones.
  • Amkor Technology and GlobalFoundries (2021): In 2021, Amkor Technology, Inc. partnered with GlobalFoundries to jointly develop and offer advanced packaging solutions for various semiconductor applications. This collaboration combined Amkor’s expertise in advanced packaging with GlobalFoundries’ manufacturing capabilities, enabling both companies to cater to the diverse packaging needs of their customers.
  • TSMC’s Acquisition of Invecus Limited (2020): In 2020, Taiwan Semiconductor Manufacturing Company Limited (TSMC) acquired Invecus Limited, a semiconductor materials supplier. This acquisition strengthened TSMC’s capability to access essential materials for advanced chip packaging, ensuring a steady supply chain for their semiconductor manufacturing operations.
  • SK Hynix’s Acquisition of Intel’s NAND Business (2021): In 2021, SK Hynix Inc. acquired Intel Corporation’s NAND memory and storage business. While not directly related to chip packaging, this acquisition allowed SK Hynix to enhance its semiconductor product lineup, including the integration of NAND flash chips into advanced chip packaging solutions for various applications.

Report Scope

Feature of the Report Details
Market Size in 2023 USD 39.2 Billion
Projected Market Size in 2032 USD 71.8 Billion
Market Size in 2022 USD 35.6 Billion
CAGR Growth Rate 8.2% CAGR
Base Year 2022
Forecast Period 2023-2032
Key Segment By Technology, Packaging, End-Use Industry and Region
Report Coverage Revenue Estimation and Forecast, Company Profile, Competitive Landscape, Growth Factors and Recent Trends
Regional Scope North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America
Buying Options Request tailored purchasing options to fulfil your requirements for research.

Advanced Chip Packaging Market: COVID-19 Analysis

The COVID-19 pandemic has had a significant impact on the Advanced Chip Packaging Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

  • Supply Chain Disruptions: The COVID-19 pandemic caused disruptions in the global supply chain, impacting the availability of raw materials, components, and equipment required for advanced chip packaging. This led to delays in production and increased costs for manufacturers.
  • Shift in Consumer Demand: With the pandemic’s impact on remote work, e-learning, and online entertainment, there was a surge in demand for electronic devices like laptops, tablets, and smartphones. This increased demand put additional pressure on the advanced chip packaging market to meet the growing need for high-performance chips.
  • Resilient Supply Chain: To recover, the advanced chip packaging industry focused on building a more resilient supply chain, diversifying sourcing locations, and securing critical components to reduce dependency on specific regions.
  • Accelerated Digital Transformation: The pandemic accelerated digital transformation, leading to increased demand for cloud services and data centers. Advanced chip packaging companies seized this opportunity to cater to the growing need for high-performance chips in cloud computing infrastructure.
  • Investment in Automation and AI: To enhance manufacturing efficiency and reduce workforce dependency, companies invested in automation and artificial intelligence technologies, streamlining production processes and mitigating the impact of labor shortages.
  • Focus on R&D and Innovation: Recovery efforts involved increased investment in research and development to create more advanced chip packaging solutions that meet the evolving demands of emerging technologies like 5G, AI, and IoT, ensuring continued growth in a post-pandemic world.
  • Adoption of Remote Collaboration Tools: The pandemic necessitated remote working and collaboration. Advanced chip packaging companies embraced digital tools and virtual collaboration platforms to ensure seamless communication between teams, enabling them to continue their work efficiently despite physical restrictions.
  • Focus on Healthcare and Medical Electronics: The pandemic highlighted the importance of healthcare and medical electronics. Advanced chip packaging companies redirected efforts towards developing chips for medical devices, diagnostic equipment, and telemedicine solutions, contributing to the healthcare industry’s recovery and growth.

In conclusion, the COVID-19 pandemic has had a mixed impact on the Advanced Chip Packaging Market, with some challenges and opportunities arising from the pandemic. Manufacturers and retailers need to remain agile and adapt to the changing market conditions to overcome these challenges and capitalize on new growth opportunities.

Global Advanced Chip Packaging Market 2023–2032 (By Billion)

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List of the prominent players in the Advanced Chip Packaging Market:

  • Intel Corporation
  • Taiwan Semiconductor Manufacturing Company Limited (TSMC)
  • Advanced Micro Devices Inc. (AMD)
  • Samsung Electronics Co. Ltd.
  • Amkor Technology, Inc.
  • ASE Group (Advanced Semiconductor Engineering Inc.)
  • Qualcomm Technologies Inc. (a subsidiary of Qualcomm Incorporated)
  • SK Hynix Inc.
  • Siliconware Precision Industries Co. Ltd. (SPIL)
  • Texas Instruments Incorporated (TI)
  • Others

The Advanced Chip Packaging Market is segmented as follows:

By Technology

  • 5D packaging, 3D packaging
  • fan-out wafer-level packaging (FOWLP)
  • flip-chip packaging
  • system-in-package (SiP) solutions

By Packaging

  • Ball Grid Array (BGA)
  • Quad Flat Package (QFP)
  • Chip Scale Package (CSP)
  • Wafer-Level Chip Scale Package (WLCSP)

By End-Use Industry

  • Electronics
  • Automotive
  • Telecommunications
  • Industrial
  • Healthcare
  • Aerospace and Defence

By Region

North America

  • The U.S.
  • Canada
  • Mexico

Europe

  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe

Asia Pacific

  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Rest of Asia Pacific

The Middle East & Africa

  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa

Latin America

  • Brazil
  • Argentina
  • Rest of Latin American