Adoption of the Internet as a commercial medium has moved firms to bring innovation in marketing, through experiments for the consumers in the cyberspace. Since the origin of the e-commerce industry, researchers and developers were working to bring relevant services to easy and cost-effective logistics, including efficient packaging. Constant experimentation and improvement is paving way for further fan-out wafer-level packaging (FO WLP), flip-chip, fan-in wafer-level packaging (FI WLP), 5D/3D, and others. Furthermore, artificial intelligence (AI) is enabling tremendous advances in semiconductor technology, which is going to build an impact on the Advanced Semiconductor Packaging Market. Bipartisan Legislation, which was introduced in the U.S. in February, 2019 is also strengthening the U.S. semiconductor workforce by eliminating green card backlogs that would directly contribute to the growth of the advanced semiconductors packaging market. Advanced semiconductor packaging built from plastic, metal, glass or ceramic is assigned to protect the substrate or wafer of various industries such as electronics, healthcare, aerospace, automation, automotive, telecommunication, and others. The global advanced semiconductors packaging market was estimated at around $56.45 billion revenue by the end of 2018, and the market is estimated to grow at a CAGR of 5.4%, over the forecast period of 2019-2025.
According to the Semiconductor Industry Association, semiconductors largely contribute to the global trillion dollar electronics industry. Moreover, the worldwide sales of semiconductors have mounted a compound annual rate of almost 7%. The semiconductors market size valued between $420 billion to $430 billion in 2018, and is estimated to increase with a CAGR of 10-12%, during the forecast period of 2019 to 2025. This data of the parent industry implies that an ample part of it is attributable to continuous demand influx of the advanced semiconductor packaging market.
Global Advanced Semiconductor Market Size Dominated by APAC:
The end-user industries such as air conditioning industry, automation market, industrial machinery, automotive, and others involve usage of several applications for computing in different forms, and thereby it is driving the growing demand of advanced semiconductors packaging. APAC had the largest advanced Semiconductor packaging market share of around 45.5% in 2018.
· Advanced Semiconductor Engineering, Inc. (ASE), the Taiwan Based Company Providing Impeccable Scopes to the Advanced Semiconductor Market in APAC –
In 2013, ASE, a supplier of independent semiconductor manufacturing services in testing and assembly, hit a roadblock. Many claimed that ASE disposed wastewater with high acidity levels in a waterbody near the NEPZ, where it runs 12 facilities, and therefore received 48 environmental penalties. However, in 2016, the Kaohsiung High Administrative Court revoked penalties imposed by the Kaohsiung City Government’s Environmental Protection Bureau. Since then, ASE invested millions to recycle wastewater from its Kaohsiung operations and made the water-recycling plant. The company further installed ultra-efficient lighting and heating, ventilation and air-conditioning systems and received the 2016 Asia Responsible Entrepreneurship Award (AREA) in the Social Empowerment category. Furthermore, it proclaimed the top place in the Semiconductors and Semiconductor Equipment Industry Group, for the third time in a row in 2019. The company has been offering advanced semiconductor packaging services such as 2.5D packaging, the system in package and others, which is driving the APAC advanced semiconductors packaging market.
· Rapidly Expanding Chinese and Japanese Air Conditioning Industry Poised to Reap off Unimaginable Benefits for the Advanced Semiconductors Packaging Market Players –
The global temperatures are escalating, due to global warming, thus, altering the natural living conditions. Air conditioners are high in demand to maintain normal temperature or for cooling, which resulted in the growth of the air conditioning market. The industry registered around $123 billion to $125 billion as of 2018, and is expected to escalate at a CAGR of 4% to 6%, during the forecast period 2019-2025. While the global market is boosting, APAC preserved its dominance in the market share with 34%-37% of the global demands in 2018. The thermal adjustment by AC was majorly propelled by China, where the demand reached 45.95 million units with a 13.2% increase. On the other hand, Japan experienced a demand increase of 6.5%. Now, these electrical appliances such as air conditioners involve semiconductor chips that need advanced semiconductor packaging which is one of the major driving factor responsible for the advanced semiconductor packaging market growth.
· China's Record-Breaking Automation Industry will contribute to the Growth of Advanced Semiconductor Packaging Market –
Human errors have often resulted in catastrophic situations that have made a major impact in the socio-economic sector of human civilization. This has given the rise of digital systems who van cease the error. Automation market is the most looked forward to industry, which collected $155 billion to $160 billion revenue globally in 2018. The APAC region had the maximum regional market share of 32% in 2018. This statistics can be further fathomed by the record made by China that got the global number one ranking in 2016, by having a sale surge of 27%. During 2018-2020, the sales are further projected to increase between 15-20% on average per year for industrial robot. Semiconductor chips with advanced semiconductor packaging are used in these industrial robots. Hence, advanced semiconductor packaging market is all set to see a huge rise in the upcoming years.
· Indian Government’s Initiative to Boost Semiconductor & Electronic Industry to Leverage Advanced Semiconductor Packaging Market Expansion –
Indian Government has deployed initiatives such as Preferential Market Access (PMS), Electronics Manufacturing Clusters (EMC), and Modified Special Incentive Package Scheme (M-SIPS) in order to achieve a degree of sufficiency in electronics, which will push the advanced semiconductors packaging market beyond boundaries, as semiconductor devices are one of the main components of electronic gadgets. As per the reports of India Brand Equity Foundation, the Indian government has heightened the allocation of incentive schemes like the Modified Special Incentive Package Scheme (M-SIPS) and the Electronic Development Fund (EDF) to $111m for boosting the electronics and semiconductors manufacturing market. Furthermore, the semiconductor design industry in India is expected to observe a growth by a CAGR of 29.4% by 2020, resulting in the benefits of end-users of advanced semiconductors packaging market vendors in the upcoming years.
· Moscow’s Deployment of Latest Electronic Warfare Systems in Kaliningrad to Create Room for Advanced Semiconductor Packaging Market’s Further Expansion –
Electronic warfare has been used since the beginning of the 20th century, to keep the defense of the country on a check. And with evolution, semiconductors have paved their way into this industry, giving a push to the advanced semiconductor packaging. Semiconductors give Reliable, high-output-power, high-efficiency, and large-bandwidth power amplifier (PA) solutions to electronic warfare, which also involves advanced semiconductor packaging. Recently, as per the reports of The Jamestown Foundation, on October, 2018, the Russian Ministry of Defense deployed the latest version of the Samarkand EW system at Kaliningrad and other strategic areas. This step is a path-breaking one as it shows that the future of advanced semiconductors packaging market is bright in the next years.
· China's devotion for Autonomous and Semi-autonomous Vehicles to Bring Avalanche of Opportunities for Advanced Semiconductor Packaging Market Players –
The implementation of automation in the automotive industry is giving rise to autonomous and semi-autonomous cars. Their ICs are traditionally wire bond packages which are driving the advanced semiconductor packaging market to decrease complexity and give higher performance requirements. The global semi-autonomous and autonomous vehicles market is expected to grow at a healthy CAGR of 31.28%, during the forecast period 2019-2025. Amidst this, China that has been the global leader of commercial vehicles and car manufacturing in 2018 has declared a 100 km long highway with lanes which would only serve for autonomous and semi-autonomous vehicles (AVs) by 2020. This is evidencing enough of the rise of autonomous and semi-autonomous vehicles, which would create demand influx in the advanced semiconductor packaging market.
Advanced Semiconductor Packaging Market: Key Application
The key application of advanced semiconductor packaging is witnessed in the telecommunication sector. The extreme research in far-field wireless charging technologies coupled with trending Internet of things (IoT) will implement advanced semiconductor packaging inevitable in the telecommunication industry. As per the reports of Global System for Mobile Communications (GSMA), the number of global IoT connections will triple to 25 billion, while global IoT revenue will quadruple to $1.1 trillion in 2018-20205, making way for 5G. Furthermore, 700 million new people will subscribe to mobile by 2025. On the other hand, Broadcasting Center Europe (BCE) experienced an estimated turnover of $40-$45m in 2017, which highlights the adoption of TV, radios across the globe. With all of these gaining traction, advanced semiconductor packaging is all set to see an extreme upsurge in its revenue in the upcoming years. The implementation of advanced semiconductor packaging in the telecommunication industry is evaluated to grow at a CAGR of 8.4%.
Advanced Semiconductor Market Growth Drivers –
Increasing complexity of semiconductor device designs copulated with the growing need for miniature designs of semiconductor of high precision for a wide range of implementations in multifarious end-use industries such as aerospace, healthcare, data centers and many other industries are expected to be the key growth drivers for the advanced semiconductor packaging market in the upcoming years.
· Healthcare Industries’ Impact on Advanced Semiconductor Packaging Market –
Implementation of robotic systems and devices on surgery on the next 25 years is unavoidable as it would greatly reduce costs, improve clinical outcomes, and improve the efficiency of healthcare delivery. The semiconductor microchips are closely guarded inside these robots with advanced semiconductor packaging which protects it from various accidents. According to the reports of the Patient Safety Network (PSN), the use of robotic assistance in surgery is set to grow almost by 10% each year. Thus, with the growth of robotic assistance in surgery, the advanced semiconductor packaging market is going to flourish in the next years.
· Upsurging Space Security to Directly Drive Advanced Semiconductor Packaging Market –
The packaging technology is having a tectonic shift due to various evolving pros and cons. The increased R&D is contributing to the enhancement of technologies in satellites where the usage of advanced semiconductors packaging have become a must. As per the data of Union of Concerned Scientists Science for a Healthy Planted and Safer World, 2,062 satellites are currently orbiting Earth which use advanced semiconductor packaging, thus giving further opportunities to advanced semiconductor packaging vendors.
Advanced Semiconductor Packaging Market: Competitive Landscape
The major market players who are currently holding maximum shares in the advanced semiconductor packaging market are AMD, Intel Corp, Amkor Technology, STMicroelectronics, Hitachi Chemical, Infineon, Avery Dennison, Sumitomo Chemical Co. Ltd., ASE Group, and Kyocera.
Talk to one of our sales representative about the full report by providing your details in the link below:
a) IoT Communication Technologies Market
b) IoT In Retail Market
Any other custom requirements can be discussed with our team, drop an e-mail to [email protected] to discuss more about our consulting services.
To request for a quote, provide your details in the below link:
Mr. Venkat Reddy
Email: [email protected]
Contact Sales: +1-614-588-8538 (Ext-101)
About IndustryARC: IndustryARC is a research and consulting firm that publishes more than 500 reports annually, in various industries such as Agriculture, Automotive, Automation & Instrumentation, Chemicals and Materials, Energy and Power, Electronics, Food and Beverages, Information Technology, and Life sciences and Healthcare.