3D IC And 2.5D IC Market Overview
3D IC And 2.5D IC Market Report Coverage
By Application: Imaging & Optoelectronics, LED, Logic, MEMS/Sensors, Memory, Photonics RF and Others.
By End-users: Telecommunication, Consumer Electronics, Automotive, Defense, Medical and Smart Devices and Others.
By Geography: North America (the US, Canada and Mexico), Europe (the UK, Germany, France, Italy, Spain and Others), APAC (China, Japan, South Korea, India, Australia and Others), South America (Brazil, Argentina and Others) and RoW (the Middle East and Africa).
- By end-users, Consumer Electronics would be the fastest-growing segment in this market with a CAGR of about 13.45% due to technological advancements, miniaturization of gadgets and rising discretionary incomes.
- By technology, 3D wafer-level chip-scale packaging is the fastest-growing segment in this market with a CAGR of 13.86%. The growth is driven by competitive advantages such as low power consumption, greater performance and lower spatial requirements.
- APAC region holds the 38% market share due to rapid economic growth, governmental policies and exponential growth in end-user industries.
3D IC And 2.5D IC Market Value Share, by Geography 2021, (%)
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3D IC And 2.5D IC Market Segment Analysis - by Technology
The 3D IC And 2.5D IC Market by type can be classified into three segments such as 3D wafer-level chip-scale packaging, 3D TSV and 2.5D. Among them, 3D wafer-level chip-scale packaging is projected to have the fastest growth at a CAGR of 13.86% during the forecast period of 2022-2027. Greater performance, lower power consumption and considerably lower spatial requirements are some of the key factors that are driving the growth of this segment. 3D integration enables the integration of analogue and digital circuit blocks into the same package with fewer signal integrity concerns and without significantly increasing the package size. Vertically stacked 3D IC can be kept very thin, resulting in space saving. In Feb 2021, Siemens Digital Industries Software launched a partnership with Advanced Semiconductor Engineering to develop a single platform from 2.5D and 3D packaging to fan-out wafer-level packaging (FOWLP) technologies which would enhance the capabilities of the companies to conduct further cutting-edge research in the future with greater use and bring this technology into the mainstream. Such developments would positively impact the growth of the market.
3D IC And 2.5D IC Market Segment Analysis - by End-user
3D IC And 2.5D IC Market Segment Analysis - by Geography
The 3D IC And 2.5D IC Market in the APAC region dominated in terms of revenue with a market share of 38% in 2021. The rapid economic growth, increased discretionary spending and the necessities of a fast-paced world have resulted in the exponential growth of industries such as consumer electronics, automotive and others. The exponential sales growth in smartphones, passenger cars and other consumer goods has been one of the key factors that are driving the growth of this market. Apart from this, the recent supply chain shocks due to the zero COVID policy and the concept of “resilient supply chains” have resulted in major economies trying to ‘onshore’ the production facilities of critical industrial components such as IC, semiconductors and others. In February 2022, Vedanta and Foxconn signed an MOU for Manufacturing Semiconductors in India. Such developments would propel the rapid expansion of this market.
3D IC And 2.5D IC Market Drivers
Changing business landscapes, supply chain shocks and exponential growth of End-user Industries:
Changing consumer requirements, the exponential growth of end-user industries and global uncertainties amidst the pandemic due to unforeseen constraints in international mobility have made an impact on the market. These factors have compelled respective governments to frame policies to set up domestic semiconductor and chip manufacturing facilities to reduce their exposure to international turbulences. The increasing miniaturization of consumer gadgets, increased sophistication in automobile electronics and rapid adoption of advanced integrated circuits by the advanced militaries of the world are some of the major factors driving the growth of this market. Apart from this, the supply chain shocks due to the onset of the pandemic led to severe production bottlenecks which resulted in a significant loss of economic activity. These developments have resulted in different central governments providing incentives to set up industries in their respective countries which would lead to a rapid expansion of the market.
Rapid Adoption of 3D IC And 2.5D IC due to the incorporation of advanced technologies such as Wafer-to-wafer Bonding, Cooling Chips with Microjet and Others:
Rapid technological advancements in 3d and 2.5d ICs such as Wafer-to-wafer Bonding, Cooling Chips with Microjet and others have played a key role in driving the growth of the 3D IC And 2.5D IC Market. Reduction in the distance between chip connections in hybrid wafer-to-wafer bonding, area reductions in wafer-to-wafer bonding via the reduction in TSVs and collective bonding in the case of die-to-wafer transfer are some of the major technological advancements that are revolutionizing this industry. Such advancements would enhance the capabilities of the chip manufacturers to produce devices that are compatible with the consumer electronics industry, the ability to stack wafers which are essential for memory applications and heterogeneous integration. These factors would result in a rapid expansion of this market.
3D IC And 2.5D IC Market Challenge
High Initial cost of installation and maintenance, lack of skilled labor and supply-chain shocks:
High capital expenditure, lack of skilled manpower and other technological glitches are some of the major factors that are inhibiting the growth of the 2.5d and 3d IC market. The complicated process of producing wafers and other devices, the unreliability of the supply chain and increasing costs are creating major headwinds for the industry. The inflationary pressures that have been created due to excess liquidity in global markets and loose fiscal policy adopted by the governments of the advanced economies to restart their economies have led the central banks to raise rates. This would lead to a slowdown in investments and hamper the growth of the industry. In May 2022, Samsung announced that it would raise the prices of its chips by 20% due to rising material costs.
Key Market Players
Product launches, collaborations and R&D activities are key strategies adopted by players in the 3D IC And 2.5D IC Market. The top 10 companies in the 3D IC And 2.5D IC Market are:
- ASE Group
- Fujitsu Limited
- In June 2022, TSMC announced that it would use nanosheet technology for the production of its next 2nm node to reduce energy consumption in high computing systems. Such developments would solve many longstanding problems and allow them to develop low-power, microdevices with enhanced performance for the needs of the industry.
- In May 2022, TSMC announced that it would be developing a multi-billion-dollar chip plant in Singapore to address the global supply shortage, the ripple effects of which were felt by industries across the world. Such developments are going to positively impact the market.
- In May 2022, Google announced that Samsung would be making its “next-gen” tensor processor for Pixel 7 and 7 Pro. This processor would be made from a 4nm process along with the application of PLP (Panel Level Package) technology which would minimize the discarded edge, thereby reducing cost and improving productivity.
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