SEMICONDUCTOR PACKAGING MARKET DYNAMICS AND TRENDS
The increased usage of 3D semiconductor packaging and the growing demand for consumer electronics propels the Semiconductor packaging market. However, the hefty costs associated with semiconductor packing could impede expansion.
The growing consumer electronics sector
The global semiconductor packaging market is anticipated to increase due to rising consumer electronics usage, rising per capita incomes worldwide, and rising electronic equipment affordability due to improving living standards. The expansion of the semiconductor packaging industry is anticipated to be aided by advancements in consumer electronic products, including laptops, tablets, fitness bands, smartwatches, and other electronic gadgets that require complicated semiconductor integration.
The link between the integrated circuit and the printed circuit board is provided by electronic packaging (PCB). Another purpose is to give the appropriate mechanical and environmental protection to ensure dependability and performance. Additionally, a rise in the use of artificial intelligence (AI) and the Internet of Things (IoT) in consumer electronics, telecommunication, robotics, automotive, aerospace & defense, and other industries for hardware that is compatible with advanced software is anticipated to support the expansion of the semiconductor packaging market size in the forecast period.
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The rising adoption of 3D semiconductor packaging
During the projection period, new prospects for expanding the semiconductor packaging market share are anticipated to arise from the growing adoption of 3D semiconductor packaging technology. Volumetric system miniaturization and interconnection (VSMI), a semiconductor production method, is required to address the spike in customer demand for smaller, lighter, and portable products (such as cell phones, PDAs, digital cameras, and others).
Large copper pillars and through-silicon vias (TSVs) are increasingly used in 3D packaging to connect already-finished chips vertically. The benefits of 3D semiconductor packaging include increased product compactness over conventional semiconductor packaging. Additionally, it makes direct chip-to-chip connections possible and simplifies system-level circuit routing, which lowers system costs. These elements are anticipated to expand this Semiconductor packaging market potential.
High capital investment
The development of the semiconductor packaging market may be constrained by the significant upfront costs associated with designing, developing, and setting up semiconductor packaging units to meet the demands of various industries, including consumer electronics, automotive, healthcare, IT & telecommunication, aerospace & defense, and others. Additionally, it is projected that the lack of technical knowledge in semiconductor packaging will impede the market’s expansion.
COVID-19 IMPACT ON SEMICONDUCTOR PACKAGING MARKET GROWTH
It is envisaged that a pandemic like COVID-19 will encourage the production of cutting-edge medical tools and equipment to address such crises. Companies in the semiconductor sector used AI-supported technology to monitor product demand levels during the pandemic and alter their production schedules to satisfy urgent needs. The market may recoup the losses in the forecast term due to the increased focus on methods to reduce the impact of Covid-19 on the semiconductor packaging market.
The market will be driven by rising medical device output as well. For instance, to address the persistent difficulty of treating COVID-19 patients, GE Healthcare said it would enhance its manufacturing capacity for medical equipment, including CTs, ultrasound devices, mobile X-ray systems, patient monitors, and ventilators. However, because China is one of the main producers of raw materials and final goods, it is anticipated that the COVID-19 epidemic will substantially impact electronic devices.
SEMICONDUCTOR PACKAGING MARKET SEGMENT AND SHARES ANALYSIS
By end-user, the semiconductor packaging market is segmented into consumer electronics, automotive, healthcare, IT & telecommunication, aerospace & defense, and others.
The rising spending on consumer electronics
Consumer spending, where electronic items need more than just performance and speed, is driving the consumer electronics market sector. Packaging is critical in providing solutions to address these needs since it affects how products look and feel, function, time to market, and cost. With materials playing a significant role in enabling innovative packaging technologies, consumer electronics are redefining the ways semiconductor devices are thinned, die-attached, bonded wired, and encased.
To satisfy demand, some wafer manufacturing businesses have expanded capital investment due to the expanding consumer electronics penetration in the world’s high-growth countries. Therefore, this market’s expansion will be fueled by consumer demand for chips devoid of flaws. TSMC said it would invest $100 billion to enhance its semiconductor capacity in April 2021.
Cellphones are one of the biggest drivers of the consumer electronics sector’s semiconductor usage. According to the Consumer Technology Association (CTA), smartphone shipments will increase by 3% from 2021 to reach 154.1 million devices (US$74.7 billion in shipment revenues) in 2022. Given the likelihood that this pattern will persist, it is anticipated to fuel semiconductor demand, which will fuel the packaging business’s expansion.
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SEMICONDUCTOR PACKAGING MARKET GEOGRAPHICAL ANALYSIS
The rapidly rising semiconductor market in North America
The demand for semiconductor packaging is anticipated to increase in North America due to the widespread use of MEMS-based semiconductors in end-user industries, including healthcare. With more than 80 wafer production facilities dispersed across 19 states, the U.S. is also at the forefront of innovation in semiconductor packaging. One of the world’s fastest-growing markets is the U.S. For instance, global sales of semiconductors totaled US$556 billion in 2021, with US$258 billion, or 46% of that amount, coming from U.S. semiconductor companies. American semiconductor companies also made a record-breaking US$50 billion investment in R&D to stay competitive in the market.
In addition, significant companies’ investments in the nation are anticipated to stimulate the semiconductor packaging market. For instance, Cree Inc. declared plans to spend more than US$1 billion to build a new semiconductor facility in the U.S. in 2019. By 2022, this semiconductor manufacturing should be operational. Additionally, it is anticipated that the region’s semiconductor industry will continue to innovate, given the growing popularity of Chinese semiconductor products. Additionally, one of the biggest drivers of semiconductor usage in the consumer electronics sector is the use of cell phones. The sale of smartphones in the U.S. has consistently increased in recent years.
SEMICONDUCTOR PACKAGING COMPANIES AND COMPETITIVE LANDSCAPE
There are numerous packaging solution vendors for the semiconductor sector, so the packaging market for semiconductors is expected to be moderately fragmented. Players employ product innovation, expansions, and alliances to keep one step ahead of the competition and broaden their market reach.
Samsung unveiled its new chipset range for its fifth-generation (5G) solutions and products in June 2021. These include the Compact Macro, Massive MIMO radios, and baseband units, all of which will be marketed commercially in 2022.
The strategic partnership between ASE Group and Apple Inc. to gradually increase energy efficiency and transition to greener production was finalized in July 2020. This cooperation also helps the supply chain’s clean energy program and its suppliers. Additionally, it will build a strong brand reputation for this business.
Major global semiconductor packaging market companies include Amkor Technology, Inc., ASE Group, Fujitsu Ltd, Just/Stats Chippac Ltd, Siliconware Precision Industries Co. Ltd (Spil), Powertech Technology, Inc., Tianshui Huatian Technology Co. Ltd, Chipmos Technologies, Inc., Chipbond Technology Corporation and Samsung Electronics Co. Ltd.
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