3D stacking technology will lead the semiconductor packaging market in the next five years, according to research firm Yole Developpement.
Advanced semiconductor packaging market was worth US$29 billion in 2019 but this will grow by an average of 6.6% per year to be worth US$42 billion in 2025, the firm said.
Advanced semiconductor packaging market will account for near 50% of semiconductor packaging market in 2025, it said.
The semiconductor industry has focused on shortening the width of the circuits to make them smaller but the method is facing challenges as chip becomes smaller than 10-nanometers. (nm)
Packaging is being pushed to overcome this roadblock.
3D packaging was the most popular and it is expected to grow 21% per year on average up to 2025, Yole said.
Embedded die will grow 18% per year while fan-out will grow 15.9% per year in the same time period, the firm said.
Samsung Electronics and TSMC are actively applying 3D packaging technology. The two companies are the only ones offering foundry in the 7nm processes or smaller. They are competing in packaging to win clients.
In August, Samsung produced a 7-nm test chip using its 3D packaging technology called X-Cube.
In the same month, TSMC filed patents in the US for its 3D Fabric technology __ it reduces circuit width to between 4.5 to 6 micrometers.
Advanced packaging technology is on the rise due to demand for mobile, 5G, high performance computing and artificial intelligence applications.
Mobile application processors accounted for 85% of packaging sales and is expected to grow on average 5.5% per year up to 2025.
Telecom and infrastructure application is expected to grow 13% per year in the same time period. It will account for 14% of the packaging market by 2025, a significant increase from 10% of 2019.
Mobility application will increase 10.6% per year on average up to 2025.