The semiconductor packaging market was valued at USD 28. 2 billion in 2020 and is expected to reach USD 44. 44 billion by 2026, and grow at a CAGR of 7. 96% over the forecast period (2021-2026). Packaging has witnessed a continuous transformation in terms of characteristics, integration, and energy efficiency of the product owing to the growing demand across various end-user verticals of the industry,
New York, Nov. 17, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Semiconductor Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" - https://www.reportlinker.com/p06363541/?utm_source=GNW
Since packaging is an early stage in the electronics value chain, the growth of the market studied is directly impacted by the semiconductor market’s growth. Packaging activity can be done in-house by the foundries, or the foundries can outsource it. For instance, Qualcomm, a semiconductor and telecommunications equipment company, outsources its packaging requirements to the OSATs.
The advent of IoT and artificial intelligence (AI) and the proliferation of sophisticated electronics drive the high-end application segment across the consumer electronics and automotive industries. These dynamics have increased the adoption rate of the latest semiconductor packaging technologies to meet the growing demand.
Semiconductor packaging technology has evolved to minimize the costs involved and enhance the overall efficacy of ICs. Vendors in the market are under constant pressure to deliver innovative solutions in terms of the size of the packaging, performance, and the "time-to-market"aspect.
Apart from the wide range of semiconductor packaging applications in the consumer electronics and automotive industry, it also plays an integral role in the Aerospace & Defense sector. US Army researchers are actively engaged in discovering new ways of packaging Silicon Carbide (SiC) power semiconductors that make the most of SiC technologies for high-power military and commercial applications.
A pandemic like COVID-19 is anticipated to fuel the manufacturing of advanced medical devices and equipment to tackle such crises in the future. The increasing production of medical devices will also drive the market. For instance, GE Healthcare announced that it would increase its manufacturing capacity for medical equipment, that includes CTs, ultrasound devices, mobile X-ray systems, patient monitors, and ventilators, to cater to the ongoing challenge of the treatment of COVID-19 patients.
However, the electronics devices are expected to be impacted significantly by the COVID-19 outbreak, as China is one of the major suppliers for the raw materials and the finished products.
Key Market Trends
Consumer Electronics Industry to Augment the Market Growth
The electronics market continually demands higher power dissipation, faster speeds, higher pin counts, and smaller footprints, and lower profiles. The miniaturization and integration of semiconductors have given rise to smaller, lighter, and more portable devices, like tablets, smartphones, and the emerging IoT devices.
Each new iteration of consumer electronics products is smarter, lighter, and more energy-efficient than its predecessors. This creates huge expectations among customers for the next iteration, which is a major selling point for the producers of consumer electronics.
The rising penetration of consumer electronics in the high-growth regions of the world has led to increased capital investment by several wafer manufacturing companies, in a bid to meet the demand. Therefore, the demand for defect-free chips will drive the growth of this market. Recently, In April 2021, TSMC said that it will invest USD 100 billion to increase its semiconductor output.
In addition to this, smartphones are one of the most significant contributors to the consumer electronics segment’s semiconductor consumption. According to the Consumer Technology Association(CTA), smartphone sales have been estimated to be 165 million units in 2020. With this trend likely to continue, it is poised to drive the semiconductor demand, in turn, augmenting the packaging market growth
North America Expected to Hold a Significant Share
With the high use of MEMS-based semiconductors in North America across the end-user industries such as in healthcare are expected to drive the demand for semiconductor packaging market in the region. The United States is also the frontrunner in semiconductor packaging innovation, boasting more than 80 wafer fabrication plants spread across 19 states.
The United States is one of the largest growing markets in the world. For instance, according to Semiconductor Industry Association, the sales of semiconductors in the United States only in the first three months of 2021 accounted for USD 24.55 billion.
Apart from this, major players’ investments in the country are set to fuel the semiconductor packaging market. For instance, in 2019, Cree Inc announced plans to invest more than USD 1 billion to open a new semiconductor factory in the USA. This semiconductor factory is expected to be ready by the year 2022. Besides, the growing prominence of Chinese semiconductor products is expected to further push innovations in the region’s semiconductor industry.
In addition to this, smartphones are one of the most significant contributors toward semiconductor consumption in the consumer electronics segment. In recent years, the United States has witnessed consistent growth in smartphone sales. With this trend likely to continue, it is poised to drive the semiconductor demand. In turn, they are augmenting the packaging market growth.
The semiconductor packaging market is moderately fragmented, as there are various packaging solution providers for the semiconductor market. Players adopt strategies like product innovation, expansions, and partnerships to stay ahead of the competition and expand their market reach. Some of the recent developments in the market are:
June 2021 - Samsung introduced a lineup of new chipsets for its next-generation 5G solutions and products, including the Compact Macro, Massive MIMO radios, and baseband units, which will all be available in the commercial markets in 2022.
July 2020 - ASE Group completed its strategic agreement with Apple Inc to steadily improve its energy efficiency and steadily shift into the greener production. Moreover, this partnership supports clean energy within the supply chain and its supplier clean energy program. It will also create a vast brand reputation for this company.
The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06363541/?utm_source=GNW
ReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need - instantly, in one place.
CONTACT: Clare: email@example.com US: (339)-368-6001 Intl: +1 339-368-6001