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.
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