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Advanced packaging industry is expected to have a 9.6% CAGR between 2021 and 2027


Tuesday, October 4, 2022

The advanced packaging industry is expected to have a 9.6% CAGR between 2021 and 2027 to $65 billion, says Yole Developpement.

The advanced packaging segment as compared with traditional packaging market continues to increase, with more than 50% of the market by 2027.

The highest advanced packaging market share belongs to the Flip-Chip platform, with 70% of the market in 2021.

The highest CAGR is expected from ED , 2.5D/3D, and fan-out at 24%, 14%, and 11%, respectively.

Microelectronics, are adding packaging/assembly capabilities in their service offering through M&As or investing in R&D.Overall, there is a paradigm shift in the packaging / assembly business, traditionally the domain of OSATs & IDMs. Players from different business models, foundries, substrate/PCB suppliers, and EMS/ODMs are entering packaging & assembly, cannibalizing the OSAT business.

Substrates have been in tight supply due to strong demand for high-end CPUs, GPUs, and 5G networking chips by major chipmakers. The COVID-19 pandemic, high inflation, and geopolitical tensions are continuing to negatively impact material supplies. The delivery lead time of ABF substrates has been extended to nearly three quarters from 4-5 months due to demand growth outpacing capacity expansion, and prices have risen from 15% to 25%.

By: DocMemory
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