Strategic Collaborations and Technological Advancements to Fuel the Growth of the Global Semiconductor Packaging Market by 2028
Semiconductor packaging plays a vital role in protecting integrated circuit (IC) chips from the surrounding environment and safeguarding the electrical connection for chip mount on wiring boards. Some of the materials used in semiconductor packaging include organic substrates, lead frames, bonding wires, die attach materials, ceramic packages, and others. Semiconductor packaging prevents corrosion and physical damage to logic units, silicon wafers, and memory during the final stage of semiconductor manufacturing process. The packaging requirement for different ICs is different, which is thereby providing lucrative opportunities for the global semiconductor packaging market over the traditional packaging process.
COVID-19 Impact Analysis
The outbreak of COVID-19 across the globe has unfavorably impacted the global semiconductor packaging market. This is mainly due to the decreasing demand of electronic products such as sensors & devices from telecom, automotive, and other industries. In addition, the disruption in global supply chains has resulted in decreased production of semiconductor-based goods. However, various companies operating in the semiconductor industry are adopting novel technologies and taking measures such as analyzing the product demand volumes and revising the product schedules, in order to meet the needs by implementing AI-supported technologies during the pandemic. This is expected to help the market to recover from the losses during the forecast period.
Key Developments in the Industry
The companies operating in the global industry are adopting various growth strategies and business tactics such as partnerships, acquisitions, business expansion, and product launches to obtain a leading position in the global industry, which is predicted to drive the growth of the global semiconductor packaging market in the upcoming years.
For instance, in December 2019, SÜSS MicroTec, the leading supplier of equipment & process solutions for the semiconductor industry, entered into a collaboration agreement with BRIDG, an enterprise SaaS data infrastructure company, to establish a production-level Applications Center in North America to enable semiconductor process and product innovations.
In September 2020, KLA, the US-based capital equipment company, announced the launch of new semiconductor packaging techniques to enhance its systems portfolio. The new tools include the ICOS T3/T7 Series, the ICOS F160XP, and the Kronos 1190 wafer-level packaging inspection systems. The systems will enable the customers to advance semiconductor device fabrication at the packaging stage.
In March 2021, IBM and Intel, the leading American multinational technology companies entered into a research collaboration to advance next-generation logic and semiconductor packaging technologies. The aim of this collaboration is to enhance the competitiveness of the semiconductor industry in U.S., accelerate semiconductor manufacturing innovation, and support key US government initiatives.
Forecast Analysis of the Global Market
The global semiconductor packaging market is projected to witness an exponential growth during the forecast period, owing to the growing adoption of 3D semiconductor packaging technology. Conversely, the high initial costs associated with the designing, development, and setup of semiconductor packaging units are the factors expected to hamper the market growth in the projected timeframe.
The increasing utilization of consumer electronics owing to rising per capita income across the globe is the significant factor estimated to bolster the growth of the global market in the coming future. According to a latest report published by Research Dive, the global semiconductor packaging market is expected to garner $52,271.6 million during the forecast period (2021-2028). Regionally, the Asia Pacific region is estimated to dominate in the global industry owing to presence of well-established industrial and economic base for consumer electronics production in the region. The key players functioning in the global market include Intel Corporation, Applied Materials, Inc., 3M, SÜSS MICROTEC SE, Amkor Technology Inc., Microchip Technology Inc., Advanced Semiconductor Engineering, Inc., Taiwan Semiconductor Manufacturing Company Limited, GlobalFoundries U.S. Inc., and SPTS Technologies Ltd.
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