At a CAGR of 9.10% Semiconductor Packaging Market Size is Expected to Reach $60.44 Billion by 2030

Semiconductor packaging is an advanced semiconductor packaging technology where the layers of components inside and integrated circuit (IC) are stacked together while the horizontal and vertical connections are made to keep them in place and work as a single device. Semiconductor packaging offers distinct advantages over other packaging technologies such as reduced power consumption, enhanced efficiency, better overall performance, and high frequency of operation.

According to a new report published by Allied Market Research, titled, “Semiconductor Packaging Market by Type, Packaging Material, Wafer Material, Technology, and Industry Vertical: Global Opportunity Analysis and Industry Forecast, 2021–2030” the global semiconductor packaging market size was valued at $27.10 billion in 2020 and is projected to reach $60.44 billion by 2030, registering a CAGR of 9.10% during the forecast period. Asia-Pacific is expected to be the leading contributor to the global market, followed by North America and Europe.   

Emerging technologies, such as artificial intelligence (AI) and quantum computing, require compound semiconductors to achieve full commercialization. The UK has a rich heritage of microprocessor design, with companies, such as ARM and Imagination Technologies, and new start-up companies designing AI processors, such as Bristol-based GraphCore, which are expected to create lucrative opportunities for the global semiconductor packaging market growth.

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China is the largest country, in terms of revenue generation, in the global semiconductor packaging market share. The semiconductor packaging industry is well-established in China and Taiwan. In addition, rapid growth in sales of consumer electronic products supplements the market growth. Moreover, increase in defense expenditure and widespread use of semiconductors material in IT & telecommunication, consumer electronics, and automotive industries drive the growth of the semiconductor packaging market revenue. Increase in demand for high-speed and compact size electronic products boosts the adoption of flip chip technology in the electronic industry. Internet of Things (IoT) has been gaining popularity and serves as a key driver of the market.

Products used in IoT, such as sensors & actuators, analog & mixed-signal translators, and microcontrollers or embedded processors, require efficient and reliable packaging solutions, which can be done using flip chips, contributed the highest share in the global semiconductor packaging market. In comparison to customary wire-bond packaging, flip chip offers various benefits such as superior thermal & electrical performance, substrate flexibility for varying performance requirements, remarkable I/O capability, reduced form factors, and well-established process equipment expertise.   

By region, the semiconductor packaging market trends have been analyzed across North America, Europe, Asia-Pacific, and LAMEA. The market analysis had identified that Asia-Pacific contributed maximum revenue in 2020 and is expected to grow at a faster rate as compared to other regions.  

Covid 19 Impact Analysis

The impact of COVID-19 on the manufacturing industry has significantly affected the global economy. Electronic components, such as PCBs, LED chips and wafers, ICs, and other semiconductor devices, are mostly imported from China. Attributed to the shutdown of manufacturing units, the prices of semiconductor components have increased by 2-3%, owing to shortage of supplies.

The ongoing COVID-19 pandemic has abruptly re-shaped the global economy. Sudden decline in infrastructure development and installation projects is expected to hamper the semiconductor packaging market growth for automotive and other industrial verticals. 

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Key Findings Of The Study

  • In 2020, the flip chip segment accounted for maximum revenue and is projected to grow at a notable CAGR of 8.40% during the forecast period.
  • The consumer electronics segment accounted for more than 45% of the semiconductor packaging market share in 2020.
  • The fan-out WLP segment is expected to witness the highest growth rate during the forecast period.
  • UK was the major shareholder in the Europe semiconductor packaging market, accounting for approximately 35% share in 2020.

The key players profiled in the report include Amkor Technology (U.S.), ASE Group (Taiwan), ChipMOS Technologies, Inc. (Taiwan), Powertech Technology, Inc. (Taiwan), Intel Corporation (U.S.), Jiangsu Changjiang Electronics Technology Co., LTD (China), Samsung Electronics Co., Ltd. (South Korea), Taiwan Semiconductor Manufacturing Company (Taiwan), Texas Instruments (U.S.), and Fujitsu Limited (Japan). Market players have adopted various strategies, such as product launch, collaboration, product development, agreement, and expansion, to expand their foothold in the semiconductor packaging industry.

About Us

Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of “Market Research Reports” and “Business Intelligence Solutions.” AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.

We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.


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