The global 3D semiconductor packaging market is expected to grow at a CAGR of over 16.5% in near future.
Three dimensional integrated circuits are manufactured by stacking of silicon wafers and interconnecting the wafers vertically through Silicon Vias (TSVs), which further enables them to behave as a single device at lesser power as compared to conventional technology.
Growing demand for devices with higher capacity as well as lesser storage are one of the key factors expected to drive the DRAM and NAND market. Furthermore, with the rising demand for consumer electronic products, sales of MEMS devices as well as image sensors are anticipated to witness substantial growth over the forecast period, thereby increasing the adoption of 3D ICs in varied devices.
Increasing demand for tablets, wearable devices, low-end smartphones and other connected consumer goods, wherein the key players emphasize on newer packaging technologies, is expected to drive 3D semiconductor packaging market growth.
3D semiconductor packaging using Silicon-Vias technology are used to integrate semiconductor technologies into micro-electronic modules and stack thinned semiconductor chips. The bandwidth requirements for networking equipment as well as storage capacity are expected to grow at a significant rate. Silicon on insulator wafers is preferred for 3D IC fabrication, wherein it helps in the reduction of unwanted heat production.
The microelectronic module helps in miniaturization for portable electronics systems such as bio-medical solutions, smartphones, and sensors. One of the key market trends includes introduction of multi chip packaging of ICs.
For most integrated circuit manufacturers, commercial authenticity includes decreasing wafer sizes with increasing capital expenditures. Introduction of newer chip packaging such as three-dimensional ICs and 2.5D integrated circuits (2.5D ICs) in the production processes enables the manufacturers to maintain hold on their circuits. For instance, developing economies such as China are expected to focus more on advanced technology. 2.5D IC and 3DICs technologies are engaged in enabling multiple dies to be stacked vertically through the silicon via (TSV) technology and interposers. Silicon via technology offers short critical electrical paths through integrated circuit, thereby creating fast output as well as input.
Application processors using advanced technologies are expected to be smaller and faster in comparison with chip packaged as per traditional configurations. 3D technology helps in increasing bandwidth, enhancing performance as well as power efficiency. Three-dimensional semiconductor technologies also helps in lowering risk as well as reducing cost, thereby making it a viable solution across varied applications.
The technology includes significant benefits such as heterogeneous integration, wherein the circuit layers are built on different wafers with varied processes. Shorter interconnect as well as circuit security are also key benefits provided by the 3D technology. Three-dimensional integrated circuits wires have higher capacitance than conventional wired technologies. Furthermore, sensitive circuits are divided into different layers for obscuring function of every layer. Three-dimensional ICs technologies are also engaged in offering greater chip connectivity in comparison with traditional configurations.
3D semiconductor packaging market can be segmented on the basis of materials which include organic substrates, underfill materials, lead frames, liquid encapsulants, bonding wire, wafer-level package dielectrics, thermal interface materials, mold compounds, die attach materials, and solder balls. Different end-use verticals include automotive, consumer electronics, aerospace, ICT, biomedical, research & development, and military applications. Consumer electronics as well as ICT are expected to be the key verticals engaged in adoption of integrated circuits, thereby enhancing market growth over the forecast period. This can be attributed to higher bandwidth as well as high chip density of ICs which make them well-suited in the aforementioned domains.
Major 3D semiconductor packaging market players include 3M Company, Advanced Semiconductor Engineering, Micron Technology, United Microelectronics, STATS ChipPAC, Taiwan Semiconductor Manufacturing, Samsung Electronics, IBM, STMicroelectronics, and Xilinx.
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The exponential spread of COVID-19 worldwide has had an adverse impact on the semiconductor industry with manufacturing facilities temporarily shut, leading to a significant slowdown in the production. The outbreak could result in disruption across the ecosystem with several supply chain participants shifting their production facilities outside China, thereby reducing their over-reliance on China. Lockdowns imposed by the governments in the wake of the Covid-19 outbreak has not only affected manufacturing but also hauled consumer demand for semiconductor devices. Our analysts predict a decline in semiconductor revenue by over 1% in 2020 as compared to that in 2019. The report will account for Covid19 as a key market contributor.