Advanced packaging market to be worth €57bn in 2026

The  advanced packaging market’s revenue is expected to reach $57.2 billion in 2027, says Yole Developpement. 

ASE was No.1, followed by Amkor, with  Intel third, JCET fourth and TSMC fifth.

The market’s total 2022  revenue was $32.1 billion.

5G, automotive infotainment/ADAS , AI, data centre, and wearable applications continue to drive the market.

“The major OSATs saw 15 to 26% YoY increase in Q4 revenue, with sequential quarter growth between 1 and 15%.,” says Yole’s Stefan Chitoraga, “OSATs identified value opportunity shifting to advanced packaging due to increasing transistor costs at leading-edge nodes and expanding consumer appetites for smaller and thinner electronic devices.”

Leading OSATs are running at full packaging capacity and still face capacity constraints for many product lines. That will continue into 2022.

In addition, IDM outsourcing for packaging continues accelerating, particularly for more advanced products, as their investments are more focused on front-end expansion.

OSATs are slowing down their wire bonding capacity expansions, and for 2022 the CapEx will be allocated mainly to advanced packaging and testing.

The biggest revenue growth is inside the Chinese OSAT ecosystem, with Payton Technology, Wafer Level CSP, Chipmore Technology, China Resources Microelectronics, and Forehope leading the way.

The government has been heavily investing as it wants to grow and strengthen regional semiconductor development and supply.

Today, the top three Chinese OSATs are part of the world’s top 10 and contributed 85% of the top 10 Chinese OSATs’ revenue in 2021.

Chinese OSATs are mainly investing in advanced packaging platforms instead of traditional packaging.