The diverse demand and output of advanced packaging across different markets are driving its market size from $38 billion to $79 billion by 2030. This growth is fueled by various demands and challenges, yet it maintains a continuous upward trend. This versatility allows advanced packaging to sustain ongoing innovation and adaptation, meeting the specific needs of different markets in terms of output, technical requirements, and average selling prices.
However, this flexibility also poses risks to the advanced packaging industry when certain markets face downturns or fluctuations.In 2024, advanced packaging benefits from the rapid growth of the data center market, while the recovery of mass markets like mobile is relatively slow.
The advanced packaging supply chain is one of the most dynamic sub-sectors within the global semiconductor supply chain. This is attributed to the involvement of various business models beyond traditional OSAT (Outsourced Semiconductor Assembly and Test), the strategic geopolitical importance of the industry, and its critical role in high-performance products.
Each year brings its own constraints that reshape the landscape of the advanced packaging supply chain. In 2024, several key factors influence this transformation: capacity limitations, yield challenges, emerging materials and equipment, capital expenditure requirements, geopolitical regulations and initiatives, explosive demand in specific markets, evolving standards, new entrants, and fluctuations in raw materials.
Numerous new alliances have emerged to collaboratively and swiftly address supply chain challenges. Key advanced packaging technologies are being licensed to other participants to support a smooth transition to new business models and to tackle capacity constraints. Chip standardization is increasingly emphasized to promote broader chip applications, explore new markets, and alleviate individual investment burdens.In 2024, new nations, companies, facilities, and pilot lines are beginning to commit to advanced packaging—a trend that will continue into 2025.
Advanced packaging has not yet reached technological saturation. Between 2024 and 2025, advanced packaging achieves record breakthroughs, and the technology portfolio expands to include robust new versions of existing AP technologies and platforms, such as Intel's latest generation EMIB and Foveros. The packaging of CPO (Chip-on-Package Optical Devices) systems is also gaining industry attention, with new technologies being developed to attract customers and expand output.
Advanced integrated circuit substrates represent another closely related industry, sharing roadmaps, collaborative design principles, and tool requirements with advanced packaging.
In addition to these core technologies, several "invisible powerhouse" technologies are driving the diversification and innovation of advanced packaging: power delivery solutions, embedding technologies, thermal management, new materials (such as glass and next-generation organics), advanced interconnects, and new equipment/tool formats.From mobile and consumer electronics to artificial intelligence and data centers, advanced packaging is adjusting its technologies to meet the demands of each market, enabling its next-generation products to also satisfy market needs.
The high-end packaging market is projected to reach $8 billion in 2024, with expectations to exceed $28 billion by 2030, reflecting a compound annual growth rate (CAGR) of 23% from 2024 to 2030. In terms of end markets, the largest high-performance packaging market is "telecommunications and infrastructure," which generated over 67% of revenue in 2024. Following closely is the "mobile and consumer market," which is the fastest-growing market with a CAGR of 50%.
In terms of packaging units, high-end packaging is expected to see a CAGR of 33% from 2024 to 2030, increasing from approximately 1 billion units in 2024 to over 5 billion units by 2030. This significant growth is due to the healthy demand for high-end packaging, and the average selling price is considerably higher compared to less advanced packaging, driven by the shift in value from front-end to back-end due to 2.5D and 3D platforms.
3D stacked memory (HBM, 3DS, 3D NAND, and CBA DRAM) is the most significant contributor, expected to account for over 70% of the market share by 2029. The fastest-growing platforms include CBA DRAM, 3D SoC, active Si interposers, 3D NAND stacks, and embedded Si bridges.
The entry barriers to the high-end packaging supply chain are becoming increasingly high, with large wafer foundries and IDMs disrupting the advanced packaging field with their front-end capabilities. The adoption of hybrid bonding technology makes the situation more challenging for OSAT vendors, as only those with wafer fab capabilities and ample resources can withstand significant yield losses and substantial investments.
By 2024, memory manufacturers represented by Yangtze Memory Technologies, Samsung, SK Hynix, and Micron will dominate, holding 54% of the high-end packaging market, as 3D stacked memory outperforms other platforms in terms of revenue, unit output, and wafer yield. In fact, the purchase volume of memory packaging far exceeds that of logic packaging. TSMC leads with a 35% market share, followed closely by Yangtze Memory Technologies with 20% of the entire market. New entrants such as Kioxia, Micron, SK Hynix, and Samsung are expected to penetrate the 3D NAND market rapidly, capturing market share. Samsung ranks third with a 16% share, followed by SK Hynix (13%) and Micron (5%). As 3D stacked memory continues to evolve and new products are launched, these manufacturers' market shares are expected to grow healthily. Intel follows closely with a 6% share.
Top OSAT manufacturers such as Advanced Semiconductor Manufacturing (ASE), Siliconware Precision Industries (SPIL), JCET, Amkor, and TF remain actively involved in final packaging and test operations. They are attempting to capture market share with high-end packaging solutions based on ultra-high-definition fan-out (UHD FO) and mold interposers. Another key aspect is their collaboration with leading foundries and integrated device manufacturers (IDMs) to ensure participation in these activities.
Today, the realization of high-end packaging increasingly relies on front-end (FE) technologies, with hybrid bonding emerging as a new trend. BESI, through its collaboration with AMAT, plays a key role in this new trend, supplying equipment to giants such as TSMC, Intel, and Samsung, all of which are vying for market dominance. Other equipment suppliers, such as ASMPT, EVG, SET, and Suiss MicroTech, as well as Shibaura and TEL, are also important components of the supply chain.
A major technology trend across all high-performance packaging platforms, regardless of type, is the reduction of interconnect pitch—a trend associated with through-silicon vias (TSVs), TMVs, microbumps, and even hybrid bonding, the latter of which has emerged as the most radical solution. Furthermore, via diameters and wafer thicknesses are also expected to decrease.
This technological advancement is crucial for integrating more complex chips and chipsets to support faster data processing and transmission while ensuring lower power consumption and losses, ultimately enabling higher density integration and bandwidth for future product generations.
3D SoC hybrid bonding appears to be a key technology pillar for next-generation advanced packaging, as it enables smaller interconnect pitches while increasing the overall surface area of the SoC. This enables possibilities such as stacking chipsets from partitioned SoC die, thus enabling heterogeneous integrated packaging. TSMC, with its 3D Fabric technology, has become a leader in 3D SoIC packaging using hybrid bonding. Furthermore, chip-to-wafer integration is expected to begin with a small number of HBM4E 16-layer DRAM stacks.
Chipset and heterogeneous integration are another key trend driving HEP packaging adoption, with products currently available on the market that utilize this approach. For example, Intel's Sapphire Rapids utilizes EMIB, Ponte Vecchio utilizes Co-EMIB, and Meteor Lake utilizes Foveros. AMD is another major vendor that has adopted this technology approach in its products, such as its third-generation Ryzen and EPYC processors, as well as the 3D chipset architecture in the MI300.
Nvidia is also expected to adopt this chipset design in its next-generation Blackwell series. As major vendors such as Intel, AMD, and Nvidia have already announced, more packages incorporating partitioned or replicated die are expected to become available next year. Furthermore, this approach is expected to be adopted in high-end ADAS applications in the coming years.
The overall trend is to integrate more 2.5D and 3D platforms into the same package, which some in the industry are already referring to as 3.5D packaging. Therefore, we expect to see the emergence of packages that integrate 3D SoC chips, 2.5D interposers, embedded silicon bridges, and co-packaged optics. New 2.5D and 3D packaging platforms are on the horizon, further increasing the complexity of HEP packaging.
Post time: Aug-11-2025