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Advanced Semiconductor Packaging is Reshaping the Global Semiconductor Industry


The semiconductor industry is witnessing a revolutionary change driven by the emergence of advanced semiconductor packaging. These new packaging techniques are enabling manufacturers to create more powerful, and more energy-efficient chips that are compatible with current applications.

Semiconductor packaging industry overview

Market Trends

The semiconductor packaging industry is witnessing rapid growth, driven by the increasing demand for consumer electronics, especially in large markets like China, India, and Southeast Asia. The advanced packaging segment is at extremely high densities – building a significant market share in the industry.

Market Overview and the potential of the industry

The global semiconductor packaging market is forecast to grow from $47.22 billion in 2024 to $79.37 billion in 2029, at a compound annual growth rate (CAGR) of 10.95%.

The Asia-Pacific region, with the strong growth of the electronics industry in large economies like China, India, and Southeast Asian countries, is expected to be the primary driver of the global semiconductor packaging market growth. This region is expected to account for around 60% of the total market in 2024 and is projected to increase to over 65% by 2029.

North America and Europe are significant markets, contributing around 20-25% of the total market. The development of the automotive, information technology, and telecommunications industries in these two regions will drive the demand for semiconductor packaging in the coming years.

The global semiconductor market is showing signs of strong growth

Challenges and Opportunities

While the semiconductor packaging industry is experiencing strong growth, it also faces challenges such as cost pressures, intense competition, and the constant need to improve product performance, features, and reliability.

Tackling these challenges, research and development (R&D) will become crucial. Manufacturers need to continuously innovate their technologies, reduce production costs, and meet the increasingly stringent demands of customers.

Advancements in technologies such as 3D integration, chip-package integration, plastic packaging, and silicon-based packaging will open up new opportunities for the future growth of the semiconductor packaging industry.

Advanced chip packaging – The driving force shaping the global semiconductor industry

The semiconductor industry is witnessing a significant shift in driving breakthrough advancements in chip packaging technology. Previously, chip packaging was considered a secondary product, but it has now become a critical factor in shaping the performance, capabilities, and future of the entire global semiconductor industry.

Prominent features of advanced chip packaging compared to traditional packaging

Smaller Size

Advanced chip packaging techniques such as 3D packaging, flip-chip, and stacked chip packaging allow manufacturers to create much more compact chips compared with traditional methods. This provides multiple benefits, including the ability to integrate more chips into the same device, enabling more compact and flexible electronic devices. The most evident example is the compact size of modern smartphones, made possible by advanced chip packaging.

Chips are being designed increasingly smaller

Higher Performance

Advanced chip packaging techniques can enhance chip performance by reducing signal delays and increasing interconnect bandwidth between chip components. This is achieved through shorter and more efficient interconnect structures within the chip package. With higher performance, electronic devices can operate faster, respond more quickly, and be more efficient, better meeting user demands.

Energy Efficiency

Advanced chip packaging techniques, such as the integration of multiple logic and memory structures in a single chip package, can help reduce the amount of heat generated, thereby reducing cooling requirements and saving energy. This leads to longer battery life and lower operating costs for mobile and consumer electronics.

Enabling New Applications

With features like small size, high performance, and energy efficiency, advanced chip packaging opens up the future for many new applications such as artificial intelligence, autonomous vehicles, wearables, and IoT products. These applications require the small size, high performance, and energy-efficient chips that advanced chip packaging can provide.

The participation of industry giants in advanced chip packaging

In the Chinese market, in November 2023, the JCET Group announced that its parent company, JCET Automotive Electronics (Shanghai) Co., Ltd., will receive a capital increase of 4.4 billion RMB (around $0.61 billion). This investment aims to accelerate the construction of an advanced chip packaging factory for automotive products in the Lingang Special Area of Shanghai.

Intel Corporation announced the launch of its next-generation glass-based substrate for advanced chip packaging. This new packaging solution allows manufacturers to increase the density and scale of semiconductor devices within a package, contributing to the development of applications focused on data processing and storage. This will help drive the continued doubling of transistor count in integrated circuits (ICs) every two years.

Robust Growth in the Asia-Pacific Region

According to a report from Mordor Intelligence, the Asia-Pacific region is expected to witness robust growth in the chip packaging market in the coming years.

Specifically, the chip packaging market in this region will have the fastest growth rate globally during the 2024-2029 period. This is driven by the increasing demand for consumer electronics, aerospace, automotive, and other high-tech applications in the region.

The consumer electronics industry is developing rapidly

China is playing a leading role in consuming consumer electronic products, including smartphones, tablets, and IoT (Internet of Things) devices. The strong growth of the consumer electronics industry in China has created a large and growing demand for advanced chip packaging to meet the increasing requirements for the functionality, performance, and design of these products.

Not only China, but India is also becoming one of the largest consumer electronics markets in the world. The rapid rise of the middle class and the demand for modern electronic devices in India are driving the strong development of the domestic electronics industry, in turn creating more demand for chip packaging.

The consumer electronics industry develops rapidly

Increased investment in the aerospace and automotive sectors

According to the report, Japan plays a crucial part in the global semiconductor and electronics industry. It is the home of many essential integrated circuit chipset manufacturers. Japan’s semiconductor revenue grew 14.2% in 2022 and is expected to grow in the coming years.

The demand for semiconductor packaging in Japan is expanding, mainly due to the country’s significant semiconductor and integrated chip business advancements. The automotive industry in this market is also shifting towards electric and autonomous vehicle models, requiring more advanced chip packaging to integrate new technology features. Therefore, the increase in investment in these two sectors is creating a large demand for advanced chip packaging to meet performance, reliability, and functionality requirements.


The semiconductor packaging industry is growing due to the increasing demand for consumer electronics, especially in large markets such as China, India, and Southeast Asia. Grasping market trends and regional potential is the key to success in this field. Therefore, research and development will be crucial to address these challenges and drive continuous progress in the industry. Please follow FPT Semiconductor for the latest updates here.