Advanced Chip Packaging Market Size, Share, Analysis, Trends, Growth, 2032

Advanced Chip Packaging Industry Prospective:

The global advanced chip packaging market size was evaluated at $49 billion in 2023 and is slated to hit $120 billion by the end of 2032 with a CAGR of nearly 11% between 2024 and 2032.

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Advanced Chip Packaging Market: Overview

Advanced chip packaging is a cutting-edge technique enabling integration of many semiconductors dies in a single package. Moreover, it provides key benefits such as cost-efficacy, performance, and power efficiency.  There are various methods used in advanced packaging such as 3D packaging, 2.5D packaging, system-in-package, and fan-out wafer-level packaging.

Key Insights

• As per the analysis shared by our research analyst, the global advanced chip packaging market is projected to expand annually at the annual growth rate of around 11% over the forecast timespan (2024-2032)
• In terms of revenue, the global advanced chip packaging market size was evaluated at nearly $49 billion in 2023 and is expected to reach $120 billion by 2032.
• The global advanced chip packaging market is anticipated to grow rapidly over the forecast timeline owing to surging demand for electronic device miniaturization and technological breakthroughs.
• In terms of packaging type, the flip chip segment is slated to register the highest CAGR over the forecast period.
• Based on end-user, the consumer electronics segment is predicted to contribute majorly towards global market expansion in the ensuing years.
• Region-wise, the North American advanced chip packaging industry is projected to register the fastest CAGR during the assessment timespan.

Advanced Chip Packaging Market: Growth Factors

Rise in the development of tiny electronic products to boost the global market trends over forecast period

Surging demand for electronic device miniaturization and technological breakthroughs will augment the expansion of the global advanced chip packaging market. Furthermore, an increase in the use of semiconductors in the slew of applications along with growing popularity of electric cars will prop up the global market expansion.

Moreover, supportive government laws and a rise in the fund allocation in semiconductor manufacturing will embellish the growth of the market globally. Additionally, an increase in the demand for consumer electronic goods along with requirement of low power is predicted to augment the market surge globally in the years ahead. Apart from this, escalating demand for high-performance computing and automotive electronics has helped in sketching a profitable roadmap for the global market.

Advanced Chip Packaging Market: Restraints

Escalating expenses incurred for manufacturing new kind of chip packaging can restrict the global industry surge by 2032

Huge costs of producing advanced chip packaging and supply chain restrictions can hinder the growth of the global advanced chip packaging industry. Apart from this, issues related to copyrights and technological obsolescence is anticipated to halt the global industry expansion.  

Advanced Chip Packaging Market: Opportunities

Launching of 5G network technologies to open new growth avenues for the global market

An introduction to 5g network and integrating of healthcare electronic devices such as diagnostic devices and medical equipment will open a slew of opportunities for the global advanced chip packaging market. Moreover, an increase in the use of IoT devices along with flourishing consumer electronics sector is predicted to expedite the scope of the market growth globally.

Advanced Chip Packaging Market: Challenges

Consistently emerging techniques & changing consumer preferences to challenge the global industry growth in coming years

Constantly evolving technologies and changing customer tastes are likely to challenge the expansion of the global advanced chip packaging industry. Elongated design cycles and complexities involved in the integration of many devices can put brakes on the global industry progress in the years ahead.

Advanced Chip Packaging Market: Report Scope

Advanced Chip Packaging Market: Segmentation

The global advanced chip packaging market is divided into packaging type, end-user, and region.                                             

In terms of packaging type, the advanced chip packaging market across the globe is segmented into flip chip, wafer-level packaging, 2.5D & 3D packaging, ball grid array, and embedded die packaging segments. Apparently, the flip chip segment, which garnered nearly 44% of the global market proceeds in 2023, is set to record fastest CAGR in the next couple of years owing to need for minimizing package size, enhancing signal transfer speeds, and offering high input/output density. Furthermore, it is fit for compact electronic equipment high in demand owing to surging acceptance of small & thin consumer electronics products such as wearable and smartphones.

Based on the end-user, the global advanced chip packaging industry is divided into healthcare, consumer electronics, automotive, industrial, and aerospace & defense segments. Apparently, the consumer electronics segment, which led the global industry share in 2023, is set to contribute lucratively towards the global market size in the coming years and this can be subject to large-scale use of compact high-performing electronic equipment including smartphones and tablets. Surging focus on miniaturization and necessity of improving functionalities of consumer electronics goods are likely to augment the segmental surge.  

Advanced Chip Packaging Market: Regional Insights

Asia-Pacific is projected to maintain leading status in the global market over the analysis timeframe

Asia-Pacific, which accounted for about two-thirds of the global advanced chip packaging market size in 2023, is predicted to establish a leading position in the global market in the forecast timespan.

Additionally, the regional market surge in the coming seven years can be due to flourishing electronics manufacturing sector and large-scale fund allocation for developing new technologies. Countries such as South Korea, China, and Japan are likely to be the key regional market revenue growth drivers in the coming years.

North American advanced chip packaging industry is anticipated to register the highest CAGR in the expected timeline. The geometric progression of the industry in North America can be attributed to humungous demand for high-performance computing along with favorable government schemes.

Moreover, presence of key industries such as healthcare, consumer electronics, telecommunications, and automotive sectors will steer the industry growth in the region.  

Key Developments

• In November 2023, the U.S. commerce department launched a USD 3 billion scheme for promoting the growth of chip packaging sector in the country.
• In the second half of 2024, Applied Materials, Inc., declared of expanding its EPIC* innovation tool designed for advanced chip packaging system commercialization.

Advanced Chip Packaging Market: Competitive Space

The global advanced chip packaging market profiles key players such as:

• Intel Corporation
• Amkor Technology
• Taiwan Semiconductor Manufacturing Company
• SPIL
• Advanced Micro Devices
• Samsung Electronics
• JCET Group
• SK Hynix
• Advanced Semiconductor Engineering.

The global advanced chip packaging market is segmented as follows:

By Packaging Type

• Flip Chip
• Wafer-Level Packaging
• 2.5D & 3D Packaging
• Ball Grid Array
• Embedded Die Packaging

By End-User

• Healthcare
• Consumer Electronics
• Automotive
• Industrial
• Aerospace & Defense

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa