3D IC and 2.5D IC Packaging Market - By Technology (3D Wafer-level Chip-scale Packaging, 3D TSV, 2.5D), By Application (Logic, Memory, Imaging & Optoelectronics, MEMS/Sensors, LED), By End Use, Forecast 2023 – 2032

3D IC and 2.5D IC Packaging Market Size

3D IC and 2.5D IC packaging market was valued at over USD 45 billion in 2022 and is anticipated to grow at a CAGR of over 9% between 2023 and 2032. Advancements in manufacturing equipment are driving growth in the industry. Improvements in wafer thinning, bonding, manufacturing processes have made this packaging process more efficient and cost-effective.
 

In addition, 3D IC and 2.5D IC packaging solutions enable the integration of various sensors, processors, and memory components into a compact form factor, enabling real-time data processing, low latency, and efficient power management that are crucial in AR devices.
 

3D IC packaging refers to the integration of multiple layers or dies vertically, creating a three-dimensional structure. While on the other hand, 2.5D IC packaging involves the integration of multiple dies or chips onto a silicon interposer or an organic substrate.
 

The increasing implementation cost can limit market growth. 3D IC and 2.5D IC packaging is cost prohibitive. The techniques & methods associated with this packaging process will require additional investments in materials, equipment, and expertise. This can deter some smaller or budget-constrained organizations from embracing these technologies, hindering market growth.
 

COVID-19 Impact

The COVID-19 pandemic impacted many markets including the 3D IC and 2.5D IC packaging market in 2020. The pandemic negatively impacted many industries but accelerated the development of medical equipment and other supplies. This led to the rising demand for 3D IC packaging due to the wide range of applications in the medical & healthcare industry.
 

3D IC and 2.5D IC Packaging Trends

The cost-effectiveness of 3D IC and 2.5D IC packaging is driving market growth during the forecast period. One of the main benefits of 3D IC and 2.5D IC packaging is the reduction in additional interconnects and external components. Interconnect complexity and length can be reduced by stacking more dies vertically or integrating various components into a single package. This flexibility saves material, fabrication, assembly, and testing costs. In addition, 3D IC and 2.5D IC packaging provides greater integration, allowing more products to be packaged into smaller packages. This efficient use of space results in cost savings as it reduces package, panel, or system size, thereby saving material & production costs. Furthermore, continuous improvements in manufacturing processes, design rules, and materials will increase the benefits of 3D IC and 2.5D IC packaging.
 

3D IC and 2.5D IC Packaging Market Analysis

Based on technology, the market is segmented into 3D wafer-level chip-scale packaging, 3D TSV, and 2.5D. The 3D wafer-level chip-scale packaging segment held a significant market share of over 25% in 2022. 3D WLCSP refers to a packaging technology where multiple chips or dies are stacked vertically and the interconnections between them are made at the wafer level. One of the main advantages of 3D WLCSP include the enabling of small sizes and the reduced size of electronic components. By stacking more chips or dies vertically, the overall footprint of the packaging can be reduced, making it more suitable for space-constrained applications such as mobiles, wearables, and IoT devices.
 

The 3D WLCSP segment is expected to grow due to the increasing demand for integrated high-performance electronic devices. Mobile devices, wearables, IoT devices, and automotive electronics are some of the key applications where 3D WLCSP is gaining traction. In addition, the other drivers propelling market growth include the demand for smaller sizes, improved performance, and the integration of different products in one package.
 

Based on application, the market is segmented into logic, memory, imaging & optoelectronics, MEMS/sensors, and LED. The MEMS/sensor segment is expected to reach over USD 24.5 billion by 2032. 3D IC and 2.5D IC packages have advantages in miniaturization and integration, which is especially important for MEMS and sensors. By stacking multiple dies vertically or mixing different components in one package, the overall MEMS size can be reduced while maintaining or improving its performance. This miniaturization allows the sensor to be integrated into many applications where space is limited such as electronics, automobiles, medical devices, and IoT devices.
 

Furthermore, MEMS and sensors are experiencing significant growth owing to the increasing demand for smart devices and connectivity. The integration of sensors into various applications, such as smartphones, wearables, medical devices, home appliances, and autonomous vehicles, is driving market expansion. The need for advanced sensing capabilities, miniaturization, and integration drives the use of 3D IC & 2.5D IC packaging in the MEMS & sensor space.
 

Asia Pacific 3D IC and 2.5D IC packaging market is expected to grow at a CAGR of over 10% by 2032. Countries including China and India are witnessing exponential growth in trade & production, especially in industries including automobile, electronics, chemicals, and machinery. The Asia Pacific region is home to some of the largest semiconductor chip manufacturers including TSMC, SMIC, UMC, and Samsung. For example, in February 2021, TSMC announced its plan to establish a research & development center in Tsukuba to develop 3D IC packaging materials along with the sale of Japanese products. In addition, such innovations are driving the market in the region.
 

3D IC and 2.5D IC Packaging Market Share

Major companies operating in the 3D IC and 2.5D IC packaging market include:

• Advanced Semiconductor Engineering (ASE)
• Amkor Technology
• Broadcom
• ChipMOS Technologies Inc
• Intel Corporation
• Jiangsu Changjiang Electronics Technology (JCET)
• Mitsubishi Electric Corporation
• Powertech Technology Inc. (PTI)
•  Samsung Electronics
•  Siliconware Precision Industries (SPIL)
•  Texas Instrument
•  Toshiba Corporation
•  TSMC (Taiwan Semiconductor Manufacturing Company)
• United Microelectronics Corporation (UMC), and Xilinx Inc.
   

3D IC and 2.5D IC Packaging Market News:

• In July 2021, the Microelectronics Institute (IME), affiliated with the Singapore Science, Technology, and Research Agency (A*STAR), collaborated with four key players in the industry, which include Asahi Kasei, GlobalFoundries, Qorvo, and Toray, to develop integrated systems. Through this collaboration, IME will work with these players to develop advanced SiPs for heterogeneous chip integration to meet the challenges of 5G applications in the semiconductor industry. The new entity will support IME's FOWLP/2.5D/3D packaging.
   

The 3D IC and 2.5D IC packaging market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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By Technology

• 3D wafer-level chip-scale packaging
• 3D TSV
• 2.5D

By Application

• Logic
• Memory
• Imaging & optoelectronics
• MEMS/Sensors
• LED
• Others

By End Use

• Telecommunication
  • Application
• Consumer electronics
  • Application
• Automotive
  • Application
• Military & aerospace
  • Application
• Medical devices
  • Application
• Smart technologies
  • Application
• Others
  • Application

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Latin America
  • Brazil
  • Mexico
• MEA
  • Saudi Arabia
  • UAE
  • South Africa