Fan-Out Wafer Level Packaging Market Analysis

Fan-Out Wafer Level Packaging Market Analysis

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Based on process type, the fan-out wafer level packaging market is segmented into standard-density packaging, high-density packaging, and bumping. The high-density packaging segment held a market value of over USD 1.5 Billion in 2022. The market has gained momentum owing to increased investments in the development of high-density FOWLP. Multiple market vendors have collaborated and invested in the development of this technology to increase its application scope in various other segments.
 

Based on the business model, the market is divided into OSAT, foundry and IDM. The OSAT business model segment held a market share of over 20% in 2022 and is expected to grow at a lucrative pace by 2032. Traditional pure test players are investing in packaging and assembly capabilities while OSATs are expanding their testing expertise. To capture the test market, top OSAT-based providers are investing in IC testing capacity while pure test houses, such as KYEC & Sigurd Microelectronics, are adding packaging/assembly capabilities to their service offerings through M&As or R&D. Overall, there is a paradigm shift in the packaging/assembly business, which was traditionally dominated by OSATs.
 

Based on application, the fan-out wafer level packaging market is segmented into consumer electronics, automotive, industrial, healthcare, aerospace & defense, IT & telecommunication, and others. The automotive segment held a dominant market share in 2022 and is anticipated to grow at 15% CAGR by 2032. The temperature fluctuations that can occur both inside and outside a vehicle primarily cause problems for automotive electronics. Due to the requirements for reliability, electro-thermal co-simulation is becoming increasingly important in the automobile industry. FOWLP is used at the end of the semiconductor manufacturing process to protect silicon wafers, logic units, and memory from physical damage & corrosion. With advancements in packaging technology, ICs can now be linked to circuit boards.
 

Asia Pacific is the dominant region in the global fan-out wafer level packaging market with over 50% share in 2022. This is due to the presence of numerous foundries and OSAT companies in the region, which are the primary customers of Integrated Device Manufacturers (IDMs) and fabless firms. Another major factor contributing to market expansion is the increasing government initiatives in APAC countries to expand the fan-out wafer level packaging industry. One of the most visible examples is the Chinese government's growing support for the fan-out wafer level packaging industry. Despite being a major consumer electronics manufacturing hub, China primarily imports semiconductor ICs and lacks a strong domestic semiconductor manufacturing capability. To change this, the government has enacted several policies to promote the country's fan-out wafer level packaging industry growth.