3D Semiconductor Packaging Market Size, Share, and COVID Impact Analysis, By Technology (Fan Out Based, Through Silicon Via, Wire Bonded, Package on Package, and Others); By End User Industry (Medical Devices & Equipment, Aerospace & Defense, Automotive, Consumer Electronics, IT & Telecom and Others); and Regional Forecast, 2024-2032

3D Semiconductor packaging is an updated and advanced technology of packing and stacking semiconductor chips together in two or more layers to stay interconnected horizontally and vertically and perform as a single device. Microelectronic devices opt for 3D semiconductor packaging due to its compact size, less power consumption, and improved efficiency, thus driving the market.

The semiconductor industry is rapidly growing with the evolving and emerging need for IoT devices. With digitization conquering the world and the internet penetrating every corner, the demand for portable and efficient semiconductors has increased enormously. The bolstering sales of semiconductors for consumer electronics worldwide drives the 3D semiconductor packaging market. For instance,

• According to the Semiconductor Industry Association, the global semiconductor industry sales amounted to USD 51.8 billion in May 2022, with an increase of 18.0% over May 2021.

In addition, the rising adoption and use of electric vehicles worldwide are fueling the market growth. 3D semiconductors, being lightweight and able to condense multiple components into one solid piece, aids in producing electric vehicles. For instance,

• The Edison Electric Institute report 2021 stated that electric vehicle sales are expected to surpass 3.5 million per year within the next decade.


• Investments of more than USD 2.6 billion are made to ensure the infrastructure exists to aid the mass adoption of electric vehicles. Moreover, the report estimates an almost three times increase in the number of fully electric models available by 2023.

The increasing demand for wireless, consumer wearable devices, smartphones, tablets, etc., drives the 3D packaging market. This provides new opportunities to emerging technologies like the Internet of Things, thus pushing the advanced packaging market.

• IDC reported that global IoT spending is expected to hit USD 1.20 trillion in 2022.


• According to Cisco, by 2030, around 500 billion devices are expected to be connected to the internet.


• Ericsson stated that smartphone subscriptions were 5.92 billion in 2020 and 6.25 billion in 2021 globally. It is projected to reach 6.56 billion in 2022 and 7.69 billion in 2027.

Impact of COVID-19 on the 3D Semiconductor packaging market

The market has been negatively impacted due to the outbreak of COVID-19. The hardware supply chain faced disruptions due to the pandemic restrictions of lockdowns and shutdowns and curbing of trading activities.

However, the market witnessed a rise in demand in the healthcare sector post-pandemic. With enormous applications of 3D semiconductor packaging in medical devices, there was propulsion in developing advanced medical devices and equipment across the globe. Moreover, many medical equipment manufacturers increased their production after the pandemic, thus boosting the 3D packaging market. For instance,

• In 2021, GE Healthcare increased its manufacturing capacity for medical devices and equipment, including ultrasound devices, CTs, mobile X-ray systems, ventilators, and patient monitors to treat COVID-19 patients.

Furthermore, the market is seeing opportunities in the aerospace sector with the rising implementation of the Through Silicon Via (TSV) interposer for saving space and weight. Thus, the adoption of 3D packaging in aeronautic applications boosts market growth.

Key Insights

The report will cover the following key insights:

• Micro Macro Economic Indicators.


• Drivers, Restraints, Trends, and Opportunities.


• Business Strategies Adopted by the Players.


• Impact of COVID-19 on 3D Semiconductor Packaging Market.


• Consolidated SWOT Analysis of Key Players.

Analysis by Technology

Based on technology, the market includes fan out based, through silicon via (TSV), wire boned, and package on package (PoP). The TSV segment is expected to hold the largest share in the global 3D semiconductor packaging market owing to the higher space efficiency and interconnectivity features.

Emerging technologies such as machine learning, cloud computing, and artificial intelligence require high-performance computing applications for which TSV technology provides lucrative solutions. It bolsters and drives the demand for the 3D semiconductor packaging market. For instance,

• In November 2020, ACM Research launched the Ultra ECP 3d platform for its 3D (TSV) applications. ACM Research provides wafer processing technologies for semiconductor and advanced wafer-level packaging (WLP) solutions. With this launch, the company entered the 3D TSV Copper Plating Market.

Regional Analysis

The global 3D semiconductor packaging market is divided into five regions: North America, Europe, Asia Pacific, Middle East & Africa, and South America. Asia-Pacific holds the largest share in the market owing to the presence of many OEMs and leading manufacturers in the region, including China, Japan, Taiwan, and South Korea. Many investments are made into the semiconductor chip industry, thus propelling growth in this region. For instance,

• In February 2021, TSMC established a research & development center in Tsukuba, Japan, to develop 3D integrated circuit packaging materials in partnership with its Japanese suppliers.

The distribution of the global 3D semiconductor packaging market by region of origin is as follows:

• Asia Pacific – 49%


• North America – 26%


• Europe – 16%


• The Middle East and Africa – 6%


• South America – 3%

Key Players Covered

The key players in the market include Intel Corporation, 3M Company, IBM Corporation, Qualcomm Technologies, Inc., Taiwan Semiconductor Manufacturing Company, Samsung Electronics Co. Ltd., Advanced Micro Devices, Inc., Jiangsu Changjiang Electronics Technology Co. Ltd., Toshiba Corp., Micron Technology, ASE Group, Suss Microtec AG, Siliconware Precision Industries Co. Ltd (SPIL) and others.

Segmentation

Key Industry Developments

• July 2022: Intel Corporation announced its production of 3D semiconductor chips for MediaTek, a Taiwan chip design firm. The first products would be used in smart devices with the help of Intel 16 technology. This enables Intel Corporation to boost its foundry business.


• July 2022: Samsung Electronics Co. started its mass production of 3-nanometer semiconductor chips for a Chinese cryptocurrency miner. These chips would reduce power consumption by 50% and improve performance by 30%, as stated by Samsung Electronics Co.