Lyon, France – New advanced packaging technologies are expected to result in big changes in the semiconductor industry, driven in part by the Internet of Things (IoT), according to a new report from Yole Développement. The focus is expected to center on integration and wafer level packages (WLP) to deliver greater functionality, improved cost, and higher performance.
The Yole report, Status of the Advanced Packaging Industry, expects advanced packaging will account for 44 percent of packaging services with a revenue of $30 billion by 2020, increasing by $9.8 billion from 2014. Growth is expected to come from the adoption of new packaging technologies including 2.5D/3D and fan-out and fan-in WLP solutions as well as flip-chip packages.
Yole pegs the mobile sector as the primary advanced packaging market led by smartphones and tablets. Other high-volume applications include servers, PC, game stations, HDD/USB, WiFi hardware, base stations, TVs and set top boxes.
While the mobile sector is driving production and market growth, the IoT is expected to significantly impact the advanced packaging industry as more companies across the industry adjust their portfolios to establish a position in the market, said Yole.
“IoT driven semiconductor industry consolidation, is reflecting into a highly dynamic advanced packaging landscape”, said Andrej Ivankovic, Technology & Market Analyst, Advanced Packaging & Semiconductor Manufacturing at Yole Développement, in a statement.
“Numerous packaging options developed by the industry leaders, are being explored as new IoT applications arise,” he added.
Other contributing factors to changes in IC packaging strategies include the merger and acquisition activity in the semiconductor industry, which is “reshaping the business landscape” at the supply chain level, as well as changes in FEOL device scaling and related cost reduction, and growing investments in new lithography solutions and devices below 10-nm nodes, according to Yole.
“At the level of technology, as profitability of FEOL scaling options remains uncertain and IoT promises application diversification, the spotlight is now turning to advanced packages for cost reduction, performance boost and functional integration,” said Yole.
These factors, together with demand for cost reduction, higher performance, and functional integration, are driving the advanced packaging segment to focus on integration and WLP, said Yole. These include emerging packages such as fan-out WLP, 2.5D/3D IC and related system-in-package solutions.