Advanced Packaging Outlook Report
Unveiling the Next Generation of Semiconductor Packaging
Advanced packaging is revolutionizing semiconductor design and manufacturing, optimizing power, performance, and area (PPAC), while reducing costs. As AI continues to push the need for larger substrates with more layers and I/Os, cutting-edge packaging methods are becoming more critical than ever. Interposers are currently the top choice for high-performance packaging, but their sustainability is in question due to high costs. Meanwhile, panel-level packaging and glass substrates are gaining traction for their ability to reduce production costs—though challenges remain around warpage, uniformity, and yield.
As we look ahead to 2025, the automotive sector and photonics markets are poised for significant growth, opening new opportunities for innovation in advanced packaging.
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Five Key Market Expectations for 2025
The semiconductor landscape is rapidly evolving, with critical innovations driving market momentum in 2025. From AI and datacenter demands to automotive advancements, the adoption of cutting-edge packaging technologies is essential to meeting the performance needs of tomorrow’s electronics.
Here are the five key market trends to watch:
Interposers for AI and Datacenter
AI’s rapid growth has increased demand for datacenter processors paired with high-bandwidth memory (HBM). While silicon interposers remain essential, companies like SK hynix are exploring methods to reduce costs through direct stacking techniques and substrate innovation.
Panel-Level Packaging (PLP)
FO-PLP (Fan-Out Panel-Level Packaging) offers increased area utilization and cost efficiency over wafer-level packaging. With companies like Samsung and NVIDIA adopting PLP for next-gen AI chips and consumer electronics, this technology promises better performance, reduced waste, and improved thermal management.
Automotive Chiplets
The automotive industry’s adoption of chiplet technology is accelerating, particularly in advanced driver-assistance systems (ADAS) and autonomous driving. Chiplets allow for faster time-to-market and improve reliability, safety, and security across multiple designs.
Silicon Photonics
As the demand for bandwidth in AI applications grows, silicon photonics will enable faster optical communication. Companies like TSMC are integrating photonics into 3D packaging to offer better performance and lower power consumption.
Glass Substrates
Glass substrates are emerging as a cost-effective alternative for advanced packaging. They provide better thermal stability, higher interconnect density, and increased reliability, making them ideal for automotive, industrial, and AI chip applications.
Key Chapter Highlights: Unlocking 2025 Advanced Packaging Insights
The advanced packaging landscape is set for transformative growth in 2025, with major developments across market demand, technological innovation, procurement strategies, pricing trends, and lead times. Each of these factors plays a pivotal role in shaping the semiconductor industry, from the adoption of cutting-edge technologies like silicon photonics to the resurgence of key electronics markets. Explore the following chapter highlights to uncover the insights driving the next generation of semiconductor packaging.
Market Outlook
The advanced packaging market is set for a resurgence in 2025, driven by growing demand for smartphones, PCs, servers, and the rise of AI-powered data centers and automotive systems. Want to learn more about the factors behind this rebound? Discover how AI-enabled electronics and data center expansion will fuel the next wave of growth.
Technical Outlook
Innovations in interposers, chiplets, and substrates will push the boundaries of performance and efficiency in 2025. From silicon photonics to panel-level packaging, these advancements are critical for AI and automotive applications. Want to dive into the tech that’s shaping the future? Learn more about the innovations driving packaging solutions to the next level.
Procurement Outlook
The semiconductor procurement landscape is poised for a major shift, with sales projected to soar in 2025. High-demand items such as GPUs and HBM are driving up average selling prices. Want to know how AI and edge computing will influence procurement strategies? Dive into the key trends and growth drivers shaping the future.
Price Outlook
Prices for AI-related technologies like memory and logic devices are expected to rise, with demand for DDR5, HBM, and GPUs skyrocketing. Which segments will see the most significant shifts? Stay ahead of the curve with insights into price trajectories for 2025’s most critical components.
Lead Time Outlook
Lead times for semiconductor components are projected to stabilize in early 2024 but may extend as demand for advanced packaging rises. Want to know which manufacturing innovations will impact lead times in the near future? Discover the technologies driving supply chain dynamics as the industry adapts to new packaging solutions.
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