Industry News
A prediction: the system-in-package (SiP) market will reach US$33.8 billion in 2028
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Author : JIUZHOU
Update time : 2023-09-27 10:03:26
In 2022, the total System-in-Package and SiP market revenue will reach US$21.2 billion.
According to a certain forecast, heterogeneous integration, chiplets, packaging area and cost optimization trends in market segments such as 5G, artificial intelligence (AI), high-performance computing (HPC), autonomous driving and the Internet of Things (IoT) Driven by , the market's total revenue is expected to reach US$33.8 billion in 2028, with a compound annual growth rate (CAGR) of 8.1%.
In terms of market segments, mobile and consumer dominate the SiP market, accounting for 89% of total revenue in 2022, and will continue to dominate the market in the future, with a compound annual growth rate of 6.5%.
Drivers driving this segment include the increasing popularity of 2.5D/3D technology in mobile phones, high-end PCs and gaming, HD FO in high-end mobile devices, and more FC/WB SiPs in mobile phones and wearable devices.
The telecommunications and infrastructure market is expected to grow by 20.2% over the next few years, driven by rising performance requirements in AI, HPC and networking.
The automotive market is growing at a compound annual growth rate of 15.3%, driven by trends in vehicle electrification and autonomous driving, as well as applications such as ADAS and LiDAR, which require greater numbers of sensors and cameras.
SiP Supply Chain Becomes Competitive, Focuses on Teamwork to Achieve Best
In terms of regions, the Asian market dominates, accounting for 77% of revenue. The North American market (thanks to contributions from Amkor and Intel) accounted for 23% of revenue, with Europe accounting for the remaining 2% of the market.
Driven by trends in chiplets, heterogeneous integration, cost optimization, and footprint reduction, SiP has attracted more players into the supply chain market.
There are more and more cooperation models between chip and memory manufacturers, fabless and foundry/memory manufacturers to introduce cutting-edge technologies such as HBM3, AI products, small chip technology and hybrid bonding.
SiP's footprint in China is growing as OSAT and IC substrate businesses become more compatible with the rest of the world. Their OSAT/EMS/OEM business model is gaining attention in the SiP market.
The goal of Chinese companies is to develop packaging technology to solve small chips and hybrid bonding to achieve scale requirements and be able to provide competitive products.
SiP is driven by chiplets and heterogeneous integration
SiP technology trends remain strong as the industry continues to demand more integration to enable smaller form factors and higher performance products. In mobile and consumer markets, where space is limited, there is a strong need for floor space optimization – this applies to smartphones, wearables and other devices.
For example, 5G penetration in high-end smartphones has driven SiP adoption in RF and connectivity modules, requiring the integration of more components and shortening their interconnections to achieve the required performance.
With the rise of AI and HPC, there is an increasing focus on chiplets and heterogeneous integrated solutions. This drives the adoption of more complex advanced SiP solutions, especially UHD FO and 2.5D/3D packaging, to achieve higher density, lower bandwidth and higher performance requirements.
The roadmap remains due to the need for smaller L/S, high-density FO rdl and 2.5D/3D technologies such as hybrid bonding technologies such as bridging, interlayer and 3D stacking to integrate more components in SiP packages Challenging.
According to a certain forecast, heterogeneous integration, chiplets, packaging area and cost optimization trends in market segments such as 5G, artificial intelligence (AI), high-performance computing (HPC), autonomous driving and the Internet of Things (IoT) Driven by , the market's total revenue is expected to reach US$33.8 billion in 2028, with a compound annual growth rate (CAGR) of 8.1%.
In terms of market segments, mobile and consumer dominate the SiP market, accounting for 89% of total revenue in 2022, and will continue to dominate the market in the future, with a compound annual growth rate of 6.5%.
Drivers driving this segment include the increasing popularity of 2.5D/3D technology in mobile phones, high-end PCs and gaming, HD FO in high-end mobile devices, and more FC/WB SiPs in mobile phones and wearable devices.
The telecommunications and infrastructure market is expected to grow by 20.2% over the next few years, driven by rising performance requirements in AI, HPC and networking.
The automotive market is growing at a compound annual growth rate of 15.3%, driven by trends in vehicle electrification and autonomous driving, as well as applications such as ADAS and LiDAR, which require greater numbers of sensors and cameras.
SiP Supply Chain Becomes Competitive, Focuses on Teamwork to Achieve Best
In terms of regions, the Asian market dominates, accounting for 77% of revenue. The North American market (thanks to contributions from Amkor and Intel) accounted for 23% of revenue, with Europe accounting for the remaining 2% of the market.
Driven by trends in chiplets, heterogeneous integration, cost optimization, and footprint reduction, SiP has attracted more players into the supply chain market.
There are more and more cooperation models between chip and memory manufacturers, fabless and foundry/memory manufacturers to introduce cutting-edge technologies such as HBM3, AI products, small chip technology and hybrid bonding.
SiP's footprint in China is growing as OSAT and IC substrate businesses become more compatible with the rest of the world. Their OSAT/EMS/OEM business model is gaining attention in the SiP market.
The goal of Chinese companies is to develop packaging technology to solve small chips and hybrid bonding to achieve scale requirements and be able to provide competitive products.
SiP is driven by chiplets and heterogeneous integration
SiP technology trends remain strong as the industry continues to demand more integration to enable smaller form factors and higher performance products. In mobile and consumer markets, where space is limited, there is a strong need for floor space optimization – this applies to smartphones, wearables and other devices.
For example, 5G penetration in high-end smartphones has driven SiP adoption in RF and connectivity modules, requiring the integration of more components and shortening their interconnections to achieve the required performance.
With the rise of AI and HPC, there is an increasing focus on chiplets and heterogeneous integrated solutions. This drives the adoption of more complex advanced SiP solutions, especially UHD FO and 2.5D/3D packaging, to achieve higher density, lower bandwidth and higher performance requirements.
The roadmap remains due to the need for smaller L/S, high-density FO rdl and 2.5D/3D technologies such as hybrid bonding technologies such as bridging, interlayer and 3D stacking to integrate more components in SiP packages Challenging.
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