Originally Published on: technavio |Fan-out Wafer Level Packaging Market by Technology, Type, and Geography - Forecast and Analysis 2023-2027
Fan-Out Wafer Level Packaging Market Analysis
The fan-out wafer level packaging (FOWLP) market is poised for significant growth, with an estimated Compound Annual Growth Rate (CAGR) of 17.5% projected between 2022 and 2027. During this period, the market is expected to increase by a substantial USD 3,064.31 million. The growth of the FOWLP market is influenced by various factors, including the surging demand for compactly designed electronics, the increasing utilization of semiconductor integrated circuits (ICs) in the Internet of Things (IoT), and the rapid adoption of FinFET technology. Miniaturized electronic components are experiencing high demand due to advancements in semiconductor technology that allow for the integration of numerous functions on a smaller footprint. The integration of human-machine interface (HMI) technology, developments in wireless communication, and advancements in telecommunication standards are major driving forces behind this demand.
Market Segmentation:
This report offers an extensive analysis of market segmentation, including:
Technology:
High density
Standard density
Type:
200 mm
300 mm
Panel
Geography:
APAC
North America
Europe
South America
Middle East and Africa
The report also encompasses an in-depth analysis of drivers, trends, and challenges, while incorporating historical market data from 2017 to 2021.
Key Drivers of the Fan-Out Wafer Level Packaging Market:
Growing Use of Semiconductor ICs in IoT: The rapid proliferation of IoT devices is the key driver of the global FOWLP market. These IoT devices are in high demand due to advancements in wired and wireless communication technologies, telecommunication standards such as 3G/4G/5G, and government initiatives promoting energy-efficient systems and solutions. The expanding applications of IoT will result in increased demand for IoT chipsets integrated into IoT devices. These chipsets include Wi-Fi modules, RF modules, FOWLP units (MCUs), and sensor modules.
The semiconductor packaging industry faces strong demand for thin-profile semiconductor ICs and modules with a smaller footprint due to the widespread adoption of mobile and IoT devices. This surge in demand is driving the adoption of FOWLP technology to package IoT chipsets in a more compact manner. Therefore, the rising use of IoT devices will significantly boost the growth of the global market during the forecast period.
- Rising Panel-Level Packaging: The primary trend in the global FOWLP market is the increasing use of panel-level packaging. The demand for low-cost, high-performance products has driven innovations in the semiconductor industry. Fan-out panel-level packaging is one such innovative technology that has reduced overall packaging costs. It involves shifting the entire packaging process to a large-size panel format, enabling the simultaneous packaging of more components on the substrate and lowering the overall packaging costs. This technology is preferred by various stakeholders, including OSAT companies, IDMs, substrate manufacturers, and fabless companies, as it leads to substantial cost savings. It also facilitates high-volume manufacturing, which is in line with the current market demand for increased electronics production across various industries.
Furthermore, the trend of integrating a substantial number of functionalities onto a single IC has created a need for packaging technology that can offer a high number of I/O pins and low manufacturing and packaging costs. Many market vendors are developing fan-out panel-level packaging technology in response to this market demand, which is expected to drive the FOWLP market's growth during the forecast period.
Major Challenge in the Fan-Out Wafer Level Packaging Market:
Increased Production Costs Due to Warpage: Warpage poses a significant challenge to the growth of the global FOWLP market. The absence of a specific solution to the problem of warping results in higher production costs for market players, hindering the market's growth. Warpage occurs when the surface of a molded part deviates from the intended design shape, leading to deformation of the wafer surface, rendering it unusable. One of the primary factors contributing to warpage is the differential shrinkage of the material used in the molded part. Instead of achieving a uniform, compact shape, the part becomes deformed and warped.
Warping issues can occur multiple times during the FOWLP process, potentially leading to the wastage of wafers and significantly increasing manufacturing costs. Therefore, warpage during the FOWLP process results in a higher number of unusable wafers and an overall increase in the cost of manufacturing and packaging ICs. These factors present a challenge to the growth of the global FOWLP market during the forecast period.
Key Fan-Out Wafer Level Packaging Market Customer Landscape:
The market research report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Additionally, the report includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Who are the Major Fan-Out Wafer Level Packaging Market Vendors?
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market. One of the key market vendors is thinkdeca.com, offering FOWLP for semiconductor industries, including the M series semiconductor and adaptive patterning.
The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Amkor Technology Inc.
ASE Technology Holding Co. Ltd.
Jiangsu Changdian Technology Co. Ltd.
nepes Corp.
Nordson Corp.
NXP Semiconductors NV
Onto Innovation Inc.
Panasonic Holdings Corp.
Powertech Technology Inc.
Renesas Electronics Corp.
Singapore Semiconductor Industry Association
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