Fan-Out Wafer Level Packaging Market by Type (High Density Fan-out Package, Core Fan-out Package)
Industry: Semiconductor Electronics
Published Date: February-2023
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 250
Report ID: PMRREP33340
The Global Fan-Out Wafer Level Packaging Market size reached US$ 1.6 billion in 2022. By 2023, total market is estimated to be valued at US$ 2.0 billion. Accordingly, overall fan-out wafer level packaging sales are likely to increase at an impressive CAGR of 16.9% between 2023 and 2033, reaching a valuation of US$ 9.4 billion by 2033.
Core Fan-Out Package is expected to remain the most sought-after type globally. A stupendous CAGR of 16.8% has been predicted by Persistence Market Research (PMR) for the core fan-out packaging segment, making it the top revenue-generation category. High-density fan-out packages will also generate lucrative revenues through 2033.
Growing applications of fan-out wafer level packaging in CMOS image sensors, analog & hybrid integrated circuits, MEMS systems, and logic & memory integrated circuits is a prominent factor expected to drive the global market forward.
Subsequently, large-scale adoption of FOWLP in consumer electronics sector to design compact and ultra-thin devices such as smartwatches, smartphones, and laptops will boost market expansion.
An integrated circuit packaging technology employed for achieving a miniaturized package footprint with greater input/output as well as enhanced electrical and thermal performance is referred to as fan-out wafer level packaging (FOWLP) or wafer-level fan-out packaging.
It is an improvised version of standard wafer-level packages (WLPs) or standard wafer-level packages (WLP) solutions designed to provide solutions for numerous semiconductor devices that require a higher number of external contacts and a greater integration level.
With rapid shift towards system-in-package (SIP) and heterogeneous integration, prominence of fan-out-wafer level packaging is set to rise dramatically during the next ten years as per PMR’s new report.
Emerging trends such as miniaturization in electronic devices and high demand for compact and more efficient devices are promoting manufacturers to utilize advanced packaging platforms such as fan-out wafer level packaging.
Fan-out wafer level packaging allows companies to meet demand for smaller form factors and improved thermal performance. This true chip scale packaging (CSP) enables the formation of compact packages with several external inputs/outputs.
It helps companies to place a large count of contacts in small footprints, enhance thermal characteristics, and improve electrical performance of their systems.
Fan-out wafer level packaging has the tendency to combine dies and components such as MEMS, crystals, filters, and passives in a relatively small size package.
Growing awareness about the advantages of FOWLP including substrate-less package, higher high input/output count, improved RF performance, and lower parasitic effects will propel fan-out wafer level packaging demand during the next ten years.
Rising penetration of miniaturization and digitalization across several industries is expected to fuel fan-out- wafer level packaging sales during the assessment period. Similarly, growing application of fan-out wafer level packaging in artificial intelligence, IoT-related smart city projects, and biotechnology will bode well for the market.
Further, changing preference towards compact and highly efficient electronic components and products coupled with high usage of this technology in 5G communication will create lucrative growth opportunities for fan-out wafer level packaging manufacturers/providers.
Regionally, with a projected valuation of US$ 4.53 billion in 2033, Asia Pacific will continue to remain at the top of the ladder in fan-out wafer level packaging industry. In 2023, Asia Pacific fan-out wafer level packaging market size is estimated to reach US$ 950.1 million.
Growing popularity of miniaturization and increasing adoption of advanced solutions for various applications such as Advanced Interconnect Packaging including DRAM, Front End, and CIS are driving Asia Pacific market.
Additionally, high presence of the world’s prominent semiconductor manufacturers in nations such as China, South Korea, and Taiwan will present lucrative growth prospects for the market.
North America fan-out wafer level packaging market is also expected to register substantial growth during the next ten years. This is attributed to rising application of FOWLP in compact devices such as smartphones due to requirement for energy-efficient, high-performing, and small-form factor packages.
| Attributes | Key Insights |
|---|---|
| Global Fan-Out Wafer Level Packaging Market Estimated Value (2023) | US$ 2.0 billion |
| Projected Market Value (2033) | US$ 9.4 billion |
| Value-based CAGR (2023 to 2033) | 16.9% |
| USA Market CAGR (2023 to 2033) | 16.2% |
According to Persistence Market Research, historically, from 2018 to 2022, global sales of fan-out wafer level packaging (FOWLP) increased at around 20.9% CAGR and totaled a market valuation of US$ 1.6 billion at the end of 2022.
Over the next ten years, the global market for Fan-Out Wafer Level Packaging is anticipated to expand at 16.9% CAGR, creating an absolute $ opportunity of US$ 7.4 billion.
As integrated circuits technology is developing, need to pack a significant amount of electronic components in a small space and package to lower the cost of packaging is surging. This IC packaging technology that helps packaging several components on the same substrate is called fan-out wafer level technology.
The technology is useful in consumer electronics in designing ultra-thin portable products such as smartphones, smart gadgets, and smart-watches as these are small packages with multiple applications and less energy-consuming entities.
In Internet of Things (IoT), a small electronics module containing large electronic components can perform multiple tasks by consuming less power as fan-out wafer level packaging technology is being used in most IoT devices.
As of May 2022, total number of connected IoT devices reached around 14.4 billion worldwide. By 2027, total number of inter-connected IoT devices in the whole world is expected to be 27 billion. This implies that massive growth opportunities will be available for fan-out wafer level packaging solutions.
High density fan-out wafer level packaging is used in applications such as antenna in package for 5G mm-wave modules and smartphone application processors. Also, fan-out wafer level packaging technology is used in automotive radar applications.
What is the Demand Outlook for the United States Fan-Out Wafer Level Packaging Market?
According to Persistence Market research, the United States fan-out wafer level packaging market is set to progress at a stupendous CAGR of 16.2% between 2023 and 2033. Total fan-out wafer level packaging demand in the country is likely to create an absolute $ opportunity of US$ 1.2 billion.
By 2033, the USA fan-out wafer level packaging industry is anticipated to reach a valuation of US$ 1.5 billion. Historically between the years of 2023 and 2033, fan-out wafer level packaging sales across the United States increased at a CAGR of 17.4%.
Rising applications of fan-out wafer level packaging in CMOS image sensors, MEMS, and hybrid integrated circuits is a prominent factor driving the USA market forward.
Similarly, high penetration of digitalization and miniaturization is propelling fan-out wafer level packaging demand across the United States and the trend is expected to continue during the assessment period.
Leading fan-out wafer level packaging providers based in the United States are utilizing a wide variety of strategies to strengthen their presence in the global market.
For instance, in May 2022, SkyWater Technology, the United States-based semiconductor and fabrication company announced an agreement with Xperi Holding Corporation, a leading USA-based Semiconductor Company.
Under this agreement, SkyWater and its customers will have access to the hybrid bonding technology for electronic devices having applications in commercial and government systems. This technology will be an added advantage for Sky Water’s portfolio of fan-out wafer level packaging devices technology.
How is the United Kingdom Fan-Out Wafer Level Packaging Market Shaping?
The United Kingdom fan-out wafer level packaging market size is forecast to reach US$ 248.9 million in 2033, creating an absolute $ opportunity of US$ 188.5 million during the assessment period. Between 2018 and 2022, the United Kingdom market expanded at a CAGR of 15.9%.
Overall demand for fan-out wafer level packaging across the United Kingdom is slated to increase at a prolific CAGR of 15.2% throughout the projection period (2023 to 2033).
Growing preference of industries towards using compact and efficient technologies and components is a key factor augmenting fan-out wafer level package sales across the United Kingdom.
Further, presence of several leading electronic packaging manufacturers in the country is positively influencing the market expansion. For instance, SPTS Technology Limited is an England-based company that offers advanced packaging schemes such as high-density fan-out wafer level packaging, and ‘3D-IC’ packages to the semiconductor companies in the region.
With companies developing products to be used in AI and automotive sectors using the FOWLP technology, the United Kingdom market is set to witness significant growth during the next ten years.
Will China Continue to Retain its Dominant Position in the Global Fan-Out Wafer Level Packaging Industry?
The fan-out wafer level packaging market in China is expected to develop at 18.5% CAGR between 2023 and 2033, reaching a valuation of US$ 2.4 billion by 2033.
Historically, the market for fan-out wafer level packaging in China increased at a CAGR of 23.2% from 2018 to 2022. However, as per PMR’s latest analysis, total sales of fan-out wafer level packaging in China are forecast to create an absolute $ opportunity of US$ 1.9 billion between 2023 and 2033.
Growth in China market is driven by rapid expansion of industries such as semiconductor, automotive, and consumer electronics.
FOWLP is being increasingly used for semiconductor IC packaging utilized in automotive applications such as infotainment systems, advanced driver assistance systems, navigation control, power doors, braking systems, etc.
Similarly, increasing export of electronic devices and heavy presence of leading fan-out wafer level packaging companies will aid in the expansion of the market over the next ten years.
China is home to numerous semiconductor and electronic device manufacturers that are constantly innovating to develop compact and more efficient components and electronic products. For instance, China-based JCET, a leading electronics manufacturer produces fan-out wafer level packaging technological products that are used in 5G mobile processes and wearable devices as they are small and portable.
Which is the Most Lucrative Application of Fan-Out Wafer Level Packaging?
Based on application, the global fan-out wafer level packaging industry is segmented into CMOS image sensor, wireless connection, logic and memory integrated circuits, MEMS and sensors, analog and hybrid integrated circuits, and others.
Among these, application of fan-out wafer level packaging in analog and hybrid integrated circuits is projected to increase at a higher CAGR of 16.7% over the forecast period. The target segment expanded at a CAGR of 19.9% during the historical period from 2018 to 2022.
Fan-out wafer level packaging (FOWLP) has become an attractive solution used in analog and hybrid circuits. For instance, in the integration of “3D-IC” fan-out wafer level packaging technology is being used.
Key players in fan-out wafer level packaging industry are TSMC, ASE Technology Holding Co., JCET Group, Amkor Technology, Nepes, Infineon Technologies, NXP Semiconductors NV, Samsung Electro-Mechanics, Powertech Technology Inc, Taiwan Semiconductor Manufacturing Company, and Renesas Electronics Corporation.
Leading fan-out wafer level packaging manufacturers are indulging in product innovation, acquisitions, mergers, partnerships, collaborations, acquisitions, and alliances to increase their revenue share and expand their global footprint.
Recent Developments:
| Attribute | Details |
|---|---|
| Estimated Market Size (2023) | US$ 2.0 billion |
| Projected Market Size (2033) | US$ 9.4 billion |
| Anticipated Growth Rate (2023 to 2033) | 16.9% CAGR |
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
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The global fan-out wafer level packaging market size is estimated to reach US$ 2.0 billion in 2023.
Global fan-out wafer level packaging demand is expected to rise at 16.9% CAGR between 2023 and 2033.
The overall market for fan-out wafer level packaging is projected to reach US$ 9.4 billion in 2033.
The worldwide fan-out wafer level packaging industry witnessed a CAGR of 20.9% from 2018 to 2022.
The core fan-out package segment is projected to witness a significant growth rate of 16.8% CAGR during the assessment period.
Analog and hybrid integrated circuits will remain the top application with overall segment expected to register a growth rate of 16.7% during the assessment period.
The United States market is projected to witness a CAGR of 16.2% during the forecast period, reaching a valuation of US$ 1.5 billion by 2033.
TSMC, ASE Technology Holding Co., JCET Group, Amkor Technology, Nepes, Infineon Technologies, NXP Semiconductors NV, Samsung Electro-Mechanics, Powertech Technology Inc, Taiwan Semiconductor Manufacturing Company, and Renesas Electronics Corporation are the key fan-out wafer level packaging companies.
With a projected valuation of US$ 4.53 billion in 2033, Asia Pacific is projected to dominate the worldwide fan-out wafer level packaging industry during the assessment period.
