Summary

- The global fan-out packaging market (henceforth, referred to as the market studied) was valued at USD 1126.91 million in 2020, and it is expected to reach USD 3,559.28 million by 2026, with an estimated CAGR of 18.1%, during 2021-2026 (henceforth, referred to as the forecast period). Approximately more than 20% thinner than traditional Flip Chip assembly, fan out packaging is supplementing the trend of slim profile of smart phones.
- With the outbreak of COVID 19, the semiconductor packaging market witnessed a decline in growth due to restrictions on the movement of goods and severe disruptions in the semiconductor supply chain. In the Q1 of 2020, COVID-19 caused low inventory levels for clients of semiconductor vendors and distribution channels. In the Q1 of 2020, the semiconductor industry witnessed a slowdown in smartphone demand and production disruption.
- Fan-out wafer level packaging (FOWLP) finds its increased application in footprint-sensitive devices such as smartphones due to requirement of high-performing, energy-efficient thin- and small-form-factor packages.
- Furthermore, with disadvantages of PoP in terms of thickness and not being able to reduce beyond 0.8mm, the market has gradually shifted onto fan-out for the application processor based on 10nm process.
- The semiconductors enable a wide variety of products for smartphones and computers and the demand for these devices is increasing year on year. A positive outlook for IoT and artificial intelligence are also increasing the growth of the semiconductor industry which in turn would require intensive use of fan-out technologies.

Key Market Trends

Panel Level Packaging to Hold a Significant Share during the Forecast Period

- Several packaging houses are implementing panel-level fan-out, a low-density technology that promises to lower the cost of fan-out. FOPLP is expected to be essential for future applications on 5G, AI, Biotech, Advanced Driver- Assistance System (ADAS), smart city, and IoT related products. Ability to develop advanced packing and testing services and secure customer relations serve as major factors.
- Smaller form factor with enhanced thermal performance has generated huge demand for panel level packaging technology among several industrial applications such as consumer electronics, automotive, aerospace & defense, telecommunication, and others.
- Market trends of reduced cost of circuit packaging, enhanced design flexibility and physical performance, and increased investment on research & development activities are the factors for manufacturers to continue on this technology.
- STATS ChipPAC Ltd, a semiconductor test and advanced packaging service provider, announced its expansion of embedded Wafer-Level Ball Grid Array (eWLB) technology to reconstituted 300mm wafers in 2020. STATS ChipPAC's customers benefited from the cost and productivity advantages of eWLB technology on the larger 300mm reconstituted wafer format, which provides higher efficiency and economies of scale as compared to the existing 200mm eWLB wafer format as they added capacity through 300mm wafer manufacturing.

Taiwan to Hold a Significant Share in the Market

- Taiwan houses some of the major semiconductor manufacturing companies which are fueling the demand for advanced semiconductor packaging especially in PLPs. According to the Semiconductor Industry Association (SIA), Asia-Pacific generates more than 50% revenue for global semiconductor sales, this in turn, is providing Taiwanese vendors with an opportunity to supply FOWLP for increased semiconductor applications.
- Most of the companies in the country are expanding their production capacity of Fan-out packaging which is further expected to increase the exports and will also help in developing local market.
- For instance, ASE Group brought up a FO-WLP line, in Kaohsiung, Taiwan, with other major OSATs in production or planning their launch phases for fan-out packaging. Also, Fab 3 in Hsinchu Science Park is expected be the world’s first fab that would commercially use fan-out panel-level packaging (FOPLP) technology as it starts operations in the second half of 2020, according to Powertech Technology Inc.
- Also, the growing market for fifth generation (5G) wireless communication and high performance computing has enabled the manufacturers to come up with newer technologies. For instance, in High-Density Fan-out segment, TSMC as a sole leader, is planning to extend its FO-WLP segment into technologies like inFO-Antenna-in-Package (AiP) and inFO-on-Substrate (oS).

Competitive Landscape

The competitive landscape involves huge investment in Research and Development by major companies, like Samsung and TSMC. Parallelly, many IDMs are pushing for Fan-Out development and embedding of their dies through R&D and small series in collaboration with OSATs.

- March 2021 - EMICON China 2021 opened at the Shanghai New International Expo Center. As the global IC manufacturing and technology service provider, JCET presented a variety of advanced packaging technologies and products, showcasing its innovations in the field of IC manufacturing services and solutions and its capabilities in enabling applications. The company showcased fcCSP and FOWLP technologies for driverless technology, QFN/FC and QFN/DFN technologies for new energy vehicles, and QFN/DFN and fcBGA technologies for in-car entertainment, and SiP and FOWLP technologies for baseband chips, SiP and fcCSP technologies for RF chips, and fcBGA and HD FOWLP technologies for communication infrastructure along with other technologies.
- May 2020 - Taiwan Semiconductor Manufacturing (TSMC) announced plans to build a USD 12 billion factory in Arizona with support from the state and the US government. TSMC said the plant would be able to produce 20,000 semiconductor wafers a month, directly employing more than 1,600 people.

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Table of Contents

1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Force Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Threat of New Entrants
4.2.4 Intensity of Competitive Rivalry
4.2.5 Threat of Substitute Products
4.3 Impact of COVID-19 on the Market

5 MARKET DYNAMICS
5.1 Market Drivers
5.1.1 The Proliferation of 5G Wireless Networking Along with High-performance Computing
5.2 Market Restraints
5.2.1 Manufacturing And Cost Challenges Associated with Production
5.3 Market Opportunities for FOPLP

6 MARKET SEGMENTATION
6.1 By Market Type (USD Million)
6.1.1 Core Fan-Out
6.1.2 High-Density Fan-Out
6.1.3 Ultra High-density Fan Out
6.2 By Carrier Type (USD Million)
6.2.1 200 mm
6.2.2 300 mm
6.2.3 Panel
6.3 By Business Model (USD Million)
6.3.1 OSAT
6.3.2 Foundary
6.3.3 IDM
6.4 Geography
6.4.1 Taiwan
6.4.2 China
6.4.3 United States
6.4.4 South Korea
6.4.5 Japan
6.4.6 Europe

7 FAN-OUT PACKAGING VENDOR RANKING ANALYSIS

8 COMPETITIVE LANDSCAPE
8.1 Company Profiles
8.1.1 Taiwan Semiconductor Manufacturing Company Limited
8.1.2 Jiangsu Changjiang Electronics Tech Co.
8.1.3 Amkor Technology Inc.
8.1.4 Advanced Semiconductor Engineering Inc
8.1.5 Samsung Electro-Mechanics
8.1.6 Powertech Technology Inc.
8.1.7 Nepes Corporation

9 INVESTMENT ANALYSIS

10 FUTURE OUTLOOK