NEXT GENERATION PACKAGING MARKET ANALYSIS

Market Challenges And Opportunities

Global Next Generation Packaging Market- Growth Drivers

Increasing Device Miniaturization Demand Will Drive up Demand for Advanced Packaging

As technology develops, manufacturers are concentrating on providing small electronic devices in numerous industry verticals, including consumer electronics, healthcare, automotive, and semiconductor IC production. In order to accomplish precise patterning on wafers and chips, these businesses are reducing integrated circuits. Additionally, the market for medical devices is witnessing a spike in demand for Nano-sized robotic surgery equipment due to the sophistication and improvements in wearable and personalized healthcare gadgets. Small electrical devices are becoming more popular, thus designers must use smart packaging instead of more conventional techniques. The semiconductor industry is seeing development in miniaturized electrical devices because of the rising need for high-performance electronics.

Improved System Performances and Advanced Packaging Optimization to Accelerate the Advanced Packaging Market Growth

The semiconductor packaging industry is helping to build next-generation chip designs by supplying enhanced IC containers. For new devices, the integrated circuit industry has traditionally used classic chip scaling and unique architectures. Furthermore, multi-chip packages are found in every phone, data center, consumer electronics, and network, fuelling the advancement of advanced packaging by promoting system optimization. Because it allows a range of different processing modules and memories to be coupled together utilizing very high-speed interconnects, advanced packaging encourages the use of AI, machine learning, and deep learning. As a result, several industry verticals, including automotive, healthcare, aerospace, and defense, and the industrial sector, are increasingly using innovative packaging. For instance, in 2022, the U.S. Is taking the first steps toward bringing larger-scale IC packaging production capabilities back to the U.S. as supply chain concerns and trade tensions grow. The U.S. is among the leaders in developing packages, especially new and advanced forms of the technology that promise to shake up the semiconductor landscape. And while the U.S. has several packaging vendors, North American’s share of global packaging production stands at only 3%, according to a new report from the IPC trade group and Tech Search International.

Global Next Generation Packaging Market- Restraints

High Cost to Limit Market Growth for Advanced Packaging

Advanced semiconductor packing methods are more costly than conventional semiconductor packaging methods. At some stages, it becomes too costly to develop and manufacture semiconductors for each subsequent node. Furthermore, wafer production costs are significantly higher as a result of the complexity of the ICs. As more chips and integrated circuits are packed with intricate designs, the cost of sophisticated packaging increases, limiting its adoption. The semiconductor industry finds advanced packaging to be especially practical because of its many benefits, which include simpler and bigger interconnections for chips and wafers as well as the capacity to integrate heterogeneously. However, because these qualities are so easily accessible, advanced packaging is more expensive than ordinary packaging, which makes it challenging for small enterprises to adopt.