Global 3D ICs Market Is Estimated To Witness High Growth Owing To Rising Demand For Miniaturization And Higher Memory In Mobile Devices
The global 3D ICs Market is estimated to be valued at US$ 16.45 Bn in 2024, exhibiting a CAGR of 20.4% over the forecast period (2024-2031). The demand for 3D integrated circuits is growing owing to the need for miniaturization of electronic components and higher memory and storage capacities in applications such as smartphones, tablets, and other mobile devices. Furthermore, 3D ICs allow for the heterogeneous integration of different technologies such as memory, logic, and MEMS (micro-electromechanical system) on a single chip enabling more functionality and performance.
Market Dynamics:
3D ICs enable the stacking of silicon layers vertically rather than extending them horizontally, thereby significantly reducing the chip footprint. Moreover, 3D integration allows integrating different semiconductor elements together such as memory, processors, sensors, etc., providing higher functionality. This is anticipated to boost the computational capabilities of chips. The ability of 3D ICs to stack numerous layers of silicon with through-silicon vias (TSVs) connecting them offers substantially higher memory and storage density to support data-intensive and multimedia applications. The rising demand for connected cars is another factor expected to fuel the growth of 3D
Growing Demand for Smaller and Power-Efficient Electronics is Driving the 3D ICs Market
The ever-growing demand for smaller and power-efficient consumer electronics such as smartphones, tablets and wearable devices is one of the key drivers for the global 3D ICs market. Conventional 2D ICs have limitations in terms of miniaturization due to the limitations of silicon wafer thickness. 3D ICs help overcome these limitations by stacking silicon dies vertically instead of spreading them out horizontally. This vertical stacking allows for significantly higher transistor densities and more compact chip packages. As consumer demand for slimmer and more powerful devices continue to grow, 3D ICs provide an effective solution for manufacturers to pack more components into smaller footprints while improving performance and power efficiency.
Increasing Adoption of IoT and Autonomous Vehicles is Fueling Market Growth
The surging adoption of IoT (Internet of Things) devices and autonomous vehicles is another major driver for the 3D ICs market. IoT (Internet of Things) requires advanced, low-power sensing and connectivity capabilities which can be effectively delivered through 3D ICs technology. Autonomous vehicles also demand powerful on-board computing and sensing systems for navigation, collision avoidance, and self-driving capabilities. 3D ICs allow for integrating diverse arrays of sensors, processors, memory, and other components required for advanced driver-assistance systems (ADAS) and autonomous driving functions in a small package. Both IoT and autonomous driving are projected to become massive industries in the coming years, driving significant demand for advanced 3D ICs solutions.
High Manufacturing Costs Pose a Significant Challenge
One of the major restraints for the widespread adoption of 3D ICs is their significantly higher manufacturing costs compared to conventional 2D ICs. The process of vertically stacking and interconnecting multiple silicon dies is highly complex and expensive. It requires specialized molecular bonding and through-silicon via (TSV) techniques which have high capital investment and manufacturing overhead costs. This makes 3D ICs presently unviable for most commercial and consumer applications where cost is a major decision factor. Unless manufacturing costs and complexity are significantly lowered through technology and infrastructure advancements, high costs will remain a major adoption barrier for 3D ICs.
Reliability and Yield Issues Remain Key Roadblocks
Reliability and yield issues associated with 3D ICs manufacturing processes are another major market restraint. Problems occurring during die stacking or through-silicon via (TSV) formation can significantly impact the overall functionality and lifetime of 3D ICs. Even minor defects during complex 3D integration processes can damage components. Additionally, achieving high yields across multi-die stacks poses major technical challenges. Such reliability and yield issues increase costs of 3D ICs while limiting their viable applications. Continuous research addressing reliability, test and quality control will be critical for overcoming this restraint and promoting wider 3D ICs adoption.
Expanding Computing Applications Present Lucrative Opportunities
The growing scope of applications for advanced computing like artificial intelligence, machine learning, data analytics and edge/cloud computing present significant market opportunities for 3D ICs solutions. These applications demand highly powerful heterogeneous compute platforms integrating diverse processor, memory and accelerator technologies. 3D ICs technology allows producing compact, high-performance computing modules ideal for such workloads. There is vast opportunity for 3D ICs innovations catering to the specific computational requirements in these fields to gain competitive advantages.
Increasing Use of 3D Camera Modules for AR/VR Systems
Rapid proliferation of augmented and virtual reality applications facilitated by advanced 3D camera modules is another major opportunity area. 3D cameras with sophisticated image sensing and processing capabilities require compact integration of various components like Contact Image Sensor, image processors and memory in tight modules. 3D ICs are well-suited to develop such 3D camera modules with stacked sensor-logic dies for emerging Augmented Reality (AR) and Virtual Reality (VR) applications across industries. Significant market potential exists in leveraging 3D ICs technologies for assembling advanced 3D camera modules powering the next wave of immersive media platforms.
Link - https://www.coherentmarketinsights.com/market-insight/3d-ics-market-3941
Key Developments:
- In September 2023, TSMC's 2023 Open Innovation Platform (OIP) Ecosystem Forum announced the new 3Dblox 2.0 open standard and showcased the significant achievements of its 3DFabric Alliance open innovation platform
- In November 2023, Samsung Electronics is poised to release its innovative 3D chip packaging technology, SAINT, in a bid to compete with Taiwan Semiconductor Manufacturing Company's (TSMC) market leadership
- In March 2022, Amkor Technology, a South Korea-based company, joined the TSMC Open Innovation Platform (OIP) 3D Fabric alliance, securing early access to TSMC's 3D Fabric technology. This partnership enables alliance partners to develop products concurrently with TSMC, ensuring a stable supply of high-quality 2.5D and 3D integrated circuits (ICs).
- In October 2021, Cadence Design Systems, Inc. unveiled its Integrity 3D-IC platform, the first comprehensive 3D ICs solution available in the market. This platform seamlessly integrates system analysis, design planning, and high-capacity 3D implementation into a single, unified interface.
- In May 2021, Intel revealed plans to invest US$ 3.50 billion in upgrading its Rio Rancho facility, one of its three primary U.S. manufacturing hubs, which will support over 35% of its local workforce. The company is expanding its New Mexico facilities to produce next-generation chips utilizing its Foveros 3D packaging technology, aiming to strengthen its position as a market leader in the semiconductor industry.
Key Players:
Amkor Technology, ASE Group, BeSang Inc., IBM Corporation, Intel Corporation, Jiangsu Changjiang Electronics Technology Co., Ltd., Micron Technology Inc., MonolithIC 3D ICs Inc., Samsung Electronics Co. Ltd., STATS ChipPAC Ltd., STMicroelectronics N.V., Taiwan Semiconductor Manufacturing Company Limited, Tezzaron Semiconductor, Toshiba Corporation, United Microelectronics Corporation, Xilinx Inc.
