This market research report was originally published at the Yole Group’s website. It is reprinted here with the permission of the Yole Group.
The advanced packaging market growth is primarily driven by high-performance computing (HPC) and generative AI megatrends.
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The advanced packaging revenue is projected to grow at a CAGR of 12.9%, increasing from US$39.2 billion in 2023 to US$81.1 billion by 2029.
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Overall, 2023 was a weaker year for the semiconductor industry, which also impacted the advanced packaging market.
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However, the market is expected to recover in 2024 as demand rises and the adoption of advanced packaging technologies continues to expand.
According to Yole Group, in the Advanced Packaging Market Monitor Q2 2024, advanced packaging revenue reached US$10.2 billion in Q1 2024. This quarter is anticipated to be the weakest of the year, with an 8.1% revenue decline from the previous quarter due to the seasonality that typically impacts the back-end business in the first half of the year. As demand shows gradual signs of recovery, Q2 2024 revenue is expected to rise by 4.6% to US$10.7 billion. Although demand remains soft and customers continue to digest inventories, 2024 is projected to be a year of recovery, with a stronger second half.
In terms of CapEx, Q1 2024 was slightly lower than the previous quarter. The leading players invested approximately US$9.9 billion in advanced packaging CapEx in 2023, marking a 21% decrease from the previous year, but a 20% increase is anticipated for 2024.
The Advanced Packaging Market Monitor highlights the revenue rankings of China’s top OSATs, which collectively generated US$12.7 billion in 2023. China’s top three OSATs accounted for 70% of the top ten’s revenue and are among the top 10 packaging companies globally… For more information about this analysis, please contact us!
