PUBLISHER: Orion Market Research | PRODUCT CODE: 1749613
PUBLISHER: Orion Market Research | PRODUCT CODE: 1749613
3D Semiconductor Packaging Market Size, Share & Trends Analysis Report by Technology (Organic Substrate, Bonding Wire, Lead frame, Encapsulation Resin and Ceramic Package), by Material (Organic Substrate, Bonding Wire, Lead frame, Encapsulation Resin and Ceramic Package), and by Industry Vertical (Electronics, Industrial, Automotive & Transport, Healthcare, IT & Telecommunication and Aerospace & Defense), Forecast Period (2025-2035)
3D semiconductor packaging market is anticipated to grow at a considerable CAGR of 15.8% during the forecast period (2025-2035). The growth is driven by an increased demand for 3D semiconductor packaging in microelectronic devices. The ongoing advancements, development, and transformation are seen in the defense sector owing to the growing modernized military efforts that make semiconductor applications in an expanding phase. The US Congressional Budget Office states that by 2033, defense spending in the US will be increased to $1.7 trillion from $820 billion in 2023. Also, as consumers prefer smaller electronic devices, there is a surge in demand for miniaturization. This 3D semiconductor packaging technology integrates various necessary chips into a single package with a better edge over traditional 2D packaging.
In 2025, global 3D semiconductor packaging will succeed, which is driven by high-performance computing and AI demands. The demand for high-performance computing, such as cloud computing and gaming, is increasing. The key opportunities lie in advanced techniques such as investing in R&D and collaborating between companies, that is, hybrid bonding, enabling denser and faster chip connections. For this AI approach, market players are turning it into a stacking part, like a multi-story building, instead of laying them out flat, to pack in the smaller space, and these chips can handle the complex processing required for big data centers and specialized AI computers.
The global 3D semiconductor packaging market is segmented by technology, material, and industry verticals. Based on the technology, the market is sub-segmented into 3D through silicon via, 3D packages on the package, 3D fan out-based, and 3D wire bonded. Further, based on the material, the market is sub-segmented into organic substrate, bonding wire, lead frame, encapsulation resin, and ceramic package. Further, based on industry verticals, the market is sub-segmented into electronics, industrial, automotive & transport, healthcare, IT & telecommunication, and aerospace & defense.
Among the industry verticals, the electronics sector segment is leading the market, driven by the growing trend towards semiconductors such as transistors and MOSFETs. This 3D integration is highly significant as it allows for much more complex and powerful electronics while optimizing space utilization, which is similar to assembling high-performance computer chips into a smartphone. This electronic segment is taking electronic devices to the next level of performance and efficiency. For instance, in the automotive & transport sector, the rise of EVs and ADAS technology requires specific electronics, where semiconductor packaging is used for better performance and reducing the gaps for optimization. This increase in innovation in the EV market is driving the growth in the semiconductor packaging market since these vehicles are purchased to save huge costs on fuel, which is driving demand for electric vehicles at a growing rate. As the industry evolves, manufacturers tend to find affordable options for their transport vehicles where 3D semiconductor packaging supports achieving heat management and less resistance, which improves overall performance.
The 3D Through Silicon via Sub-Segment is Anticipated to Hold a Considerable Share of the Global 3D Semiconductor Packaging Market.
Among the technologies, the 3D through silicon via sub-segment is expected to hold the share of the global 3D semiconductor packaging market. This is achieved using the Through Silicon Vias (TSV) structures that are growing increasingly important in building advanced 3D packages for semiconductors. Silicon Via is a technology used to connect chips in 3D Integrated Circuits and to build 2.5D and 3D packages containing several semiconductors dies.
The global 3D semiconductor packaging market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, Russia, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, ASEAN economies, Australia and New Zealand and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America. Among these, Asia-Pacific is anticipated to hold a prominent share of the market across the globe. The increased demand for compact electronic circuitry with the decreasing size of electronic devices for ease of access for users is a key contributor to the high share of the regional market.
Amongst all these regions, North America will be anticipating stable growth over the forecast period, particularly focusing on increasing investments in research and development and rising demand for electronic chips in the desired sectors such as EVs and AI within the region. Their regional growth is committed to the production of semiconductor components such as smartphones and a vigorous R&D pipeline for the semiconductor industry, driving the growth of the regional market. Major players in the region include Intel Corp., Broadcom Inc., Amkor Technology, etc.
It is important to invest in R&D for these semiconductors as chips to identify the thriving trends in the following region. The US keeps on ranking the criticality of investing in domestic semiconductor leadership. According to the World Semiconductor Trade Statistics (WSTS) Fall 2024 Semiconductor Industry Forecast, global semiconductor sales are projected to reach $697.2 billion in 2025, an 11.2% increase from the $626.9 billion anticipated in 2024.
The major companies serving the 3D semiconductor packaging market include Advanced Micro Devices, Inc., Amkor Technology, Intel Corp., Samsung Electronics Co., Ltd., United Microelectronics Corp., and others. Indeed, it is evident that HCL technologies are packaging these 3D chips in an advanced manner fitted to smartphones, tablets, wearables, TVs, and related consumer electronics for best performance and consistency. On a global basis, the semiconductor sector is expanding, and these market players are contributing to the market growth by implementing new strategies such as collaborations for R&D, mergers and acquisitions, new product launches, and others, to stay competitive in the market.
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