PUBLISHER: The Business Research Company | PRODUCT CODE: 1921320
PUBLISHER: The Business Research Company | PRODUCT CODE: 1921320
Advanced chip packaging refers to advanced processes and technologies used to encase and connect semiconductor devices (chips) to their external environments, commonly found within electronic devices. This method offers design flexibility, allowing for the creation of tailored solutions for specific applications and performance requirements.
The main types of advanced chip packaging include ball grid array (BGA), quad flat package (QFP), chip scale package (CSP), and wafer-level chip scale package (WLCSP). A ball grid array is an integrated circuit packaging type that employs an array of solder balls on the bottom of the package to provide electrical connections to the printed circuit board. This design facilitates higher pin counts, enhanced thermal performance, and more compact designs compared to traditional pin-based packages. Technologies such as five-dimensional (5D) packaging, three-dimensional (3D) packaging, fan-out wafer-level packaging, flip-chip packaging, and system-in-package solutions are utilized in various industries, including electronics, automotive, telecommunications, industrial, healthcare, aerospace, and defense.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
Tariffs on semiconductor materials, packaging substrates, and fabrication equipment have increased production costs for advanced chip packaging, particularly impacting manufacturers reliant on imports from China, Taiwan, and South Korea. These tariffs have slowed supply chains for BGA, CSP, WLCSP, and fan out technologies while raising prices for electronics, automotive, and telecom sectors. However, tariffs are also stimulating regional manufacturing, encouraging local sourcing strategies, and accelerating innovations in cost efficient packaging to reduce long term dependency on foreign suppliers.
The advanced chip packaging market research report is one of a series of new reports from The Business Research Company that provides advanced chip packaging market statistics, including the advanced chip packaging industry global market size, regional shares, competitors with the advanced chip packaging market share, detailed advanced chip packaging market segments, market trends, and opportunities, and any further data you may need to thrive in the advanced chip packaging industry. These advanced chip packaging market research reports deliver a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The advanced chip packaging market size has grown rapidly in recent years. It will grow from $14.45 billion in 2025 to $16.97 billion in 2026 at a compound annual growth rate (CAGR) of 17.4%. The growth in the historic period can be attributed to rise in semiconductor miniaturization, growth in mobile and consumer electronics production, increasing adoption of flip chip packaging, expansion of global semiconductor fabrication capacity, rising demand for high performance computing components.
The advanced chip packaging market size is expected to see rapid growth in the next few years. It will grow to $32.46 billion in 2030 at a compound annual growth rate (CAGR) of 17.6%. The growth in the forecast period can be attributed to increasing complexity of chiplet based architectures, rising demand for advanced packaging in AI and automotive electronics, growth in heterogeneous integration solutions, expansion of fan out wafer level packaging adoption, increasing investment in next generation semiconductor manufacturing. Major trends in the forecast period include rising demand for high density multi chip packaging, growing adoption of wafer level and fan out packaging technologies, increasing shift toward system in package integration, advancements in flip chip and 3d packaging processes, growing need for thermal management and reliability enhancements.
The rising demand for consumer electronic devices is anticipated to drive the growth of the advanced chip packaging market. Consumer electronic devices, which are designed for everyday use in private homes, include smartphones, tablets, and laptops. The expansion of internet and wireless networks has significantly increased the demand for these devices. Advanced chip packaging technologies facilitate the integration of multiple functions into compact designs, which are essential for high-performance consumer electronics. These technologies improve processing power, efficiency, and heat dissipation, enabling the creation of feature-rich, compact devices. For instance, a report published by the Japan Electronics and Information Technology Industries Association in May 2023 indicated that consumer electronics production reached $209.50 million, representing a 127% increase compared to the previous year. Consequently, the growing demand for consumer electronic devices is fueling the expansion of the advanced chip packaging market.
Major companies in the advanced chip packaging market are concentrating on chip-scale packaging (CSP) technologies to enhance semiconductor device performance, miniaturization, and reliability. CSP is an integrated circuit (IC) packaging technique in which the package size closely corresponds to that of the semiconductor chip. For example, in September 2025, Applied Materials, Inc., a US-based semiconductor manufacturer, launched its EPIC Advanced Packaging initiative, expanding its global Equipment and Process Innovation and Commercialization platform. The EPIC expansion features a new collaborative model designed to accelerate the commercialization of next-generation chip-packaging technologies, including micro-bumps, through-silicon vias (TSVs), and silicon interposers. The initiative highlights energy-efficient computing by enabling heterogeneous integration of multiple chips-such as logic, memory, and I/O-within a single package, improving system performance per watt.
In August 2025, Taiwan Semiconductor Manufacturing Co. (TSMC), a Taiwan-based semiconductor manufacturing company, acquired Innolux Corp.'s flat-panel display plant for an undisclosed amount. Through this acquisition, TSMC aims to substantially expand its advanced chip packaging capacity, particularly for AI chips, by increasing production of Chip on Wafer on Substrate (CoWoS) packaging services. Innolux Corp., a Taiwan-based company, is actively engaged in developing and providing advanced chip packaging services.
Major companies operating in the advanced chip packaging market are Samsung Electronics Co. Ltd., Advanced Micro Devices Inc., Advanced Semiconductor Engineering Inc, Henkel Group, Texas Instruments Incorporated, Lam Research Corporation, NXP Semiconductors, Onsemi, Amkor Technology, Nordson Corporation, Siliconware Precision Industries Co. Ltd., Kulicke and Soffa Industries Inc., ChipMOS Technologies Inc., SUSS MicroTec SE, EV Group, Indium Corporation, Palomar Technologies, Brewer Science Inc., MacDermid Alpha Electronics Solutions, Universal Instruments Corporation, CHIPBOND Technology Corporation
Asia-Pacific was the largest region in the advanced chip packaging market in 2025. The regions covered in the advanced chip packaging market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the advanced chip packaging market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The advanced chip packaging market consists of revenues earned by entities by providing services such as multi-chip modules, through-silicon vias, lead frame packages, and embedded die packaging. The market value includes the value of related goods sold by the service provider or included within the service offering. The advanced chip packaging market also includes sales of wire bonders, encapsulation equipment, die-attach equipment, and test and inspection equipment. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Advanced Chip Packaging Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses advanced chip packaging market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for advanced chip packaging ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The advanced chip packaging market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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