A new report from Graphical Research says the availability of compact devices with superior functionality is driving growth in the North America advanced packaging market, which crossed $3 billion in 2019 and is predicted to reach $5 billion by 2026, with a 7% CAGR.
North America Advanced Packaging Market Report: Trends
Miniaturization of Electronic Devices Promote Growth
The report finds high-end technologies including artificial intelligence (AI), IoT, 5g and photonics will impact the demand for advanced packaging, which is expected to grow amongst IDMs and foundry suppliers. Benefits including smaller footprint, lower power consumption and superior chip connectivity will also support the growth of North America advanced packaging market.
U.S. Grows Revenue with New Production Facilities
The report finds advanced packaging platforms offer solutions at lesser operational costs, coupled with a high radio frequency (RF) shielding featuring enhanced power dissipation and allowing for advanced packaging solutions across Zigbee, Wi-Fi, and BTLE applications. Foundry suppliers and manufacturers of semiconductor components are addressing the demand for advanced packaging by establishing new production centers across the U.S. For example, TSMC invested $12 billion in a new advanced chip-manufacturing unit with 5nm chip production technology.
Flip-Chip Segment to Grow from Demand of Foundries and Manufacturers
The report states the flip-chip segment is projected to hold the largest segment by 2026, with a CAGR of 5%. The segment accounted for more than 60% of the revenue in the market in 2019. Flip-chip technology provides high input/output density and features a smaller footprint when compared to other alternatives, making it a viable option across consumer electronics.
The electrical and thermal performance of flip-chip packaging enables high volume manufacturing in foundries, triggering further growth of the North America advanced packaging market. The reports states the market for flip-chip packaging will exhibit high demand since smartphones utilize flip-chip technology. Key names in the market include Broadcom, Skyworks and Qualcomm.
For more information visit www.graphicalresearch.com/industry-insights.