North America Semiconductor Advance Packaging Market Outlook, 2029

Market Dynamic

Market Drivers • Increased Investment in local Semiconductor manufacture: To address the supply chain vulnerabilities shown by the COVID-19 epidemic, the US government has developed measures such as the CHIPS for America Act, which encourages local semiconductor manufacture. This program, combined with private-sector investments from businesses such as Intel and TSMC, aims to reduce North America's dependency on foreign suppliers. • Miniaturisation and Increased Power Efficiency: As consumer gadgets, such as smartphones, wearables, and IoT devices, become smaller and more power-efficient, semiconductor makers are pushed to use innovative packaging techniques. FOWLP and SiP technologies enable the integration of more components in a smaller footprint, resulting in miniaturisation while maintaining performance. The miniaturisation movement is being pushed by both customer demand and the necessity for longer battery life. Market Challenges • Geopolitical Tensions and Trade Wars: Ongoing geopolitical tensions, particularly between the United States and China, have had an impact on North America's semiconductor industry. Trade restrictions and tariffs have disrupted the supply of crucial materials and equipment while also limiting North American semiconductor businesses' access to certain markets. The US government has imposed limits on semiconductor exports to China, affecting companies such as Intel and Qualcomm, which have large client bases in China. • Complexity of manufacturing processes: Advanced packaging techniques such as 3D stacking, fan-out wafer-level packing, and system-in-package technologies are intricate and necessitate highly specialised manufacturing procedures. This complexity raises the possibility of manufacturing mistakes, which can result in lower yields and greater production costs. As packaging technology advances, the technical hurdles of assuring dependability, yield, and performance will only increase. Market Trends • Shift to 2.5D and 3D Integration: One of the most important developments in the semiconductor advanced packaging market is the growing use of 2.5D and 3D integration. These technologies enable the stacking of several dies in a single package, which improves performance while reducing power consumption. 3D integration, in particular, has gained popularity in AI, data centres, and HPC applications that require maximum performance. Intel's Foveros technology is an excellent example of 3D packaging in use for advanced applications. • Growth of System-in-Package (SiP) Solutions: System-in-package (SiP) technologies are increasingly popular, especially for IoT and consumer electronics applications. SiP enables the integration of several ICs, passive components, and even sensors in a single package, reducing size while increasing functionality. This technology is especially useful for compact products with limited space, including as smartphones, wearables, and car electronics.

Key Development

• Intel's Foveros Technology (2019): Intel unveiled Foveros, a groundbreaking 3D packaging technology that enables the stacking of many types of chips in a single package. This technique allows for significant gains in performance and power efficiency, which is especially useful for high-performance computing and artificial intelligence. • AMD's 3D V-Cache Technology (2021): AMD introduced 3D V-Cache technology, which uses 3D stacking to combine additional cache memory into a single package. This innovation greatly improves CPU performance, revealing the potential of 3D packaging to increase processing power. • CHIPS for America Act (2022): The United States government passed the CHIPS for America Act to encourage American semiconductor production, which includes sophisticated packaging. This Act provides financing and incentives for semiconductor research and development and manufacturing, with the goal of reducing reliance on foreign suppliers.