Product Code: 63684
The memory packaging market was valued at USD 21.53 billion in 2018, and is expected to reach USD 29.41 billion by 2024, registering a CAGR of 5.5% during the forecast period of 2019 - 2024. Memory devices employ a broad range of the packaging technology from flip-chip, lead-frame, wire-bond, to through-silicon via (TSV). With the decrease in dimensions and increase in the chip functionality, a higher number of the electrical connections have to be made to the external circuit. Moreover, with changes in the package design, the wire-bond memory packaging platform continues to be used as the most preferred interconnection platform because of its flexibility, reliability, and low cost. In 2016, Flip-chip began making inroads in the DRAM memory packaging and is expected to grow due to its increased adoption in the DRAM PC/server, fueled by high bandwidth requirements.
- The increasing penetration of smartphones and the rising demand for enhanced capabilities are projected to bolster the growth of the market studied. For instance, to accommodate high-definition (HD) displays and watching movies on mobile devices, mobile LP-DDR4 devices are being employed.
- The increasing demand for memory devices, buoyed by the requirement of data centers for memory in the range of 10Mn GB to 20Mn GB server DRAM, on an average, is expected to continue to drive the demand for server DRAM, impacting the memory packaging demand to positive values.
- The market is witnessing a demand for memory from mobile and the computing (mainly servers). On average, the DRAM memory capacity per smartphone is anticipated to rise more than threefold to reach around 6GB by 2022.
- The innovation in the packaging technology is associated with the growth in the functional density of large system-on-chip (SoC) solutions. However, harsh reliability requirements in the automotive environment and changing landscape of the OSATs industry are anticipated to hamper the growth of the memory packaging market over the forecast period.
Scope of the Report
Memory packaging makes use of a small circuit board that contains memory chips. Single In-line Memory Module (SIMM), Dual In-Line Memory Module (DIMM), Small Outline Dual in-Line Memory Module (SODIMM), and Micro DIMM are some of the memory packages. These packages are a type of RAM chip. System-in-package (SiP) is a common approach for devices, where the package includes application specific control IC die for the signal conditioning and amplification. Stacked die and side-by-side configurations are widely used.
Key Market Trends
Consumer Electronics Segment is Expected to Have Significant Growth
- The rapid growth in the consumer electronics industry is driving the growth of the memory packaging market. They are used in numerous electronic devices, such as smartphones, PCs, music players, laptops, netbooks, and tablets. Mobile-connected devices like smartphones and tablets have driven the growth in the consumer electronics industry while also eroding the demand for other portables, such as digital cameras and notebooks.
- As the NAND flash memory delivers a cost-effective solution for applications demanding solid-state storage and high density, major manufacturing organizations, in the consumer electronics product segment, are adopting this memory device to fulfill the need for storage space. This has increased the demand for packaging, thereby contributing to the growth of the market. In mobile applications, memory packaging will mainly remain on the wire-bond platform but is also expected to move into the multi-chip package (ePoP) for high-end smartphone leading to the growth of the consumer electronics segment.
- Moreover, according to the Consumer Technology Association, in 2013, almost 145 million people in the United States owned a smartphone, and this figure rose to 220 million by 2018. Additionally, the share of smartphones consumers in China was over 53.3% of the total mobile phone users in the country in 2016, which increased to over 56% in 2017. With this increase in the adoption of smartphones, the use of packaged memory chips is also increasing. Also, with the development of memory packaging techniques, the size of smartphones reduced, which may further augment the demand for the memory packing market.
Asia-Pacific Region Expected to Account for a Major Share
- Asia-Pacific is expected to have the largest market share and is also expected to register the highest growth rate, over the forecast period, due to an increase in the demand for memory packaging from automotive and consumer electronics and other end-user industries, as the region has a large consumer base in the low and middle-income level population segment.
- China is expected to have the highest market share in the Asia-Pacific segment. The dominance of China is due to the broader application areas of memory packaging in consumer electronics, such as smartphones and tablets and huge manufacturing base for electronics product in the country.
- Moreover, an increase in fabrication activities in China, growing popularity of autonomous driving and in-car entertainment (ICE), and continuous improvements in high-bandwidth memory (HBM) and redistribution layer (RDL) are some of the primary factors boosting the growth of the APAC memory packaging market.
- In Japan, autonomous cars are expected to contribute significantly, considering the region's substantial contribution to ADAS. Temperature grade LPDDR4 storage being an essential component in autonomous car design, is expected to have a significant impact on the memory packaging market during the forecast period.
The memory packaging market is a consolidated market with dominant players present in the market. The memory packaging market is witnessing many mergers and acquisitions among regional players. In the past few years, acquisitions have been one of the major inorganic growth strategies of the companies to increase the revenue share in the market. Companies, such as Micron Technology Inc. have been forerunners in acquiring and merging with small regional and adjacent technology-based market peers.
- June 2018 - Micron Technology announced a volume production for its 8GB GDDR6 memory. Targeting up to 64GB/s in one package, GDDR6 is set to bring a significant improvement over the fastest available GDDR5. This high level of single-chip performance, using proven and industry-standard BGA packaging is expected to give designers a powerful, cost-efficient, and low-risk solution using the most scalable and high-speed discrete memory available in the market.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- Report customization as per the client's requirements
- 3 months of analyst support
Table of Contents
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope Of The Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
- 4.1 Market Overview
- 4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Buyers/Consumers
- 4.2.3 Threat of New Entrants
- 4.2.4 Threat of Substitute Products
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Value Chain / Supply Chain Analysis
- 4.4 Technology Snapshot
5 MARKET DYNAMICS
- 5.1 Introduction To Market Dynamics
- 5.2 Market Drivers
- 5.2.1 Demand for Data Centers Driven By Cloud and HPC Applications
- 5.2.2 Increase in Demand for Smartphones and Changing Technology have an Impact on Memory Packaging
- 5.2.3 Need for Miniaturization of Semiconductor Devices and Effective Space Utilization
- 5.3 Market Challenges
- 5.3.1 Changing Landscape of the OSATs Industry
6 MARKET SEGMENTATION
- 6.1 By Platform
- 6.1.1 Flip-chip
- 6.1.2 Lead-frame/Wafer-level Chip-scale Packaging
- 6.1.3 Through-Silicon Via (TSV)
- 6.1.4 Wire-bond
- 6.2 By Application
- 6.2.1 NAND Flash Packaging
- 6.2.2 NOR Flash Packaging
- 6.2.3 DRAM Packaging
- 6.2.4 Other Applications
- 6.3 By End User
- 6.3.1 IT and Telecommunication
- 6.3.2 Consumer Electronics
- 6.3.3 Embedded Systems
- 6.3.4 Automotive
- 6.3.5 Other End Users
- 6.4 Geography
- 6.4.1 North America
- 6.4.2 Europe
- 6.4.3 Asia-Pacific
- 6.4.4 Latin America
- 6.4.5 Middle East & Africa
7 COMPETITIVE LANDSCAPE
- 7.1 Company Profiles
- 7.1.1 Tianshui Huatian Technology Co Ltd
- 7.1.2 Hana Micron Inc.
- 7.1.3 Lingsen Precision Industries Ltd
- 7.1.4 Formosa Advanced Technologies Co. Ltd (FATC)
- 7.1.5 Advanced Semiconductor Engineering Inc. (ASE Inc.)
- 7.1.6 Amkor Technology Inc.
- 7.1.7 Jiangsu Changjiang Electronics Technology Co. Ltd
- 7.1.8 Powertech Technology
- 7.1.9 King Yuan Electronics Corp. Ltd
- 7.1.10 ChipMOS Technologies Inc.
- 7.1.11 TongFu Microelectronics Co.
- 7.1.12 Signetics Corporation
8 INVESTMENT ANALYSIS
9 MARKET OPPORTUNITIES AND FUTURE TRENDS