Product Code: 66590
Panel level packaging (PLP) market is anticipated to witness a CAGR of 28.0% over the forecast period 2019 - 2024. Cost-effective packaging solution and flexible circuit designs are some of the major influencing factors for the growth of panel level packaging technology. Especially, the recent Fan-Out Wafer Level Package (FOWLP) technology is the promising area of market advancement in the global semiconductor packaging industry. Smaller form factor with enhanced thermal performance has generated huge demand for panel level packaging technology among several industrial applications such as consumer electronics, automotive, aerospace & defense, telecommunication, and others.
- Reduced cost of circuit packaging, enhanced design flexibility, and physical performance, and increased investment in research & development activities are the factors expected to fuel the market growth. However, complexity in packaging technology is anticipated to obstruct the market growth for panel level packaging technology.
- According to the market study, most of the players in the market are still in their R&D phase for PLP; however, the global market is going to see a high rate of adoption in the coming years with the commercialization of the particular technology. Taiwan Semiconductor Manufacturing Company, Limited, the major semiconductor foundry in Taiwan, owned contract from Apple Inc. to develop PLP for application processor till 2020. This highly valued contract has triggered extensive advancements for panel level packaging among the industry player in the global market.
Scope of the Report
The scope for Panel level packaging (PLP) technology is primarily focused on recent packaging technologies like Fan-Out Wafer Level Package (FOWLP), other than the conventional technique of wafer-based packaging. Panel level packaging technology is used for packaging of various semiconductor products such as field-programmable gate array (FPGA), CPU/GPU, power management IC module, baseband, WiFi devices, RF devices, transducers, and networking & servers.
Key Market Trends
High Growth in Processing Technologies for Semiconductor Industry
- Semiconductor components such as memory chips, logic, analog components, micro processing unit (MPU), discrete, sensors and others have seen a surge in demand due to increased sales of the consumer as well as industrial electronics products. Sophisticated electronics components in wearable electronics and IoT based products demand fast processing of electronic devices' circuits which in turn has created potential space for highly flexible ICs withstanding greater thermal resistance and physical performance.
- To cater to the need of enhanced ICs for high-end industrial applications in automotive, electronics, aerospace, telecommunication and others, level packing technology providers are moving from traditional wafer-based packaging to new packaging technologies like FOWLP.
- According to Semiconductor Industry Association (SIA), memory, logic, analog, and MPU related semiconductor products accounts for more than 80% of the total sales in the semiconductor industry; hence providing a surged opportunity for market leaders to focus on packaging process for these particular products.
Asia-Pacific as the Largest and Fastest Growing Region
- With the presence of many niche electronics OEMs and their suppliers in countries like China, Taiwan, South Korea, and Japan, the Asia-Pacific region is expected to experience the highest growth rate in the global panel level packaging market. Moreover, the region enjoys the presence of several significant vendors in the power electronics market, who are investing significantly in the development of advanced panel level packaging technology.
- According to the Semiconductor Industry Association (SIA), Asia-Pacific generates more than 50% revenue in the global semiconductor sales. In the phone application, PLP is primarily used for fingerprint sensor with its packaged thickness of < 0.2T. In this regard, APAC is considered as a hot spot for sensor chip manufacturing as most of the smartphone companies including Apple Inc., Samsung Electronics, Xiaomi Corporation, and others have their manufacturing units in the Asia-Pacific region, and hence providing PLP vendors chance to supply modern FOWLP for APs (Application Processor) for the smartphones.
As very few players are dominating the market with their technological expertise in level packaging technology, the global market for panel level packaging is expected to be consolidated in nature. Amkor Technology, Inc., Deca Technologies, Lam Research Corporation, ASE Group, Siliconware Precision Industries Co., Ltd., Fraunhofer Institute for Reliability and Microintegration IZM, Taiwan Semiconductor Manufacturing Company, Limited, and Shinko Electric Industries Co, Ltd. are some of the major players present in the current market. However, giant chip manufacturers such as Intel Corporation, Qualcomm Technologies, Inc., Powertech Technology Inc, and Unimicron Technology Corporation are involved in extensive R&D and market development activities to come up with competitive panel level packaging technology in the coming years.
- April 2019 - Samsung Electronics acquired the panel level packaging business unit from its own Samsung Electro-Mechanics company to enhance its capability in the panel level packaging market. This is also, to regain Apple Inc.'s contract for application processor development, which has been taken by Taiwan Semiconductor Manufacturing Company, Limited (TSMC) in 2015 through commercialization of its FOWLP (Fan Out-Wafer Level Package) technology.
- September 2018 - Powertech Technology Inc., announced to invest USD 1.63 billion for the development of advanced fabrication and packaging technology over the next five years. This investment is to cater to the growing demand for advanced circuit design for AI & IoT related applications.
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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 DYNAMICS
- 4.1 Market Overview
- 4.2 Introduction to Market Drivers and Restraints
- 4.3 Market Drivers
- 4.3.1 Reduced Cost of Packaging Process
- 4.3.2 Enhanced Design Flexibility and Physical Performance of Chips
- 4.3.3 Increased Investment on Research & Development Activities
- 4.4 Market Restraints
- 4.4.1 Complexity in Packaging Process
- 4.5 Industry Value Chain Analysis
- 4.6 Industry Attractiveness - Porter's Five Force Analysis
- 4.6.1 Threat of New Entrants
- 4.6.2 Bargaining Power of Buyers/Consumers
- 4.6.3 Bargaining Power of Suppliers
- 4.6.4 Threat of Substitute Products
- 4.6.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
- 5.1 By Industry Application
- 5.1.1 Consumer Electronics
- 5.1.2 Automotive
- 5.1.3 Aerospace & Defence
- 5.1.4 Telecommunication
- 5.1.5 Other Industry Application
- 5.2 Geography
- 5.2.1 North America
- 5.2.2 Europe
- 5.2.3 Asia-Pacific
- 5.2.4 Rest of the World
6 COMPETITIVE LANDSCAPE
- 6.1 Company Profiles
- 6.1.1 Amkor Technology, Inc.
- 6.1.2 Deca Technologies
- 6.1.3 Lam Research Corporation
- 6.1.4 ASE Group
- 6.1.5 Siliconware Precision Industries Co., Ltd.
- 6.1.6 Fraunhofer Institute for Reliability and Microintegration IZM
- 6.1.7 Taiwan Semiconductor Manufacturing Company, Limited
- 6.1.8 Shinko Electric Industries Co, Ltd.
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS