Fan-Out Wafer Level Packaging Global Market Report 2024

The global fan-out wafer level packaging market has grown rapidly in recent years. It will grow from $2.13 billion in 2023 to $2.43 billion in 2024 at a compound annual growth rate (CAGR) of 14.1%. The growth in the historic period can be attributed to miniaturization of electronics, increased integration, improved electrical performance, global expansion.

The global fan-out wafer level packaging market is expected to see rapid growth in the next few years. It will grow to $3.94 billion in 2028 at a compound annual growth rate (CAGR) of 12.8%. The growth in the forecast period can be attributed to 5g and iot growth, artificial intelligence (ai) and high-performance computing, advances in materials, supply chain growth. Major trends in the forecast period include 3d integration, advanced packaging technologies, heterogeneous integration, cross-industry collaboration.

The fan-out wafer-level packaging market is poised for growth in the near future, thanks to the increasing adoption of 5G technology in emerging nations. 5G, the fifth generation of cellular network technology, is engineered to deliver higher speed, reduced latency, and enhanced wireless service flexibility. Fan-out wafer-level packaging plays a crucial role in advancing 5G technology by providing shorter interconnects and minimizing inductance, thereby boosting RF and millimeter-wave performance. As an illustration, data from 5G Americas, a U.S.-based trade association representing major telecom companies, indicated a remarkable 76% increase in global 5G wireless internet connections between the end of 2021 and the end of 2022, reaching a total of 1.05 billion connections. Moreover, North America leads the world in wireless 5G adoption, with projections of 507 million Volte and an expected 119 million 5G connections by the end of the fourth quarter of 2022. Consequently, the adoption of 5G technology in emerging economies is a key driver for the fan-out wafer-level packaging market.

Anticipated growth in the fan-out wafer-level packaging market can be attributed to the growing demand for IoT (Internet of Things) devices. IoT devices are physical objects equipped with sensors, software, and connectivity features, allowing them to collect and exchange data with other devices and systems via the Internet. Fan-out wafer-level packaging (FOWLP) is finding increasing use in IoT devices, offering compact and lightweight packaging solutions that reduce the overall size of these devices. For instance, according to IoT Analytics GmbH, a Germany-based provider of IoT data analysis, global IoT-connected devices are projected to witness an 18% increase, reaching 14.4 billion in 2023, with expectations of 27 billion connected IoT devices by 2025. Hence, the escalating demand for IoT devices stands as a driving force behind the fan-out wafer-level packaging market.

The high production costs associated with fan-out wafer-level packaging stand as a significant obstacle to the growth of the fan-out wafer-level packaging market. The manufacturing process for fan-out wafer-level packaging is intricate and demands specialized equipment, which can be both costly to procure and maintain. For example, an article in Semiconductor Engineering by Sperling Media Group LLC, a U.S.-based online publication company, highlighted the potential impact of raw material costs, such as silicon wafers, on the overall production expenses of fan-out wafer-level packaging, potentially elevating the cost. Consequently, the high production expenses hinder the expansion of the fan-out wafer-level packaging market.

Prominent companies within the fan-out wafer-level packaging market are directing their efforts towards the adoption of advanced next-generation graphics DRAM technology to deliver enhanced services to their customers. Next-generation graphics DRAM technology represents an evolution in memory components specially tailored for graphics processing units (GPUs) and other graphics-intensive applications. As an example, Samsung Electronics Co. Ltd., a South Korea-based consumer electronics company, introduced GDDR6W in November 2022, a groundbreaking next-generation graphics DRAM technology, leveraging cutting-edge fan-out wafer-level packaging (FOWLP) technology. This innovation significantly boosts memory bandwidth and capacity, providing exceptional performance, extensive storage, and a wealth of bandwidth memory technologies that bring the virtual world closer to reality.

In August 2021, Analog Devices Inc., a U.S.-based semiconductor manufacturing and fan-out wafer-level packaging provider, acquired Maxim Integrated Products Inc. for an undisclosed sum. This strategic acquisition bolsters Analog Devices Inc.'s position as a robust analog semiconductor company and positions it to offer clients an even broader range of innovative solutions. Maxim Integrated Products Inc., a U.S.-based developer and manufacturer of analog and mixed-signal integrated circuits, incorporates fan-out wafer-level packaging technology into its offerings.

Major players in the fan-out wafer level packaging market are Samsung Electronics Co. Ltd., Taiwan Semiconductor Manufacturing Company Limited, Intel Corporation, Qualcomm Inc., Fujitsu Limited, Toshiba Corporation, Applied Materials Inc., ASE Technology Holding Co. Ltd., Texas Instruments Incorporated, Lam Research Corporation, STMicroelectronics N.V., Infineon Technologies AG, NXP Semiconductors N.V., Analog Devices Inc., Renesas Electronics Corporation, United Microelectronics Corporation, GlobalFoundries Inc., Amkor Technology Inc., Microchip Technology Inc., Synopsys Inc., Xilinx Inc., Siliconware Precision Industries Co Ltd., Onto Innovation Inc., Unisem Group, Nepes Corporation, Deca Technologies Inc., Yield Engineering Systems Inc., Powertech Technology Inc., Jiangsu Changdian Technology Co. Ltd., Yole Group.

Asia-Pacific was the largest region in the fan-out wafer level packaging market in 2023. The regions covered in fan-out wafer level packaging report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the fan-out wafer level packaging market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary processes within fan-out wafer level packaging include standard-density packaging, high-density packaging, and bumping. Standard-density packaging achieves a packing density that approaches the theoretical maximum for a given set of objects. Different business models such as Outsourced Semiconductor Assembly and Test (OSAT), foundry, and integrated device manufacturer (IDM) are employed across various industries like consumer electronics, industrial, automotive, healthcare, aerospace and defense, IT and telecommunications, among others.

This report provides fan-out wafer level packaging market statistics, including fan-out wafer level packaging industry global market size, regional shares, competitors with a fan-out wafer level packaging market share, detailed fan-out wafer level packaging market segments, market trends and opportunities and any further data you may need to thrive in the fan-out wafer level packaging industry. This fan-out wafer level packaging market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The fan-out wafer level packaging market consists of revenues earned by entities by offering services like substrate-less packages, SiP and 3D integration and built-in back-side protection. The market value includes the value of related goods sold by the service provider or included within the service offering. The fan-out wafer level packaging market also consists of sales of redistribution layers (RDLS), molding compounds, solder balls and carrier wafers. 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.


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