North America Semiconductor Advance Packaging Market Outlook, 2029

The North American semiconductor advanced packaging market has grown and innovated significantly in recent decades, owing to rising demand for compact, high-performance electronic gadgets. Advanced packaging technologies have played an important part in meeting the demand for smaller, quicker, and more efficient semiconductors. These technologies enable several chips to be combined into a single package, enhancing performance while saving space and power. The 1990s and early 2000s saw the advent of more advanced techniques like Ball Grid Array (BGA) and Flip-Chip technology, which enabled more efficient power and heat management.

As the semiconductor industry moved into the twenty-first century, the demand for improved packaging techniques increased. Miniaturisation trends, driven by the demand for smaller devices, higher performance, and reduced power consumption, have made sophisticated packaging an essential component of semiconductor production. Today, the market is expanding as sophisticated packaging technologies enable advances in fields such as 5G, artificial intelligence (AI), Internet of Things (IoT), and automotive electronics.

The COVID-19 epidemic had a tremendous impact on the entire semiconductor industry, especially sophisticated packaging. The rapid disruption of supply chains, temporary factory closures, and labour shortages in 2020 generated substantial bottlenecks, resulting in production delays and a semiconductor scarcity that impacted a variety of industries, including automotive, consumer electronics, and telephony.

According to the research report "North America Semiconductor Advance Packaging Market Overview, 2029,", the North America semiconductor advance packaging market is expected to reach a market size of more than USD 10 Billion by 2029. Several prominent players lead the North American Semiconductor Advanced Packaging industry, including Intel, Advanced Micro Devices (AMD), Qualcomm and Texas Instruments. These firms are currently working to create cutting-edge packaging solutions to fulfil the expanding demands of the semiconductor industry.

In addition to domestic manufacturers, multinational semiconductor giants like Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung have a significant presence in North America. The CHIPS for America Act, enacted into law by the US government in 2021, proposes to revitalise the semiconductor manufacturing and packaging industries by investing heavily in R&D and production infrastructure. Partnerships between top semiconductor businesses and academic institutions such as the Massachusetts Institute of Technology (MIT) and Stanford University have resulted in ground-breaking packaging improvements.

The United States and Canada rely substantially on imports of raw materials and packing equipment, particularly from Taiwan, South Korea, Japan, and China. North American semiconductor manufacturers, including Intel, AMD, and Qualcomm, rely on these imports to develop and manufacture sophisticated packaging solutions. The United States exports a substantial amount of semiconductor components to Asia, Europe, and other regions, with improved packaging playing an important part in achieving the performance needs of next-generation applications. Amkor Technology, ASE Group, and Lam Research are some of the market's key providers. Amkor Technology is a top provider of outsourced semiconductor packaging and testing services.

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.

2.5D/3D integration technology now dominates the North American semiconductor advanced packaging business, owing to its greater capacity to improve performance, power efficiency, and form factor.

In the North American semiconductor advanced packaging market, 2.5D/3D integration technology is currently leading due to its superior capacity to improve performance, power efficiency, and form factor. These technologies enable the stacking of numerous dies or chips in a single package, resulting in shorter interconnections, lower latency, and faster data transmission rates. This makes 2.5D/3D packaging excellent for applications such as high-performance computing (HPC), artificial intelligence (AI), and data centres, which require the most computational power and efficiency.

Furthermore, as devices get more compact and demand more powerful CPUs, 3D stacking becomes critical for enhancing processor performance in small spaces, such as smartphones and car electronics. While other technologies, such as Flip Chip and Fan-out Wafer-Level Packaging (Fo-WLP), are widely used for specific applications such as consumer electronics and IoT devices due to their cost-effectiveness and ability to enable miniaturisation, 2.5D/3D technologies dominate the high-end market where performance is paramount.

Embedded Die and Fi-WLP provide benefits for specific use cases, but they lack the adaptability and performance scalability of 2.5D/3D. Intel, Foveros, a pioneer in 3D packaging, incorporates many types of CPUs in a vertically stacked design. TSMC, despite being headquartered in Taiwan, plays a critical role in providing innovative packaging solutions to North American industries.

Organic substrates are now the most popular packaging material in the North American semiconductor advanced packaging market due to their low cost and ability to meet the growing need for high-density integration.

Cost-effectiveness, adaptability, and the capacity to fulfil rising demand for high-density integration. Organic substrates are widely employed in System-in-Package (SiP) and Flip Chip technologies because they offer a good mix of thermal and electrical performance while allowing manufacturers to scale manufacturing efficiently. Their flexibility enables more complicated interconnections and facilitates miniaturisation, making them excellent for advanced semiconductor applications. Organic substrates are more extensively used than ceramic packages, which are more expensive and normally designated for high-reliability applications such as aerospace and defence, because to their lower cost and flexibility to mass production.

Bonding wire and lead frames are also ubiquitous materials, however they are typically utilised in more traditional packaging techniques that are not as prevalent in cutting-edge semiconductor applications. Encapsulants and die-attach materials also play important roles in ensuring chip reliability and protection, but they are secondary materials that do not directly contribute to the functional enhancements that organic substrates provide in terms of performance and integration capabilities. Amkor Technology is a key leader in advanced packaging solutions, using organic substrates in its Flip Chip and SiP technology.

The consumer electronics category now leads the North American semiconductor advanced packaging industry due to high demand for gadgets and other portable electronics.

The consumer electronics category currently leads the North American semiconductor advanced packaging market due to high demand for devices such as smartphones, tablets, wearables, and other portable electronics. This dominance stems from the demand for high-performance, energy-efficient CPUs in increasingly small devices. Advanced packaging methods such as Fan-Out Wafer-Level Packaging (Fo-WLP), System-in-Package (SiP), and Flip Chip enable the integration of several component s in smaller, lighter packages, hence increasing computational power and battery life.The automobile industry is rapidly expanding, fuelled by the rise of electric vehicles (EVs), self-driving cars, and enhanced driver-assistance technologies.

Semiconductors utilised in these applications necessitate innovative packaging methods to withstand the demanding performance demands, harsh working conditions, and long lifespans of vehicle electronics. However, the entire market size of consumer electronics outnumbers that of automotive, making it the dominant segment. Other areas, such as telecommunications (due to 5G deployment) and data centres, are expanding rapidly, but they do not have the volume of consumer electronics. IoT devices and industrial applications make substantial contributions, but they are smaller sectors than the consumer market.

The United States is leading the North American semiconductor advanced packaging market, driven by its dominance in semiconductor design, manufacturing, and innovation.

The United States, home to key semiconductor companies such as Intel, Qualcomm, and Advanced Micro Devices (AMD), plays a critical role in advancing cutting-edge packaging technologies such as 2.5D/3D integration, System-in-Package (SiP), and Fan-Out Wafer-Level Packaging (Fo-WLP). These technologies are critical in high-performance computing, consumer electronics, automotive, and telecommunications applications, where the need for more efficient, compact, and powerful circuits is continually increasing. The United States also has a strong ecosystem of semiconductor manufacturing equipment vendors, research institutes, and innovation hotspots such as Silicon Valley, which drive developments in packaging technology.

Furthermore, the United States has aggressively worked to bolster its semiconductor supply chain through regulations such as the CHIPS Act, which provides significant financing for domestic semiconductor manufacturing, including advanced packaging capabilities. Another significant aspect contributing to the United States' dominance is its investment in research and development (R&D). Companies in the United States and government-backed programs invest extensively in R&D to keep ahead of the curve in semiconductor technology, including packaging advancements. For example, Intel's Foveros technology enables superior 3D chip stacking, which improves performance and energy efficiency.

• 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.

Considered in this report

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Semiconductor Advance Packaging market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Technology

• Flip Chip
• Embedded Die
• Fi-WLP
• Fo-WLP
• 2.5D/3D

By Material Type

• Organic Substrate
• Bonding Wire
• Lead Frame
• Ceramic Package
• Others (e.g., Encapsulates, Die-Attach Materials)

By End-Use Industry

• Consumer Electronics
• Automotive
• Telecommunication
• Healthcare
• Others (e.g., Data Centres, IoT Devices, Aerospace & Defence and Industrial)

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases.

After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Semiconductor Advance Packaging industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.