Panel Level Packaging Market Size is forecast to reach $3.5 billion by 2026, at a CAGR of 18.5% during 2021-2026. Panel Level packaging (PLP) is one of the latest packaging trends in microelectronics. Besides technology developments towards heterogeneous integration, larger substrates formats also are targeted. In addition, manufacturers are increasingly driving their suppliers to provide panel -processing tools and materials to allow them to bring wafer-level precision to package processed on panel substrates. This packaging is used in the packaging of field programmable gate array (FPGA), CPU/GPU, power management IC module, baseband, and others. Cost-effective packaging solution and flexible circuit designs are some of the major influencing factors for the growth of panel level packaging industry. Especially, the 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. Additionally, Panel Level Packaging have been observing several advancements in technology over the past few years, owing to which Panel Level Packaging Market is gaining traction in the forecast period 2021-2026.
Panel Level Packaging Market Segment Analysis - By integration type
Fan-out Panel Level Packaging segment is expected to hold significant share of 51% in 2020. Several packaging houses are implementing panel-level fan-out, a low-density technology that promises to lower the cost of fan-out. Fan-out Panel Level Packaging segment is expected to be essential for future applications on 5G, AI, Biotech, Advanced Driver- Assistance System (ADAS), smart city, and IoT related products. In addition ability to develop advanced packing and testing services and secure customer relations serve as major factors which are diving the market growth in the forecast period. Fan-out Panel Level Packaging segment finds large-scale applications in the consumer electronics sector to design ultra-thin portable devices such as smartphones, smart watches, and laptops as they offer high-performing, energy-efficient, thin, and small form factor packages. Surge in demand for high-power, miniaturized packaged ICs due to rise in popularity of IoT and technologically improved compact electronic devices such as smartphones, smart watches, tablet, TVs among others primarily drives the packaging technology fan-out wafer level market growth.
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Panel Level Packaging Market Segment Analysis - By Industry Vertical
Consumer Electronics sector is expected to witness a highest CAGR of 19.9% the forecast period, as this segment is powering a new wave of developments in electronic packaging. According to Consumer Technology Association, Consumer Electronic retail sales are expected to grow 4.3% in this year to $461 billion. With increasing consumer electronic sales year on year, the demand for panel-level packaging significantly rises. Further, Berlin’s Fraunhofer IZM is the place to be for leading industry players wishing in developing the fundamental processes for the new panel-level packaging and creates viable first demonstrators on large-scale organic substrate formats in the consumer electronics. After the successful venture for two years, the consortium is focused on embracing new members with new research avenues, In 2020, Systems Engineering & Management Company (SEMCO) achieved a new milestone by rolling out APE-PMIC devices with FO (Fan-Out) embedded panel-level packaging (ePLP) PoP technology for Samsung Galaxy Watch. Similarly in 2020, SEMCO announced to continue to innovate for a cost-effective HDFO market space to compete with TSMC for Apple’s packaging and FE business again. In addition, SEMCO’s HDFO is anticipated to be utilized first in Samsung’s cellphones. Besides, a restructure between SEMCO, and Samsung Electronics could be favorable for Samsung’s position as the full turnkey provider for a FE+BE bundle. In June 2020, Samsung Electronics Co Ltd announced that they began construction of a new domestic production line for NAND flash memory chips, betting on demand for personal computers and servers as the coronavirus prompts more people to work from home. Samsung mentioned that the additional capacity would also help meet the demand for 5G smartphones and other devices despite recent delays in deployments of 5G networks in Europe and other countries due to pandemic. The production line for NAND memory significantly raises the demand for panel level packaging market.
Panel Level Packaging Market Segment Analysis - By Geography
Panel Level Packaging market in Asia-Pacific region held significant market share of 35.5% in 2020. With the presence of several significant vendors in the power electronics market, which are actively investing for 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. As Panel level packaging technology is used for the packaging of various semiconductor products, including a field-programmable gate array (FPGA), CPU/GPU, and power management IC module, baseband, WiFi devices, RF devices, transducers, and networking & servers, hence growth of semiconductor industry will drive the market growth. In the Smart 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. In addition, the growing penetration of 5G wireless communication and high performance computing has enabled the manufacturers to come up with newer technologies. For instance, Taiwan Semiconductor Manufacturing Company Limited (TSMC) is planning to extend its panel level packing segment into technologies like in Fan Out-Antenna-in-Package (AiP) and inFO-on-Substrate (oS). Hence these factors drive the Panel Level Packaging market industry outlook in the forecast period 2021-2026.
Panel Level Packaging Market Drivers
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.
Growing R&D activities
Manufacturers are continuously focusing on R&D to develop new and effective Panel Level Packaging solutions to meet consumer demand. In 2019, TDK America showcased AFM 15 Flip Chip GGI Die Bonder and PLP Load Port at SEMICON West 2019. AFM 15 for GGI flip-chip back end assembly packaging allows for die-sized capability 80?m2 ~ 20mm2, low energy dies bonding, a clean, lead-free process, and high productivity. This type of development will enhance the production process. Furthermore, in November 2019, Quik -Pak, announced it acquired Santa Clara -based QBBS for broadening its portfolio of the wafer preparation services. This addition of QBBS’s automated capability enables Quik-Pak in processing customer wafers in large volumes. Quik-Pak will integrate the QBBS technology into its wafer prep line in 2020. In 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. Hence these factors are analysed to drive the market growth in the forecast period 2021-2026.
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Panel Level Packaging Market Challenges
High initial Cost
Fan-out packaging on a large square panel is significantly more difficult, and mass adoption is not expected anytime soon. High initial investment for setting up a panel level packaging is analyzed to hamper the market growth, several companies such as Advanced Semiconductor Engineering, Inc. (ASE), Powertech, Nepes, and Samsung are looking to panel-level packaging to reduce cost of investment. According to ASE, It costs about $100 million to $200 million to build a panel-level production line. This high initial cost of setup hinder the market growth in the forecast period 2021-2026.
Panel Level Packaging Market Landscape
Product launches, acquisitions, Partnerships and R&D activities are key strategies adopted by players in the Panel Level Packaging market. Panel Level Packaging top 10 companies include Amkor Technology, Inc., Deca Technologies, Lam Research Corporation, ASE Group, Siliconware Precision Industries Co., Ltd., Fraunhofer Institute for Reliability and Micro integration IZM, Taiwan Semiconductor Manufacturing Company, Shinko Electric Industries Co, Ltd., Samsung Electro-Mechanics, Jiangsu Changjiang Electronics Tech Co. among others.
Acquisitions/Product Launches
In 2020, Taiwan Semiconductor Manufacturing (TSMC) announced plans to build a $12 billion factory in Arizona with support from the state and the U.S. government. TSMC said the plant would be able to produce 20,000 semiconductor wafers a month, directly employing more than 1,600 people.
In 2019, Deca Technologies has reached an agreement with nepes Corporation whereby nepes will expand its geographic footprint and manufacturing capabilities by taking over the operations of Deca Technologies Philippines manufacturing facility.
Key Takeaways
Consumer Electronics sector is expected to witness a highest CAGR of 19.9% the forecast period, as this segment is powering a new wave of developments in electronic packaging.
Panel Level Packaging market in Asia-Pacific region held significant market share of 35.5% in 2020. With the presence of several significant vendors in the power electronics market, which are actively investing for the development of advanced panel-level packaging technology is driving the market growth.
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.
Panel Level Packaging companies are strengthening their position through mergers & acquisitions and continuously investing in research and development (R&D) activities to come up with solutions to cater to the changing requirements of customers.
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