CoWoS Drives Demand for Advanced Packaging Equipment; Sales Expected to Surpass 10% Growth in 2024
August 29, 2024 | TrendForceEstimated reading time: 1 minute
TrendForce reveals that sales of advanced packaging equipment are expected to grow by more than 10% in 2024, with the potential to exceed 20% in 2025. This growth is being driven by major semiconductor manufacturers’ ongoing expansion of advanced packaging capacity and the rapidly expanding global AI server market.
The growing need for AI servers is propelling the advancement of several cutting-edge packaging technologies—including InFO, CoWoS, and SoIC—ushering in a new era for the semiconductor industry. Around the world, new facilities for innovative packaging are being created. For example, TSMC is increasing its capacity for advanced packaging in Zhunan, Taichung, Chiayi, and Tainan, among other areas in Taiwan. In a similar vein, Intel is also establishing operations in New Mexico, USA, as well as Kulim and Penang in Malaysia. Meanwhile, major memory suppliers like Samsung, SK hynix, and Micron are launching new HBM packaging facilities in the US, South Korea, Taiwan, and Singapore.
Advanced packaging equipment includes tools such as electroplating machines, die bonders, molting machines, thinning machines, ball placement machines, dicing machines, curing overs, and marking machines. The supply chain for advanced packaging equipment has lower entry barriers unlike front-end process equipment, which is dominated by major US, Japanese, and European companies due to its high technical barriers and significant R&D investment. Leading foundries like TSMC are strategically nurturing local suppliers to reduce costs and establish a trustworthy local supply chain, making advanced packaging a key growth driver for Taiwanese manufacturers of packaging equipment.
Furthermore, Taiwan’s global reputation in the early development and manufacturing of machine tools has given its equipment suppliers a strong foundation in advanced packaging technologies. The continuous cultivation of talent in the field of mechanical processing also positions Taiwanese companies favorably to enter the market for advanced packaging equipment.
For Taiwanese manufacturers, the ability to expand production capacity in line with the growth of the advanced packaging equipment market will be crucial to their operational growth. Taiwanese packaging equipment companies will have opportunities to expand into foreign markets in addition to working with top foundries and OSATs as major semiconductor manufacturers continue to increase their capacity for advanced packaging.
Suggested Items
3M Joins Consortium to Accelerate Semiconductor Technology in the U.S.
02/04/2025 | PR Newswire3M is expanding its commitment to the semiconductor industry by joining the US-JOINT Consortium, a strategic partnership of 12 leading semiconductor suppliers. The consortium drives research and development in next-generation semiconductor advanced packaging and back-end processing technologies anchored by a new cutting-edge facility in Silicon Valley.
YINCAE Launches UF 120LA
02/04/2025 | YINCAEYINCAE has introduced UF 120LA, a high-purity liquid epoxy underfill engineered for advanced electronics packaging. With exceptional flowability into 20μ gaps, UF 120LA eliminates cleaning processes, reducing costs and environmental impact while ensuring superior performance across applications like BGA, flip chip, WLCSP, and multi-chip modules.
I-Connect007 Editor’s Choice: Five Must-Reads for the Week
01/31/2025 | Nolan Johnson, I-Connect007The year is off to a roaring start across the globe, but especially in the U.S. We’ll all be carefully watching the changes in policy, legislation, and enforcement coming out of Washington D.C., in the coming weeks and months. One thing is clear, though. No matter what your opinions or political affiliations are, things will change. That said, it is impossible to look at last week’s news and draw any conclusions about how everything will equilibrate in the end. Frankly, it’s just too soon for that sort of analysis. In the meantime, here are last week’s five top stories. If you’ve read nothing else about the industry this week, read these.
Koh Young Partners with NTV USA to Expand its Advanced Packaging and Semiconductor Inspection Solutions in the United States
01/28/2025 | Koh YoungKoh Young, the global leader in True 3D measurement-based inspection and metrology solutions, is excited to announce its partnership with NTV USA (NexTex Ventures, LLC) to bring its proven inspection technologies to the semiconductor industry.
TRUMPF, SCHMID Group Enable Cost-effective High-speed Chips
01/24/2025 | SCHMID GroupTRUMPF and the SCHMID Group are developing an innovative manufacturing process for the latest microchip generation for the global chip industry.