CoWoS Drives Demand for Advanced Packaging Equipment; Sales Expected to Surpass 10% Growth in 2024

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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.