North America advanced packaging market to witness massive growth

Expected to reach US $ 5 billion by 2026

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North America
North America advanced packaging market to reach US $ 5 billion by 2026. Photo Graphical Research

According to a recent study from market research firm Graphical Research, the North America advanced packaging market size is poised to expand at substantial CAGR during the forecast period. As several advanced packaging technologies such as copper hybrid bonding and wafer-level packaging (WPL) continue to evolve, the progress of North America advanced packaging industry outlook might prove to be spectacular through the forthcoming years. Growing migration toward IoT-connected devices, such as wearables, is accelerating the demand for miniaturized devices with enhanced functionality. This is expected to drive deployment rate across foundries and IDMs. 

Wi-Fi, BTLE, and Zigbee applications have also been leveraging the superior power dissipation of advanced packaging solutions at reduced operational costs offered by leading advanced packaging companies. Semi-conductor component companies and foundry suppliers are investing in new production facilities, powering North America advanced packaging market forecast. 

For instance, during May 2020, TSNC, allocated nearly $12 billion (approximately Rs 88,250 crore) toward the development of a new advanced chip manufacturing facility in Arizona, US. The new manufacturing unit is expected to leverage the latest 5nm chip production technology. 

The automotive industry has been registering considerable demand in North America advanced packaging market outlook, while other industrial verticals including aerospace and defense, healthcare, and industrial applications are also witnessing a constant uptick in recent times.

Advanced packaging industry share in North America from automotive segment is projected to grow at a 10% CAGR between 2020 and 2026, thanks to the development of advanced vehicle safety systems, alongside the growing need for automotive electronics. 

As electric vehicles (EVs) and hybrid electric vehicles (HEVs) are gaining traction across the region due to favorable government policies, advanced packaging chipsets will see high adoption in electric systems and infotainment gadgets. The rising consumption of electric vehicles will translate to higher demand for advanced chipsets, power modules, and sensors in North America advanced packaging market. As per the Global EV Outlook, the electric vehicle stock was recorded at 1.5 million in 2019 as compared with 1.1 million during 2018 in the US. 

The consumer electronics industry in the region has been another major contributor to North America advanced packaging market forecast. During 2019, it accounted for over 70% of the market share, driven by the trending miniaturization of electronic devices and integration with IoT. Compact smartphones, tablets, and wearable electronics are representing a major opportunity for market growth. Wafer-level packaging (WPL) is one of the popular techniques used for electronic products.

Advanced packaging assists in improving device performance, reducing packaging size, and boosting energy efficiency thereby offering a smaller footprint. A press release by the Consumer Technology Association published in January 2020, states that the US registered sales of consumer technology at US $ 401 billion (approximately Rs 29,49,040 crore), with an annual growth of 2.2% during 2019. 

Deca Technologies, Powertech Technology, Siliconware Precision Industries, Amkor Technology, ASE Group, Sanmina Corporation, and JCET Group are some advanced packaging companies in North America.

Source: https://www.graphicalresearch.com/industry-insights/1521/north-america-advanced-packaging-market

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