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Pallet-level Packaging Market – Growth, Trends, Impact of COVID-19, and Forecast (2022

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The global sheet-level packaging (PLP) market is expected to register a CAGR of 28.1% during the forecast period from 2022 to 2027. With the outbreak of COVID-19, the PLP packaging market witnessed a slowdown in growth due to restrictions in movement of goods and severe disruptions in Semiconductor supply chain.

NEW YORK, Dec. 06, 2022 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of report “Panel Level Packaging Market – Growth, Trends, Impact of COVID-19, and Forecast (2022 – 2027)” – https://www.reportlinker.com/ p06370511/?utm_source=GNW
Small factors with improved thermal performance are creating a huge demand for panel-level encapsulation technology in many industrial applications such as consumer electronics, automotive, aerospace, defense, and communications.

the main points
The plate-level packaging (PLP) process is expected to become a critical packaging process, and manufacturers are increasingly leading their suppliers to provide sheet-handling tools and materials to allow them to bring precision at the wafer-level to processes packaged on plate substrates. This packaging is used to package Field Programmable Gate Arrays (FPGA), CPU/GPU, Power Management ICs, Baseband, and more. This solution reduces the cost of round packaging and enhances design flexibility.
Moreover, players such as ASE, Powertech, Nepes, and Samsung expect packaging at the board level, which provides economies of scale. To lower the price of advanced enclosures, these companies are creating or expanding ventilated enclosures at the panel level. One of the many types of advanced packaging that allows the integration of dies, micro-electromechanical systems (MEMS), and underlying materials into a single IC package is a wafer-level fan. This method, which is produced as a circular wafer in sizes of 200mm or 300mm, has been in use for a number of years.
Semiconductor industry market players aim to develop next-generation semiconductor packaging technologies through knowledge transfer and joint research and development. ? For example, in October 2021 Showa Denko Materials Co. Ltd announced the creation of the “JOINT2 (Jisso Open Innovation Network of Tops 2)” consortium, which includes 12 companies developing materials, equipment and substrates for semiconductor packaging. The project also aims to create a large board-wide packaging for application processors.
Moreover, the COVID-19 pandemic has impacted, resulting in lower inventory levels for semiconductor vendors’ customers and distribution channels. Furthermore, major semiconductor vendors have been operating at reduced capacity due to the global spread of the COVID-19 virus. For example, Foxconn iPhone production operations located about 300 miles from Wuhan in Zhengzhou are running at 10-20% capacity due to manpower issues shutting down cities.
However, the challenge associated with board packaging is that IC vendors have traditionally relied on chip scaling for their device development. In analogy, the focus is on packing more transistors onto the interconnected die at each process node, enabling faster chipsets at a lower cost per transistor. But chip scaling is not going away, as it becomes more difficult and expensive at each node, leading many IC vendors to look for other alternatives.
Currently, board-level processing includes a combination of LCD, PCB, wafer-level, and high-density interconnect assemblies and is directed at a busy industrial landscape. However, the ongoing semiconductor shortage and supply chain crisis have created opportunities for encapsulation at the board level, considering the benefits it could provide if used for volume manufacturing. The benefits that drove WLP adoption, including improved performance and lower costs, are now driving the adoption of packaging at the board level.

Major market trends

Consumer electronics is expected to have a significant share

Consumer electronics, such as cell phones, are powering a new wave of developments in electronic packaging. The demand for panel-wide enclosures is skyrocketing in many countries, driving more consumer electronic sales annually. Moreover, Fraunhofer IZM in Berlin, with the second consortium launched in 2020-2022, has shifted this focus to template placement and ultra-fine line embedding technology. Project progress includes: New panel-level packaging equipment installed during preparation for PLC 2.0 and project benefits.
In addition, with the advent of smart devices, the applications of semiconductor components are expanding rapidly. Chip size, information transmission speed, and performance requirements in network communications, automotive applications, and manufacturing are also becoming more stringent. However, 5G, AIoT, and high-performance computing (HPC) companies are increasingly turning to fan- and chip-board (FOPLP) packaging when purchasing chips.
Similarly, companies are focusing on manufacturing FOPLP solutions to increase the demand for them. For example, in May 2021, Manz AG, a high-tech system manufacturer with a comprehensive technology portfolio, implements its revolutionary microchip packaging process, Fan-Out Plate Level Packaging (FOPLP). Also, the company is currently taking follow-up orders in the mid-single-digit €1 million range from a supplier in the microchip business.
Moreover, Samsung Electronics is the frontrunner in panel level packaging technology development. The company has conducted research and development on technology over the past few years. For example, in August 2021, Samsung Electronics announced its new wearable processor, the Exynos W920. This processor is the first processor to be built using an advanced 5nm EUV process node. Moreover, the processor comes in the industry’s smallest package available for wearable devices using Fan-Out Panel Level Packaging (FO-PLP).

North America is expected to have a significant share

North America is expected to witness significant growth in the studied market owing to heavy reliance on consumer electronics, integration of advanced technology in automobiles, and several other players who have focused on investing in the region. The semiconductor industry (including discrete) in the United States is one of the largest exporting industries.
Furthermore, according to the International Trade Association (ITA), most semiconductors (more than 82%) consist of exports and direct sales to the United States by US-owned subsidiaries abroad and take into account US research and development, intellectual property creation (IP), design and other high value added work.
North American researchers are investing in product innovations using microelectromechanical systems. California-based MEMS Engine announced a partnership with SmartSens Technology to integrate MEMS with image sensor chips to achieve chip-level optical image stabilization (OIS) to expand its application in security monitoring, artificial intelligence, machine learning, and autonomous vehicles. This greatly advances packaging in MEMS for airtight and reliable packaging solutions.
Moreover, the electronics industry in the region is growing steadily and has a prominent share in many companies working in the field of design and fables. According to the US Census Bureau, the revenue of the semiconductor and other electronic components sector is expected to reach 105.16 billion US dollars by 2023, driving the market demand.
Orange is focusing on mergers and expansions to innovate advanced solutions in the plate-level packaging market. For example, in June 2022, NEPES joined the American Alliance for Semiconductor Innovation (ASIC) to promote global cooperation in the field of semiconductors. As members of ASIC, the company will contribute to the development of a strong technical plan proposal in advanced packaging.
Moreover, since plate level processing involves a combination of LCD, PCB, wafer level, etc., resulting in a complex industrial landscape, the SEMI Standards Plate Level Packaging Task Force has led the push for single plate size standardization Through a variety of different materials and different processes.

Competitive scene

The market is a bit competitive with major players such as Amkor Technology, Inc. , Deca Technologies, Lam Research Corporation, ASE Group, and Taiwan Semiconductor Manufacturing Company Limited. These companies have a large share of the market. However, more companies are engaged in large-scale research and development activities and market development to develop competitive plate-level packaging technology in the coming years.

November 2021 – Amkor Technology, Inc. announced its plans to build a state-of-the-art factory in Bac Ninh, Vietnam. This manufacturer mainly focuses on providing advanced plan-level packaging assembly and testing systems to semiconductor and electronics manufacturers around the world.
October 2021 – Deca Technologies and SkyWater Technology announce their agreement for Deca’s second-generation M-Series fan-level packaging technology with adaptive patterning inside SkyWater’s advanced packaging facility in Florida. The companies are creating the first high-volume FOWLP capability in the United States, for proven solutions for single and multi-mold packaging and cutting-edge heterogeneous integration capability to chip through 2.5D and 3D applications.

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Market Estimation (ME) sheet in Excel format
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