No End in Sight
The market for cutting-edge “semiconductor packaging” technology is heating up. As semiconductor manufacturing processes become more advanced, both domestic and international companies are fiercely competing to dominate the packaging market.
According to a report on Sept. 6 by global market research firm Fairfield, the semiconductor packaging market is expected to grow by more than 10% annually, reaching an estimated size of US$90 billion by 2030.
Semiconductor packaging technology has evolved in sync with the rising demand for advanced products. Initially, semiconductor packaging was merely a final wrapping step before shipping out products. However, it has progressively been incorporated into all manufacturing processes, including at the wafer (semiconductor substrate) stage where electric signals are passed and multiple semiconductors are packaged simultaneously. Whereas it once simply served as wrapping, it is now utilized from the initial stages of manufacturing.
The next-generation memory semiconductor High Bandwidth Memory (HBM), led by SK hynix, is also based on packaging technology. This involves bundling (packaging) several traditional DRAM memory semiconductors together to enhance efficiency.
Korea is a latecomer in the packaging field. Companies such as Taiwan-based ASE, the U.S.-based Amkor, and Intel are leading the semiconductor packaging market. According to market research firm Yole Développement, the 2021 semiconductor post-processing sales rankings are led by ASE, followed by Amkor and China’s JCET. An executive in the semiconductor industry commented, “While there is a technological gap, it’s not insurmountable.”
Taiwan’s TSMC is leveraging packaging technology as a strategy to dominate the foundry market. It is known that Nvidia Graphics Processing Units (GPUs) like A100 and H100, predominantly used in generative AI servers, are produced using TSMC’s packaging technology. This approach involves packaging memory and computational semiconductors onto a substrate.
Samsung Electronics is emphasizing its packaging technical expertise in the HBM manufacturing process. Samsung Electronics is the only company that has established a turnkey production system, spanning from HBM design and production to 2.5D advanced packaging. Packaging technology is expected to have a positive impact on the expansion of the foundry market.
With the growing demand for advanced products, competition in packaging technology is projected to intensify. This isn’t just due to products like generative AI but also because of the growth of industries like electric vehicles (EV) and autonomous driving technologies. Notably, semiconductor packaging technology is anticipated to play a role in the automotive industry due to its durability, temperature control, and high-performance interconnections.
Major semiconductor companies are also increasing their investments in the packaging sector. Intel plans to invest around US$3 billion this year to introduce the “Foveros” packaging technology of 3D stacking into its production process. TSMC and Samsung Electronics are expected to invest approximately US$3.2 billion and US$1.8 billion, respectively.