3D IC and 2.5D IC Packaging Market by Packaging Technology (3D Wafer-Level Chip Scale Packaging, 3D TSV and 2.5D), Application (Logic, Memory, MEMS/Sensors, Imaging & Optoelectronics, LED), End User and Region - Global Forecast to 2028
[224 Pages Report] The 3D IC and 2.5D IC packaging market is estimated to be worth USD 49.3 billion in 2022 and is projected to reach USD 82.0 billion by 2028, at a CAGR of 10.7% during the forecast period. Growing adoption of high-end computing, servers, and data centers and miniaturization of IoT Devices are some of the major opportunities that lie ahead for the market.
3D IC and 2.5D IC Packaging Market Forecast to 2028
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3D IC and 2.5D IC Packaging Market Dynamics
Driver: Growing demand for consumer electronics and gaming devices
With the latest technological advancements, there are many new gadgets coming up in the market, such as e-book readers, gaming devices, tablet computers, 3D smart glass, augmented reality, and virtual reality products which demand high-performance electronic components. 3D IC packaging technology has helped bridge the processor memory performance gap by shortening the critical path and reducing the latency. It also allows scaling to continue efficiently by moving the focus from device-level scaling to circuit- and system-level scaling.
In addition, the advent of 5G technology has fueled the demand for 5G-enabled smartphones. According to Samsung, the demand for smartphones and 5G smartphones is expected to grow at a CAGR of 6% and 37%, respectively, from 2021 to 2025, due to the rising commercialization of 5G technology. Smartphone manufacturers such as Apple Inc., Samsung, Huawei, Vivo, Honor, OPPO, Xiaomi, and OnePlus have commercialized their 5G smartphones worldwide. Thus, the increase in the shipment of 5G smartphones is expected to fuel the demand for 3D IC and 2.5D IC packaging industry during the forecast period.
Restraint: Thermal issues resulting from higher level of integration
3D IC offers highly dense multi-level integration per unit footprint. Though this is attractive for many applications where miniaturization is a concern, it also creates challenges for thermal management; increased integration leads to high on-chip temperature. 3D ICs have several issues that must be resolved, including a larger form factor, the requirement for a larger silicon interposer, and longer design cycles. Overheating is observed during the production of 3D ICs with TSVs. Elevated temperatures result in a drop in threshold voltage and degradation of mobility. The resistance and power dissipation increases as a major part of the component is made up of metal.
Opportunity: Rising number of smart infrastructure and smart city projects
3D IC packaging can play a significant role in the development and implementation of smart city technology. Smart cities rely on a variety of electronic devices, sensors, and systems to collect and analyze data in real time, enabling better decision-making and more efficient resource management. By using 3D IC packaging, these devices and systems can be made smaller and more powerful and energy efficient. This helps reduce the overall cost and size of smart city infrastructure while improving performance and reliability.
Challenge: Reliability challenges with 3D IC packaging
The semiconductor industry business is primarily driven by applications such as data centers/cloud, mobility, and the Internet of Things (IoT). The packaging technique must advance alongside the scaling of integrated circuit (IC) technology in order to fulfill the demands of next-generation information and communication technology (ICT) systems. Package design and development must simultaneously meet cost, performance, form factor, and reliability objectives. In terms of powering the design, the power density is higher for a given footprint than for traditional 2D chips. However, answering reliability issues will be crucial.
3D IC and 2.5D IC Packaging Market Ecosystem
The 3D IC and 2.5D IC packaging technology market is marked by the presence of a few tier-1 companies, such as Samsung Electronics Co. Ltd (South Korea), Taiwan Semiconductor Manufacturing Company Limited (Taiwan), Intel Corporation (US), ASE Technology Holding Co., Ltd. (Taiwan), Amkor Technology (US), Broadcom (US), and many more. These companies have created a competitive ecosystem by investing in research and development activities to launch highly efficient and reliable 3D IC and 2.5D IC packaging solutions.
Consumer electronics to hold largest market share among end users in 3D IC and 2.5D IC packaging market
Consumer electronics, by end user, is expected to hold the largest market share of the 3D IC and 2.5D IC packaging market. Increasing memory requirements in consumer products such as smartphones and tablets are driving the need for various advanced memories such as double-data-rate (DDR) dynamic random-access memory (DRAM), flash memory, and so on to be integrated. The advanced memory architectures are driving the demand for the 3D IC and 2.5D IC packaging market to offer high-performing, large-capacity, and compact products.
MEMS/Sensors to register highest CAGR in the 3D IC and 2.5D IC packaging market during forecast period
The functional components of MEMS are micro sensors, micro actuators, and microelectronics. The advanced elements of MEMS are accelerometers, gyroscopes, digital compasses, inertial modules, pressure sensors, humidity sensors, microphones, and smart sensors, among others. The key requirement in all these elements and sensors is a miniaturized structure. Therefore, many sensors have started adopting 3D IC and 2.5D IC packages.
3D WLCSP to register highest CAGR in the 3D IC and 2.5D IC packaging market during forecast period
3D WLCSP is one of the most compact package types, with increased functionality and improved thermal performance in printed circuit boards compared to 3D TSV and 2.5D IC. 3D WLCSP has a simplified process design for manufacturing 3D ICs, which uses polymers that can sustain high temperatures, thus addressing the thermal issue, which is the major challenge for this market. 3D WLCSP has gained popularity in space-constrained consumer electronic applications and other portable consumer devices as well as industrial products as it offers cost-effective, small, lightweight, high-performance semiconductor solutions.
Asia Pacific held to register highest CAGR in the 3D IC and 2.5D IC packaging market during forecast period
The Asia Pacific region is one of the key markets for 3D IC and 2.5D IC packaging owing to its broad scope in various consumer electronics applications, particularly in smartphones and tablets. This is mainly because of the high population density in the region, making it the largest potential market for 3D IC and 2.5D IC packaging among the four major regions.
3D IC and 2.5D IC Packaging Market by Region
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Key Market Players
The major players in the 3D IC and 2.5D IC packaging Companies include. The key players such as Samsung (South Korea), Taiwan Semiconductor Manufacturing Company, Ltd. (Taiwan), Intel Corporation (US), ASE Technology Holding Co., Ltd. (Taiwan), Amkor Technology (US), Broadcom (US), Texas Instruments Inc. (US), United Microelectronics Corporation (Taiwan), JCET Group Co., Ltd. (China) and Powertech Technology Inc. (Taiwan). These companies have used both organic and inorganic growth strategies such as product launches, acquisitions, and partnerships to strengthen their position in the market.
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Segment |
Subsegment |
| Estimated Market Size | USD 49.3 Billion |
| Projected Market Size | USD 82.0 Billion |
| Growth Rate | 10.7% |
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Market size available for years |
2019–2028 |
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Base year considered |
2022 |
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Forecast period |
2023–2028 |
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Forecast units |
Value (USD Million/USD Billion) |
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Segments covered |
By Packaging Technology, Application, End User, and Region |
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Geographies covered |
North America, Europe, Asia Pacific, and Rest of World |
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Companies covered |
The major players in the 3D IC and 2.5D IC packaging market are Samsung (South Korea), Taiwan Semiconductor Manufacturing Company, Ltd. (Taiwan), Intel Corporation (US), ASE Technology Holding Co., Ltd. (Taiwan), Amkor Technology (US), Broadcom (US), Texas Instruments Inc. (US), United Microelectronics Corporation (Taiwan), JCET Group Co., Ltd. (China) and Powertech Technology Inc. (Taiwan) |
3D IC and 2.5D IC Packaging Market Highlights
The study segments the 3D IC and 2.5D IC packaging market based on By Packaging Technology, Application, End User, and Region
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Segment |
Subsegment |
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By Packaging Technology |
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By Application |
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By End User |
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By Region |
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Recent Developments
- In February 2023, Amkor Technology (US) has partnered with GlobalFoundries (US), a semiconductor manufacturer. Under the arrangement, foundry chipmaker GlobalFoundries will transfer bump and sort lines for 300 mm wafers from its Dresden wafer fab to Amkor’s facility in Porto, Portugal. This strategic partnership with GlobalFoundries will enhance Amkor's advanced semiconductor packaging supply chain.
- In February 2023, UMC (Taiwan) and Cadence (US) collaborated on 3D-IC Hybrid Bonding Reference Flow. This technology supports the integration across a broad range of technology nodes suitable for edge AI, image processing, and wireless communication applications. Cost-effectiveness and design reliability are the pillars of UMC’s hybrid bonding technologies, and this collaboration with Cadence provides mutual customers with both, helping them reap the benefits of 3D structures while also accelerating the time needed to complete their integrated designs.
- In June 2022, Advanced Semiconductor Engineering, Inc. (ASE), a member of ASE Technology Holding Co., Ltd., launched VIPack, an advanced packaging platform designed to enable vertically integrated package solutions. The platform leverages advanced re-distribution layer (RDL) processes, embedded integration, and 2.5D and 3D technologies to help customers achieve unprecedented innovation when integrating multiple chips within a single package.
Frequently Asked Questions (FAQ):
What is the current size of the global 3D IC and 2.5D IC packaging market?
The 3D IC and 2.5D IC packaging market is estimated to be worth USD 49.3 billion in 2022 and is projected to reach USD 82.0 billion by 2028, at a CAGR of 10.7% during the forecast period.
Who are the winners in the global 3D IC and 2.5D IC packaging market?
Samsung (South Korea), Taiwan Semiconductor Manufacturing Company, Ltd. (Taiwan), Intel Corporation (US), ASE Technology Holding Co., Ltd. (Taiwan), and Amkor Technology (US) are the star companies in the 3D IC and 2.5D IC packaging market.
Which region is expected to hold the highest market share?
Asia Pacific is expected to dominate the 3D IC and 2.5D IC packaging market during forecast period owing to the availability of low-cost labor in China, innovations and advancements by fabrications plants in Taiwan, manufacturing capabilities of Japanese companies, and the establishment of new fabs in China, Taiwan, Japan, and South Korea.
What are the major opportunities related to 3D IC and 2.5D IC packaging market?
Growing adoption of high-end computing, servers, and data centers, miniaturization of IoT Devices and rising number of smart infrastructure and smart city projects are the major opportunities related to 3D IC and 2.5D IC packaging market.
What are the major strategies adopted by market players?
The key players have adopted product launches, acquisitions, and partnerships to strengthen their position in the 3D IC and 2.5D IC packaging market.
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The research study involved 4 major activities in estimating the size of the 3D IC and 2.5D IC packaging market. Exhaustive secondary research has been done to collect important information about the market and peer markets. The validation of these findings, assumptions, and sizing with the help of primary research with industry experts across the value chain has been the next step. Both top-down and bottom-up approaches have been used to estimate the market size. Post which the market breakdown and data triangulation have been adopted to estimate the market sizes of segments and sub-segments.
Secondary Research
In the secondary research process, various secondary sources were referred to for identifying and collecting information required for this study. The secondary sources include annual reports, press releases, and investor presentations of companies, white papers, and articles from recognized authors. Secondary research was mainly done to obtain key information about the market’s value chain, the pool of key market players, market segmentation according to industry trends, and regional outlook and developments from both market and technology perspectives.
Primary Research
In the primary research, various primary sources from both supply and demand sides were interviewed to obtain qualitative and quantitative insights required for this report. Primary sources from the supply side include experts such as CEOs, vice presidents, marketing directors, equipment manufacturers, technology and innovation directors, end users, and related executives from multiple key companies and organizations operating in the 3D IC and 2.5D IC market ecosystem.
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Market Size Estimation
In the complete market engineering process, both top-down and bottom-up approaches were used along with several data triangulation methods to estimate and forecast the overall market segments and subsegments listed in this report.
Estimating market size by bottom-up approach (demand side)
- Identifying the entities in the semiconductor value chain influencing the entire 3D IC and 2.5D IC packaging industry, along with the related software and service providers
- Analyzing each type of entity along with related major companies identifying service providers for the implementation of products and services
- Estimating the market for these 3D IC and 2.5D IC end users
- Understanding the demand generated by the semiconductor industry-related companies
- Tracking ongoing and upcoming implementation of 3D IC and 2.5D IC packaging developments by various companies and forecasting the market based on these developments and other critical parameters
- Arriving at the market size by analyzing 3D IC and 2.5D IC packaging companies based on their countries, and then combining it to get the market estimate by region
- Verifying estimates and crosschecking them by a discussion with key opinion leaders, which include CXOs, directors, and operation managers
- Studying various paid and unpaid sources of information, such as annual reports, press releases, white papers, databases, and so on
Market Size Estimation Methodology-Bottom-up Approach
Data Triangulation
After arriving at the overall market size from the market size estimation process explained in the previous section, the total market was split into several segments and subsegments. Data triangulation procedure was employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments. The data was triangulated by studying various factors and trends from the demand and supply sides, and the market size was validated using top-down and bottom-up approaches.
Market Definition
A three-dimensional integrated circuit (3D IC) is a package with multiple layers of silicon wafers stalked together, along with electronic components using through-silicon vias (TSVs), while a 2.5-dimensional integrated circuit (2.5D IC) is a package with active electronic components (for example, a die or a chip) stacked on an interposer through conductive bumps or TSVs.
Stakeholders
- Suppliers of Raw Materials and Manufacturing Equipment
- Providers and Manufacturers of Components
- Providers of Software Solutions
- Manufacturers and Providers of Semiconductor Devices
- Original Equipment Manufacturers (OEMs)
- ODM and OEM Technology Solution Providers
- Suppliers and Distributors of Semiconductor Manufacturing Devices
- System Integrators
- Middleware Providers
- Assembly, Testing, and Packaging Vendors
- Market Research and Consulting Firms
- Associations, Organizations, Forums, and Alliances Related to the Semiconductor Packaging
- Technology Investors
- Governments, Regulatory Bodies, and Financial Institutions
- Venture Capitalists, Private Equity Firms, and Startups
- End Users
The main objectives of this study are as follows:
- To define, describe, and forecast the 3D IC and 2.5D IC packaging market, in terms of value, based on application, packaging technology, and end user
- To forecast the market size, in terms of value, for various segments with respect to four regions, namely, North America, Europe, Asia Pacific, and Rest of the World
- To provide detailed information regarding the major factors influencing the growth of the market (drivers, restraints, opportunities, and challenges)
- To strategically analyze the micromarkets1 with respect to individual growth trends, future prospects, and contributions to the total market
- To analyze opportunities in the market for stakeholders by identifying high-growth segments of the 3D IC and 2.5D IC packaging market
- To provide a detailed overview of the value chain of the market and analyze market trends with Porter’s five forces analytical framework
- To strategically profile the key players and comprehensively analyze their market position in terms of ranking and core competencies2 along with detailing the competitive landscape for market leaders
- To analyze strategic developments such as product launches and related developments, acquisitions, expansions, and agreements in the 3D IC and 2.5D IC packaging market
- To track and analyze competitive developments, such as partnerships, collaborations, agreements, joint ventures, mergers and acquisitions, expansions, product launches, and other developments in the market
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
Country-wise Information:
- Analysis for additional countries (up to five)
Company Information:
- Detailed analysis and profiling of additional market players (up to five)
Generating Response ...
Growth opportunities and latent adjacency in 3D IC and 2.5D IC Packaging Market