Packaging leap in semiconductor innovation

The global panel level packaging market size is estimated to reach USD 11.13-billion by 2033, up from USD 0.43-billion in 2023, at a compound annual growth rate (CAGR) of 38.60% from 2024 to 2033.

Panel Level Packaging (PLP) is transforming semiconductor packaging by shifting to large-panel configurations. This shift not only enhances economies of scale but also boosts manufacturing efficiency. With SEMI Standard 3D20 standardising panel sizes, equipment manufacturers are now investing heavily in tools designed to support PLP, leading to cost savings and greater productivity.

Glass substrates are making waves in the semiconductor world. For its electrical properties and suitability for high-frequency applications, glass is becoming a preferred choice. Companies with extensive experience in glass wafer and panel production are set to lead this trend, positioning themselves at the forefront of the industry.
With this, the demand for smaller, faster, and more capable electronic devices is skyrocketing. Technological advancements in 5G, IoT, virtual and augmented reality, and autonomous driving are pushing the limits of semiconductor technology. This report delves into how manufacturers are rising to the challenge, developing solutions to meet these new demands.

As integration and miniaturisation continue to advance, managing thermal resistance is becoming increasingly critical. This report explored how new panel-level packaging techniques are addressing these challenges, ensuring effective heat transfer and enhanced performance.

The demand for miniaturisation in the electronics industry is projected to support the growth of the market during the forecast period. For most of the technological advancements, miniaturisation has been extremely important. Electronic packaging is one of the many procedures related to semiconductor devices and circuit technology, which acts as the foundation for highly effective, compact electronic systems.

Larger batteries can be included into devices without increasing their total size due to the miniaturisation of electronic subdivisions, which makes them appealing to end users across nearly all industries.

As global demand for advanced electronic devices continues to surge, fueled by the proliferation of technologies such as 5G, artificial intelligence (AI), autonomous vehicles, and the Internet of Things (IoT), the semiconductor industry is experiencing unprecedented expansion.

In July 2024, the Semiconductor Industry Association (SIA) announced global semiconductor industry sales hit USD 49.1-billion during the month of May 2024, an increase of 19.3% compared to the May 2023 total of USD 41.2-billion and an increase of 4.1% compared to the April 2024 total of USD 47.2-billion. The global semiconductor market has grown on a year-to-year basis during each month of 2024, and year-to-year sales in May increased by the largest percentage since April 2022. The American market experienced particularly strong growth, with a year-to-year sales increase of 43.6%.

The third phase of National Integrated Circuit Industry Investment Fund has amassed USD 47.5-billion from the central government and various state-owned banks and enterprises including Industrial & Commercial Bank of China. This surge in investment is particularly beneficial for PLP, as it aligns with the industry's pursuit of innovative packaging solutions that can enhance device performance while reducing size and cost.

With the semiconductor industry channeling billions of dollars into new manufacturing facilities, equipment, and technology development, there is a significant opportunity for PLP to be adopted on a larger scale.

Asia Pacific is likely to grow at the fastest CAGR of 40.89% during the forecast period. This is owing to the well-established infrastructure of semiconductor fabrication as well as the presence of the advanced electronics manufacturing hubs in the economies like China, South Korea, Taiwan and Japan. Furthermore, the growing investment in semiconductor production is also expected to contribute to the growth of the market in the region.