According to the latest market study released by Technavio, the global fan-in wafer-level packaging (WLP) market is expected to reach USD 4.75 billion by 2020, growing at a CAGR of almost 10%.
This research report titled ‘Global Fan-In WLP Market 2016-2020’ provides an in-depth analysis of the market in terms of revenue and emerging market trends. The report also presents a corresponding detailed analysis of the major vendors manufacturing fan-in wafer-level packages in North America, APAC, and Europe.
The increasing number of fabs globally has pushed the demand for IC packaging solutions. The vendors are setting up new fabs in different countries to produce memory devices like dynamic random access memory (DRAM) and not AND (NAND). The transition of semiconductor industry such as miniaturized semiconductor electronics, because of emerging technology such as the Internet of Things (IoT), is also driving the global fan-in WLP market.
The surging demand for compact electronic devices in sectors such as telecommunications, automotive, industrial manufacturing, and healthcare has generated the need for miniaturized semiconductor ICs. With the emergence of products such as 3D ICs and MEMS devices, the electronic equipment is becoming compact and user-friendly, which involves changes in IC designing such as finer patterning.
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Technavio’s hardware and semiconductor analysts categorize the global fan-in WLP market into five major segments by application. They are:
- CMOS image sensor
- Wireless connectivity
- Logic and memory IC
- MEMS and sensor
- Analog and mixed IC
The top three segments by application for the fan-in WLP market are:
Analog and mixed ICs
The global analog and mixed IC shipments amounted to 27.57 billion units in 2015 and will reach 40.93 billion units by 2020, growing at a CAGR of 8.22% during the forecast period.
The demand for analog ICs from different segments (such as consumer electronics, communications, and automotive) is gradual but significant. The rising demand for smartphones, phablets, and tablets worldwide is driving their demand in the communications segment. The increasing pace of new product development, the declining cost per function of ICs, and the reduced product replacement cycle have contributed to the high demand for semiconductor ICs and, therefore, analog ICs. The rapid technological developments in the semiconductor industry and the development of efficient analog ICs (which deliver optimized performance) have also increased the proliferation of analog ICs in the global market space.
The global shipments in the wireless connectivity segment amounted to 2.71 billion units in 2015 and will reach 4.79 billion units by 2020, growing at a CAGR of 12.07% during the forecast period.
The wireless connectivity segment includes the demand for fan-in WLP solutions from technologies such as Wi-Fi, RF transceivers, Bluetooth, DC/DC converters, audio/video codecs, RF filters, gyroscopes, and accelerometers, which assist in providing optimum wireless connectivity. Wi-Fi technology is adapting to new protocol versions such as Wi-Fi Direct, 802.11ac, and 801.11ad. With continuous evolution of new technologies and continuous integration of Wi-Fi capability into mobile devices, the demand for wireless connectivity solutions will increase during the forecast period.
According to Sunil Kumar Singh, a lead semiconductor equipment analyst from Technavio, “The global Wi-Fi chipset market is experiencing the transition to 5th Wi-Fi generation, the 802.11ac with MIMO. An increasing number of customers are likely to adopt the technology due to an improvement in speed by up to 1.3 GHz over a long distance.”
Logic and memory ICs
The global shipments in the logic and memory IC segment amounted to 3.51 billion units in 2015 and will reach 4.79 billion units by 2020, growing at a CAGR of 6.42% during the forecast period.
Technological development has led to the introduction of better electronic devices across sectors, such as high-powered smartphones, performance-packed automobiles, automated machinery in the industrial sector, and electronic devices in the healthcare sector for better monitoring of patients. This has increased the demand for better processing to ensure efficient background operations.
The demand for high-powered processors has increased the demand for logic ICs, especially for automation purposes. This will trigger the demand for fan-in WLP solutions in the logic IC segment as they constitute an integral part of IC packaging at the manufacturing level.
The top vendors highlighted by Technavio’s research analysts in this report are:
- STATS ChipPAC
- Texas Instruments
Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.