The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic
The Fan-out Packaging market is expected to witness a CAGR of 18% during the forecasted period (2020 - 2025). The fan-out technologies prevalance since a long time is mainly due to cost, reliability and customer adoption. Approximately more than 20% thinner than traditional Flip Chip assembly, fan out packaging is supplementing the trend of slim profile of smart phones.
- Fan-out wafer level packaging (FOWLP) finds its increased application in footprint-sensitive devices such as smartphones due to requirement of high-performing, energy-efficient thin- and small-form-factor packages.
- Furthermore, with disadvantages of PoP in terms of thickness and not being able to reduce beyond 0.8mm, the market has gradually shifted onto fan-out for the application processor based on 10nm process.
- According to the Semiconductor Industry Association report 2018, the end-use categories like computer and communications hold major sales of USD 144.3 billion and USD 151.9 billion respectively.
- The semiconductors enable a wide variety of products for smartphones and computers and the demand for these devices is increasing year on year. A positive outlook for IoT and artificial intelligence are also increasing the growth of the semiconductor industry which in turn would require intensive use of fan-out technologies.
Scope of the Report
The fan-out packaging market covers study of Market Type (Core Fan-Out, High-Density Fan-Out), Carrier Type (200mm, 300mm, Panel) and Business Model (OSAT, Foundary, IDM).
Key Market Trends
Panel Level Packaging to Hold a Significant Share during the Forecast Period
- Several packaging houses are implementing panel-level fan-out, a low-density technology that promises to lower the cost of fan-out. FOPLP is expected to be essential for future applications on 5G, AI, Biotech, Advanced Driver- Assistance System (ADAS), smart city, and IoT related products. Ability to develop advanced packing and testing services and secure customer relations serve as major factors.
- Smaller form factor with enhanced thermal performance has generated huge demand for panel level packaging technology among several industrial applications such as consumer electronics, automotive, aerospace & defense, telecommunication, and others.
- Market trends of reduced cost of circuit packaging, enhanced design flexibility and physical performance, and increased investment on research & development activities are the factors for manufacturers to continue on this technology.
- Time to Market is a major consideration for PLP as most of the players in the market are still in their R&D phase for PLP, for instance, in September 2018, Powertech Technology Inc, is investing in panel-based fan-out technology and has a five-year TWD 50 billion (USD 1.6 billion) investment plan for the technology, began since 2017 and is expected to ramp up production by the later half of 2020.
Taiwan to Hold a Significant Share in the Market
- Taiwan houses some of the major semiconductor manufacturing companies which are fueling the demand for advanced semiconductor packaging especially in PLPs. According to the Semiconductor Industry Association (SIA), Asia-Pacific generates more than 50% revenue for global semiconductor sales, this in turn, is providing Taiwanese vendors with an opportunity to supply FOWLP for increased semiconductor applications.
- Most of the companies in the country are expanding their production capacity of Fan-out packaging which is further expected to increase the exports and will also help in developing local market.
- For instance, ASE Group brought up a FO-WLP line, in Kaohsiung, Taiwan, with other major OSATs in production or planning their launch phases for fan-out packaging. Also, Fab 3 in Hsinchu Science Park is expectd be the world’s first fab that would commercially use fan-out panel-level packaging (FOPLP) technology as it starts operations in the second half of 2020, according to Powertech Technology Inc.
- Also, the growing market for fifth generation (5G) wireless communication and high performance computing has enabled the manufacturers to come up with newer technologies. For instance, in High-Density Fan-out segment, TSMC as a sole leader, is planning to extend its FO-WLP segment into technologies like inFO-Antenna-in-Package (AiP) and inFO-on-Substrate (oS).
The competitive landscape involves huge investment in Research and Development by major companies, like Samsung and TSMC. Parallelly, many IDMs are pushing for Fan-Out development and embedding of their dies through R&D and small series in collaboration with OSATs.
- Sept 2019 – Innolux Corp confirmed on developing fan-out panel-level packaging (FOPLP) for semiconductors along with the Industrial Technology Research Institute.
- Aug 2019 - Deca Technologies, a wafer-level electronic interconnect solutions provider to the semiconductor industry, ammounced that its M-Series fan-out wafer-level packaging (FOWLP) was adopted by Qualcomm for power management integrated circuit (PMIC) devices in Samsung’s flagship S10 handset, along with the Xiaomi Mi 9 and LG G8 handsets.
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