Growth in artificial intelligence (AI) hardware continues to drive revenue growth in the semiconductor industry and other segments of the electronics industry. In its latest Advanced Packaging Update, TechSearch International provides an update on developments in AI for data centers and edge computing, including package trends. A forecast is provided for AI packages.

Momentum in the adoption of co-packaged optics (CPO), specifically silicon photonics, is being driven by the need for optical I/O to support the bandwidth, power, and scale requirements of AI and machine learning (ML) workloads, and system architectures with an overall reduction in power consumption per bit transmitted. Companies such as TSMC have been preparing for CPO demand since 2017, but each year the timeline has shifted out. Demand in the last two years, driven by the deployment of AI training and inferencing models, appears to be making the market a reality by 2026 or 2027 at the latest. TechSearch International examines the drivers for CPO and the package trends as the industry moves from pluggables to land grid array (LGA) formats. Substrate trends are discussed. Challenges for CPO are highlighted.

The recent surge in satellite communications technology for consumers goes beyond the traditional applications of satellite phones and internet access. New advancements are under development and companies are emerging to make satellite connectivity pervasive, and in particular for enabling standard 4G/5G smartphones to access satellite-based services. A special section of the Update analyzes developments in satellite connectivity, highlighting packages.

The report also includes OSAT financials as reported at the end of Q3 2024.

The latest Advanced Packaging Update is a 54-page report with full references and an accompanying set of ~90 PowerPoint slides.

In its latest Advanced Packaging Update, TechSearch International provides an update on developments in hybrid bonding including applications, technical challenges, and proposed solutions. The report focuses on hybrid bonding for high-performance applications.

TechSearch International examines the growth in advanced packaging for high-performance computing (HPC) and analyzes assembly revenue. AI inferencing and training hardware, including high bandwidth memory (HBM), accounts for the majority of the assembly value. The HPC advanced packaging assembly market is defined as assembly of AI training and inferencing, server, and high-end network switch packages. Assembly revenue for HBM is included. OSAT financials are also highlighted in the report.

A special section of the report analyzes the fan-out panel market by dividing it into standard-density and high-density panels. Applications are presented and market forecasts are provided for both. Company activities are highlighted.

The report includes a section on RF front-end packaging developments in mobile devices with highlights from our teardowns.

The latest Advanced Packaging Update is a 67-page report with full references and an accompanying set of 77 PowerPoint slides.

In its latest Advanced Packaging Update, TechSearch International projects a 69% CAGR from 2023 to 2029 for packages using chiplet architectures. Packages shipping in volume production include silicon interposers, fan-out/redistribution layer (RDL) with both chip-first and chip-last designs, and chiplets attached to laminate build-up substrates, including embedded bridge such as Intel’s Embedded Multi-die Interconnect Bridge (EMIB). While some industry participants consider high bandwidth memory (HBM) to be a chiplet application, TechSearch International does not classify it as such, but it is a critical piece of the high-performance AI packaging solution. Strong growth of 73% CAGR is projected for DRAM wafers used in HBM from 2023 to 2028. Key players including SK hynix, Samsung, and Micron are working to develop hybrid bonding in the future, and many challenges remain. The report presents drivers, timelines, and plans for adoption. High-performance packages, including those for AI training and inferencing, typically use a silicon interposer, but demand for an increased number of HBM stacks is driving the industry to adopt RDL interposers to support 8, 12, or more HBMs. The report describes RDL interposer technology options and suppliers. Alternatives to glass core substrates are discussed.
 
While there is great interest in the use of glass core substrates, many challenges remain before the technology sees widespread adoption. TechSearch International’s latest analysis highlights the progress with the technology and identifies remaining challenges.
 
TechSearch International’s annual survey on substrate design rules is presented, with special coverage of suppliers of laminate flip chip BGA and CSP substrates worldwide. The design rules include body size, core thickness, via and pad diameter, minimum bump pitch supported, and substrate finish. Recent work to manage warpage in large substrates is included. OSAT financials are highlighted in the report.
 
The latest Advanced Packaging Update is a 117-page report with full references and an accompanying set of 98 PowerPoint slides.

Last year saw a 13.9% revenue decline for the top 20 OSATs and unit declines in every category of packages from ball grid arrays (BGAs) to quad flat no-lead (QFN) packages. This year promises to be better, but companies should not expect high growth levels unless they are participating in the AI training and inferencing market. Smartphone and PC shipments will each show growth of around ~2% this year, driving small unit shipment growth in all package categories. An analysis of applications using chip scale packages (CSPs) is provided and OSAT financials are highlighted in TechSearch International’s new Advanced Packaging Update.

Silicon interposers still account for most AI package shipments and a forecast for capacity and demand is provided. Samsung and TSMC are rolling out new package options to support large packages with more than eight HBMs. Samsung’s roadmap shows panel redistribution layer (RDL) as a future option. The AWS Trainum2, designed by Annapurna Labs, is shipping using CoWoS-R with RDL instead of a silicon interposer. Nvidia will use TSMC’s Chip-on-Wafer-on-Substrate® (CoWoS®-L) for its Blackwell AI solution featuring two GPUs plus eight HBMs in a package with an RDL interposer featuring local Si interconnect (or LSI) chips. TechSearch International’s latest analysis describes the large server and AI packages for training and inferencing packages. RDL packaging is picking up speed with more announcements each month.

TSMC is offering its System-on-Wafer (TSMC-SoW™) as an alternative to the use of a silicon interposer. The technology can enable >40X reticle option and can be combined with SoC or SoIC. SoW leverages both InFO and CoWoS technologies. InFO-SoW is in production for Tesla’s Dojo AI training tile. CoW-SoW with SoIC will be ready for mass production in 2027.

Bridge options are gaining more attention. Intel continues to use its Embedded Multi-Die Interconnect Bridge (EMIB) for high-end servers. IBM is working to scale its Direct Bonded Heterogeneous Integration (DBHi) to scale from 75µm pitch to 30µm pitch. BM’s bridge version allows the die to be connected to the bridge before attachment to a laminate substrate. Wisol, an affiliate of Daeduck in S. Korea, has announced it will offer bridges as a third-party supplier.

The report analyzes build-up substrate capacity and demand for the large-body, high-layer-count packages, finding no shortage in the overall substrate supply. AI, server CPUs, and network switch packages continue to drive the growth in body size. Demand will become tight in 2028, but sufficient capacity will be available as larger packages switch to RDL.

The latest Advanced Packaging Update is a 97-page report with full references and an accompanying set of 94 PowerPoint slides.

The competition is increasing in the OSAT space with Intel and Samsung offering OSAT services for silicon not fabricated in their foundry. TechSearch International examines high-performance packaging offerings from top OSATs and foundries with a score card for the options. This competition may be driven by the shortage in assembly capacity for AI packages used for training and inferencing. With increased capacity coming online for silicon interposers, chip-on-wafer (CoW) assembly, and high bandwidth memory (HBM), the assembly crunch is expected to ease by the end of the year. High Density Fan-Out (HDFO) using redistribution layers (RDL) instead of silicon interposers is emerging as an option. It has been used for AMD’s machine learning and Apple’s high-end graphics computing station for several years, and automotive companies are exploring its use for future chiplet designs. Intel continues to use its embedded silicon bridge in a laminate substate. TechSearch International’s latest analysis describes AI market trends with a new market projection for training and inferencing packages.

The report analyzes build-up substrate supply and demand, finding no shortage in the overall industry. AI, server CPUs, and network switch packages continue to drive the growth in body size. With pull back in capacity plans and the growth in body sizes, supply and demand will become tight in 2028. Fortunately, the new plants coming online have higher yields. The report also examines the market for flip chip bonders used in fine pitch device assembly.

The electronics industry continues to burn through inventory, but this year’s decline in smartphone and PC shipments made it a difficult year, as reflected in OSAT financials. The outlook is brighter this year. OSAT financials are highlighted in the report.

The semiconductor industry is experiencing renewed attention from governments around the world. The report highlights some of the plans and list various incentives offered by governments globally. A list of U.S. government funded projects and programs, award winners, and activity is provided.

The latest Advanced Packaging Update is a 60-page report with full references and an accompanying set of ~60 PowerPoint slides.

The need for high interconnect bandwidth capacity and improved I/O power efficiency, especially in hyperscale datacenters, continues to drive the development of co-packaged optics (CPO). Optical interfaces can significantly improve I/O density by optimizing solutions along with packaging density, speed per lane, and number of wavelengths per channel. The CPO of the future will allow chip-to-chip photonic connections, which will help enable faster AI clusters. TechSearch International’s latest analysis describes the activities of key companies and research organizations and discusses challenges.

The electronics industry continues to burn through inventory, but this year’s decline in smartphone and PC shipments continues to make it a difficult year. OSAT financials are provided for the first half of the year. Projected recover in these sectors promises to improve the situation next year. Bright spots include Apple’s iPhone market share growth and Huawei’s introduction of its Mate 60 Pro with packages from many domestic Chinese suppliers.

An analysis of the panel fan-out market is provided with an overview of the key players and the markets served. A projection for demand by number of packages and panels is provided, along with a capacity analysis. The report also updates the status of microLEDs with an examination of applications and players. An update on the elimination of per and polyfluoroalkyl substances (PFAS) is included in the report.

The latest Advanced Packaging Update is a 61-page report with full references and an accompanying set of ~70 PowerPoint slides.

TechSearch International’s latest analysis examines demand for packages used in AI. As the industry enters the AI era, successful hardware deployment requires a supply of silicon interposers, or alternatives such as redistribution layer (RDL) structures and advanced laminates, to support high density. With the desire to add more and more high bandwidth memory (HBM) stacks, the size of the interposers is growing, driving demand for larger build-up package substrates. TechSearch International analyzes industry readiness with silicon interposers (and alternatives), large body-size packages, and HBM. Reliability issues for large body size packages are highlighted. Demand projections are provided for interposers and HBM. Supply and demand for build-up substrates is examined, given the need for large substrates. The report also examines the status of glass for substrates and provides an update on the technology. The report points out challenges to be addressed.

While wafer-to-wafer (W2W) hybrid bonding has been in production for image sensors for many years, and is seeing growing use in the production of NAND Flash, die-to-wafer (D2W) adoption is in the early stages. The report analyzes the adoption for memory on logic, logic on logic, and the future for HBM. Research activities and challenges are discussed.

RF package trends are highlighted with an in-depth examination in the mobile space. Alternatives to laminate substrates are discussed. The report examines OSAT financials, discussing prospects for the year.

The latest Advanced Packaging Update is a 110-page report with full references and an accompanying set of ~100 PowerPoint slides.

TechSearch International’s latest analysis explains the tough year ahead for semiconductor companies, OSATs, and foundries after the record highs from the Covid-induced spending spree. Market forecasts for Ball Grid Arrays (BGAs) and Chip Scaled Packages (CSPs) are provided in units. The CSP market is divided into laminate (FBGA and FLGA) and leadframe (QFN) substrates. Stacked die package trends are included. Unit growth projections for Cu clip and molded interconnect substrates (MIS) are provided. Package examples and demand drivers are included. TechSearch International analyzes the supply and demand for build-up substrates used for flip chip BGAs and the excess capacity expected resulting from declining demand and inventory. The report includes OSAT financials and examines economic trends impacting the industry with an analysis of CAPEX plans for the year.

Automotive electronics and especially electric vehicles (EVs) are a bright spot. Increased adoption for SiC and GaN in applications including EVs and charging stations, renewable energy, fast charging for mobile devices, and power suppliers are driving demand for legacy packages such as TOs and power modules for SiC and DFNs and QFNs for GaN. Embedded die packages are playing an increased role. With strong growth in China’s EV industry, the country is well positioned with the infrastructure to support the expansion.

The latest Advanced Packaging Update is a 100-page report with full references and an accompanying set of more than 90 PowerPoint slides.

TechSearch International’s latest Advanced Packaging Update examines strategies for the adoption of chiplets and current products. While the market is small today in unit volume, a 103% CAGR is projected from 2022 to 2026. Challenges, including design and test, are discussed.

The report includes OSAT financials and examines economic trends impacting the industry. The North American OSAT market is examined with a focus on advanced packaging capability. Future plans for North American OSATs are discussed. The report also highlights packaging and assembly in Mexico.

TechSearch International analyzes the supply and demand for build-up substrates used for flip chip BGAs. The sharp decline in the PC and other markets have lowered demand and the industry has excess capacity. Some unused capacity is being released this year and a few substrate makers are slowing capacity expansion. Substrate companies are facing price pressure, creating an unhealthy condition for the industry.

The latest analysis is a 47-page report with full references and an accompanying set of ~40 PowerPoint slides.

TechSearch International’s latest report: 2022 Flip Chip and WLP: Trends and Market Forecasts examines the impact of slowing consumer demand on the flip chip and WLP market growth. The report includes an examination of both fan-in WLP and fan-out WLP markets. The report also examines bump pitch trends and the role of hybrid bonding.

Chiplet architectures are increasingly being adopted to achieve the economic advantages lost with the high cost of silicon scaling on advanced nodes. With chiplet designs, more silicon is needed to support the disaggregation of the monolithic die into smaller intellectual property (IP) building blocks. Many devices have made the conversion from solder bumps to Cu pillar. FO-WLP processes in production using the Deca M-Series™ and TSMC’s InFO use a Cu pillar on the native wafer. Reduced demand for smartphones and PCs this year is changing demand for flip chip packages, but growth will continue. The compound annual growth rate (CAGR) for all types of flip chip devices in units from 2021 to 2026 is 4.5 percent. This includes both solder bump and Cu pillar. Industry-wide capacity utilization was extremely high last year, but has decreased more than 10 percent this year. With continued capacity expansion, utilization will not reach levels seen in 2021 over the next several years.

Despite lower demand for consumer products such as smartphones, Fan-in WLP shipments will increase this year because of continued growth in image sensor demand, particularly for surveillance cameras in China. The WLP count continues to climb for most products. In a few cases, WLP counts have declined in products due to higher levels of integration. The projected CAGR from 2021 to 2026 in units is 7.83 percent. Devices using FO-WLP include application processors, RF, PMICs, audio CODEC, envelope trackers, automotive radar, and some image sensors. Single die are common and multi-die configurations are increasing. A 6.3 percent CAGR in units is projected for 2021 to 2026. Several companies are researching, developing, or installing panel-based production lines. A variety of approaches for large-area production have been developed. No consistent method or panel size has emerged, but several companies have adopted panel sizes of 600 mm x 600 mm. While applications for panels include some portion of the reconstituted wafer market, new applications such as power devices are emerging.

The latest analysis is a 106-page report with full references and an accompanying set of ~140 PowerPoint slides.

TechSearch International’s latest analysis describes high-performance package options with an update on TSMC’s new offerings, including the latest organics CoWoS® versions. New high-end product examples using fan-out on substrate are discussed. Features of the build-up substrates supporting redistribution layer (RDL) structures are provided. Applications for high-performance wafer-to-wafer hybrid bonding are also described. Trends in integrated photonics packaging are discussed, including the use of fan-out options.

The report includes OSAT financials and examines economic trends impacting the industry. The past two years saw phenomenal growth in shipments of smartphones and PCs. Reduced demand for smartphones and PCs this year is changing package demand. High-performance and mid-range Samsung smartphones are examined to determine package usage.

TechSearch International analyzes changes in the gap between manufacturing demand and capacity for build-up substrates. Lower demand for PCs is easing the shortage this year, but demand continues to increase for the more complex, more expensive FC-BGA substrates. Examples of substrate features are included. IC package substrate design rules for major suppliers are provided in the report.

The latest Advanced Packaging Update is an 89-page report with full references and an accompanying set of 43 PowerPoint slides.

2021 was a record year for the semiconductor industry and OSAT revenues, but the outlook for 2022 is less certain. The war in Ukraine, inflation, China’s Covid lockdown, and continued supply chain disruptions threaten global economic growth in 2022 and could impact the electronics industry. TechSearch International’s analysis provides a forecast for BGAs and CSPs including FBGAs, LGAs, stacked die CSPs, and QFNs. Details of electronics products using these packages are based on TechSearch International’s teardowns.

High-performance packaging using heterogeneous integration is a bright spot. Data center spending continues to expand the need for servers, AI accelerators, and network switches. Applications for machine learning are increasing. While there is strong demand for many devices, shortages of leadframes and substrates are limiting shipments. The report highlights body size increases for build-up substrate resulting in the current capacity shortages. Growth for Cu clip packages remains strong, driven by increased demand for MOSFETs used in data centers, 5G infrastructure, and PCs. Lower growth projections for smartphones will result in less demand for many packages. TechSearch International’s report provides an analysis of the impact of China’s Covid lockdowns on smartphone sales in the region and the impact on package volumes.

TechSearch International provides an analysis of cryptocurrency, energy consumption with its use, and package trends.

The latest APU is a 96-page report with full references and an accompanying set of 80 PowerPoint slides.

The shortage of build-up substrates will be worse this year than in 2021, and the gap between supply and demand looms even larger in 2023. Many substrate makers are adding capacity, but it takes time because of long lead times for equipment and construction of new buildings. By 2026 supply is expected to be inline with demand, unless substrate body sizes increase more than projected. The industry is looking for ways to address the interim situation, including yield improvements, switching to alternative substrates such as mSAP for lower layer counts, and designs with smaller body size.

TechSearch International provides an analysis of the status and challenges for 3D hybrid bonding for chiplets. The report highlights critical areas for this transformational technology.

The Electric Vehicle (EV) market is heating up and sales could reach 14 million vehicles. Demand for automotive-grade, legacy packages (such as SO, TO, and QFP) are project to see a 20% CAGR from 2025-2030. With the move to 800V inverters, the use of SiC is projected to increase. Higher voltages will require new packages and materials. The report also discusses battery makers and the status of materials that are used for EV battery production.

Snags in the U.S. 5G rollout are discussed including a discussion of C-band. The report also provides an analysis of the OSAT financials with rankings for the top 20 companies.

The latest APU is a 52-page report with full references and an accompanying set of 60 PowerPoint slides.