The Global Market for Advanced Electronic Packaging

Report Highlights

• The total market for semiconductor packaging and testing services will grow from $39.5 billion in 2006 to $57.6 billion in 2011 at a CAGR of 7.8%.
• The total market for outsourced semiconductor packaging and testing (OSPT) services will grow from $16.2 billion in 2006 to $43.7 billion in 2011 at a CAGR of 22.0%.
• BCC forecasts that OSPT services, when distributed along separate packaging and testing functions, will exhibit comparable growth rates, strongly underlining their inter-reliance and justifying the joining of these functions.

INTRODUCTION

Miniaturization, portability, speed, and performance efficiency requirements in end-application products have triggered significant advances in chip design methodologies and yields.

Packaging binds the die to the board by acting as physical and electrical interface. Packages not only protect the chip from mechanical damage such as breakage and stress, they also prevent contamination and enable prior testing of the chip before being incorporated into the system. Traditional semiconductor packages have faced two major constraints: size and speed. Hence, it is incumbent that the development in chip design should also be reflected in the packaged being correspondingly efficient.

Despite the critical role played by packaging in the semiconductor manufacturing life cycle, its value is not recognized to the extent required, and the function is generally relegated to the status of being a peripheral function.

The above perception of packaging is set to change with the advent of advanced packaging techniques such as System-in-Package (SiP) that blur the distinction between traditional Electronic Design Automation (EDA) functions and traditional packaging functions. Another phenomenon that reflects the vibrancy in packaging technique is the hectic patenting activity that is breaking new ground in areas of thermal and electrical performance, miniaturization, and process efficiencies. In short, the resurgent drive of the semiconductor industry over the last half decade is being led by advanced packaging techniques. Advanced packaging techniques form the semiconductor industry's answer to the increasing demand for lower costs, less time to market, portability, and miniaturization. Like most functions in the semiconductor lifecycle, packaging is being increasingly handled by specialists-the Outsourced Semiconductor Packaging and Testing (OSPT) specialists. The report is an effort to derive a snapshot of the OSPT specialist landscape and forecast the future of this category that is truly representative of the semiconductor industry. This report classifies the OSPT revenues across end-user equipment and geographical regions.

The pertinence of this report is highlighted by the variety of design challenges, regulatory requirements, and competition from incumbent technologies that characterize the advanced electronic packaging landscape.

The report shall shed light on the advanced electronic packaging arena in the backdrop of such formidable drivers and equally formidable challenges.

SCOPE OF STUDY

This report:

• Provides a complete technical market analysis of the advanced electronic packaging business - Flipchip, BGA, CSP and others
• Covers assembly, bonding technologies, cooling technologies, materials, modeling and simulation, passive devices, processing, substrates, thermal and mechanical design and many other key areas.
• Provides market forecasts, by major and minor segment, for 2006-2011.
• Covers leading vendors, product innovations and technological breakthroughs.
• Covers end-user markets such as Zigbee, WLAN, computer peripherals, mobile phones, digital cameras, MP3 players, automotive, set-top boxes, power amplifiers, and more.
• Includes standards, stakeholder issues, patent analyses, market shares, R&D breakthroughs, competitive analysis.

INFORMATION SOURCES

This study refers to the following sources:

• Industry consortia
• Company financial details (Form 10-K, annual reports)
• Industry insights in form of published opinions
• Industry sources

ABOUT THE AUTHOR

Kaustubha Parkhi has worked in a broad range of functional roles with leading telecom operators and service providers such as Reliance Infocomm, Ramco Systems and BPL Cellular. He has written on a wide-ranging array of telecommunications and electronics-related subjects based on his critical analysis of the underlying technology and its business impact. Kaustubha holds a B.S degree in Electronics and Telecommunications and a M.B.A. degree in Systems.