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Fan-Out packaging: what will be the next killer applications?

 

Extracted from :
Fan-Out Packaging Processes Comparison 2020 report, System Plus Consulting
Equipment and Materials for Fan-Out Packaging report, 2019, Yole Développement
Fan-Out Packaging: Technologies and Market Trends report, 2020, Yole Développement
Advanced Packaging Quarterly Market Monitor, Q1, 2020, Yole Développement

OUTLINES :
• Market update: Fan-Out is a stable-growing market with a forecast 15,9% CAGR(1) between 2019 and 2025. The market value should reach US$3 billion at the end of the period.
• Mobile & consumer end-markets influence the overall trend of Fan-Out packaging.
• Fan-Out market class:
A new market class, UHD(2) Fan-Out has been introduced by Yole Développement’s analysts.
HD(3) Fan-Out remains a battle between TSMC and Samsung.
The industry is developing more and more technologies within core Fan-Out.
• Unquestionably the market leader in 2019, TSMC will see its market share slowly decreasing by 2025: active Fan-Out packaging players like ASE, ESWIN… are all expected to move forward.
• COVID-19 impact: Yole Développement is expecting a contraction of mobile and consumer activities in 2020. What will be the status of the Fan-Out business?

“Fan-out packaging continues to evolve, establishing a new market class, UHD Fan-Out,” asserts Favier Shoo, Technology & Market Analyst at Yole Développement (Yole). “Being actively explored and validated as one of the high performing and multi-die packaging platforms, Fan-Out Packaging is breaking through into new applications in 5G and HPC. In the Fan-Out Packaging: Technologies and Market Trends report, 2020 edition announces 15,9% CAGR between 2019 and 2025 to become a US$3 billion market at the end of the period”.
Fan-Out packaging is increasingly being adopted in 5G, HPC and RADAR 77-GHZ announces Yole in its 2020 Fan-Out report. Fan-Out packaging is going to experience one of the sharpest growths for AiP(4) applications (5G-driven) at a whopping 76% CAGR between 2020 and 2025. Separately, (x)PU die partitioning and (x)PU + HBM(5) applications are growing strongly at 20% CAGR and 52% CAGR respectively, over the same period. Both applications are showing a need for higher computing performance. Connectivity related applications, including Bluetooth, plus MEMS(6), PA(7) and switches, are expected to power forward with a 14% CAGR.
Which companies will strongly change the Fan-Out market landscape? What are their market shares? What are the new Fan-Out packaging-based products? Yole’s analysts give you today an impressive and accurate update of this industry.

ILLUS_FAN-OUT_RevenueForecast_YOLE_June2020

In its 2020 Fan-Out report, Yole re-classifies the Fan-Out business and introduces dedicated Fan-Out packaging market classes, UHD Fan-Out, HD FO and Core Fan-Out. With this new approach, Yole’s objective is to allow readers to get in-depth and relevant understanding of the Fan-Out industry, its organization, and interactions between the leading advanced packaging companies. Indeed, the Fan-Out report 2020 edition delivers detailed information about the strategies of the leading companies within individual market classes which allow advanced packaging companies to gain significant competitive advantages. “Depending on how industry players would like to position themselves in the marketplace, any technology strategy must embrace a combination of options and approaches targeted on customers demand,” adds Favier Shoo from Yole.
In addition to this market segmentation, Yole daily follows the evolution of the advanced packaging industry with a dedicated market research tool, Advanced Packaging Quarterly Market Monitor. On a quarterly basis, analysts combine all market data and trends and deliver a powerful tool with accurate market indicators fully dedicated to the advanced packaging industry. The aim of Yole’s team is to give a closer look at the main markets and players. In addition to WLCSP and Fan-Out, the Advanced Packaging Quarterly Market Monitor will soon cover 2.5/3D and FC packaging. Yole’s Advanced Packaging Quarterly Market Monitors are published every beginning of June (Q2), September (Q3) and December (Q4).

ILLUS_FAN-OUT_UHD_MarketUpdate_perMarketClass_YOLE_June2020

Projected at 20.2% CAGR, UHD Fan-Out revenue will grow to US$1,532 million by 2025. New HPC(8) products will emerge and more UHD Fan-Out will be needed as a cost-effective high-end package as compared to 2.5D interposers. Samsung Electronics is the leading IDM(9). PTI is the leading FOPLP(10) OSAT(11), specializing in memory packaging. JCET China is the leading OSAT in China. All three are known to have started qualifying UHD FO with various customers, and it is included in their roadmaps.
In parallel, revenue from HD Fan-Out is expected to reach US$1,291 million by 2025 with a CAGR of 15.8%.
On the other hand, Core Fan-Out growth is moderately stagnant at 1% CAGR from 2019 to 2025. Although revenue from FOPLP is growing at 57% CAGR and FOWLP at 14% CAGR, FOWLP will still generate more than 2/3 of combined revenue in 2025.
Yole releases today its annual Fan-Out Technology & Market Report in a complex industrial and economic context. The COVID-19 outbreak has significantly impacted the industry and Yole’s experts have delved deeply to gain a better understanding.
According to Yole’s analysts, the COVID-19 outbreak is expected to trigger a contraction of mobile and consumer activities in 2020. And the Fan-Out packaging industry, with 59% of its market value exposed to mobile & consumer market, is no exception. However, a substantial rebound in 2021 is expected as more technology related industries are optimistic that market will return to normal by 2021. Fan-Out Packaging market value will hence benefit from this rebound by 2021.

All year long, System Plus Consulting and Yole pursue their investigations. With valuable Fan-Out technology & market reports including Fan-Out Packaging Processes Comparison 2020 from System Plus Consulting, Equipment and Materials for Fan-Out Packaging, Fan-Out Packaging: Technologies and Market Trends and the Advanced Packaging Quarterly Market Monitor from Yole Développement, both partners analyze industrial announcements and debate with leading players.
Analysts also deliver their vision through dedicated articles published on i-Micronews. Discover the latest one focused on the leading company TSMC and its strategy: TSMC: The final word has not been spoken yet.
Stay tuned on on through dedicated articles published on i-Micronews. Discover the latest one focused on the leading company TSMC and its strategy: i-Micronews to follow our activities including webcasts, articles, interviews, reports and more!

The Battlefields of Fan-Out Packaging – Webcast powered by Yole Développement and System Plus Consulting is still available. Watch the recorded version and send us your questions on i-Micronews.

(1): CAGR : Compound Annual Growth Rate
(2): UHD : Ultra High Density
(3): HD : High Density
(4): AiP : Antenna in Package
(5): HBM: High Bandwidth Memory
(6): MEMS : Micro Electro Manufacturing Systems
(7): PA : Power Amplifier
(8): HPC : High Performance Computing
(9): IDM : Integrated Device Manufacturer
(10): IDM : Integrated Device Manufacturer
(11): FOPLP : Fan-Out Panel Level Packaging
(12): OSAT : Outsource Semiconductor Assembly and Test

 

 

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