Advanced semiconductor packaging to grow 10% to reach $78.6 B by 2028

With 3D semiconductor packaging becoming new Moore's Law extender, it is estimated to grow in 2023, even other semiconductor manufacturing market going weak in 2023. Yole notes: Advanced packaging (AP) revenue is expected to grow at a 10% CAGR, from US$44.3 billion in 2022 to US$78.6 billion by 2028 AP revenues have grown 10% in 2022 compared to the previous year. Flip-chip BGA, flip-chip CSP and 2.5D/3D are the dominating packaging platforms in terms of revenues. AP units are expected to show a 6% CAGR 2022-2028, with WLCSP, SiP and FCCSP leading in terms of the total number of units. Yole said "despite the soft demand in several end-markets, package manufacturers have experienced a prolonged inventory digestion, leading to declining utilization rates in the first half of 2023. This resulted in a 19% decline in revenues during Q1-23, but a slightly stronger performance is expected in Q2-23, with more significant recovery anticipated in the second half of the year." Yole shares: The semiconductor industry is facing a challenging year in 2023, with the AP market projected to grow only around 0.8%, reaching a total of $44B. Revenues in the AP market are expected to show slight growth for 2.5D/3D, FCBGA, and FO packaging. However, other platforms are likely to experience revenue decreases, primarily due to weak demand in the mobile and consumer markets. Looking ahead, s...