According to market research firm TrendForce, sales of advanced packaging equipment are expected to grow by over 10% in 2024 and are expected to exceed 20% by 2025. This growth is mainly due to the continuous expansion of advanced packaging capacity by major semiconductor manufacturers, as well as the rapid expansion of the global artificial intelligence (AI) server market.
TrendForce points out that the increasing demand for AI servers has driven advancements in various cutting-edge packaging technologies, including InFO, CoWoS, and SoIC, and new innovative packaging facilities are being established around the world. For example, TSMC is increasing its advanced packaging capacity in Zhunan, Taichung, Chiayi, Tainan and other regions of Taiwan, China; Intel has established businesses in New Mexico, USA, as well as in Kulin and Penang, Malaysia; Samsung, SK Hynix, Micron and other major storage suppliers are building new HBM packaging facilities in the United States, South Korea, Taiwan, China and Singapore.
The construction of advanced packaging facilities has also promoted the sales of related equipment. Advanced packaging equipment includes electroplating machines, solidification machines, melt glue machines, thinning machines, ball planting machines, cutting machines, curing machines, marking machines, and other equipment. The entry threshold for the supply chain of advanced packaging equipment is relatively low, and leading wafer foundries such as TSMC are strategically cultivating local suppliers to reduce costs.
TrendForce believes that for relevant equipment manufacturers in Taiwan, China, whether they can expand their production capacity with the growth of the advanced packaging equipment market is crucial to their business growth. As major semiconductor manufacturers continue to improve their advanced packaging capacity, Taiwan, China Packaging Equipment Co., Ltd. will have the opportunity to expand overseas markets in addition to cooperating with top tier manufacturers and OSAT (outsourcing semiconductor packaging and testing).
