IC Packaging Market Trends

IC Packaging Market Driver

• Rising government support is anticipated to drive the semiconductor and IC packaging market. For instance, Creating Helpful Incentives to Produce Semiconductors for America Act or the CHIPS for America Act establishes investments and incentives to support U.S. semiconductor manufacturing, research and development, and supply chain security.
• The growing demand for AI-based applications across various industries (such as healthcare, telecommunications, energy, finance, transportation, agriculture, manufacturing, aerospace, and defense) will open up new prospects for semiconductor manufacturers and suppliers. AI will also improve semiconductor manufacturing by speeding up the process, enhancing chip performance, lowering production costs, and increasing output. Hence, propelling the growth of IC packaging and the semiconductor industry.
• Semiconductors will play a critical role in the development and advancement of automotive technologies utilized in connected automobiles and electrified vehicles. The rapidly changing automotive sector will offer tremendous opportunities for automotive semiconductors to support increased connectivity, battery performance in EVs, enhanced sensors, and other technologies.

IC Packaging Market Restraint

• The industry is not dispersed equally and is controlled by a few nations, primarily the United States, Taiwan, South Korea, Japan, China, and Europe. No one region has a hold on the entire production stack. Asian nations produce 57% of semiconductor materials, 56% of wafer fabrications, and 70% of memory. The United States is a world leader in electronic design automation (EDA), logic, equipment, discrete and analogue. Because of this interconnection, no single country can sustain global leadership throughout the whole value chain.