Overview of the global system-in-package (SiP) market

Market research analysts at Technavio predict that the global SiP market will grow steadily during the next four years and post a CAGR of more than 10% by 2020. This market research analysis identifies the emergence of advanced and compact consumer electronic devices as one of the primary growth factors for this semiconductor packaging market. The consumer electronics devices industry has witnessed a massive transformation in the recent years, where feature phones were replaced by smartphones and personal computers by laptops and tablets. Furthermore, the adoption of the smart homes concept, where electronic devices can be monitored and controlled with the help of mobile applications, will further transition this industry. This will induce electronic device manufacturers to constantly upgrade their products in terms of several factors such as design, processing power, power consumption, and user-interface, that will require the use of robust technology and develop compact devices. This demand for compact electronic devices will compel semiconductor manufacturers to develop denser ICs with increased circuitry, which will boost the demand for advanced IC packagingtechniques such as SiP.

Due to the presence of numerous foundries and OSATs in countries such as China, Japan, South Korea, and Taiwan, APAC will be the major revenue contributor to the market throughout the predicted period. Also, the presence of several semiconductor manufacturing units, the high demand forsemiconductors from the communication and consumer electronics sectors, and the presence of leading consumer electronics manufacturers such as Samsung, Sony, LG, Toshiba, and Panasonic, will also propel the market’s growth prospects on this region.

Competitive landscape and key vendors

The global SiP market is migrating to 3D semiconductor technology, which is increasing the competition among the integrated device manufacturers (IDMs) and outsourced semiconductor assembly and test (OSATs). The market has a tremendous potential and offers huge growth opportunities to IDMs and OSATs. Major IDMs such as Samsung are focusing on expanding into the assembly business, whereas the OSATs such as Amkor Technologies and ASE have started focusing on expanding their market shares and increasing their profit margins. In addition to existing vendors, leading chip manufacturers such as Intel are also concentrating on investing in packaging companies, which will intensify the market’s competitive environment.

The leading vendors in the market are -

• Amkor Technology
• ASE
• Jiangsu Changjiang Electronics Technology (JCET)
• Siliconware Precision Industries (SPIL)
• United Test and Assembly Center (UTAC)

The other prominent vendors in the market are ChipMOS Technology, ChipSiP Technology, NANIUM, Octavo Systems, and Samsung Electro-Mechanics.

Segmentation by application and analysis of the SiP market

• Automotive
• Computers
• Consumer electronics
• Communications
• Medical

During 2015, the communications market segment accounted for the major shares and dominated thisIC packaging market. The increasing adoption of smartphones that increase the demand for better powered and smaller sized ICs that require robust packaging, will be one of the major factors contributing to the growth of this segment in the coming years.

Segmentation by end-users and analysis of the SiP market

• Foundries
• IDMs

According to this industry research report, foundries will be the major end-user segment for the market throughout the forecast period. Fabless semiconductor companies usually design semiconductor ICs and outsource the manufacturing process to foundries that work with IC designers to develop efficient ICs. The increasing demand for electronic devices such as gaming consoles, digital cameras, notebooks, smartphones, tablets, set-top boxes, and network switches, will boost the demand for semiconductors, in turn, bolstering market growth.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the global system-in-package market?
• What are the key market trends impacting the growth of the global system-in-package market?
• What are the challenges to market growth?
• Who are the key vendors in the global system-in-package market?
• What are the market opportunities and threats faced by the vendors in the global system-in-package market?
• Trending factors influencing the market shares of the Americas, APAC, and EMEA.
• What are the key outcomes of the five forces analysis of the global system-in-package market?

Technavio also offers customization on reports based on specific client requirement.

Related reports

• Global Semiconductor Packaging Equipment Market 2016-2020
• Global 3D Semiconductor Packaging Market 2016-2020
• Global Semiconductor Packaging and Assembly Equipment Market 2016-2020