Global Compound Semiconductor Packaging Market Grows Steadily at a CAGR of 10.50%

Introduction

A compound semiconductor comprises elements from two or more periodic table groups and is produced using deposition technologies. Semiconductors are essential components of most electronic circuits due to their unique properties, which include a wide band gap, high operating temperatures, high current and voltage holding capacity, and the ability to produce microwave signals. Compound semiconductors are made by laminating layers of two or more elements with thicknesses ranging from several nanometers to micrometers. Different combinations of elements are used in each layer. The wafer process varies depending on the material's characteristics. The mechanical and chemical processes used in conventional packaging techniques are sensitive to the delicate air bridges, gold bond pads, topographical cavities and trenches, and other bulk material characteristics found in some CS devices.

Market Dynamics

Greater Demand for Device Miniaturization Drives the Global Market

In various industry verticals, including consumer electronics, healthcare, automotive, and semiconductor integrated circuit manufacturing, manufacturers are placing more emphasis on providing compact electronic devices. These manufacturers are reducing the size of the integrated circuits to ensure precise patterning on the wafers and chips. A rise in demand for sophisticated, wearable, and customized medical technology, such as nanoscale robotic surgery tools, is also being seen in the market for medical devices. In addition, the trend toward smaller electronic devices has forced designers to abandon conventional packaging techniques in favor of advanced compound semiconductor packaging. The semiconductor industry is experiencing growth in miniaturized electronic devices because of the rise in demand for high-performance electronics. Developing technologies like RFID, MEMS, and other power devices have also increased the demand for thin wafers.

Increasing Use of Compound Semiconductors in Smart Technologies Creates Tremendous Opportunities

Next-generation smart technologies are expected to be made from various novel materials, including superconductors, carbon nanotubes, and compound semiconductors like GaN. A smart grid and infrastructure require new cable types, power electronics, cable insulators, cable dielectrics, and energy storage technologies. An increase in these technologies is anticipated to drive demand for GaN and other compound semiconductors as the market matures. Incorporating advanced compound semiconductor devices and modules is also expected to promote new smart infrastructure efficiencies, including raising equipment lifespan and power quality, reducing costs, and enhancing control and reliability of power systems. As a result, the development of smart technologies is predicted to create a lucrative opportunity for the growth of the packaging market for compound semiconductors.

Regional Analysis

China is the most significant shareholder in the global compound semiconductor packaging market and is expected to grow at a CAGR of 9.5% during the forecast period. China, one of the biggest producers of personal electronics equipment, has the largest share of the global consumer market for electronics. This is expected to maintain its dominant position over the following ten years. Furthermore, it is anticipated that the presence of electronics manufacturing facilities in China will support growth rates during the opportunities expected, given that significant players are introducing cutting-edge compound semiconductor packaging technology. The compound semiconductor packaging market is expected to grow due to all these investments and innovations.

The U.S. is expected to grow at a CAGR of 10.6% during the forecast period. The American semiconductor sector has state-of-the-art facilities for research and development thanks to global goliaths. Still, the market for compound semiconductor packaging is anticipated to grow slowly. The market has become the second-largest contributor to the packaging market for compound semiconductors thanks to significant spending on R&D facilities and collaboration from the major players.

Key Highlights

• The global compound semiconductor packaging market was valued at USD 15,690.01 million in 2022. It is expected to reach USD 38,537.72 million by 2031, growing at a CAGR of 10.50% during the forecast period (2023–2031).
• Based on the packing platform, the global compound semiconductor packaging market is bifurcated into the flip chip, embedded die, fan-in WLP, and fan-out WLP. The flip-chip segment is the highest contributor to the market and is expected to grow at a CAGR of 9.8% during the forecast period.
• Based on the application, the global compound semiconductor packaging market is bifurcated into CS power electronics, CS RF/microwave, CS photonics, CS sensing, and CS quantum. The CS power electronics segment owns the highest market share and is expected to grow at a CAGR of 9% during the forecast period.
• Based on the end-use, the global compound semiconductor packaging market is bifurcated into the digital economy, industrial and energy and power, defense/security, transport, consumer electronics, and space. The transport segment is the highest contributor to the market and is expected to grow at a CAGR of 8.6% during the forecast period.
• China is the most significant shareholder in the global compound semiconductor packaging market and is expected to grow at a CAGR of 9.5% during the forecast period.

Competitive Players

Competitive Players

The global compound semiconductor packaging market’s major key players are Amkor Technology, ASE Technology Holding Co., Ltd, Deca Technologies, Fujitsu Limited, Jiangsu Changjiang Electronics Technology Co. Ltd., Kla Corporation, Qorvo, Inc., Taiwan Semiconductor Manufacturing Company Limited, Texas Instruments Incorporated, and Tokyo Electron Ltd.

Recent Developments

Market News

• In February 2023, Digital transformation and product development services firm Orion Innovation acquired global technology company Sryas Inc for an ''undisclosed sum', a top official stated. The one hundred percent acquisition was "completed," and Sryas Inc became a subsidiary, Orion Innovation CEO and President Raj Patil said.

Segmentation

Global Compound Semiconductor Packaging Market: Segmentation

By Packaging Platform

• Flip Chip
• Embedded Die
• Fan-In WLP
• Fan-Out WLP

By Applications

• Compound Semiconductor Power Electronics
• Compound Semiconductor RF/Microwave
• Compound Semiconductor Photonics
• Compound Semiconductor Sensing
• Compound Semiconductor Quantum

By End-User

• Digital Economy
• Industrial and Energy and Power
• Defense/Security
• Transport
• Consumer Electronics
• Healthcare
• Space

By Regions

• The U.S.
• The UK
• China
• Rest of the World