Embedded Die Packaging Market Size, Share & Trends Analysis Report By Platform (Die in Rigid Board, Die in Flexible Board, IC Package Substrate), By End-User (Consumer Electronics, IT and Telecommunications, Automotive, Healthcare, Other End-Users) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global embedded die packaging market size was valued at USD 75.97 million in 2022. It is projected to reach USD 468.46 million by 2031, growing at a CAGR of 22.40% during the forecast period (2023-2031). 

Embedded die packaging technology is a native 3D-compatible packaging solution that provides a 70% reduction in system in package (SiP) size. Miniaturization, enhanced electrical and thermal performance, heterogeneous integration, the possibility of cost reduction, and effective OEM logistics are just some of the many benefits of this technology. Also, the package is highly resilient and reliable and can be integrated into various systems with little to no downtime. To simplify, embedded die packaging encloses an integrated circuit (IC) die inside a metal or plastic housing.

A lead frame with the die attached to it is enclosed in either plastic or metal. This packaging is utilized in situations where compactness and affordability are crucial considerations. The embedded die is a desirable solution due to its higher I/O density, smaller footprint, and multi-die capability on a single platform. Thus, to close the ensuing integration gap, a new era of innovation has led to a rise in die content and functionality transferring to the packaging sector, which has fueled the expansion of the global embedded die packaging market.

Market Dynamics

Market Drivers

Improved Electrical and Thermal Performance

The embedded die packaging technology, often known as ED, has received praise for its effective thermal management and the potential for a double-sided cooling system. In addition to the mobile phone sector, ED has drawn interest due to its compatibility with power devices up to 50kW and the requirement for more efficient telecom infrastructure for 5G. According to estimates, this will make it easier for ED to identify technology needs gaps that can be filled across these sectors both now and soon. Vendors in the market under study have concentrated on high mechanical system stability via stable Cu interconnections, a development along the lines of increased reliability and mechanical strength.

As an embedded die packaging family, Infineon Technologies and Schweizer Electronic's P2 Pack embedding solution is one example. Similar packaging has recently emerged that caters to form factor, thermal management, and signal integrity performance. Growing demand for electrical power conversion optimization is also driven by other key growth indicators, including trends toward electrifying vehicles, global government efforts to reduce CO2 emissions, the emergence of clean electricity sources, and more environmentally friendly industrialization.

Market Restraint

Difficulty to Inspect, Test, and Rework

It has been predicted that the ED packaging technology will transition from a single embedded die to several embedded dies. As a result, IC substrate and board complexity and size will only rise. Current investments are more concentrated on adopting cutting-edge methods like mSAP (modified semi-additive processing) than subtractive processes to attain lower L/S values. As a result, higher integration and, in particular, embedding complex active dies with higher I/O counts are being identified. It is equally crucial to be able to put the boards together to get acceptable outcomes on the board fabrication end. The difficulties encountered during assembling are inversely correlated with the size of the components utilized to populate the boards.

Market Opportunities

Growing Miniaturization of Devices

In the market under study, miniaturization has presented design and manufacturing challenges. However, the increasing miniaturization trend drives the demand for improved packaging. The introduction of 5G, which had an impact on the market in 2018, is anticipated to continue to fuel demand as more nations across the world adopt communication technology and more FCBGA is used in HPCs and 5G base stations. To save space and become more miniature, portable electronic equipment has shown a need for packaging techniques that are smaller and thinner. Applications requiring high levels of integration and speed, such as aircraft and some consumer electronics, have clarified that better electrical performance is needed to reduce sound effects.

Integrating die packaging is evolving into a critical element in creating electronic systems due to these factors for developing the final products. Making items lighter, smaller, and less expensive while making them faster, more powerful, dependable, user-friendly, and functional has become a significant design and manufacturing trend. For the same reason, embedded chip packaging has evolved into a creative solution to common packaging integration problems. Additionally, associated packaging scientists have conducted ongoing research on embedded packaging and have created newer chip embedding techniques.

Regional Analysis

Asia-Pacific Dominates the Global Market

The global embedded die packaging market is bifurcated into four regions: North America, Europe, Asia-Pacific, and LAMEA. 

Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 23.2% during the forecast period. Investors from nations like China and India are drawn to the Asia-Pacific area by its rapid industrialization and economic growth. Moreover, the market for embedded die technology in the area is being stimulated by growth in the manufacturing of smartphones, cars, and their sales. The incentives are intended to persuade multinational corporations to relocate their production operations outside of China after a pandemic-induced trade war brought attention to the dangers to supply chains. The move is also a part of Prime Minister Narendra Modi's calls for a self-sufficient India, which are intended to increase domestic production and decrease reliance on imports.

Furthermore, the region's semiconductor companies effectively manage cost challenges and maintain higher profitability by prioritizing improvements in end-to-end yield. The way forward entails adopting new perspectives while implementing embedded die packaging solutions. Companies in Japan are thought to be the best providers of most restorative materials used in semiconductor packaging. Exchange rates and increased production costs in Japan increase the cost of materials for suppliers based in Japan, providing chances for other suppliers to low-end applications.

North America is expected to grow at a CAGR of 21.3% during the forecast period. The most significant contributors to semiconductor consumption in the Americas, particularly North America, are growing consumer electronics, including smartphones, smartwatches, smart speakers, digital cameras, smart TVs, etc. This trend is projected to continue increasing semiconductor demand. The adoption of smartphones will be highest in the United States (49% of connections). The IoT Association reports that the United States has the most significant ratio of smart home devices per household and the highest proportion of consumers who tend to possess gadgets with two or three different uses (security, energy, and appliances). The American automotive industry constantly looks for ways to lower costs and increase performance. As a result, there has been tremendous progress in many electrical and electronic components used in automobiles. Despite the developments in digital technology, many circuits still rely on their analog components for precision and dependability.

The European region has one of the smallest market shares due to the absence of semiconductor manufacturing activity. With the rising need for consumer electronics products, the embedded die packaging market will likely continue to develop in the region as the year-over-year increase in semiconductor demand picks up steam. The vertical integration and consolidation actions in the European fabrication sector improved the ability of various semiconductor manufacturers to invest in business expansion. These significant industry shifts are anticipated to drive the need for new semiconductor production and process facilities, raising embedded die packaging demand throughout the projection period.

Additionally, the market is expected to grow due to several important factors, including electrical power conversion optimization and expansion brought on by electrification trends in transportation, CO2 emission reduction goals, the development of clean electricity sources, and industrialization in Europe. Schweizer Electronic creates cutting-edge printed circuit boards and ground-breaking services and solutions for electronics in automobiles, solar panels, industrial machinery, and aircraft. The business focuses on power electronics, embedding, and system cost reduction as core issues. Infineon and Schweizer also collaborated on developing embedded MOSFETs for the automotive industry. The region's market under study is anticipated to benefit from the use of semiconductors in wind and solar energy projects. New wind and solar installations and favorable regulations by governments in European countries are currently driving renewable energy initiatives.

Dubai plans to invest millions of dirhams in incentives so that 42,000 EVs will be driving through its streets by 2030. Saudi Arabia is building a metropolis that will manufacture cars and is trying to attract investors to invest money in the sector. Since young people are driving demand, it is anticipated that smartphones will continue to dominate portable consumer electronics across the Middle East and Africa. The Middle East and Africa have a growing need for smartphones, the key factor driving the region's semiconductor market's expansion. The growth of advanced mobile networks (4G and 5G) will also increase smartphone adoption and use.

Additionally, suppliers are promoting these items as a solution for customers worried about their health, sports performance, and sleep while assisting them in assessing their daily activities. This surge in demand is also being seen for smart wearables. Consequently, this fuels the market's enormous growth and the demand for electric components.

Segmental Analysis

The global embedded die packaging market is segmented by platform and end-user.

Based on the platform, the global embedded die packaging market is bifurcated into die in rigid board, die in flexible board, and IC package substrate. 

The die-in rigid board segment is the highest contributor to the market and is estimated to grow at a CAGR of 21.1% during the forecast period. These more recent, smaller circuit boards are predicted to drive the market for die in the rigid board due to the increasing acceptance of small electronics items like wearables, IoT devices, and portable gear. Die in rigid board substrate is the oldest embedded die technology compared to other platforms. Rigid boards, which are utilized in consumer electronics and medical imaging equipment, can be die-in by several market suppliers. For instance, Embedded Component Packaging (ECP) technology is used by AT&S Advanced Packaging to bundle the activities. Active and passive electronic components can be directly embedded in the printed circuit board using the unique AT&S packaging process known as ECP. The market is anticipated to be driven by ongoing investments in smart technology, such as AI, and the creation of cutting-edge medical devices. Future die sales in the rigid board are anticipated to be fueled by ongoing research and development in the automotive sector for embedded power analog devices.

The value of the printed circuit board has increased due to technological advancement. Sales are anticipated to experience extraordinary growth throughout the projection period due to the flexible board's increased acceptance of various wearable and IoT devices. Since its commercialization, Stretchable Electronics (SC) has taken on a variety of shapes and forms. Standard printed circuit boards, primarily flexible boards, are used in the technology, and liquid injection molding processes utilize elastomer-embedded stretchable electronic circuits to produce a durable and dependable product. The goal of flexible hybrid electronics (FHE), which is regarded as a revolutionary method of creating electronic circuits, is to combine the best aspects of printed electronics and traditional electronics. While the IC is manufactured using photolithography and placed as a bare die, additional components and as many conductive interconnects as possible are printed onto a flexible substrate. Together, IDEMIA and Zwipe developed a biometric payment card solution with a manageable number of parts, including the Secure Element and the microcontroller, which are all integrated into a single chip on a flexible printed circuit board.

Based on end-users, the global embedded die packaging market is bifurcated into consumer electronics, it and telecommunications, automotive, healthcare, and other end-users. 

The consumer electronics segment owns the highest market and is estimated to grow at a CAGR of 21.7% during the forecast period. One of the main reasons anticipated to propel the implementation of embedded packaging throughout the forecast period is the growing functionality of consumer electrical items and the rising acceptance of smart devices and smart wearables. The need for platforms like the rigid board is fueled by the increasing uptake of high-performance mobile devices (including 5G) and the rising penetration of cutting-edge technologies like AI and HPC. Devices hold a substantial market share, and the introduction of 5G smartphones is likely to boost demand. Global corporations, including Samsung, are investing more money in the semiconductor industry to dominate the market for 5G smartphones. In January 2020, Samsung revealed that it had supplied more than 6.7 million Galaxy 5G handsets worldwide in 2019. The increasing popularity and usefulness of smart wearables like fitness bands and smartwatches are contributing to the expansion of the mobile and consumer market.

Due to the growing demand for automation and more powerful computing in cars, the automotive market for embedded packaging has expanded dramatically. Cars will be able to be more dependable and intelligent thanks to these improvements in the automotive industry. The semiconductor packaging industry is reorienting its priorities to give the development of embedded packages for the needs of the next-generation automotive market priority to meet the increasingly complicated demands of the automotive market. The amount of electronic systems in modern automobiles is enormous, and it is growing as a result of new rules introduced by the National Transportation Safety Board (NTSB). The demand for more electronic car devices is rising as more vehicles become autonomous or driverless. Due to increasing demand in emerging economies, the overall number of automobiles sold on international markets is also dramatically.

Recent Developments

• February 2022- Microsemi Corporation computing-in-memory innovator solved speech processing challenges at the edge using analog embedded superflash technology.
• June 2022- Advanced Semiconductor Engineering, Inc. (ASE), an ASE Technology Holding Co., Ltd. member, introduced VIPack™, an advanced packaging platform designed to enable vertically integrated package solutions. VIPack™ represented ASE’s next generation of 3D heterogeneous integration architecture that extends design rules and achieves ultra-high density and performance.