Advanced Packaging Market Set to Reach USD79.4 Bln by 2030

KEY TAKEAWAYS:

• Advanced packaging market reached $46 billion in 2024, up 19% YoY after the 2023 downturn.
• Market projected to exceed $79.4 billion by 2030, with a CAGR_2024-2030 of 9.5%, a recovery cycle driven by AI and high-performance demand.
• Telecom & infrastructure is the fastest-growing segment with a +14.9%CAGR between 2024 and 2030, powered by AI accelerators, GPUs, and chiplets.
• Mobile & consumer electronics remains the largest market, accounting for ~70% of 2024 revenues.
• 2024 advanced packaging ranking: IDMs lead the market with Intel, Sony, Samsung, YMTC, and SK Hynix, followed by OSATs and the leading foundry TSMC.

Advanced packaging as the cornerstone of market expansion, highlights Yole Group in its annual Status of the Advanced Packaging Industry report.

From 2024 to 2025, the advanced packaging market reinforced its strategic role across markets. Once confined to specific high-end applications, it is now a pillar of mass adoption in consumer electronics and an enabler of emerging markets, including AR/VR, edge AI, aerospace, and defense.

At the same time, the telecom & infrastructure segment is experiencing unprecedented growth, with a 14.9% increase between 2024 and 2030, making it the segment with the highest growth. This momentum is powered by AI accelerators, GPUs, cloud and data center demand, and chiplet-based architectures. As system complexity rises, advanced packaging technologies such as CoWoS, SoIC, EMIB, I-Cube, and 3D stacking provide the performance and integration levels required by hyperscale infrastructure players.

Bilal HachemiSenior Technology & Market Analyst, Semiconductor Packaging at Yole Group

Advanced packaging has reinforced its role as a cornerstone within the semiconductor value chain, reshaping not only mass markets but also highly sensitive domains. Its trajectory reflects a portfolio expansion designed to enable a wide spectrum of industries.

Players, investments, and regional strategies in the advanced packaging industry

The 2024 ranking of advanced packaging players highlights a shifting landscape: IDMs dominate with Intel, Sony, Samsung, YMTC, and SK Hynix leading, followed by OSATs and foundries such as TSMC. Memory players and diversified portfolios have reshaped the Top 10.

This reshaping has been enabled by a wave of unprecedented investments:

• TSMC ramped CoWoS capacity after acquiring a facility from Innolux in Taiwan and is also scaling SoIC.
• ASE, Amkor, and Intel boosted U.S. capacity in line with CHIPS Act incentives, aligning with customer needs from NVIDIA and Apple.
• Unisem and MPI expanded in Malaysia and Vietnam to avoid China–Taiwan tensions and reduce logistics costs.
• Forehope, Lingsen, and ChipMOS reinforced their strong mainland China positions, investing heavily in automation and customer clustering.
• JCET announced a $1.5 billion investment to strengthen domestic AP capabilities.
• In Nanjing, HT-Tech launched a second-phase expansion worth 10 billion yuan, about $1.4 billion.
• Tongfu Microelectronics announced a 7.5 billion yuan (~$1.0 billion) advanced packaging project targeting flip-chip, multi-layer stacking, WLP, and PLP, with completion planned by 2029.
• Across Jiangsu, Hubei, and other regions, at least seven new advanced packaging fabs are under construction in China, signaling a long-term push for independence and capacity scaling.
• Etc…