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3D IC and 2.5D IC Market

Market Study on 3D IC and 2.5D IC: Sales to Soar amid Burgeoning Demand for Data Center Networking!

3D IC and 2.5D IC Market by Packaging Technology (3D Wafer-Level Chip-Scale Packaging, 3D Through-silicon Via, 2.5D), The United Kingdom 3D IC and 2.5D IC industry is anticipated to witness a CAGR of 25.9% from 2022 to 2032.

3D IC and 2.5D IC Market Outlook (2022 to 2032)

The global 3D IC and 2.5D IC market is estimated to reach US$ 2.0 trillion in 2032. It is projected to witness an astonishing CAGR of 27.8% from 2022 to 2032. A valuation of about US$ 170.5 billion was predicted for the global market in 2022.

A vertically interconnected stack of silicon wafers is used to make 3D IC, which is a metal oxide semiconductor. They are stacked such that they function as a single unit, outperforming the 2D method in terms of power reduction and small size.

The dies are stacked in 2.5D IC, but they are also both flipped-chipped in a single package and attached to a silicon interposer. Competitive environment of the global 3D IC and 2.5D IC industry is fragmented as a result of presence of several dominant companies. Nevertheless, a small number of well-known businesses lead the international market. There have been a number of noteworthy breakthroughs in this market.

The best electronic architecture is found in 3D ICs and 2.5D ICs, compared to all other electronic circuits. These small, useful, and technologically advanced electronic devices are quickly gaining popularity among millennials. IC packages are set to be essential parts of electrical gadgets. As a result, the market for 2.5D and 3D ICs is directly attributable to rising demand and sales.

As modern world's technologies such as high-performance computers, 5G, and artificial intelligence continue to advance, so does the demand for these semiconductors. Power efficiency, performance, bandwidth, and latency of electronic equipment are all improved by using these devices.

The industry is also being driven by other elements, including the expanding market for gaming devices, smartphones, and tablets. Increasing use of advanced architecture in electronic products and shift toward miniaturized electronic gadgets are also projected to boost demand. The market for 3D IC and 2.5D ICs is hence expected to develop, but is being constrained by high unit cost, low volumes, and implementation concerns of ICs.

3D IC and 2.5D IC Market Size (2021)

US$ 124.3 billion

Estimated Market Size (2022)

US$ 170.5 billion

Projected Market Value (2032)

US$ 2.0 trillion

Value-based CAGR (2022 to 2032)

27.8%

USA Value-based CAGR (2022 to 2032)

26.4%

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3D IC and 2.5D IC Demand Analysis (2017 to 2021) Vs. Market Outlook (2022 to 2032)

As per Persistence Market Research (PMR), the global 3D IC and 2.5D IC market exhibited growth at a CAGR of 37.3% in the historical period from 2017 to 2021. It is projected to witness a CAGR of 27.8% in the assessment period between 2022 and 2032.

Due to its advantages in achieving exceptionally high package density and good energy efficiency, 3D and 2.5D ICs have recently gained popularity as appropriate chipset integration platforms. Implementation statistics for the market under consideration are being pushed along with its technological evolution by autonomous vehicles, data center networking, and high-performance computing. Massive computing resources are currently in demand at the cloud, edge computing, and device levels.

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Which are the Key Trends Propelling the Demand for 3D IC and 2.5D IC?

Miniaturization of electrical equipment has become a significant trend in the global market. Electronic devices that are small, portable, compact, and highly advanced are becoming quite popular worldwide, especially among millennials. A crucial element in these cutting-edge micro electrical devices is the 3D IC package. As a result, their increasing sales immediately mirror general growth in the global 3D IC and 2.5D IC market.

As the demand for silicon wafers rises, businesses are attempting to push the envelope by developing cutting-edge technologies such as 3D IC and 2.5D IC. Need for highly advanced technologies is increasing worldwide.

Companies are hence spending huge sums on research and development, and are mainly concentrating on product development, which is advantageous for the market. Long-standing businesses in the 3D IC and 2.5D IC industry are working to create new, improved iterations of these components.

For instance, ASE announced that it is launching a high-density fan out technology for die stacking and multi-die solutions to deliver high bandwidth and high performance across the market. Its solutions will be able to meet demand from high-density data centers, consumers, and mobile areas. Hence, miniaturization and urgent need for advanced electronics equipment are fueling demand for 3D IC and 2.5D ICs.

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Which are the Factors Restraining Sales of 3D IC and 2.5D IC Worldwide?

Compared to traditional packaging methods employed in the semiconductor industry, advanced packaging which involves the usage of 3D IC and 2.5D IC, is a relatively expensive process. At certain points, cost of designing and producing semiconductors at each successive node is high.

Complexity of the ICs would also drive up the cost of wafer production. Use of sophisticated packaging is set to be hampered by the cost of packing various chips and integrated circuits with intricate patterns. As a result, unavailability of raw material and high initial cost may hinder expansion of the market for 3D IC and 2.5D IC.

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Which Region is Projected to Create Significant Opportunities for 3D IC and 2.5D IC Manufacturers?

Asia Pacific is considered to have a significant 3D IC and 2.5D IC market share throughout the projection period. Growing need for 3D ICs and 2.5D ICs in electronics, as well as automotive sector, has led to expansion of the market in Asia Pacific. Taiwan Semiconductor Manufacturing Company is one of the leading producers of 3D ICs and 2.5D ICs in Asia Pacific.

Country-wise Insights

Why is the USA Considered to be a Prominent Market for 3D IC and 2.5D IC?

The USA 3D IC and 2.5D IC market is expected to reach a valuation of US$ 289.8 billion in 2032 and exhibit a CAGR of 26.4% from 2022 to 2032, finds Persistence Market Research. It is likely to create an absolute dollar opportunity of around US$ 261.9 billion in the forecast period.

Need for cutting-edge semiconductor devices in the USA has been prompted by rising demand for electronics, expanding patterns of remote work & remote operations, and bolstering digitization. Modern packaging techniques provide the processing power and form factor needed for today's digital world as the demand for semiconductor devices surges steadily. These factors are anticipated to push sales of 3D IC and 2.5D IC in the USA.

What is the Outlook of the United Kingdom in the 3D IC and 2.5D IC Industry?

The United Kingdom 3D IC and 2.5D IC industry is anticipated to witness a CAGR of 25.9% from 2022 to 2032. A valuation of about US$ 51.7 billion is predicted for the country by 2032. It is likely to create an absolute $ opportunity of US$ 46.5 billion in the forecast period.

Due to their numerous advantages, 2.5D and 3D packaging technology is gradually becoming very common in the United Kingdom semiconductor industry. Various technologies such as optoelectronic devices, logic circuits, memory, and mixed signal & radio frequency (RF) components can be integrated onto different dies of a 3D integrated circuit. For instance, semiconductor chip 3D integration offers a flexible way to implement the heterogeneous system-on-chip (SoC) design (IC).

How are 3D IC and 2.5D IC Providers in China Faring?

China 3D IC and 2.5D IC industry is set to be valued at US$ 519.6 billion in 2032. It is anticipated to exhibit steady growth at a CAGR of about 29.5% in the estimated time frame. By 2032, the country is expected to create an incremental opportunity of US$ 480.5 billion.

Numerous leading manufacturers in China are likely to focus on investments to expand their portfolios, as well as production capacities. In November 2021, for instance, Jiangsu Changjiang Electronics, a China-based company, announced expansion of the production capacity of its second phase of IC packaging and testing facility in Suqian. The company is aiming to provide better service to its global customer base with this expansion.

Which Factors are Pushing Sales of 3D IC and 2.5D IC in Japan?

The Japan 3D IC and 2.5D IC industry is projected to be valued at US$ 319.8 billion by 2032. Between 2022 and 2032, the country is set to showcase a CAGR of 28.1%, says Persistence Market Research. It is likely to create an incremental opportunity of about US$ 292.9 billion throughout the assessment period.

One of the most important end users for semiconductor vendors is consumer electronics. The market for semiconductor devices is surging as a result of rising penetration of consumer internet of things devices, growing use of smart devices & wearables, and expansion of the smartphone industry. Owing to the above-mentioned factors, 3D IC and 2.5D IC sales in Japan are set to escalate by 2032.

How is South Korea Generating High Demand for 3D IC and 2.5D IC?

The South Korea 3D IC and 2.5D IC market is likely to exhibit growth at a CAGR of 28.3% between 2022 and 2032. The country is predicted to be valued at US$ 124.9 billion in 2032 and create an opportunity of US$ 114.6 billion in the next ten years.

The South Korea market is anticipated to be inundated with 5G-relevant items, including mobile terminals, network infrastructure, nodes, and networking equipment. Growth is attributed to rapid expansion spurred by the commercialization of 5G in the country. Expansion of the market has also been aided by increasing demand for advanced semiconductors, rising adoption of electric and driverless vehicles, and increasing expansion of data centers in Japan.

Category-wise Insights

Which is the Leading Application of 3D IC and 2.5D IC?

Based on application, the logic segment is set to remain at the forefront throughout the estimated time frame. Significant share of the segment is primarily attributable to expansion of smart city initiatives globally, rising concern for safety, and surging demand for superior high-level access control systems. Expansion of network infrastructure, increasing cases of thefts, and surging security system expenditure are a few other factors that would all contribute to the segment’s growth.

Competitive Landscape

Leading market players are coming up with innovative ways to provide high-quality products. They are also striving to gain patents for their in-house technologies and products. A few other companies are focusing on expanding their product lines. Emerging players, who currently hold a relatively small market share, are constantly aiming to surge their share in the global market with new strategies such as mergers and acquisitions.

A few recent developments in the 3D IC and 2.5D IC market are:

  • In November 2022, Amkor Technology, a business with headquarters in South Korea, joined the TSMC OIP 3D Fabric partnership. With early access to TSMC's 3DFabric technology, the new 3DFabric Alliance's partners can advance their products concurrently with TSMC. They can also offer a steady supply of 2.5D ICs and 3D ICs that are of premium quality.
  • In September 2022, a sophisticated VDA-compliant LIN alternator regulator was unveiled by STMicroelectronics, a British company, to improve the performance and adaptability of 12V automotive systems. With the aid of a 3D IC and improved functionality, STMicroelectronics unveiled the L9918 automotive alternator regulator to guarantee reliability of 12V automotive systems. With the use of inbuilt non-volatile memory, L9918 gives users the flexibility to specify settings such as alternator characteristics and voltage set point.

Scope of the Report

Attribute

Details

Estimated Market Size (2022)

US$ 170.5 billion

Projected Market Valuation (2032)

US$ 2.0 trillion

Value-based CAGR (2022 to 2032)

27.8%

Forecast Period

2022 to 2032

Historical Data Available for

2017 to 2021

Market Analysis

Value (US$ trillion)

Key Regions Covered

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • The Middle East & Africa

Key Countries Covered

  • USA
  • Canada
  • Brazil
  • Mexico
  • Germany
  • United Kingdom
  • France
  • Italy
  • Spain
  • Nordic
  • Russia
  • Poland
  • China
  • India
  • Thailand
  • Indonesia
  • Australia and New Zealand
  • Japan
  • Gulf Cooperation Council countries
  • North Africa
  • South Africa
  • Others

Key Segments Covered

  • Packaging Technology
  • Application
  • End User
  • Region

Key Companies Profiled

  • Taiwan Semiconductor Manufacturing Company
  • Intel Corporation
  • United Microelectronics Corporation
  • Samsung Electronics Co., Ltd.
  • ASE Group
  • Amkor Technology
  • ST Microelectronics NV
  • Broadcom Ltd.
  • Jiangsu Changjiang Electronics Technology Co., Ltd
  • Toshiba Corporation

Report Coverage

  • Market Forecast
  • Company Share Analysis
  • Competitive Landscape
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives

3D IC and 2.5D IC Market Segmentation

By Packaging Technology

  • 3D Wafer-level Chip-scale Packaging
  • 3D Through-silicon Via
  • 2.5D

By Application

  • Logic
  • Imaging and Optoelectronics
  • Memory
  • Micro-electromechanical Systems/Sensors
  • Light-emitting Diode
  • Power
  • Analog & Mixed Signal
  • Radio Frequency
  • Photonics

By End User

  • Consumer Electronics
  • Telecommunication
  • Industry Sector
  • Automotive
  • Military and Aerospace
  • Smart Technologies
  • Medical Devices

By Region

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East and Africa

- Companies Covered in This Report -

  • Taiwan Semiconductor Manufacturing Company Limited
  • Samsung Electronics Co., Ltd.
  • Toshiba Corp.
  • ASE Group
  • Amkor Technology
  • United Microelectronics Corp.
  • STMicroelectronics Nv
  • Broadcom Ltd.
  • Intel Corporation
  • Jiangsu Changjiang Electronics Technology Co., Ltd.

- Frequently Asked Questions -

The 3D IC and 2.5D IC industry size was reported at US$ 170.5 billion in 2022.

The global 3D IC and 2.5D IC industry was estimated to be valued at US$ 124.3 billion in 2021.

The global 3D IC and 2.5D IC industry is expected to reach a valuation of US$ 2.0 trillion by 2032.

The 3D IC and 2.5D IC industry registered a CAGR of 37.3% between 2017 and 2021. 

The 3D IC and 2.5D IC industry is projected to witness a CAGR of 27.8% from 2022 to 2032. 

The 3D through-silicon via packaging technology segment is expected to garner a significant share by 2032. 

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