The global 3D semiconductor packaging market comprises various global and local manufacturers that are continuously developing new technologies based on 3D semiconductor packaging to expand globally and enhance their market position. The manufacturers compete based on cost, new product launches, and technology in the global 3D semiconductor packaging market. The 3D semiconductor packaging finds applications in portable electronic devices as well as the automotive industry. Moreover, the growing adoption of smartphones is expected to drive the growth of the global 3D semiconductor packaging market.
The companies are primarily focusing on product development, acquisitions, and product launches. The key players in the global market, such as asm AG, Amkor Technology Inc, and Taiwan Semiconductor Manufacturing Co. Ltd, are developing 3D semiconductor packaging technology. The improvement of the global economic scenario combined with technological advancements in emerging economies, such India, South Africa, China, Brazil, and Argentina, is likely to fuel the global market growth.
asm AG is the key player in the global 3D semiconductor packaging market. asm AG is an Austria-based company that designs, manufactures, and develops sensors, sensor interfaces, power management devices, analog semiconductor devices, and wireless solutions. The company offers products including power management integrated circuits, sensors, sensor interfaces, and wireless-integrated circuits for the industrial, medical, mobile communications, and automotive industries. In 2017, the company invested ~USD 254 million in research and development.
Amkor Technology Inc is a US-based company that develops, manufactures, and designs innovative packaging and test technologies for semiconductors. The company provides wafer fabrication, wafer probe, packaging, IC design, and final test and logistics solutions to the leading manufacturers of semiconductors and original equipment manufacturers (OEMs). The various 3D packaging technologies offered by the company are 3D TSV packaging, 3D stacked die, silicon wafer integrated fan-out technology (SWIFT), and flip chip in package (FCiP) technology, among others. The company invested ~USD 166 million in research and development in 2017.
Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) is engaged in the manufacturing and sale of integrated circuits and wafer semiconductor devices. The company offers a wide range of wafer fabrication processes including manufacturing of complementary metal oxide semiconductor (CMOS) logic, mixed-signal, radio frequency, embedded memory, BiCMOS mixed-signal, and other semiconductors. The company invested ~USD 2.6 billion in research and development. There are various 3D packaging technologies that the company focuses on such as package-on-package, chip-on-wafer-on-substrate (CoWoS), and integrated fan-out.
Conclusively, to increase the stability in the global market, the key players are required to increase the investments in research and development to enhance the performance of the existing products and leverage innovationin technology to meet the demand.
Michael Porter’s five forces model gives a framework that models the global 3D semiconductor packaging market which is influenced by five forces. The strategic business managers, trying to create an edge over competitive firms in the global 3D semiconductor packaging market, can utilize this model to comprehend better the industry connection in which the firm operates. The components of each of the forces and the degree of impact of each component in the context of the global 3D semiconductor packaging market have been broken down and analyzed.
Threat of New Entrants
The entry of new companies in the 3D semiconductor packaging market is increasing owing to increasing demand for memory chips with the advent of IoT and growing market of electric and hybrid vehicles. However, high costs incurred in the process of packaging is refraining the companies to invest in the same. Therefore, the degree of impact of new entrants is moderate.
Bargaining Power of Suppliers
The packaging companies and manufacturers of other electronic components manufacture these either in-house or outsource it on a contractual basis, limiting the number of certified suppliers. In addition to this, the suppliers must abide by the regulations laid down by government authorities regulating the semiconductor and electronics industry, which assist the companies in increasing their market presence. Hence, the bargaining power of suppliers possesses a higher degree of impact on the 3D semiconductor packaging market.
Threat of Substitutes
The electronic devices such as memory chips/modules and ICs can efficiently function in relatively high temperatures for high-voltage applications. Various new packaging technologies can substitute the existing one with better thermal management capabilities. However, the new and advanced 3D packaging technologies have not been widely adopted at present, and therefore the threat of substitutes possess a moderate threat to the 3D semiconductor packaging market.
Bargaining Power of Buyers
The buyers in the 3D semiconductor packaging market are less likely to control the fluctuations in the price of semiconductor and electronic components. In addition to this, the emergence of IoT technology has resulted in substituting advanced technologies resulting in high-efficiency. Therefore, the bargaining power of buyers is low.
Intensity of Rivalry
The existing players in the 3D semiconductor packaging market compete on factors such as the reliability, efficiency, and operational capabilities as well as their market presence. Thus, it becomes challenging for new players to compete with existing key players and expand their market presence. However, the increasing demand for various electronic devices such as flash memory, IoT devices, automobile control systems, and other industry verticals has increased the number of players in the market, possessing a moderate degree of rivalry among the existing players.
