The Advanced Packaging Market: Poised for Significant Growth Towards 2030
Electronics Weekly reported on September 3rd, 2025, that the advanced packaging market is projected to experience robust growth, with a Compound Annual Growth Rate (CAGR) of 9.5%. This expansion is anticipated to propel the market to a substantial $79.4 billion by the year 2030. This forecast highlights a pivotal moment for the semiconductor industry, underscoring the increasing importance of sophisticated packaging solutions in driving technological advancements.
Advanced packaging refers to the sophisticated methods used to encapsulate and interconnect semiconductor chips. Unlike traditional packaging, advanced techniques offer enhanced performance, reduced form factors, improved power efficiency, and greater functionality. These include technologies such as System-in-Package (SiP), 2.5D/3D integration, fan-out wafer-level packaging (FOWLP), and flip-chip technology.
The anticipated surge in the advanced packaging market is a direct reflection of several key trends shaping the electronics landscape. The relentless demand for higher performance in computing, artificial intelligence (AI), machine learning (ML), and high-frequency applications necessitates more integrated and efficient chip designs. Advanced packaging plays a crucial role in enabling this by allowing for the co-package of multiple dies, including CPUs, GPUs, memory, and I/O components, within a single package. This proximity significantly reduces signal latency and power consumption, leading to substantial performance gains.
Furthermore, the miniaturization of electronic devices, from smartphones and wearables to advanced automotive systems and the Internet of Things (IoT) devices, continues to drive the need for smaller and more power-efficient solutions. Advanced packaging techniques are instrumental in achieving these compact designs without compromising on functionality or performance.
The growth forecast also signals the strategic importance of these packaging technologies for semiconductor manufacturers. As traditional scaling methods, like Moore’s Law, face increasing physical limitations, advanced packaging is emerging as a critical enabler of continued innovation and performance improvement. Companies are investing heavily in research and development to refine existing packaging technologies and pioneer new approaches to meet the evolving demands of the market.
Sectors such as high-performance computing, data centers, telecommunications (particularly for 5G and future 6G deployments), automotive electronics, and advanced consumer electronics are expected to be key drivers of this growth. The increasing complexity and integration of systems within these fields directly translate into a greater reliance on advanced packaging solutions.
The projected $79.4 billion market size by 2030 underscores a significant opportunity for companies involved in various aspects of the advanced packaging ecosystem, including foundries, OSATs (Outsourced Semiconductor Assembly and Test) providers, equipment manufacturers, and material suppliers. The ongoing innovation and strategic investments in this segment suggest a dynamic and highly competitive market in the coming years.
In conclusion, the report from Electronics Weekly paints a promising picture for the advanced packaging market, indicating a period of substantial expansion driven by the fundamental need for enhanced performance, miniaturization, and integration across a wide spectrum of electronic applications. This trend is set to redefine the capabilities of semiconductors and fuel the next generation of technological innovation.
Advanced packaging market on 9.5% CAGR to reach $79.4bn in 2030
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Electronics Weekly published ‘Advanced packaging market on 9.5% CAGR to reach $79.4bn in 2030’ at 2025-09-03 05:15. Please write a detailed article about this news in a polite tone with relevant information. Please reply in English with the article only.