According to recent analysis, the global Advanced 3D Packaging Market is expected to grow from USD 7.9 Billion in 2025 to USD 28.4 Billion by 2035, registering a robust CAGR of 12.3% during the forecast period. This growth is being driven by high performance, low-power, and small-size chip design particularly for AI, 5G, data centre, and HPC applications.
The rising adoption of chiplet architectures and the increasing complexity of semiconductor devices are prompting manufacturers to explore options other than standard 2D packaging. For Instance, in 2023, TSMC scaled the production of its 3DFabric platform which combines CoWoS and InFO technologies to support NVIDIA and AMD’s latest AI accelerators establishing itself as the high-water mark for interconnect density and system-level integration. Backed by increasing wireless content per device and digitization of the global economy, and bolstered by accelerating government and corporate investment in semiconductor self-sufficiency and reshoring the Advanced 3D Packaging Market is set to grow steadily and innovatively through 2035.
Chip demand is booming globally, with AI, 5G, cloud computing and automotive applications driving exponential growth, and chipmakers are chasing packaging technologies that already enable higher performance, energy efficiency and miniaturization. Advanced 3D packaging involves Through-Silicon Via (TSV), 3D fan-out and hybrid bonding techniques, which facilitate the packaging of several dies in physical close proximity, leading to increase in bandwidth and decrease in latency. For Instance, in 2023, leading foundries expanded production capacity for CoWoS and InFO packaging support next-gen AI accelerators, demonstrating how advanced 3D integration is becoming a core differentiator in the semiconductor industry.
One of the key limitations is cost of capital and R&D related to 3D packaging infrastructure. The challenge of the nanoscale manufacturing and high costs of equipment investment and cost of the cleanroom make hard for the small OSATs (Outsource Semiconductor Assembly and Test providers) to adopt this technology. Furthermore, the risk and profit with respect to stacking and interconnect process yield can be enhanced. This has resulted in consolidation of skills from tier 1 players and, consequently, high barriers of entry for other participants.
Furthermore, there is strong opportunity in government-backed semiconductor reshoring and regional capacity development. Advanced packaging is becoming more of a focus as parts of the value chain are brought close to home for strategic autonomy. In 2024, significant investments were unveiled in the United States, South Korea and India for advanced packaging facilities in connection to broader semiconductor projects. These roadmaps are anticipated to create new market opportunities, drive expansion of the ecosystem, and catalyze adoption of 3D packaging technologies worldwide.
Major companies shaping the advanced 3D packaging industry include Amkor Technology, ASE Technology Group, Broadcom Inc., GlobalFoundries, Infineon Technologies, Intel Corporation, JCET Group, MediaTek Inc., Micron Technology, ON Semiconductor, Powertech Technology Inc., Qualcomm, Renesas Electronics, Samsung Electronics, Siliconware Precision Industries (SPIL), SK Hynix, STMicroelectronics, Taiwan Semiconductor Manufacturing Company (TSMC), Texas Instruments, United Microelectronics Corporation (UMC), and Other key Players. These firms are investing in advanced 3D packaging technologies that enable higher chip performance, support heterogeneous integration, and align with the growing demand for compact, energy-efficient semiconductor solutions.
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