The memory packaging market involves the design, testing, and manufacturing of integrated circuit packaging substrates. Memory packaging helps in protecting memory chips from environmental hazards and provides electrical connections between the chip and printed circuit boards. Common memory packaging technologies include conventional wire bonding, flip chip bonding, and Through-Silicon Vias (TSV). These technologies are used in manufacturing discrete memory modules, multi-chip packages, system-in-package modules, and other advanced 3D IC packaging configurations. Key end-use industries include automotive, telecommunication, consumer electronics, defense, and aerospace. The global demand for portable electronic devices such as smartphones, tablets, laptops, wearables is expected to rise exponentially over the coming years. This growing demand for portable devices will require more efficient and powerful memory packaging solutions, thus driving the growth of the global memory packaging market.
The global memory packaging market is estimated to be valued at US$ 28.08 Bn in 2023 and is expected to exhibit a CAGR of 7.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Growing demand for portable electronic devices: The growing demand for advanced portable electronic devices such as smartphones, tablets, laptops, and wearable devices is one of the primary drivers of the global memory packaging market. Manufacturers are under constant pressure to develop more powerful yet energy-efficient devices within compact form factors. This is promoting innovations in high-density memory packaging technologies such as 3D packaging and 2.5D/3D-IC.
Memory device miniaturization through advanced packaging: The miniaturization of electronic devices has necessitated the miniaturization of individual components as well. IC packaging technology has played a crucial role in reducing the footprint of memory devices over the years. Advanced packaging technologies allow stacking of memory dies vertically as well as horizontally, thereby increasing device density within the same printed circuit board area. This is supporting the production of extremely thin and small memory modules.
Memory Packaging market is dominated by the DRAM segment which holds around 30% market share. DRAM segment witnesses high demand due to increasing usage of mobile computing devices such as smartphones, tablets, etc. Smartphones require high memory storage and processing capabilities to support applications. Thus, leading manufacturers are focusing on developing advanced DRAM packaging solutions such as multi chip package (MCP) and 3D packaging to fit more DRAM chips in limited space.
Political: No significant political factors affecting the market.
Economic: Rising disposable income in developing countries increases adoption of consumer electronics raising demand. Growing investments by manufacturers in advanced technologies to gain competitive advantage.
Social: Increasing usage of smartphones, tablets and other devices for connectivity, gaming and productivity drives memory needs. Work from culture boosts laptop and mobile computing sales.
Technological: Adoption of 3D packaging, system-in-package and advanced interconnect technologies allows integration of more memory in smaller footprint satisfying performance needs of next-gen devices.
The Global Memory Packaging Market Growth is expected to witness high at a CAGR of 7.3% during the forecast period of 2023 to 2030. Asia Pacific region currently dominates the market with China as the largest market. Aggressive capacity additions by Chinese manufacturers and presence of packaging facilities of leading assemblers like ASE technology contribute to China’s dominance.
Key players operating in the Memory Packaging are Tianshui Huatian Technology Co Ltd, Hana Micron Inc., lingsen precision industries Ltd, Formosa Advanced Technologies Co. Ltd (FATC), Advanced Semiconductor Engineering Inc. (ASE Inc.), Amkor Technology Inc., Jiangsu Changjiang Electronics Technology Co. Ltd, Powertech Technology, King Yuan Electronics Corp. Ltd, ChipMOS Technologies Inc., TongFu Microelectronics Co., and Signetics Corporation.
Asia Pacific is expected to remain the largest and fastest growing regional market owing to presence of leading packaging houses and memory manufacturers. China dominated Asia Pacific market accounting for over 35% share in 2023 due to massive captive backend facilities of Chinese OSATs.
1. Source: Coherent Market Insights, Public sources, Desk research
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