Worldwide Semiconductor Advanced Packaging Market Forecast and Analysis, 2025-2029

This study makes an in-depth analysis of the market structure and competitive landscape, revealing advancements in both outsourced semiconductor assembly and test (OSAT) and foundry/integrated device manufacturing (IDM) within the advanced packaging industry. The OSAT segment, represented by ASE, Amkor, and JCET, is projected to comprise about 59% of the total market share in 2025; and the foundry/IDM segment, represented by TSMC, Samsung, and Intel, is expected to claim 39% of the market in 2025 and to grow 42% by 2029. Many leading manufacturers have actively invested in cutting-edge technologies, such as chip-on-wafer-on-substrate (CoWoS), system on integrated chip (SoIC), fan-out panel-level packaging (FOPLP), hybrid bonding, and co-packaged optics (CPO), which will fuel continuous industry innovation."Advanced packaging are evolving toward high integration, and chip-on-wafer-on-substrate (CoWoS)-S/R/L, system on integrated chip (SoIC), system-on-wafer (SoW), and other technologies all play a key role in the AI era. Taking TSMC as an example, it will address the demand for AI-powered graphic processing units (GPUs) and application-specific integrated circuits (ASICs) by expanding its CoWoS capacity to 680 thousand wafers in 2025, a significant increase of 106%. In addition, ASE and Amkor will actively participate in the division of labor along the supply chain to undertake spillover orders. With the rising requirements for computing performance and energy efficiency from end-user applications, advanced packaging will continue to promote technological innovation and value enhancement in the semiconductor industry," said Galen Zeng, senior research manager at IDC.