August 29, 2024 /SemiMedia/ — According to data from market research firm TrendForce, the advanced packaging equipment market is projected to grow by over 10% in 2024, with further growth exceeding 20% anticipated in 2025. This expansion is largely driven by major semiconductor manufacturers increasing their advanced packaging capacities and the rapid growth of the global artificial intelligence (AI) server market.

TrendForce notes that rising demand for AI servers is advancing various packaging technologies, including InFO, CoWoS, and SoIC, leading to the construction of new packaging facilities worldwide. For instance, TSMC is expanding its packaging capacity across multiple regions in Taiwan, while Intel is growing its operations in New Mexico, USA, and Malaysia. Additionally, companies like Samsung, SK Hynix, and Micron are building new HBM packaging facilities in the United States, South Korea, Taiwan, and Singapore.

The expansion of these packaging facilities has spurred demand for related equipment, such as electroplating machines, die bonders, molding machines, thinning machines, and dicing machines. Given the relatively low technical barriers to entry in the advanced packaging equipment sector, companies like TSMC are strategically fostering local suppliers to reduce costs.

TrendForce emphasizes that for Taiwanese equipment manufacturers, expanding production capacity in line with market growth is crucial for business success. As major semiconductor manufacturers continue to enhance their packaging capabilities, Taiwanese equipment companies have opportunities not only to collaborate with leading foundries and outsourced semiconductor assembly and test (OSAT) providers but also to expand into international markets.