New Chinese OSATs are penetrating the FO packaging supply chain, such as ECHINT (former ESWIN), Casmeit and Sky Semiconductor.
TSMC is the biggest FO packaging player, with 76.7% of the market.
Chiplets and heterogenous integration are driving FO packaging developments.
FO packaging revenue was $1.86 billion in 2022. Yole expects it to have a CAGR of 12.5% through 2028, reaching $3.8 billion.
UHD (Ultra-High Density) FO will experience the fastest growth across all market classes, with a CAGR of 30%, growing from $338 million in 2022 to $1,630 million in 2028.
“HD (High Density) FO is the dominating market class in 2022 with $1,194 million in revenue, and it will have a 6.7% CAGR, reaching $1,757 million in 2028,” says Yole’s Gabriela Pereira, “core FO will have a 2.8% CAGR, increasing from $329 million in 2022 to $389 million in 2028.”
FO WLP (Wafer-Level Packaging) volume will still dominate the market, with wafer production of 2,376K in 2028, versus 238K 300 mm wafer equivalent production for FO PLP .
Total FO package volume will grow from 2,348 million units in 2022 to 2,960 in 2028.
TSMC is the biggest FO packaging player, with 76.7% of the market”.
The top three OSAT companies, ASE, Amkor, and JCET, together with TSMC, had more than 90% of the fan-out market in 2022.
FO packaging has evolved from a low-end packaging technology into a high-performance integration platform, with growing adoption in the HPC , networking, automotive, and high-end mobile markets.
One of the major market trends driving fan-out packaging technology is large die partitioning into chiplets and heterogeneous integration.
Fan-out is a cost-effective platform that enables high-bandwidth and high-density die-to-die interconnections through RDL -based processes.
UHD FO will take market share from Si Interposers in the future through innovative FO-on-substrate and FO-embedded bridge
TSMC is the market leader in high-performance FO solutions for high-end computing, networking, and HPC applications.
ASE, SPIL, Samsung, JCET, Amkor, PTI, TFME, and Nepes are developing similar solutions with huge potential to compete.
Though core FO is the primary OSAT market, the main developments are in HD and UHD FO technologies.
FO PlP (Panel-Level Packaging) has been hyped as the solution for the widespread adoption of FO, especially for large package sizes.
However, it still presents technical challenges, and there is a lack of demand to achieve the desired cost benefit