System in Package (Sip) Technology Market Research Report 2024

System in Package (Sip) Technology Market Synopsis

System in Package (Sip) Technology Market Size Was Valued at USD 19.54 Billion in 2023 and is Projected to Reach USD 45.59 Billion by 2032, Growing at a CAGR of 9.87% From 2024-2032.

A System in Package (SiP) is a major improvement in electronic integration, as it combines several integrated circuits into one module. This advancement combines all the features of a complete electronic system into a small, effective device. In contrast to standard configurations with scattered passive components on a board, a SiP integrates them all onto a single chip. This integration not only simplifies the design and assembly of printed circuit boards (PCBs) but also decreases development expenses significantly. SiPs improve cost efficiency and operational versatility by reducing the need for extra components and maximizing spatial usage.

• SiPs offer a significant advantage due to their capacity to perform well in a variety of operational settings, including the challenging conditions commonly found in automotive and industrial use. Their sturdy construction allows them to withstand environmental conditions, which means they are perfect for use in tough environments where dependability is crucial. Additionally, their small size and compact footprint helps save space, especially important for areas with limited room. The small size makes it easier to incorporate into different electronic devices, helping the trend of making consumer electronics and telecommunications smaller.
• The versatility and adaptability of SiPs are evident in their widespread adoption across various industries. SiPs play a crucial role in driving technological innovation by improving the performance and reliability of consumer electronics and enabling advanced features in automotive systems and telecommunications infrastructure. Their incorporation not only boosts system effectiveness but also aids in the creation of advanced features like wireless communication units and sensor networks. SiPs are set to continue being a key technology as industries require smaller, more efficient electronic solutions, providing manufacturers with a competitive advantage through enhanced performance, lower costs, and more design and implementation options.

Top Key Players

SAMSUNG (South Korea), Amkor Technology (U.S.), ASE Group (Taiwan), ChipMOS TECHNOLOGIES INC. (Taiwan), JCET Group Co., Ltd. (China), Texas Instruments Incorporated (U.S.), Unisem (Malaysia), UTAC (Singapore), Renesas Electronics Corporation (Japan), Intel Corporation (U.S.), FUJITSU (Japan), TOSHIBA ELECTRONICS EUROPE GMBH (Germany), SPIL (Siliconware Precision Industries Co., Ltd.) (Taiwan), Powertech Technology, Inc. (Taiwan), Qualcomm, Inc. (USA), and other Active Players.

System in Package (Sip) Technology Market Trend Analysis

Growing demand for miniaturization of electronic devices

• The fast progress of research and development and technological advancements has led to an increasing need for small and dependable electronic devices. The advancement of semiconductor technologies has played a key role in driving this trend, requiring the utilization of advanced IC packaging methods. Significant innovation has been observed in Integrated Circuit (IC) packaging, which is essential for integrating logic, memory, RF, and sensor components into smaller form factors. One important breakthrough is the System in Package (SiP), providing efficient solutions with low power usage, all in small sizes.
• SiP technology is essential for improving circuit performance and cutting power usage through the reduction of wire lengths and better energy dissipation optimization. This feature enhances productivity and aids in the smooth integration of various multichip modules like DRAM. SiP meets the increasing need for smaller electronic devices in different industries by combining various parts into unified units with little disruption. With a growing focus on small size and effectiveness in various industries, SiP IC packaging technologies are expected to continue leading the way in making electronic devices smaller and meeting the needs of both consumers and industrial sectors.
• The emergence of IC packaging technology, especially with advancements like SiP, signals a change in direction towards compact, yet highly efficient electronic devices. This trend satisfies consumers' desire for thinner and more convenient devices and aligns with the industry's overall goal of improving performance and energy efficiency. As these technologies advance further, their influence on the electronics industry is expected to grow, creating a future where small size and powerful performance come together effortlessly in upcoming devices.

Rise in the Use of RF Components in Developing Advanced 5G Infrastructure

• The growing use of RF components in the creation of advanced 5G infrastructure is expected to greatly boost market growth in the years ahead. With the increase in high-bandwidth-supporting devices, wireless networks are experiencing more congestion issues, leading to a growing need to shift from 3G and 4G LTE to 5G technology. Forecasts suggest that 5G technology will provide overall data rates much higher than current standards, ensuring significantly faster data transmission speeds and network efficiencies.
• Strategic partnerships and the development of new markets are expected to further drive growth in the market. These partnerships play a crucial role in capitalizing on synergies across different technological fields, improving the resilience and expandability of 5G networks worldwide. These advancements satisfy existing needs for quicker and more dependable connections and set the stage for groundbreaking innovations in industries like healthcare, autonomous vehicles, and smart cities. The combination of these factors not only improves market competitiveness but also provides a rich environment for discovering new opportunities, ultimately speeding up the overall growth path of the RF components market as it transitions towards 5G.

System in Package (Sip) Technology Market Segment Analysis:

System in Package (Sip) Technology Market Segmented based on Packaging Technology, Packaging Method, Application and Region

By Packaging Method, the wire bond segment is expected to dominate the market during the forecast period

• Packaging techniques are essential in the semiconductor sector for improving the capabilities and efficiency of high-tech electronic gadgets. Flip chip packaging (FC) is a standout technique, particularly in the CPU application by major companies like Intel in the United States, among other methods used. This technique enhances both thermal control and electrical efficiency, crucial for top-performing processors. With the growing need for smaller packages and more features, flip-chip packaging is crucial for application processors and baseband units in mobile platforms. This trend highlights the important role it plays in enhancing the capabilities of today's semiconductor devices.
• At the same time, fan-out wafer level packaging (FOWLP) is becoming a major technology that is fueling advancements in semiconductor packaging. FOWLP enables the merging of different devices like RF transceivers, baseband processors, and power management ICs (PMICs) onto one platform. This approach is especially preferred for its capability to handle numerous I/O (input/output) points, dealing with the increasing intricacy of semiconductor designs. As the semiconductor industry keeps advancing towards smaller and more versatile devices, the need for FOWLP is expected to increase even more. The fact that it can incorporate various parts in a small space shows its importance as a key element in creating advanced semiconductor solutions designed for today's consumer electronics and communication technologies.

By Application, the Consumer Electronics segment held the largest share of 32% in 2023

• The Consumer Electronics sector has become a prominent player in the use of system-in-package (SiP) technology, demonstrating significant expansion and leading in market share. SiP technology combines many functions in one package, providing improved performance and small size, perfect for consumer electronics. This development has transformed gadgets such as smartphones, wearables, and smart home appliances by increasing the number of features in compact sizes, enhancing energy efficiency, and maximizing performance.
• The widespread use of SiP technology in the electronics industry has been largely driven by consumer demand for smaller, more powerful devices. Manufacturers harness SiP's capacity to merge various components like processors, memory, and sensors into one module, helping create more compact and advanced products. This integration decreases device size improves dependability and simplifies manufacturing, making it a top choice in the competitive consumer electronics industry.
• The ability of SiP technology to scale has enabled consumer electronics companies to quickly innovate, keeping up with the changing needs for connectivity, processing power, and battery longevity. SiP's small size and effective power management make it ideal for IoT devices and wearable technology, allowing for easy incorporation into daily activities. With consumer demands for smaller, more powerful devices on the rise, SiP technology is expected to play a key role in shaping the future of consumer electronics and maintaining its status as a leading force in industry innovation.

System in Package (Sip) Technology Market Regional Insights:

Asia Pacific is Expected to Dominate the Market Over the Forecast Period

• The Asia-Pacific area is a dominant force in the worldwide System in the Package (SiP) market, leading in market share and revenue, and expected to uphold this leadership with the highest Compound Annual Growth Rate (CAGR) in the projected timeframe. The significant dominance can be largely credited to the quick embrace of cutting-edge technologies in the consumer electronics industry and the strong presence of major players in the area. Japanese company Sony and South Korean company Samsung Electronics play a key role in advancing the SiP market in Asia Pacific, utilizing their technological expertise and widespread market presence.
• The consumer electronics sector is experiencing a high demand for SiP solutions, specifically in devices such as tablets and smartphones, due to the need for compact and efficient packaging solutions. SiP technology effectively handles the challenge of integrating various functions into smaller devices. As consumer demands shift towards more streamlined designs while maintaining high performance, SiP solutions have become essential. The strong expansion in this market sector is additionally driven by advancements in semiconductor packaging methods, allowing companies to satisfy strict requirements for smaller, more potent electronic gadgets.
• The SiP market in Asia-Pacific is expected to grow significantly, fueled by continuous progress in semiconductor technology and the ongoing development of consumer electronics. Having a solid base in technological innovation and a forward-thinking approach towards embracing new trends, the region is in a good position to maintain its leadership and reach new levels in the global SiP field. While companies increase their investments in research and development to improve SiP capabilities and meet various consumer needs, Asia Pacific continues to lead the way in influencing the global future of semiconductor packaging technologies.

Active Key Players in the System in Package (Sip) Technology Market

• SAMSUNG (South Korea)
• Amkor Technology (U.S.)
• ASE Group (Taiwan)
• ChipMOS TECHNOLOGIES INC. (Taiwan)
• JCET Group Co., Ltd. (China)
• Texas Instruments Incorporated (U.S.)
• Unisem (Malaysia)
• UTAC (Singapore)
• Renesas Electronics Corporation (Japan)
• Intel Corporation (U.S.)
• FUJITSU (Japan)
• TOSHIBA ELECTRONICS EUROPE GMBH (Germany)
• SPIL (Siliconware Precision Industries Co., Ltd.) (Taiwan)
• Powertech Technology, Inc. (Taiwan)
• Qualcomm, Inc. (USA), and other Active Players.

Key Industry Developments in the System in Package (Sip) Technology Market:

• In March 2024, Chinese assembly and testing company, JCET Group (JCET), announced its intention to acquire 80% equity of SanDisk Semiconductor Shanghai Co., Ltd. (SDSS), a subsidiary of Western Digital Corporation (WDC), for USD 624 million in cash. This strategic move aims to expand JCET’s market share in the storage.
• In March 2023, Octavo Systems announced a new product family of system in chip (SiP) named OSD62x that helps to expand the performance of edge and small form factor embedded processing into next-generation applications. The OSD62x family is based on the Texas Instruments (TI) AM623 and AM625 processors. Delivering the smallest AM62x module form factor, the OSD62x SiP family integrates high-speed memory, power management, passive components, and much more into a single BGA package.