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TAP TIMES -19- OCTOBER 2022
Paradigm shift (from 18) ODMs are entering packaging & assembly,
cannibalizing the OSAT business.
ages and embedded dies (and passives) in
organic substrates in response to the ac- Substrates have been in tight supply due
celerated adoption of fan-out packaging. to strong demand for high-end CPUs,
GPUs, and 5G networking chips by major
Substrate know-how chipmakers.
These players are taking advantage of
their substrate manufacturing know-how, The COVID-19 pandemic, high inflation,
panel line and equipment availability, and and geopolitical tensions are continuing to
thin RDL technology development. negatively impact material supplies.
On the other hand, OSATs are expanding Extended lead times
their testing expertise, while traditional The delivery lead time of ABF substrates
pure test players are investing in packag- has been extended to nearly three quar-
ing & assembly capabilities. ters from 4-5 months due to demand
growth outpacing capacity expansion, and
Test expansion prices have risen from 15% to 25%.
Top OSATs are investing in IC testing ca-
pacity to capture the test market, and Key points, Yole reports:
pure test houses, such as KYEC and Sigurd -The advanced packaging industry is ex-
Microelectronics, are adding packaging/as- pected to have a 9.6% CAGR between
sembly capabilities in their service offering 2021 and 2027 to $65 billion.
through M&As or investing in R&D.
-The advanced packaging segment as
Overall, there is a paradigm shift in the compared with traditional packaging mar-
packaging / assembly business, tradition- ket continues to increase, with more than
ally the domain of OSATs & IDMs. Players 50% of the market by 2027.
from different business models, foundries,
substrate/PC board suppliers and EMS/ Flip-Chip has highest market share
The highest CAGR is expect-
ed from ED , 2.5D/3D, and
fan-out at 24%, 14%, and
11%, respectively.
The semiconductor supply
chain is changing. Compa-
nies define their strategies at
various levels to adjust to the
changing business environ-
ment. They are moving all
along the supply chain with
different business models.
They expand the business
and explore new areas.
yolegroup.com
