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Semiconductor packaging market to experience growth in '03

Posted: 24 Dec 2002 ?? ?Print Version ?Bookmark and Share

Keywords:semiconductor packaging? assembly? array packaging? CSP? flip chip?

The worldwide semiconductor packaging and assembly segment is poised for growth in 2003, according to Dataquest Inc., a unit of Gartner Inc.

The market research firm reports that after declining more than 26 percent to $24.8 billion in value in 2001, the total semiconductor packaging and assembly marketplace rebounded 7 percent in 2002 with revenue of $26.7 billion. The market is poised for 10.5 percent growth in 2003, with revenue of $ 29.6 billion.

The growth rate of the semiconductor assembly and test services (SATS) segment of the packaging market is reported to have turned positive in 2002, after a decrease in 2001. SATS market revenue is estimated to be $8.2 billion in 2002, up from $7.14 billion in 2001. Gartner Dataquest analysts expect continued growth in 2003. However, similar to 2002, the growth may not be consistent.

"The shift to array and leading-edge packaging is growing while continuing to be more sophisticated and complex. Many IDM's and OEM's desire to conserve their capital and are now actively seeking to outsource more of their packaging requirements," Jim Walker, principal analyst for Gartner Dataquest's semiconductor research group said. "As the transition to these new packages has occurred more in recent months, the result is the return to growth and profitability in the outsourcing market."

Array packaging (CSP, flip chip and BGA), system-in-package (SIP) and stacked (3D) packaging have seen increasing growth in the last few months. Even these have been outpaced by the growth of the QFN (quad flat-pack, no lead) family of packages, which is witnessing the fastest ramp up of any package previously introduced in the industry.

"This ramp up is due to the transition away from the larger, more mature SOIC family of packages," Walker said. "As 2002 came to a close, the industry is now in full transition from the first generation of surface mount packages (SOIC, PLCC, and QFP) to the next generation of smaller leadless and bumped families of packages (CSP and BGA). Also transitioning is the development of the multi-chip system-in-a-package (SIP) concept as a lower-cost approach to the SoC."

All of these factors will result in increased packaging and assembly equipment expenditures as well. After two years of declining revenue, the worldwide semiconductor packaging and assembly equipment market is projected to total $2.9 billion in 2003, a 25 percent increase from 2002 revenue of $2.3 billion.

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