Semiconductor IC Advanced Packaging Capital Expenditure in 2022: Intel and TSMC Dominate
🟦 Semiconductor advanced package market size
The scale of advanced packaging capital investment by the world’s major semiconductor manufacturers is expected to reach 15 billion dollars (about 2 trillion yen) in 2022. The semiconductor IC advanced package market is expected to grow at an average rate of 6.6% until 2025 to reach $57.2 billion (¥7.5 trillion) in 2027.
Limitations of Moore’s Law
Moore’s Law, in which the number of transistors integrated in semiconductors doubles every two years, has reached its limit. Semiconductor manufacturers are focusing on developing advanced packaging technologies that can replace front-end processes to improve semiconductor performance and efficiency. Semiconductor packaging is a post-process technology in which processed wafers are cut into chips and packaged. Advanced packaging technologies include 3D lamination technology, fanout, interposer, and hybrid bonding.
🟦 Intel and TSMC dominate
Intel accounts for 32% and TSMC 27% of the world’s capital investment in advanced packages, accounting for about 60%. Both Intel and TSMC will invest 30% more than last year.
Since 2020, we have been investing heavily in all semiconductor fields, including foundry and packaging, through the “IDM 2.0” strategy. We are announcing investments in the construction of packaging plants in Malaysia and Italy.
Like Intel, we are actively working to build new packaging plants. TSMC operates four packaging plants in Taiwan. We are building a fifth packaging factory in the northern region of Taiwan and a new packaging factory in the southern region.
Intel and TSMC back-end plant investment increases capital investment in advanced packaging for semiconductor ICs
When we think of semiconductor packages, we think of OSAT, which specializes in packages such as ASE and Amkor. However, semiconductor foundries such as Intel and TSMC have the highest capital expenditures. The difference in scale is evident because the back-end process is about one-fifth of the scale of the front-end process, and the capital investment is about one-fifth of the scale of the entire market.