3D IC and 2.5D IC Packaging Market Size Growing USD 82.0 billion by 2028

The 3D IC and 2.5D IC packaging market is expected to reach USD 82.0 billion by 2028 from USD 49.3 billion in 2023, at a CAGR of 10.7% during the 2023–2028 period according to a new report by MarketsandMarkets™. The major factors driving the market growth of the 3D and 2.5D IC packaging market growing demand for consumer electronics and gaming devices, increasing need for advanced architecture in electronic products, and the rising trend of increased integration density and miniaturization of electronic devices.

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2.5D IC packaging technology is expected to account for the largest share of the 3D IC and 2.5D IC packaging market during the forecast period.

A 2.5D silicon interposer is a silicon or glass substrate that enables the wiring capability of joining multiple chips and other passive components together before they are connected to the substrate. The silicon interposer allows high wiring density within the device, which increases the performance compared to the traditional packaging technique, thereby driving the market growth for 2.5D IC packaging in 3D IC and 2.5D IC packaging Industry.

The military & aerospace end user is projected to account for the largest share of the 3D IC and 2.5D IC packaging market during the forecast period

The aerospace and defense industry requires high-performance and reliable electronics for communication, navigation, and other applications. 3D and 2.5 IC packaging technologies are used in radar systems, avionics, and other electronic components. The benefits of 2.5D IC packaging in military applications include improved thermal management, reduced power consumption, increased processing power, and reduced form factor.

Memory by application is expected to hold largest market share in 3D IC and 2.5D IC packaging market

3D IC and 2.5D IC packaging is also used in memory applications in specialized AI and ML hardware, such as graphics processing units (GPUs) and tensor processing units (TPUs). These hardware components require high-bandwidth memory to handle the massive amounts of data and computations required by AI and ML workloads. Memory semiconductors, such as high-bandwidth memory (HBM), are designed to meet these requirements and used in the latest AI and ML hardware.

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Asia Pacific is expected to register the highest CAGR during the forecast period.

Asia Pacific is expected to be the fastest-growing market in the world for 3D IC and 2.5D IC packaging, led by China, Japan, South Korea, and Taiwan, among others. According to the Semiconductor Industry Association, strong government support and increased R&D expenditure in China, Japan, South Korea, and Taiwan have led to the emergence of these countries as leading semiconductor players globally.

The report profiles key players in 3D IC and 2.5D IC packaging companies such as Samsung (South Korea), Taiwan Semiconductor Manufacturing Company, Ltd. (Taiwan), Intel Corporation (US), ASE Technology Holding Co., Ltd. (Taiwan), Amkor Technology (US), Broadcom (US), Texas Instruments Inc. (US), United Microelectronics Corporation (Taiwan), JCET Group Co., Ltd. (China) and Powertech Technology Inc. (Taiwan).