Against the backdrop of a booming global semiconductor industry, the KPCA predicted on the 8th that the global semiconductor packaging market will reach $618.9 billion by 2026, reflecting the market's enormous growth potential.
Artificial intelligence (AI) servers are becoming a key driver of growth in the semiconductor packaging market. Currently, the AI ??server market is driving semiconductor demand growth at a compound annual growth rate (CAGR) of over 20%. In particular, demand for high-bandwidth memory (HBM), 2.5D and 3D stacked packaging, and chipset-based heterogeneous packaging continues to rise. Industry analysts point out that the focus of competition in the semiconductor industry is gradually shifting from front-end process miniaturization to back-end packaging technology advancements.
With the widespread adoption of electric and autonomous vehicles, the automotive electronics market is experiencing increasingly strong demand for advanced packaging technologies. Flip-chip ball grid array (FC-BGA) and 2.5D packaging technologies are being used in Advanced Driver Assistance Systems (ADAS) and autonomous driving systems to meet high reliability and heat resistance requirements.
In the global packaging market, the top ten OSAT (Outsourced Semiconductor Testing and Assembly) companies hold 80% of the market share. This is due to their advanced process technologies and large-scale factory investments, factors that determine their market competitiveness. Geographically, companies from Taiwan and mainland China account for 70% of the market share.
South Korean companies are also actively investing in advanced packaging technologies such as HBM and CoWoS (CoWafer-on-Wafer-Side) packaging. While flip-chip packaging remains the mainstream, 2.5D and 3D packaging are expected to see growth exceeding 30%.
Driven by increased investment in artificial intelligence infrastructure, the printed circuit board (PCB) industry is restructuring around high-value-added products. The proportion of high-performance products such as FC-BGA, high-layer substrates, and high-speed interconnects is continuously expanding. The Korea Printed Circuit Association (KPCA) predicts that the South Korean domestic PCB market will reach 17.41 trillion won this year, an increase of approximately 19% compared to last year.
However, with industrial development, costs and supply chain risks are also increasing. Fluctuations in the prices of key raw materials such as copper foil, resin, and glass fiber, as well as currency appreciation, have exacerbated manufacturing costs. At the same time, reliance on overseas supplies for key materials such as copper clad laminates (CCL) and high-performance prepregs is intensifying. Prepregs, as the main material for the insulating layer of printed circuit boards (PCBs), are sheet-like products made by impregnating reinforcing fibers with epoxy resin in a specific ratio.
KPCA Secretary General Ahn Young-woo stated, “In the future, the semiconductor and printed circuit board (PCB) industries will develop towards an integrated industry that combines advanced packaging, high-performance substrates, and materials technologies.” He also emphasized, “Companies that can simultaneously ensure technological competitiveness and supply chain responsiveness are expected to lead the market.” Furthermore, he believes that the commercialization of new technologies such as glass substrates, high-layer integrated circuit (IC) substrates, and next-generation interposers is expected to further accelerate the transformation of the PCB industry.
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