Panel Level Packaging Demand Growing, But Imbalances in Supply and Demand Noted
AUSTIN, TX – Demand for flip chip continues to increase in a wide variety of products from consumer to AI data centers, according to a new market research report.
And while Taiwan accounts for the largest share of the solder and Cu pillar market, companies in China have added significant capacity, pushing global utilization down to 61% this year.
The findings are part of TechSearch International’s “2025 Flip Chip and WLP: Trends and Market Forecasts” report, which examines supply and demand for flip-chip, fan-in wafer-level packages (WLPs), and fanout WLPs (FO-WLP), including panels.
The 120-page report looks at substrates to support fine-pitch bump pitch and large-body packages, including redistribution layer (RDL) interposers, build-up substrates, R&D on glass-core substrates, and alternatives such as ceramic and silicon cores.
Fan-in WLP demand continues to be driven by use in smartphones and other consumer applications, TechSearch said, with unit growth of 5.6% CAGR projected from 2024 to 2029. China accounts for the largest market share.
The FO-WLP market is divided into four segments: high-density round carrier, low-density round carrier, low-density panel and high-density panel. The main driver for panel-level packaging is cost reduction, but companies are also looking for larger form factor to support the growing body size. Low-density FO-WLP, with one or two RDLs, typically has ≥10µm lines and spaces and represents the largest unit volumes. High-density FO-WLP with multiple RDLs and <10µm line reparents the highest water volume. High-density fanout also includes the redistribution layer (RDL) interposers for high-performance applications such as AI training and inferencing and network switches. Some of these products use an embedded silicon bridge.
Companies in China added more FO-WLP capacity than any other region, but the massive capacity expansion pushed down 2024 utilization rates to 24%. Growing demand should push utilization to 94% in 2028. High yield is critical to economically justify high-density and low-density panels.
Hot Takes
US chipmakers urge tariff-free treatment for North American semiconductors under the USMCA, calling it key to a resilient, integrated regional supply chain. (SIA)
DDR5 is solidifying as the 2026 memory standard, with power-control redesigns driving demand and lifting earnings. (DigiTimes)
Copper is primed for a renewed surge, with AI-driven power demand and deepening supply deficits setting the stage for record-level price pressure. (RJO Futures)
Samsung lifted server-memory prices up to 60% as shortages deepen, intensifying strain on data-center builders while boosting its own chip margins. (Samsung)
Worldwide tablet shipments declined 4.4% year-over-year to 38 million units in the third quarter. (IDC)
India expects domestic PCB output to surge to nearly $14 billion by 2029-30, even as the country still imports about 88% of its bare boards today. (Electronic Industries Association of India)
Russia plans to impose a new electronics tax aimed at generating $2.7 billion over three years to bolster domestic production of electronics and defense hardware. (Reuters)
Electronic component sales sentiment held strong at an index of 122.2, up four points from September, but expectations for November plunged to 103.5. (ECIA)
Global server shipments rose 8% in the third quarter, driven by a 13% jump in orders from major US cloud providers racing to expand AI capacity.
Global semiconductor sales rose 15.8% in the third quarter compared to the previous quarter, reaching $208.4 billion. (SIA)
Japan’s PCB market is gaining momentum as consumer electronics, 5G rollout and IoT growth increase demand for high-density, high-performance board technologies. (IMARC)
South Korea will launch a 250 billion won ($169 million) fund to secure rare earths and reclassify PCBs and waste catalysts as “circulation resources” to boost mineral recycling. (Ministry of Strategy and Finance)
Global notebook shipments are projected to grow just over 1% in 2026 amid tariffs and inflation, before rebounding to 6% in 2027 with the launch of Windows 12. (DigiTimes)
North American PCB shipments rose 24.4% year-over-year and 13.5% sequentially in October. Year-to-date shipments are up 11.9%. Bookings jumped 41% year-over-year and 43% sequentially, and are up 15.9% year to date. (GEA)
North American EMS shipments slipped 0.1% in October versus a year earlier, and rose 4.9% sequentially. Year-to-date shipments are down 0.7%. Bookings increased 6.4% year-over-year and 5.4% from September, bringing the annual increase to 1.3%. (GEA)