July 25, 2024
3d Ics Market

Shift Towards Advanced Packaging Technologies to Drive the Growth of Global 3d Ics Market

Market Overview:

3d Ics, also known as three dimensional integrated circuits, refer to advanced semiconductor devices that integrate several silicon chips or dies stacked vertically and interconnected through numerous inter-die vias at the silicon level. This enables manufacturers to overcome the limitations of traditional two dimensional fabrication techniques and help integrate more transistors in a small footprint, thereby improving the overall efficiency of devices. 3d ICs allow for improved performance, power consumption and form-factor over conventional ICs. They find widespread usage in applications demanding high speed processing including smartphones, tablets, servers, networking equipment, graphics cards and solid state drives. The increasing demand for smaller and powerful electronic devices is expected to drive the demand for 3d ICs over the forecast period.

The global 3d Ics Market Demand is estimated to be valued at US$ 16937.26 Mn in 2023 and is expected to exhibit a CAGR of 22% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends in the 3d Ics market is the shift towards advanced packaging technologies. Legacy packaging technologies such as wire bonding are facing limitations in miniaturization and performance. This is prompting manufacturers to adopt sophisticated TSV (Through Silicon Via) and memory stacking technologies in 3d ICs. TSVs allow for integration of ICs vertically in a single package by connecting the top of one die to the bottom of another. This significantly improves bandwidth and minimizes parasite effects. Moreover, memory stacking or die stacking enables greater on-package memory capacities while reducing overall footprint.

Another major trend is the increasing adoption of 3d ICs in AI and Mobile applications. 3d integration of logic and memory allows packaging of high performance AI processors with maximum on-chip memory. This helps reduce latency and power consumption, crucial for AI workloads. Similarly, the demand for powerful yet power efficient mobile SoCs is driving semiconductor companies to develop 3d integrated smartphone chips with integrated memory. The superior performance and low-power capabilities of 3d ICs make them well suited for applications involving intensive multimedia, graphics and compute-intensive tasks.
Porter’s Analysis
Threat of new entrants: New entrants face relatively high entry barriers and costs to scale production. Established players have significant economies of scale in manufacturing and R&D capabilities.
Bargaining power of buyers: There are many large buyers in consumer electronics and automotive industries who can negotiate on price and quality standards.
Bargaining power of suppliers: A few large foundries dominate manufacturing and have significant influence in setting prices for advanced manufacturing nodes and materials.
Threat of new substitutes: Alternatives like 2.5D integration provide performance improvements at lower costs compared to mainstream 3D ICs technologies.
Competitive rivalry: Competition is intense among a few leading foundry players to drive down costs and enable mainstream adoption of 3D ICs.

Key Takeaways
The global 3d Ics market is expected to witness high growth, exhibiting CAGR of 22% over the forecast period, due to increasing need for powerful yet compact chips in applications like smartphones, autonomous vehicles and AI.

Regional analysis: North America is expected to dominate the global market during the forecast period owing to the presence of major players and technological advancement in the region. Asia Pacific is expected to exhibit the highest CAGR during the forecast period with China and Taiwan emerging as major hubs of 3D ICs manufacturing.

Key players: Key players operating in the 3d Ics market are Taiwan Semiconductor Manufacturing Company, Ltd., MonolithIC 3D Inc., XILINX, Inc., Micron Technology, Inc., The 3M Company, Ziptronix, Inc., STATS ChipPAC Ltd., United Microelectronics Corporation, and Tezzaron Semiconductor Corporation. Taiwan Semiconductor is the major player with around 45% share in global foundry business for 3D ICs.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it