AI fuels advanced packaging growth
A new BCC Research report forecasts strong growth in advanced chip packaging, fuelled by AI infrastructure, high-performance computing and increasing adoption of chiplet-based architectures.
The global advanced chip packaging technologies market is expected to reach $87.6 billion by 2030, growing at a compound annual growth rate (CAGR) of 14.8% from $38.6 billion in 2024, according to a new report from BCC Research.
The report identifies artificial intelligence and high-performance computing as the primary drivers behind the market's expansion, as semiconductor companies increasingly rely on advanced packaging technologies to deliver higher bandwidth, lower latency and greater interconnect density than conventional packaging approaches can provide.
Asia-Pacific remains the largest regional market, valued at $19.9 billion in 2024, supported by the concentration of leading OSATs, foundries and integrated semiconductor manufacturing ecosystems across Taiwan, South Korea, Japan and China.
Among the fastest-growing technology areas are 2.5D and 3D integration, chiplet architectures, high-bandwidth memory (HBM) packaging, hybrid bonding, Fan-Out Panel-Level Packaging (FOPLP) and co-packaged optics (CPO), all of which are becoming increasingly important for AI accelerator and data centre deployments.
The report also highlights growing investment across the advanced packaging value chain. TSMC continues to expand CoWoS capacity while integrating packaging and testing into its Foundry 2.0 strategy, and SK Hynix is investing $12.9 billion in new HBM packaging capacity.
Meanwhile, government-backed initiatives including the U.S. and EU CHIPS Acts are accelerating domestic advanced packaging capabilities in response to supply chain resilience and geopolitical priorities.
BCC Research notes that advanced packaging is evolving from a manufacturing process into a strategic differentiator, enabling heterogeneous integration and next-generation AI systems while creating significant opportunities for foundries, OSATs and packaging technology providers.
