Asia-Pacific (APAC) Memory Packaging Market to Cross $18,000 Million by 2023

  • Published: March 2018

The Asia-Pacific (APAC) memory packaging market is expected to reach $18,488.1 million by 2023, registering a CAGR of 5.5% during the forecast period. The major factors driving the growth of the market include the increase in semiconductor fabrication activities in China, rise in the popularity of in-car entertainment (ICE) systems, growth in demand for smartphones across the region, and improvements in redistribution layer (RDL) and high-bandwidth memory (HBM) in memory packaging.

Insights on market segments

Based on end-use, consumer electronics accounted for the largest revenue share in the APAC memory packaging market in 2017. This is attributed to the growing adoption of smart electronic devices, such as cameras, smartphones, and televisions, in the region, as a result of the rising demand for power-efficient and faster-access memory devices. With the increasing use of these consumer electronic products, the demand for flip-chip and wire-bond memory packaging techniques is increasing in the region.

China stands as the largest APAC memory packaging market

In 2017, China accounted for more than 40.0% share in the APAC memory packaging market. This is attributed to the various applications of memory packaging in consumer electronics devices, particularly tablets and smartphones. Also, the existence of large-scale memory packaging manufacturers, such as SK Hynix Inc., Samsung Electronics Co. Ltd., and Intel Corporation, in China is further driving the market in the country. Moreover, the government of China is increasingly investing in the semiconductor industry, with a strong focus on advanced memory packaging solutions. Owing to this, the regional market for memory packaging is expected to register the fastest growth in the country over the forecast period.

Increasing demand for smartphones is a key growth driver

The increasing demand for smartphones is a major factor driving the APAC memory packaging market. The rising demand for smartphones in the region is attributed to the increasing launch of smartphones with advanced features and the popularity of sleek, aesthetic looks by consumers. Due to the advancements in the memory packaging technology, the size of smartphones is reducing. Effective utilization of space is a major factor driving the adoption of the memory packaging technology by various players. Hence, the rising demand for sleek and aesthetic smartphones is driving the market.

Increasing spending on 3D NAND offers lucrative growth opportunities

Due to the rising prices of DRAM memory, the players in the APAC memory packaging market are increasingly spending on the development of the 3D NAND technology. Memory manufacturers are now investing heavily in the 3D NAND technology to cope with the dynamic transition taking place in the semiconductor industry, particularly in South Asia and its adjacent regions. Since 3D NAND has a high manufacturing cost, organizations are upgrading and expanding their semiconductor manufacturing facilities to accommodate 3D NAND production with planer NAND to achieve a high operational efficiency. Hence, the increasing spending on 3D NAND, accompanied by its growing demand, is expected to create huge opportunities for the market players over the forecast period.

APAC Memory Packaging Market Competitiveness

The intensity of rivalry in the market is moderate, with few major players offering memory packaging solutions in the market, which decreases the intensity of rivalry in the market. The APAC memory packaging market players are increasingly focusing on mergers and acquisitions to increase their market share. For instance, Micron Technology Inc. and Samsung Electronics Co. Ltd. have been focusing on mergers & acquisitions with regional and adjacent industries, such as data processing, and consumer electronics industries, in the region.

The key players operating in the APAC memory packaging market include Apple Inc., Dell EMC, Qualcomm Technologies Inc., IBM Corporation, Intel Corporation, Cisco Systems Inc., Samsung Electronics Co. Ltd., Winbond Electronics Corporation, Fujitsu Group, LG Electronics Inc., Toshiba Corporation, SK Hynix Inc., Nanya Technology Corporation, ASE Group, NEC Corporation, STMicroelectronics N.V., Micron Technology Inc., and Western Digital Corporation.

APAC Memory Packaging Market Segmentation

Market Segmentation by Platform

  • Wire-Bond
  • Lead-Frame
  • Flip-Chip
  • Wafer-Level Chip-Scale Packaging (WLCSP)
  • Through-Silicon Via (TSV)

Market Segmentation by Application

  • Dynamic Random-Access Memory (DRAM) Packaging
  • NAND Flash Packaging
  • NOR Flash Packaging
  • 3D Through-Silicon Via (TSV) Packaging

Market Segmentation by End-Use

  • Consumer Electronics
  • Information Technology (IT) and Telecommunication
  • Embedded Systems
  • Automotive
  • Military and Aerospace
  • Medical Devices
  • Others

Market Segmentation by Country

  • China
  • Taiwan
  • South Korea
  • Japan
  • India
  • Rest of APAC