Global Embedded Die Packaging Market
Embedded Die Packaging Market size was valued at USD 277.4 million in 2024 and is projected to reach a valuation of USD 2.03 billion by the end of 2037, rising at a CAGR of 15.1% during the forecast period, i.e., 2025-2037. In 2025, the industry size of embedded die packaging is assessed at USD 374.8 million.
Embedded die packaging demand is growing due to the rising adoption of 5G networks, AI technologies, and high-performance computing (HPC). By 2023, 5G networks are expected to cover 40.0% of the world’s population, this implies that there is a need for enhanced packaging solutions for 5G networks that embrace energy efficiency, integration, and high data rate. Worldwide governments are also increasing capital spending on the production of semiconductors in order to enhance the advancement of technologies and decrease import dependency, which in turn will prop up the market.
The automotive industry also supports the growth of embedded die packaging because global EV sales increased by 35.0% in 2023. These technologies find their application in compact designs and improved power management in automotive systems. In March 2023, Infineon Technologies worked with Schweizer Electronic to place SiC chips directly into the PCB to bring longer range and better efficiency to electric vehicles. Also, the global regulatory incentives and sustainability objectives enhance the uptake of advanced embedded die technologies, thus presenting business opportunities for manufacturers.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
15.1% |
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Base Year Market Size (2024) |
USD 277.4 million |
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Forecast Year Market Size (2037) |
USD 2.03 billion |
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Regional Scope |
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Platform (IC Package Substrate, Rigid Board, Flexible Board)
The flexible board segment is predicted to capture around 46.1% embedded die packaging market share by the end of 2037 due to properties such as lightweight and ease of use in high performance applications. The most common applications of flexible boards include automotive and consumer electronics, where miniaturization and high dependability are major concerns. In June 2024, Zollner Elektronik collaborated with Schweizer Electronic to improve the power embedding technology as flexible boards become more important in efficient system integration. This segment’s importance is because it supports innovative designs and high performance of advanced electronics.
Application (Automotive, Mobile Devices, High-Performance Computing (HPC), Medical Devices, Aerospace and Defense, Telecommunications, Industrial Automation, Others)
By the end of 2037, high-performance computing (HPC) segment is estimated to dominate around 34.2% embedded die packaging market share due to the growing need for efficient and small form factor processors in artificial intelligence, cloud computing, and other data-centric applications. The embedded die packaging has interconnections and thermal management, which are important in HPC systems. The increased use of AI and VR has created a demand for new packaging systems that can handle the increased computational work. This segment’s growth points to the expanding need for embedded die packaging to address performance limits in next-generation computing systems.
Our in-depth analysis of the global market includes the following segments:
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Platform |
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Application |
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Asia Pacific excluding Japan Market Statistics
APEJ embedded die packaging market is expected to rise from USD 97.3 million in 2024 to USD 756.4 million in 2037 due to the region’s leadership in manufacturing and electronics. Some of the factors that are boosting the growth in the market include the continuing trend of industrialization and the rising need for miniaturization of semiconductors in packaging. The strong electronics and automotive industries in APEJ make it an ideal region for the development of embedded die packaging technologies.
India embedded die packaging market is also growing due to the country’s building semiconductor manufacturing capacity and government policies such as the Make in India campaign. The rise in electric vehicles and the growing investment in electronics production create a need for better packaging solutions. Local partnerships between Indian firms and foreign semiconductor companies are expected to enhance the local environment. India is likely to become a potential market for embedded die packaging solutions due to its vast consumer base and its strategies for industrial development.
China holds the largest market share in the APEJ market due to its position as the world’s manufacturing hub and largest automobile market. According to the research, automobile production in China will be 35 million by 2025, which is likely to create a significant market for semiconductor products to enhance automotive technology. The International Trade Administration recorded that in 2021, 26.3 million vehicles were sold in China, which indicates a high market growth opportunity for the embedded die packaging industry. The country has continued to invest in 5G deployment and IoT that enhances the need for compact and high-performance packaging solutions, thus placing the country at the fore front of the regional market.
North America Market Analysis
North America embedded die packaging market is set to witness over 15% growth rate till 2037. The growth of this market is attributed to the rising need for advanced semiconductor packaging solutions in the automotive, aerospace, and consumer electronics industries in the region. The increased uptake of electric vehicles and deployment of 5G networks also create the demand for better packaging density. The U.S. and Canada are two leading markets holding a significant position in advanced manufacturing technologies.
The U.S. is a leading player in North America embedded die packaging market, backed by a strong automotive and electronics industry. According to Quloi, in 2022, the U.S. automotive market was valued at more than USD 104 billion, and the sales of light trucks and cars were 10.9 million and 2.9 million, respectively. Also, federal policies for the return of semiconductor manufacturing and packaging to the United States enhance the position of the U.S. in the supply chain. These efforts are in line with the growing need for new sophisticated packaging technologies to enable new applications in the telecommunications and autonomous vehicles industries.
Due to the growing technology industry and investments in semiconductor research in Canada, the embedded die packaging market in the country is continuously developing. The countries’ vision of clean technologies and electric vehicles is a good starting point to introduce the concept of embedded die packaging. The partnerships between manufacturers and international semiconductor firms improve Canada position in North America market. As a result of favorable government measures and innovation centers, Canada is emerging as an important player in the development of the regional embedded die packaging industry.
The embedded die packaging market is competitive, and leading companies like Amkor Technology, ASE Technology Holding Co., AT&S Austria Technologies, Intel Corporation, STMicroelectronics, and Microchip Technology Inc. are working to lead the market. These companies have used capital investment and partnerships to enhance production capacities and technology enablers. In November 2024, Amkor Technology signed a memorandum of understanding with Lightmatter to create the largest ever 3D packaged chip complex using the Passage platform to prove the importance of embedded die packaging for the advancement of photonic computing. Such partnerships strengthen the competitive dynamics by driving innovation and maintaining a constant flow of new and innovative offerings.
Here are some leading companies in the embedded die packaging market:
Author Credits: Abhishek Verma
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