Advanced packaging revenue dropped 9% in Q1 2024, but recovery is expected in 2024

The advanced packaging market growth is primarily driven by high-performance computing (HPC) and generative AI megatrends.

• The advanced packaging revenue is projected to grow at a CAGR of 12.9%, increasing from US$39.2 billion in 2023 to US$81.1 billion by 2029.
• Overall, 2023 was a weaker year for the semiconductor industry, which also impacted the advanced packaging market.
• However, the market is expected to recover in 2024 as demand rises and the adoption of advanced packaging technologies continues to expand.

July 24, 2024 -- According to Yole Group, in the Advanced Packaging Market Monitor Q2 2024, advanced packaging revenue reached US$10.2 billion in Q1 2024. This quarter is anticipated to be the weakest of the year, with an 8.1% revenue decline from the previous quarter due to the seasonality that typically impacts the back-end business in the first half of the year. As demand shows gradual signs of recovery, Q2 2024 revenue is expected to rise by 4.6% to US$10.7 billion. Although demand remains soft and customers continue to digest inventories, 2024 is projected to be a year of recovery, with a stronger second half.

In terms of CapEx, Q1 2024 was slightly lower than the previous quarter. The leading players invested approximately US$9.9 billion in advanced packaging CapEx in 2023, marking a 21% decrease from the previous year, but a 20% increase is anticipated for 2024.

The Advanced Packaging Market Monitor highlights the revenue rankings of China’s top OSATs, which collectively generated US$12.7 billion in 2023. China’s top three OSATs accounted for 70% of the top ten’s revenue and are among the top 10 packaging companies globally… For more information about this analysis, please contact us!