Advanced Packaging Market Forecast to Reach $90B by 2031 - EE Times Asia

The $90B projection is not a forecast—it is a structural repricing of where semiconductor value accrues. When packaging absorbs 25-30% of chip BOM versus roughly 10% a decade ago, the profit pool migrates from lithography to interconnect density. Technically, HBM4 16-high stacks and AI chiplets make 2.5D/3D integration mandatory, shifting the bottleneck from EUV to thermal budget and multi-die warpage. On compliance, US export controls on bonding equipment are bifurcating the tooling ecosystem; packaging houses in China and Taiwan, China still carry a 2-3 year gap in hybrid bonding yield. Strategically, TSMC tripling CoWoS capacity is a pricing-power play against downstream customers, while Intel's Foveros Direct hedges single-source dependency. Over the next 12-24 months, UCIe 2.0 standardization will commoditize die-to-die interconnect, eroding first-mover premiums. Expect 2-3 M&A events among mid-tier OSATs as capex crosses the $2B threshold—consolidation is no longer optional.