logo
logo
Sign in

3D ICs Market will grow at highest pace owing to increasing demand for high performance computation

avatar
Purvaja
3D ICs Market will grow at highest pace owing to increasing demand for high performance computation

The 3D ICs market involves the production of integrated circuits by stacking silicon wafers or dies and interconnecting them vertically using through-silicon vias (TSVs) or Cu-Cu connections. This manufacturing approach provides advantages such as higher bandwidth, greater functional density, lower power consumption, and a reduced footprint. 3D ICs allows integration of more transistors in a single chip significantly boosting performance of devices across various consumer electronics, data processing, and automotive applications. Growing demand for miniaturization and high-performance integrated circuits from the consumer electronics and automotive sectors is expected to drive uptake of 3D ICs.

The Global 3D ICs Market Demand is estimated to be valued at US$ 19511.73 Bn in 2024 and is expected to exhibit a CAGR of 12.% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the 3D ICs are Aquahydrex, Inc., MAN Energy Solutions, Electrochaea GmbH, ITM Power PLC, EXYTRON GmbH, Hydrogenics Corporation, Hitachi Zosen Corporation. Growing demand for high computation devices such as laptops, smartphones, and advanced driver assistance systems is expected to drive the 3D ICs market. Technological advancements such as development of hybrid bonding and through-silicon via techniques have improved production throughput and yields of 3D ICs which is expected to boost the market.

Market trends:

The market is witnessing trend of adoption of 3D packaging for memory chips mainly driven by demand from data centers. Stacked DRAM and NAND packages provide higher memory density and performance. Another key trend is the development of advanced fan-out wafer level packaging (FOWLP) which enables miniaturization and complex 3D structures in chips for smartphones andIoT devices.

Market Opportunities:

Rising demand for HPC systems and AI applications is expected to drive opportunity for high density memory and logic chips manufactured using 3D IC technology. Automotive sector adoption of ADAS and autonomous driving systems also provides growth opportunity. Development of cost effective manufacturing techniques like direct bonding will help expand commercialization of the technology.

Impact of COVID-19 on 3D ICs Market Growth

The COVID-19 pandemic had a significant impact on the 3D ICs market. During the initial outbreak, most manufacturing facilities and fabs were shut down which disrupted the supply chain. This led to delays in new product development and commercialization. With reduced demand from end-use industries like electronics, automotive and consumer electronics, investments in 3D IC technology slowed down considerably in 2020. The market experienced a decline in revenue due to weakened consumer spending during this period.

However, post pandemic the 3D ICs market is recovering steadily. With resumption of operations across industries, demand for advanced packaging solutions is rising again to power new applications in artificial intelligence, 5G, augmented reality and autonomous vehicles. Manufacturers are focusing on developing 3D designs optimized for high performance computing and reduced power consumption. Government incentives to boost semiconductor manufacturing will further aid market recovery in the coming years. The pandemic also highlighted the need for enhanced computing power and data storage capabilities to support remote working and digitalization trends, benefitting long term prospects of 3D integration technologies.

North America Region

In terms of value, North America represents the most lucrative region for the 3D ICs market currently. Presence of major semiconductor companies and huge investments in R&D are driving regional market growth. The US contributes significantly owing to a large base of electronics manufacturers adopting 3D packaging for miniature devices. Government initiatives to develop domestic chip manufacturing will attract more investments towards 3D IC technology in the region over the forecast period.

Asia Pacific Region

The Asia Pacific region is poised to emerge as the fastest growing market for 3D ICs globally. Massive demand for consumer electronics from countries like China and India is stimulating market expansion. In addition, government support for advanced packaging development through funding and partnerships is positively impacting the regional market. Leading foundries shifting production from other regions to Asia due to availability of low cost manufacturing are enhancing the region's market share going forward.

For more details on the report, Read- 3D ICs Market

collect
0
avatar
Purvaja
guide
Zupyak is the world’s largest content marketing community, with over 400 000 members and 3 million articles. Explore and get your content discovered.
Read more