Capex for advanced packaging to near $7bn in 2021

June 01, 2021 // By Peter Clarke
Capex for advanced packaging to near $7bn in 2021
Outsourced semiconductor assembly and test (OSAT) firms are set to spend $6.7 billion or more on capital expenditure for advanced packaging in 2021, according to Yole Developpement.

In a race to introduce heterogeneous integration – otherwise known as chiplet packaging – firms such as ASE, TSMC, Intel, Amkor and JCET have announced large capex investments in 2021.

TSMC is planning to spend between US$2.5 billion and US$2.8 billion in 2021 to gear up its own packaging factories with its InFO, CoWoS, and SoIC-based product lines. Yole estimates that TSMC generated US$3.6 billion revenue from advanced packaging in 2020 (see TSMC preps for 'chiplet' style manufacturing in 2021 ).

Advanced packaging capital expenditure planned for 2021. Source: Yole Developpement.

OSAT market leader ASE also announced a US$2.0 billion capex for its booming system-in-package and wafer-level packaging businesses.

Intel has announced it will invest US$20 billion building wafer fabs in Arizona (see Intel to build two wafer fabs, be foundry for Europe ) and that it will also invest in advanced packaging collaborations as its expands its Foveros/EMIB packaging manufacturing at factories in Arizona and Oregon.

Related links and articles:

www.yole.fr

News articles:

Japan's TSMC joint venture attracts 20-plus participants

TSMC preps for 'chiplet' style manufacturing in 2021

Intel to build two wafer fabs, be foundry for Europe

Intel invests $3.5 billion in chiplet packaging

SkyWater to 'on-shore' packaging of chips in Florida

Intel, Samsung, TSMC to drive chip packaging forward


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