According to market research firm Yole Group, the advanced packaging market is expected to reach $89.1 billion by 2029, with a compound growth rate of 11% between 2023 and 2029. As semiconductor chips get smaller and the generative AI and HPC fields continue to grow, advanced multi-chip packaging technologies have become a key differentiator for cutting-edge innovations. In recent years, more and more technology giants have paid attention to advanced packaging and entered the field of advanced packaging, which has become a new battlefield in the technology industry.
Korea is in a leading position in memory chip manufacturing, and some market research institutions say that Korea companies have accounted for 75% of the global DRAM memory chip market share, but recently some Korean media pointed out that Korea is much behind in advanced packaging technology, and Korea's domestic companies account for only 4.3% of the world. South Korean media said that Korea may become a victim in the war in the field of advanced packaging, data shows that Korea's share of the global chip packaging market fell from 6% in 2021 to 4.3% in 2023, although semiconductor stock prices rose in the first half of this year, but the share prices of Nepes and Hana Micron, the main local companies in the chip back-end business, still fell. Some industry insiders said that Korea's high-bandwidth memory chips have been recognized by the public, but most of its advanced packaging is carried out in Taiwan, and the income of 80% of domestic equipment companies has declined. According to data compiled by Korea's Ministry of Trade, Industry and Energy, Korea's two largest chip makers, Samsung Electronics and SK hynix, rely on overseas products for 95% of their advanced packaging materials and equipment.
Figure: Korea's advanced packaging lags behind the technological frontier
At present, the main customers of advanced packaging include large technology companies such as Nvidia and Microsoft. Governments around the world have actively introduced policies to attract relevant talents to develop technology. Lee Byung-hoon, a professor at the Department of Semiconductor Engineering at Pohang University of Science and Technology, said, "Korea's traditional packaging is losing its competitiveness in terms of labor costs; That's why we have to invest in advanced packaging." According to reports, the Korea government plans to invest more than 200 billion won (about 1.15 billion yuan) in the development of advanced chip packaging technology, a strategic move aimed at promoting the further development of Korea's semiconductor industry and responding to the trend of global supply chain restructuring. In addition, the Korea government has emphasized the importance of human resource development, and the investment plan includes more training and research opportunities for professionals in the field of semiconductor packaging. Through cooperation with universities and research institutions, Korea hopes to cultivate more technical talents with international vision and innovation ability, and provide strong talent support for industrial development.
Although Samsung Electronics has a certain technology accumulation and market influence in the field of packaging, globally, the competition in chip packaging technology is becoming increasingly fierce, especially in the face of competitors such as TSMC, Korea needs to further increase R&D investment and technological innovation to maintain its leading position in the global semiconductor industry.
