The "2022 Global Semiconductor Packaging and Testing Market - Supplier Ranking and Dynamic Observation" report, recently released by IDC, indicates a projected market value of $44.5 billion in 2022. This 5.1% year-over-year growth is attributed to rising demand in the artificial intelligence (AI), high-energy-efficiency computing (HPC), 5G, automotive, and Internet of Things (IoT) sectors, along with an ongoing expansion in semiconductor supply. However, the market is expected to contract by 13.3% in 2023 due to inventory adjustments.
Market growth may resume in 2024, contingent on the recovery of the semiconductor industry and manufacturers' investments in advanced packaging and heterogeneous integration. As a critical component of the semiconductor industry's later stages, packaging and testing are the focus of much attention. Of the top ten global packaging and testing manufacturers in 2022, five are in Taiwan, four in mainland China, and one in the United States, with a combined market share of 77.98%.
Between 2021 and 2022, global regional dynamics will shift, as weak demand for driver ICs, storage, and low-end mobile phone chip packaging in Taiwan results in a marked decline in the region's market share. However, the region can expect an influx of urgent and short-term orders in 2023. In mainland China, Tongfu Microelectronics will see an increased market share thanks to rising ADM sales demand. Meanwhile, Amkor, the world's largest automotive semiconductor packaging and testing manufacturer, will gain further market share with growing orders from the industrial, automotive, and 5G high-end flagship mobile phone segments.
Capacity utilization rates for many packaging and testing factories in 2023 are forecasted to fall between 50% to 65% during the first half of the year, owing to inventory clearing. Should market demand recover after inventory adjustments, rates could rise to 60%-75% in the second half of the year, with urgent orders lifting capacity utilization rates to 80%. This stands in contrast to the global capacity utilization rate of 70%-85% in 2022.
According to IC Insights, chip development costs for the 28nm process node stand at $51.3 million, while costs for the 16nm, 7nm, and 5nm nodes have reached $100 million, $297 million, and $540 million, respectively.