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Henkel Adhesive Technologies

Henkel Adhesive Technologies

Advanced packaging: market evolution and material solutions

Learn how Henkel’s innovative materials are paving the way for the future of advanced semiconductor packaging in a rapidly evolving tech landscape.
7 min.
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As the demand for high-performance computing and generative AI continues to skyrocket, the semiconductor industry faces an urgent need for innovation in packaging technologies. This transformation is driven by the ever-increasing complexity of semiconductor devices, requiring more advanced packaging solutions that can deliver higher performance, greater integration, and improved efficiency. 

A recent webinar hosted by Henkel delved into these challenges and outlined how the industry is evolving to meet them. 

Key market trends

$69.50

Billion

Projected market revenues of advanced packaging in 2029.

23%

Market share 

2.5D/3D high-end advanced packaging reaching increasingly higher market share in 2029.

17.7

Billion

Number of datacenter AI accelerators in 2029.

Market evolution: the surge of generative AI and HPC

The semiconductor industry is in the midst of a significant transformation, driven by several key megatrends, including, the Internet of Things (IoT), cloud & edge computing and Big data. These trends are pushing the boundaries of what is possible with current technologies, leading to increased demand for advanced packaging solutions. As highlighted in the webinar, the global advanced packaging market is expected to grow from $37.8 billion in 2023 to an impressive $69.5 billion by 2029. This growth is fueled primarily by the rise of 2.5D and 3D packaging technologies, which are becoming essential in the design and manufacture of high-performance semiconductor devices.

Gabriela Pereira, Technology & Market Analyst at Yole Group, emphasized in the webinar that generative AI and HPC are among the primary drivers of this growth. These technologies require advanced packaging solutions that can handle the need for higher computing power, more memory, and faster data processing—all while maintaining lower power consumption and reduced latency. The shift towards these high-end packaging solutions is becoming increasingly important as traditional scaling of semiconductor nodes becomes more complex and expensive.

Heterogeneous integration: the key to next-gen performance

One of the most significant trends discussed during the webinar is the move towards heterogeneous integration and chiplet architectures. Unlike traditional monolithic System-on-Chip (SoC) designs, where all components are fabricated on a single die, heterogeneous integration allows for different components, or ""chiplets,"" to be manufactured separately and then integrated into a single package. This approach not only improves performance but also reduces cost and accelerates time-to-market.

Raj Peddi, Market Strategy Manager at Henkel, discussed the challenges and opportunities presented by these new packaging architectures. He noted that as high-performance computing chips become larger and more complex, the need for advanced packaging solutions that can manage heat dissipation, warpage, and reliable interconnections is more critical than ever. These challenges are particularly pronounced in applications such as AI accelerators and data center processors, where high bandwidth and low latency are paramount.

"As semiconductor devices grow more complex, advanced packaging technologies are no longer a luxury—they’re a necessity for future innovation."

Raj Peddi, Henkel Market Strategy Manager

Innovative material solutions: Henkel’s role in shaping the future

Henkel is at the forefront of developing material solutions that address the challenges posed by these advanced packaging technologies. During the webinar, Kail Shim, Application Engineering Manager at Henkel, highlighted several innovative materials designed to meet the demands of next-generation semiconductor packaging.

One of the key areas of focus is on materials that enable fine pitch, high-density interconnections, which are essential for the performance and reliability of advanced packaging solutions. Henkel’s liquid compression molding (LCM) materials, for example, offer ultra-low warpage control and faster cure times, making them ideal for high-density applications. Additionally, Henkel’s capillary underfill materials are designed to provide excellent void-free gap filling and crack resistance, which are critical for maintaining the integrity of complex semiconductor packages.

Henkel’s materials are specifically tailored to address the unique challenges of 2.5D and 3D packaging technologies. Whether it’s managing thermal stability, ensuring robust chemical resistance, or enabling faster and more reliable manufacturing processes, Henkel’s material solutions are paving the way for the next generation of semiconductor devices.

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With high interconnect densities, large die, big package bodies, increased die stacking heights, and significant thermal stress, building new device designs reliably for maximum performance is challenging. The right materials are critical to enabling heterogeneous integration.

Looking ahead: the future of advanced packaging

As the semiconductor industry continues to evolve, the importance of advanced packaging technologies will only grow. The rise of generative AI, HPC, and other cutting-edge applications is pushing the boundaries of what current technologies can achieve, creating both challenges and opportunities for innovation.

Henkel's ongoing development of advanced materials is a testament to the industry's commitment to overcoming these challenges. By providing solutions that enable more efficient, reliable, and high-performance semiconductor packages, Henkel is helping to shape the future of the industry.

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