The Global 3D ICs Market, By End-Use Sectors (Consumer electronics, Information and communication technology, Transport (automotive and aerospace), Military, Others (Biomedical applications and R&D)), by Substrate Type (Silicon on insulator(SOI), Bulk silicon), by Fabrication Process ( Beam re-crystallization, Wafer bonding, Silicon epitaxial growth, Solid phase crystallization), by Product (MEMS and Sensor, RF SiP, Optoelectronics and imaging, Memories (3D Stacks), Logic (3D Sip/Soc), HB LED) and by Region (North America, Europe, Asia Pacific, RoW) - Global Forecast to 2027, is expected to be valued at US$ 38,252.9 million by 2027, exhibiting a CAGR of 22.5% during the forecast period (2020-2027), as highlighted in a report published by Coherent Market Insights.
Three-dimensional integrated circuits contain two or more layers of active electronic components that are stacked vertically. 3D ICs can be divided into 3D stacked ICs that refers to stacking IC chips and interconnecting them with TSVs and true 3D ICs. The gradual shift towards 3D ICs occurred with increased demand for solutions with higher bandwidths and the density of components. Increasing demand for memory enhanced application is one of the major factors contributing to the market growth of 3D ICs. Reduction in response time, power consumption, form factor, and improved performance serve as key drivers for acceptance of 3D IC with TSV interconnect solutions.
The global 3D ICs market is estimated to account for US$ 38,252.9 Mn in terms of value by the end of 2027.
Increasing demand for high-performance computers and tablets is expected to drive growth of the global 3D ICs market during the forecast period
There has been increased demand for high performance and compact ICs in tablets, desktop computers, automotive products, smartphones, smart TVs, and heavy equipment. These days, it has become mandatory in the manufacturing of energy-efficient devices such as 3D LEDs. Furthermore, companies are investing significantly in research and development activities, in order to innovate novel products. As a result of this, the demand for 3D ICs has increased significantly. Thus, these factors are expected to drive growth of the global 3D ICs market growth over the forecast period.
Inorganic strategies such as partnerships and collaborations can present major growth opportunities
Major companies in the market are focused on partnerships and collaborations, in order to gain a competitive advantage in the market. For instance, In September 2013, TSMC collaborated with electronic design automation vendors to manufacture 3D IC reference flows and 16 nm FinFet. Moreover, in March 2012, TSMC partnered with Altera Corporation to develop a heterogeneous 3D IC test vehicle.
Challenges associated with thermal effects and high cost are expected to hamper the global 3D ICs market growth over the forecast period
The 3D stack presents major manufacturing and technical challenges that include yield scalability, standardized IC interface, and testability. Along with thermal management, lack of appropriate simulation and design tools, industrial wafer to wafer bonding tools, and mid-process examination tools are some of the key challenges affecting the mass production of 3D ICs. This is due to the lack of such tools to increase production cost (on wastage) if the end-product (chip) turns out to be defective. It thus limits mass production, and economies of scale are difficult to realize. Hence, these factors are expected to restrain growth of the global 3D ICs market during the forecast period.
Among regions, North America is expected to witness significant growth in the global 3D ICs market during the forecast period. This is owing to rising demand for 3D ICs from the military and aerospace industry across the region. Moreover, high growth of the telecommunication industry is expected to boost the regional market growth.
Europe is expected to register a robust growth rate in the global 3D ICs market over the forecast period. This is owing to increasing demand for 3D ICs from the aerospace and military sectors.
Global 3D ICs Market - Impact of Coronavirus (Covid-19) Pandemic
Due to Covid-19 pandemic, many industries witnessed significant shift in their business. The ongoing COVID-19 pandemic has adversely affected many display industries in the countries. This is due to lockdown imposed by several countries to stop the spread of coronavirus. Increased demand for displays in the medical equipment’s is expected to drive the growth of 3D ICs market till the time coronavirus is not properly cured. Increasing demand for ventilators and respirators have increased the demand of 3D ICs and demand will keep on increasing till the time coronavirus is not completely cured.
Key players operating in the global 3D ICs market are Taiwan Semiconductor Manufacturing Company, Ltd., MonolithIC 3D Inc., XILINX, Inc., Elpida Memory, Inc. (Micron Technology, Inc.), The 3M Company, Ziptronix, Inc., STATS ChipPAC Ltd., United Microelectronics Corporation, and Tezzaron Semiconductor Corporation.