Panel Level Packaging Market By Packaging Type (Fan-Out Panel Level Packaging, Embedded Die Packaging, 2.5D/3D Panel Level Integration); By Panel Size (300mm x 300mm, 510mm x 515mm, 600mm x 600mm and above); By Application (Consumer Electronics, Automotive Electronics, Networking & Telecommunication, Industrial IoT, Healthcare Devices); By End User (Fabless Semiconductor Companies, Integrated Device Manufacturers, OSAT Companies); By Geography, Segment Revenue Estimation, Forecast, 2024–2030

Introduction And Strategic Context

The Global Panel Level Packaging Market will witness a robust CAGR of 21.7%, valued at approximately $2.34 billion in 2024, expected to appreciate and reach nearly $7.38 billion by 2030, confirms Strategic Market Research. Panel level packaging (PLP) refers to an advanced semiconductor packaging approach where integrated circuits are processed on larger panels instead of traditional silicon wafers. This shift is aimed at improving yield, reducing production costs, and enabling scalability for next-generation chip designs. PLP has emerged as a strategic solution in the evolving world of heterogeneous integration and advanced packaging architectures.

 

From 2024 through 2030, the market is expected to scale aggressively due to multiple macroeconomic and technological tailwinds. These include the intensifying demand for high-performance consumer electronics, 5G deployment, and artificial intelligence (AI)-enabled edge computing. As the size and complexity of chips increase, traditional wafer-level packaging (WLP) faces cost and form factor limitations. PLP, with its ability to handle larger form factors and provide higher throughput, is becoming the go-to option for many fabless semiconductor companies and outsourced semiconductor assembly and test (OSAT) providers.

 

According to fabrication experts, panel-level approaches are significantly improving die placement accuracy and productivity for advanced chips, while reducing warpage issues—long considered a bottleneck in fan-out packaging. These advantages are particularly critical in smartphones, autonomous vehicles, and AR/VR devices where space constraints are tight and performance requirements are high.

 

The strategic relevance of the panel level packaging market is deeply rooted in the growing convergence of computing, memory, and sensor functions within a single package. As chipmakers pursue system-in-package ( SiP ) solutions and hybrid bonding techniques, PLP allows greater integration density and superior thermal performance. Furthermore, the shift toward substrate-less and ultra-thin form factors in end-use devices is placing pressure on OEMs and suppliers to adopt high-throughput and cost-effective packaging platforms.

 

Key stakeholders in this market ecosystem include:

• Original Equipment Manufacturers (OEMs) seeking packaging solutions that enhance power efficiency and reduce footprint

• OSAT companies aiming to offer PLP-based turnkey services

• Wafer and panel fabrication tool providers innovating in laser debonding , panel inspection, and panel dicing

• Materials suppliers offering redistribution layers (RDLs), underfills , and substrates

• Regulatory and standards bodies influencing panel size standardization

• Institutional and venture capital investors funding innovation in AI edge hardware, 3D packaging, and heterogeneous integration

Moreover, the Asia-Pacific region—particularly Taiwan, South Korea, and China—continues to dominate the PLP manufacturing landscape due to established semiconductor supply chains and proactive government support.

 

In summary, the panel level packaging market stands at a critical inflection point. The years ahead will be shaped by deep integration, cost-optimized production models, and the drive for higher I/O density—all of which PLP is uniquely positioned to deliver.

 

Market Segmentation And Forecast Scope

The panel level packaging market is broadly segmented to reflect the multifaceted nature of semiconductor packaging demands and technological innovations. This segmentation offers insights into product evolution, end-use demand centers, and regional innovation hubs, facilitating a more granular forecast across 2024–2030.

By Packaging Type

Panel level packaging technologies fall into several categories, with each offering distinct advantages in terms of scalability, yield, and integration density:

• Fan-Out Panel Level Packaging (FO-PLP): This is the most mature and widely adopted category within the PLP ecosystem. FO-PLP allows for redistribution layers (RDLs) outside the original die footprint, enhancing I/O density without a silicon interposer.

• Embedded Die Packaging: Used in high-frequency and RF applications where space savings are critical.

2.5D/3D Panel Level Integration: An emerging segment gaining traction as chipmakers move toward vertical stacking for performance gains.

Fan-Out Panel Level Packaging alone accounted for approximately 68% of the total PLP market revenue in 2024, given its commercial maturity and adoption in mobile processors and connectivity chips.

 

By Panel Size

The size of the panel significantly impacts yield efficiency and equipment compatibility:

• 300mm x 300mm

• 510mm x 515mm

• 600mm x 600mm (and above)

Larger panels, particularly the 600mm class, are anticipated to grow at the fastest CAGR due to economies of scale and support from toolmakers adapting legacy LCD panel formats for semiconductor use.

 

By Application

The growing need for high-performance packaging across industries drives PLP demand in the following verticals:

• Consumer Electronics

• Automotive Electronics

• Networking & Telecommunication

• Industrial IoT

• Healthcare Devices

Consumer electronics, particularly smartphones and wearables, remain the largest revenue contributors due to high chip volume and miniaturization needs. Meanwhile, the automotive electronics segment is forecasted to grow at over 25% CAGR , driven by ADAS, infotainment, and electrification technologies.

 

By End User

Adoption is expanding across a diverse set of chip manufacturing and integration entities:

• Fabless Semiconductor Companies

• Integrated Device Manufacturers (IDMs)

• Outsourced Semiconductor Assembly and Test (OSAT) Companies

OSATs lead the adoption of PLP due to their core role in contract packaging services, particularly in Asia-Pacific. However, fabless companies are increasingly engaging directly with packaging partners to optimize form factors for AI, AR/VR, and mobile SoCs .

 

By Region

Forecast segmentation by geography reflects innovation clusters and manufacturing footprints:

• North America

• Europe

• Asia-Pacific

• LAMEA (Latin America, Middle East & Africa)

Asia-Pacific dominates, with over 70% market share in 2024, driven by large-scale PLP investments from Taiwan and South Korea. North America follows, supported by advanced R&D in heterogeneous packaging and the CHIPS Act initiatives.

 

Market Trends And Innovation Landscape

The panel level packaging (PLP) market is experiencing a dynamic transformation driven by technological convergence, process automation, and material innovation. From improving yield to enabling high-density integration, the market’s trajectory is closely tied to next-generation computing demands and the scaling limitations of traditional wafer-level methods.

1. Material Innovation and Substrate Engineering

A major trend shaping the PLP ecosystem is the evolution of substrate and redistribution layer (RDL) materials . Conventional epoxy resins and polyimide films are giving way to high-performance polymers and ultra-thin glass panels that offer improved warpage control and dielectric properties.

Industry insiders note that shifting to glass-based panels could reduce defect rates by over 30% while enabling smoother integration for 2.5D and 3D packaging formats. This material transition is also attracting cross-sector collaborations between semiconductor firms and specialty chemical manufacturers.

 

2. Equipment Standardization and Throughput Automation

A longstanding bottleneck for PLP has been the lack of standardized panel sizes , which hinders mass adoption. Recent efforts by semiconductor consortia and toolmakers are addressing this through equipment standardization for panel handling, inspection, and debonding .

Advanced panel-level tools, originally developed for the LCD industry, are now being repurposed for semiconductors—enabling higher throughput (up to 3x compared to wafer-level processes) and significant cost-per-die reductions.

“Tool convergence between LCD and semiconductor fabrication is not just a workaround—it’s a new era in packaging scale-up,” says an R&D director at a leading OSAT firm.

 

3. Hybrid Bonding and Heterogeneous Integration

The rise of heterogeneous integration —combining multiple chiplets , memory units, and logic dies within a single package—is a major driver of PLP growth. Advanced techniques such as hybrid bonding (die-to-wafer and die-to-panel) are being integrated into PLP lines to facilitate ultra-fine pitch interconnects.

This is especially critical for AI edge devices, data center accelerators, and 5G modems , where latency, power efficiency, and space optimization are paramount.

Experts predict that hybrid bonding in PLP environments could reduce interconnect delay by nearly 40%, directly impacting chip performance in compute-intensive applications.

 

4. Rise of AI and Neuromorphic Chips

As the demand for edge-based AI inference grows, chip designers are moving toward neuromorphic and heterogeneous SoC architectures . PLP enables dense integration of memory and logic components, making it a favored packaging format for these innovative silicon designs.

Recent prototype demonstrations from Asian research labs suggest that PLP-based AI accelerators can outperform traditional SoC packaging by up to 20% in thermal dissipation and processing efficiency.

 

5. Industry Collaborations and Consortium-Led R&D

To overcome technical and economic challenges, the market is witnessing a sharp rise in strategic partnerships and consortia-backed research . Organizations like ASE Group, Fraunhofer IZM, and SEMI are leading collaborative efforts to:

• Standardize panel sizes and formats

• Create design rules for large-area RDL patterning

• Co-develop PLP-capable test and metrology equipment

These partnerships are rapidly accelerating the commercialization timeline, with pilot lines already being tested in Taiwan and Germany.

 

Competitive Intelligence And Benchmarking

The panel level packaging (PLP) market is highly competitive, characterized by aggressive R&D investments, IP development, and strategic partnerships among packaging giants, semiconductor fabs , and tool vendors. Companies that offer scalable solutions, strong panel handling capabilities, and advanced RDL technologies are securing leadership positions.

Key Players and Strategic Positioning

1. ASE Group
As one of the world's largest OSAT providers, ASE Group leads in fan-out packaging and is aggressively expanding its PLP capabilities. The company has invested in FO-PLP production lines optimized for 510mm and 600mm panel formats. ASE’s strategy emphasizes collaboration with fabless customers to develop application-specific PLP solutions for AI, mobile, and automotive chips.

 

2. Samsung Electro-Mechanics
Leveraging its internal access to both substrates and semiconductor fabrication, Samsung Electro-Mechanics is uniquely positioned to advance panel-level system-in-package ( SiP ) technologies. The firm is actively integrating RDL-first and die-first PLP architectures , aiming to dominate in mobile SoCs and memory integration solutions.

 

3. Nepes Corporation
A pioneer in commercial FO-PLP, Nepes operates one of the industry’s most mature 600mm panel lines. Its business model is built around flexible turnkey services , allowing fabless clients to optimize package designs without investing in expensive panel infrastructure. Nepes has also partnered with materials firms to develop high-performance polymer substrates tailored for PLP.

 

4. STATS ChipPAC (JCET Group )
STATS ChipPAC , under JCET Group , is investing heavily in next-gen packaging formats including PLP and hybrid bonding. The company emphasizes cost-effective fan-out solutions targeting the mid-range application processor and RF front-end markets. Its dual-path innovation in both wafer- and panel-based technologies allows it to scale with customer demand.

 

5. SPTS Technologies (KLA Corporation)
As a critical enabler of etch, deposition, and metrology equipment used in PLP, SPTS Technologies offers unique IP in high-uniformity plasma processes and panel-level RDL structuring. The company partners with OSATs to co-develop compatible process modules that scale across various panel sizes.

 

6. Unimicron Technology
Known for its strength in substrate and interposer manufacturing , Unimicron is expanding into PLP-compatible RDL and embedded die solutions. The company’s focus on automotive-grade reliability in large-format packaging positions it well for ADAS and EV markets.

 

7. Applied Materials
Although primarily a tool vendor, Applied Materials is a silent power in the PLP space. The company is driving panel-specific enhancements in plasma cleaning, dielectric deposition, and inspection tools , making it a preferred partner for both IDMs and OSATs scaling up PLP pilot lines.

 

Benchmarking Insights

The competitive landscape reveals a clear divide between:

• Tool Innovators like SPTS and Applied Materials , who focus on enabling high-throughput PLP workflows via panel-specific equipment

• Packaging Giants like ASE , JCET , and Nepes , who control downstream value via turnkey PLP production

Differentiation increasingly hinges on panel size flexibility, RDL line/space resolution, and defect mitigation. Companies offering 5µm or finer RDL with >99.5% die placement yield are quickly becoming the benchmark for high-end PLP performance.

Strategically, co-development partnerships with fabless clients and investment in automation are proving to be winning moves in the push toward volume commercialization of PLP solutions.

 

Regional Landscape And Adoption Outlook

The global panel level packaging (PLP) market exhibits a distinctly regional character, driven by differences in semiconductor manufacturing infrastructure, policy incentives, R&D capabilities, and end-user industries. Asia-Pacific leads the market by a substantial margin, while North America and Europe are rapidly investing in advanced packaging initiatives to reduce reliance on overseas OSAT capacity.

Asia-Pacific: Market Dominance Through Vertical Integration

The Asia-Pacific region accounted for over 70% of global PLP revenues in 2024 , making it the unchallenged hub of PLP innovation and adoption. Countries such as South Korea, Taiwan, China , and to a lesser extent Japan , are investing heavily in both front-end and back-end semiconductor capabilities.

• South Korea : Home to Samsung Electro-Mechanics and Nepes , South Korea is at the forefront of 600mm PLP deployment. Government-backed initiatives in AI and automotive electronics are creating demand for high-performance PLP solutions.

• Taiwan : With its deep OSAT ecosystem led by ASE Group , Taiwan is investing in FO-PLP for mobile and computing applications. Close coordination between foundries and packaging providers enables rapid prototyping and volume production.

• China : Driven by national chip independence goals, China is scaling PLP capacity via local OSATs and tool vendors. Emerging companies are focusing on PLP for mid-range consumer devices and domestic AI chipsets.

• Japan : Although more conservative in PLP investment, Japan is strengthening its role in materials (e.g., resins, films) and metrology equipment for panel processing.

Experts highlight that Asia-Pacific’s vertical integration across substrate, fab, and packaging layers gives it a structural cost and time-to-market advantage in PLP deployment.
 

North America: Strategic Repositioning via R&D and Policy Support

While North America lags in PLP production capacity, it plays a critical role in design innovation, prototyping, and equipment manufacturing .

• The U.S. government’s CHIPS and Science Act is expected to spur domestic investment in advanced packaging. Companies like Intel are exploring PLP as part of their 3D packaging roadmap.

• Toolmakers such as KLA and Applied Materials are co-developing panel-friendly tools, and several national labs are participating in heterogeneous integration R&D efforts.

• The region's strength lies in AI hardware, defense electronics , and edge computing , which are ideal end-use cases for high-density PLP.

Industry leaders anticipate that by 2027, North America could command 15–18% of the global PLP capacity, up from less than 10% in 2024.
 

Europe: Focus on Materials and Automotive Integration

Europe’s contribution to the PLP market is driven primarily by its leadership in automotive semiconductors, power electronics , and packaging materials .

• Germany , through institutions like Fraunhofer IZM , is spearheading collaborative PLP research focused on large-area substrates and automotive reliability.

• Countries like France and the Netherlands are involved in EU-funded initiatives targeting packaging standardization and energy-efficient chip integration .

Automotive OEMs and Tier-1 suppliers in Europe are actively pushing for PLP formats that offer better thermal management and multi-chip integration for EVs and ADAS systems.

While current production is limited, Europe is likely to be a key adopter of PLP in automotive use cases, benefiting from strong cross-industry collaboration.

 

LAMEA: Emerging Markets and Pilot Line Investment

Although still nascent, Latin America, the Middle East, and Africa (LAMEA) are showing early signs of adoption:

• Israel is an exception, with strong presence in chip design and packaging prototyping. Startups here are exploring PLP for defense and medical AI devices.

• Other regions are mainly focused on importing PLP-enabled chips rather than domestic manufacturing.

Governments in Latin America and the GCC region have begun allocating funding for semiconductor localization , which could eventually support PLP-focused pilot lines in the next decade.

 

End-User Dynamics And Use Case

The adoption of panel level pa ckaging (PLP) is strongly influenced by the technical sophistication, integration needs, and capital capacity of its end users. As the push for smaller, more powerful devices intensifies, various semiconductor stakeholders are integrating PLP into their production pipelines to stay competitive across diverse verticals.

1. Fabless Semiconductor Companies

Fabless firms are among the most aggressive adopters of PLP. With no in-house fabrication or packaging capabilities, they rely on OSAT partners to deliver cost-efficient, high-density packaging solutions.

• These companies prioritize form factor miniaturization, thermal performance, and I/O density —criteria that PLP excels in.

• Use cases include AI accelerators, high-performance application processors, and edge inference chips .

• Early-stage fabless companies also benefit from PLP’s potential to reduce per-unit packaging cost at scale , even though initial NRE (non-recurring engineering) costs are high.

 

2. Integrated Device Manufacturers (IDMs)

IDMs like Intel, Samsung, and Texas Instruments are exploring PLP as a path to bolster heterogeneous integration —embedding memory, logic, and sensor components into a single package.

• Unlike fabless firms, IDMs can develop custom panel-level processes within their own facilities or through dedicated foundry partners.

• Their use of PLP is often aimed at proprietary applications such as data center chips, ADAS platforms, and industrial controllers .

One key differentiator is their willingness to invest in novel panel sizes and materials to fit highly customized internal roadmaps.

 

3. OSAT Companies

Outsourced Semiconductor Assembly and Test (OSAT) firms remain the primary drivers of PLP commercialization . They serve both fabless clients and IDMs, providing turnkey solutions that reduce design-to-production timelines.

• Leaders such as ASE Group and Nepes offer 600mm PLP services , leveraging economies of scale and access to panel-specific equipment.

• OSATs are also driving PLP adoption in mid-volume segments such as RF front-end modules, where traditional wafer formats are too costly or restrictive.

Their challenge lies in balancing capital investment in PLP infrastructure with uncertain volumes, especially in early deployment phases.

 

Use Case: Advanced Driver Assistance Systems (ADAS) in South Korea

A leading Tier-1 automotive supplier in South Korea collaborated with an OSAT to develop a PLP-based sensor fusion module for a next-generation ADAS platform.

The challenge was to integrate multiple radar, camera, and LiDAR sensor interfaces along with a machine learning processor into a single, compact package that could fit behind the vehicle’s rearview mirror. Using Fan-Out Panel Level Packaging , the supplier achieved:

• A 32% reduction in footprint compared to conventional system-in-package modules

• Improved thermal dissipation , ensuring operational stability across wide temperature ranges

• A 17% reduction in cost per unit at production volumes exceeding 500,000 units annually

This successful deployment illustrates PLP’s potential in automotive applications where weight, size, and thermal performance are critical—and underscores why the sector is forecasted to experience over 25% CAGR through 2030.

 

Recent Developments + Opportunities & Restraints

Recent Developments (Last 2 Years)

• ASE Group Commences 600mm FO-PLP Pilot Production (2023)
  ASE initiated pilot-scale production using 600mm x 600mm panel formats at its Kaohsiung site. The facility is optimized for high-throughput fan-out packaging aimed at AI and 5G chipsets. 

• Fraunhofer IZM and Nepes Launch Joint PLP R&D Program (2023)
  In a notable European-Asian partnership, Fraunhofer IZM and Nepes announced a collaborative R&D project to enhance warpage control and defect detection in large-format PLP . 

• Samsung Electro-Mechanics Expands FO-PLP Capacity for Mobile SoCs (2024)
  Samsung increased its FO-PLP output by 35% to meet the demand from next-gen smartphone chipsets, incorporating AI engines and advanced RF front-ends. 

• KLA Launches Panel-Level Inspection Tool Suite (2024)
  KLA introduced a suite of non-contact metrology and inspection tools specifically calibrated for panel-level die placement and RDL integrity monitoring. 

• TSMC Signals Interest in PLP Through Equipment Procurement (2024)
  Though traditionally wafer-focused, TSMC has reportedly procured pilot-scale panel handling systems , signaling exploratory interest in PLP for chiplet and SiP packaging. 

 

Opportunities

• Heterogeneous Integration in Edge and AI Devices
  PLP enables high-density system-in-package architectures ideal for AI inference chips, edge servers, and wearable medical devices . The ability to integrate multiple dies on a large panel with minimal footprint is a core growth lever.

• Cost Optimization Through Larger Panels
  As 600mm formats become standardized, economies of scale will drive substantial reductions in cost-per-package —making PLP viable for mid-range mobile, IoT , and automotive chips.

• Cross-Industry Collaboration and Standards Development
  Consortia-led efforts in panel size unification, process control, and equipment design are accelerating adoption. These initiatives lower entry barriers for smaller packaging firms and fabless customers.

 

Restraints

• High Initial Capital Costs for PLP Infrastructure
  The switch from wafer to panel-level processes requires new panel dicing, handling, and metrology tools , often incompatible with legacy wafer lines. This poses challenges for OSATs without strong capital reserves.

• Lack of Industry-Wide Panel Format Standardization
  Multiple competing panel sizes (e.g., 510mm vs. 600mm) create uncertainty in tool procurement and process integration. Until standardization matures, many firms hesitate to commit to full-scale PLP adoption.

 

7.1. Report Coverage Table

Report Attribute	Details
Forecast Period	2024 – 2030
Market Size Value in 2024	USD 2.34 Billion
Revenue Forecast in 2030	USD 7.38 Billion
Overall Growth Rate	CAGR of 21.7% (2024 – 2030)
Base Year for Estimation	2024
Historical Data	2019 – 2023
Unit	USD Million, CAGR (2024 – 2030)
Segmentation	By Packaging Type, By Panel Size, By Application, By End User, By Geography
By Packaging Type	Fan-Out Panel Level Packaging, Embedded Die Packaging, 2.5D/3D Panel Level Integration
By Panel Size	300mm x 300mm, 510mm x 515mm, 600mm x 600mm and above
By Application	Consumer Electronics, Automotive Electronics, Networking & Telecommunication, Industrial IoT, Healthcare Devices
By End User	Fabless Semiconductor Companies, Integrated Device Manufacturers, OSAT Companies
By Region	North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
Country Scope	U.S., UK, Germany, China, India, Japan, Brazil, etc.
Market Drivers	Advanced integration demand, panel size scalability, 5G & AI chip packaging
Customization Option	Available upon request