System-in-Package Market to Reach $33.8 Billion by 2028

According to a new report by Yole Intelligence, the system-in-package (SiP) market is projected to reach $33.8 billion by 2028, up from $21.2 billion in 2022, an 8.1% CAGR. The growth is fueled by the increasing adoption of chiplets, heterogeneous integration, and advanced packaging, particularly in the mobile and consumer, telecom and infrastructure, automotive, and industrial sectors.

Chiplets are small, modular chips that can be interconnected to form a larger system. They offer a number of advantages over traditional monolithic chips, including improved yield, reduced costs, and increased flexibility. Heterogeneous integration involves the process of combining different types of chips, such as CPUs, GPUs, and memory, into a single package which allows designers to create systems with the optimal mix of performance and power efficiency. While, advanced packaging technologies, such as 2.5D and 3D integration, enable further miniaturization and performance enhancements.

Within the SiP market landscape, the mobile and consumer sector is the fastest-growing market for SiPs. The growing demand for 5G smartphones and other mobile devices is driving the adoption of SiPs for RF and connectivity modules. SiPs are also used in a variety of other consumer products, such as wearables, smart home devices, and gaming consoles.

The telecom and infrastructure sector stands as another significant arena for SiPs to thrive which are used in a variety of telecom equipment, such as base stations, routers, and switches. They are also being used in new infrastructure applications, such as 5G networks and edge computing.

The increasing adoption of chipsets, heterogeneous integration, and advanced packaging will enable the development of even more miniaturized and high-performance SiPs for a wide range of applications in the foreseeable future.