The global advanced semiconductor packaging market could reach USD 58.7 billion in 2026, according to Sigmaintell Consulting, as artificial intelligence and high-performance computing turn 2.5D and 3D packaging into one of the most strategic bottlenecks in the chip supply chain. The forecast represents an estimated year-on-year increase of around 97%, underlining how quickly advanced packaging has moved from a specialist capability to a critical growth engine.

The main driver is the rapid expansion of AI data centres. High-performance processors increasingly need to be integrated with high-bandwidth memory and other components using advanced interconnect structures. This is creating strong demand for 2.5D packaging, 3D stacking, chiplets and related testing and substrate capacity. In this environment, packaging is no longer a back-end process; it is becoming a core performance enabler.

AI demand is transforming advanced packaging into a golden cycle of volume growth, price strength and capacity expansion.

Sigmaintell indicates that global 2.5D and 3D packaging capacity has remained undersupplied since 2022. In 2025, demand is projected at around 146,000 equivalent 12-inch wafers per month, with a supply-demand gap of approximately 23%. Some order schedules are reportedly extending beyond one year, giving packaging suppliers a strong signal to accelerate capacity planning.

This shortage is expected to persist into 2027, with a potential turning point in the second half of that year. Global advanced packaging capacity is forecast to grow at a CAGR of 41% between 2025 and 2030, and at an even faster 77% CAGR between 2025 and 2027. Such expansion reflects the urgency facing chipmakers, OSAT providers and material suppliers as they prepare for sustained AI infrastructure demand.

Taiwan Semiconductor Manufacturing Company remains the dominant force in this field. Sigmaintell estimates that TSMC will hold around 58% of global advanced packaging capacity in 2025. Its position is strengthened by the integration of leading-edge foundry technology with advanced packaging and testing operations. The company is also reallocating mature process resources, space and labour to support packaging growth, with capacity expected to rise strongly in 2026.

Traditional packaging leaders are also benefiting. ASE Technology and Amkor are capturing overflow demand and investing heavily in advanced capabilities. ASE’s planned 2026 capital expenditure is reported at USD 7 billion, while Amkor continues to collaborate with TSMC and Intel, including work linked to EMIB technology. These companies are positioning themselves to serve major customers in AI, cloud and custom silicon.

• 2.5D and 3D packaging are central to AI accelerator and HBM integration.
• Capacity shortages are expected to continue until at least 2027.
• TSMC remains the leading capacity holder in advanced packaging.
• OSAT companies are increasing investment to capture higher-value demand.
• FOPLP is attracting panel manufacturers seeking entry into semiconductor packaging.

Mainland Chinese packaging manufacturers are also moving quickly. JCET, TongFu Microelectronics, Huatian Technology and other firms are using localisation opportunities, HBM packaging demand and domestic computing chip development to strengthen their positions. These companies remain behind the leading players in some advanced processes, but their revenue mix is gradually shifting toward higher-value packaging services.

One of the most important technology routes is fan-out panel-level packaging, or FOPLP. The format is gaining attention because it can offer cost and efficiency advantages for certain 2.5D applications. Panel manufacturers such as Innolux, BOE, CSOT and Tianma are exploring opportunities in this area, using their large-area manufacturing experience as a possible advantage. South Korean display groups are also assessing glass interposers for high-density chip interconnection.

The entry of panel makers shows how advanced packaging is expanding beyond traditional semiconductor boundaries. Display manufacturers are seeking new growth opportunities as panel markets mature, while AI chip demand creates a need for alternative capacity, new substrates and diversified technology routes.

Pricing is also expected to remain firm at least until the end of 2026. Because 2.5D and 3D packaging are far more complex than conventional 2D packaging, their value is significantly higher. In some cases, 2.5D packaging pricing can exceed flip-chip packaging by more than five times, making it a major revenue opportunity for companies that can scale successfully.

For the packaging industry, the message is clear: advanced semiconductor packaging is becoming one of the defining technologies of the AI era. Capacity, materials, substrates, thermal management and heterogeneous integration will determine how quickly next-generation computing systems can be delivered. As AI demand continues to rise, advanced packaging will remain a strategic battleground for chipmakers, OSAT providers and new entrants alike.