DRAM will grow with a CAGR22-28 of around 13%, reaching around $20.7 billion in 2028, while NAND will grow at a faster pace, with a CAGR22-28 of around 17%, and its packaging revenue is forecast to reach around $8.9 billion by 2028.
Other memory technologies, such as NOR Flash, EEPROM , SRAM , and emerging NVM , are forecasted to grow with a CAGR22-28 of around 3%.Wire-bond dominates the memory packaging market, followed by flip-chip.
OSATs account for more than one-third of the memory packaging revenue.
Overall memory packaging revenue is estimated to have been $15.1 billion in 2022, excluding testing.
This corresponds to around 10% of overall stand-alone memory revenue, worth around $144 billion in 2022 and forecast to reach $31.8 billion in 2028 with a CAGR22-28 of 13%.
AP (Advanced Packaging) has become a key enabler of technological progress for NAND and DRAM. Among the different AP approaches, hybrid bonding has emerged as the most promising solution to manufacture higher bit density and higher-performance memory devices.
Whether its use is intended to enable higher performance or smaller form factors, advanced packaging is an increasingly important factor in the memory value equation.
From representing about 47% of memory packaging revenue in 2022, AP will represent 77% by 2028.
Wire-bond is the dominant packaging approach. It is widely used for mobile memory and storage applications, followed by flip-chip packaging, which continues expanding in the DRAM market.
The adoption of flip-chip packaging with short interconnects is essential to enable high bandwidths per pin. While wire-bond packaging may still meet DDR 5 performance requirements, analysts expect flip-chip packaging to become a must-have for DDR6.
Leadframe remains widely used for NOR Flash and other memory technologies and is the package with the highest volume of unit shipments.
WLCSP (Wafer Level Chip Scale Packaging) is being increasingly adopted for consumer/wearable applications requiring small form factors, such as True Wireless Stereo earbuds. It is found in low-density memory devices such as NOR Flash, EEPROM, and SLC NAND.
“AP is becoming increasingly important in the memory business, with flip-chip packages becoming the norm for DRAM modules in data centers and personal computers,” says Yole’s Simone Bertolazzi, “the demand for HBM is growing fast, propelled by AI and high-performance computing applications. Hybrid bonding is part of the 3D NAND scaling path.”
