Orbotech’s $57 million order marks major change in the Semiconductor’s Packaging

10 December, 2015

The exploding market for thinner smart phones, tablets, wearable devices and Internet of Things (IoT) drive the market of dense semiconductor packages, such as FOWLP

The exploding market for thinner smart phones, tablets, wearable devices and Internet of Things (IoT) drive the market of dense semiconductor packages, such as FOWLP

SPTS

ORBOTECH announced that SPTS Technologies, an Orbotech company, has received orders totaling $57 million for multiple Sigma fxP PVD systems from a global manufacturer of packaged die. Besides the impressive value of the deal from a single client,  Orbotech believes it marks a quite change in the industry, with important implications.

System deliveries and revenue recognition are expected to commence in the fourth quarter of 2015 and continue throughout the first half of 2016. In semiconductor packaging, the Sigma fxP is used to deposit under bump metals and redistribution layers (RDL) for Fan-Out Wafer Level Packaging (FOWLP) production.

“This groundbreaking multi-PVD system order, the first from any semiconductor manufacturing company for FOWLP is a ‎milestone moment for advanced packaging,” said Mr. Kevin Crofton, President of SPTS and Corporate Vice President at Orbotech.

“It marks the beginning of an industry-wide transition of FOWLP from a niche packaging technique for small devices such as RFID and power management ICs to mainstream architecture for high value chips.  We expect FOWLP to become the leading low cost, high density packaging format.”

Scheme of Fan-Out Wafer Level Packaging
Scheme of Fan-Out Wafer Level Packaging

According to a report recently published by research firm Yole Développement, the launch of TSMC’s InFO format is expected to increase packaging revenues for FOWLP from $240M in 2015 to$2.4B in 2020. With a projected 54% CAGR, Yole expects that FOWLP will be the fastest growing advanced packaging technology in the semiconductor industry.

The exploding market for thinner smart phones, tablets, wearable devices and Internet of Things (IoT) connected consumer goods has created a significant need for this cost-effective high density format. There are numerous FOWLP platforms in or near production from many companies including STATS ChipPAC, Amkor, TSMC and Freescale (now NXP).

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Posted in: Featured Stories , News , Semiconductors , Technology

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