High-Density Packaging Market Growing 50% in 2004

High demand for digital consumer and mobile applications such as cellphones, Bluetooth, and digital cameras is driving demand for high-density packages, according to the report High-Density Packages (MCMs, MCPs. SiPs): Market Analysis and Technology Trends, recently published by The Information Network, a New Tripoli, PA-based market research company.

“High-density packages result in a smaller overall package when compared to packaged components performing the same function,” notes Dr. Robert N. Castellano, President of The Information Network. “They are ideal for small portable devices such as cellphones, digital audio, and Bluetooth-enabled products.”

The total high-density packaging (HDP) market is projected to grow at a CAGR of 35.7%, to 703.3 million units in 2006. The HDP market was dominated by the Communications sector in 2001 and will continue to do so in 2006. The Communications sector held an 80.2% share in 2001 followed by the Consumer sector with a 12.6% share. Strong growth will be exhibited by the Communications and Consumer sectors to 77.5% and 16.2%, respectively, in 2006.

The report analyzes for market for traditional Multichip modules (MCMs), Multichip Packages (MCPs) and System-in Package (SiPs).

“From a purely technical perspective there is indeed a difference between MCM, MCP, and SiP in the incorporation of passive components”, added Dr. Castellano. “From a market analysis perspective there really is no differentiation among these three terms due to the commonality of advantages, namely, small size, lower cost of ownership, enhanced electrical performance, and reduced time to market.”

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