Advanced IC Packaging: Transforming India’s Semiconductor Industry
- Chinmay
- February 10, 2025
- India, Semiconductor Industry
- 3D IC, Advanced IC Packaging, AI chips, Chiplet Design, FOWLP, HPC, India semiconductor mission, IoT, Semiconductor Manufacturing, Semiconductor Packaging, Tata Electronics, TSMC, Vedanta Foxconn
- 0 Comments
India is rapidly emerging as a key player in the global semiconductor industry, with Advanced Integrated Circuit (IC) packaging playing a crucial role in shaping its future. With the rise of AI, 5G, and high-performance computing (HPC), there is a growing demand for efficient, compact, and high-performance chip packaging solutions.
Government initiatives such as the Production Linked Incentive (PLI) scheme and the India Semiconductor Mission (ISM) are driving the country’s semiconductor ecosystem, reducing dependence on imports and fostering indigenous innovation. This article explores India’s progress in advanced IC packaging, current industry trends, and future prospects.
Trends in Advanced IC Packaging
- 2.5D and 3D Packaging
The semiconductor industry is shifting towards 2.5D and 3D IC packaging, which enables:
- Higher performance & power efficiency
- Reduced interconnect distances & improved signal integrity
- Better thermal management with Cu-to-Cu hybrid bonding
- Fan-Out Panel Level Packaging (FOPLP)
- Gaining traction due to cost-effectiveness and higher area utilization
- Ideal for AI chips & HPC applications requiring high-density interconnections
- Material Innovations
India is exploring new materials for 2.5D IC packaging, including:
- Silicon interposers (high routing capability)
- Organic interposers (lower cost, flexibility)
- Glass interposers (high dimensional stability, improved electrical properties)
India’s Semiconductor Packaging Landscape
India is witnessing rapid advancements in semiconductor packaging, led by major industry players and government-backed initiatives:
- Vedanta-Foxconn JV: Setting up a 28nm semiconductor fab in India, boosting local manufacturing.
- Tata Electronics: Investing in advanced semiconductor packaging & SiP (System-in-Package) solutions.
- India Semiconductor Mission (ISM): Driving domestic fabrication & packaging innovation to attract global players.
Industry Investments and Market Outlook
The global semiconductor market is projected to grow significantly, driven by AI, IoT, and data centers. India is well-positioned to capitalize on this growth through:
- Investments in cutting-edge packaging technologies
- Strategic collaborations with global semiconductor leaders
- Development of localized packaging solutions
Major industry investments include:
- TSMC’s collaboration with Indian firms for advanced packaging solutions
- Growing Indian semiconductor design ecosystem driving demand for localized chip packaging
- PLI incentives supporting OSAT (Outsourced Semiconductor Assembly & Test) facilities
Breakthroughs in IC Packaging
- 3D IC & Heterogeneous Integration: Indian semiconductor startups are adopting 3D IC packaging, enabling stacked dies for improved efficiency & AI/IoT applications.
- Chiplet-Based Design: A 2023 SEMI India study highlights the rise of chiplet architectures, integrating multiple smaller chips into single, scalable packages.
- Fan-Out Wafer Level Packaging (FOWLP): Research at IIT Madras & IISc Bangalore is focusing on cost-effective FOWLP solutions, improving power efficiency & thermal performance.
Global Leaders in Advanced IC Packaging
- TSMC’s Integrated Fan-Out (InFO) & CoWoS technology: Driving high-performance computing & AI chip integration.
- Intel’s Foveros 3D stacking technology: Boosting chip performance & reducing interconnect distances.
- Samsung’s X-Cube heterogeneous integration: Advancing high-density chip packaging for AI & IoT.
- ASE Group’s System-in-Package (SiP) solutions: Pioneering compact, high-efficiency packaging for consumer electronics & automotive applications.
Challenges in IC Packaging
- High Capital Investment: Setting up advanced packaging infrastructure requires significant upfront investment.
- Skill Shortage: India needs more semiconductor packaging experts & engineers.
- Dependence on Imports: Critical packaging materials & technologies still rely on imports.
Opportunities for India
- Industry-Academia Collaboration: Universities & startups working on indigenous packaging innovations.
- AI/ML in Defect Detection: Automated inspection techniques reducing IC defects & improving yields.
- OSAT Expansion: Encouraging global semiconductor giants to establish packaging & testing facilities in India.
The Road Ahead for India’s Semiconductor Packaging Industry
With strong government backing, rising investments, and cutting-edge R&D, India is well-positioned to become a global semiconductor packaging hub. As the industry evolves, addressing infrastructure challenges, fostering skilled talent, and accelerating adoption of advanced packaging technologies will be crucial to India’s semiconductor success story.
The future of India’s semiconductor industry is bright—are we ready to lead the global chip revolution?
