Fan-Out Packaging Technologies and Market 2020 Sample

From Technologies to Markets

Fan-Out Packaging 2020

Technologies & Market

 Table of contents 002 o Fan-Out packaging unit forecasts 114  Scope of report 004 o Total overview  Report methodology & definitions 005 o End-market  About the author 006 o Production Volume, 300mm wafer equivalent  Yole Group of companies related reports 007 o Core FO vs HD FO vs UHD FO  Glossary 008  Market shares 120  Companies cited in this report 009 o What’s New? 121  What we got right, What we got wrong 010 o Market shares of manufacturers 123  3-Page summary 011 o Market shares of IC substrate vs Fan-Out technologies 129  Executive summary 015 o Market shares of business models 133  Context 073 o Reason behind TSMC dominance o Scope of Fan-Out packaging 074 o Chapter conclusion 142 o Fan-Out packaging definition 077  Supply Chain 144 o Fan-Out packaging introduction 081 o What’s New? 145 o Fan-Out packaging process flow 085 o Supply chain overview 147 o Fan-Out packaging segmentation 093 o Global mapping 152  Market forecasts 102 o Fan-Out key suppliers activity summary 155 o Fan-Out packaging revenue forecasts 103 o Analysis of the latest developments in supply chain162 o Total overview o Apple and TSMC contract expires by 2021: What to expect? 168 o End-market o Deca’s new business model 173 o Impact of COVID-19 o Nepes’ new fan-out packaging company spin-off: nepes laweh 175 o Core FO vs HD FO vs UHD FO o Introduction of new players in Fan-Out packaging 180 o FOWLP vs FOPLP o Chapter conclusion 185 o Breakdown by carrier type & market segment o Application

 Market trends 187  Technology Trends 290 o Market drivers 188 o What’s New? 291 o Mobile AiP is trending with 5G 190 o Fan-Out packaging technology roadmaps 293 o Why is Fan-Out packaging being adopted in AiP? o Fan-Out packaging technology by manufacturers 299 o Big Die packaging is trending in HPCs 204 o Fan-Out packaging technical challenges 358 o Why is Fan-Out packaging being adopted for HPC? o Perspective on technology 361 o Fan-Out packaging in automotive radar 213 o Chapter conclusion 365 o Why is Fan-Out packaging being adopted in radar?  Fan-Out panel level packaging 367 o Fan-Out packaging drivers 222 o Panel-trends and motivation 368 o Chapter conclusion 238 o FOPLP supply chain 375  Commercialization status 240 o Global map of FOPLP manufacturers o What’s new? 241 o FOPLP supplier status o Overview 244 o FOWLP vs FOPLP penetration rate o Commercialization window by I/O Count & package size 248 o Reality of panel penetration 386 o PMIC 257 o Chapter conclusion 391 o Audio codec 259 o Automotive radar 261  Report conclusion 393 o Smartphones: APE 266  Appendix 395 o Mobile: AiP 274  Yole Développement corporate presentation 414 o Smartwatches 277 o HPC 282 o Chapter conclusion 288

Favier Shoo Favier Shoo is a Technology and Market Analyst in the Semiconductor & Software division at Yole Développement, part of Yole Group of Companies. Based in Singapore, Favier is engaged in the development of technology & market reports as well as the production of custom consulting reports.

During 7 years at Applied Materials as a Customer-Application-Technologist in the advanced packaging marketspace, Favier developed a deep understanding of the supply chain and core business values. As an acknowledged expert in this field, Favier has provided training and held numerous technical review sessions with industry players. In addition, he has obtained 2 patents.

Prior to that, Favier worked at REC Solar as a Manufacturing Engineer to maximize production capacity.

Favier holds a Bachelor in Materials Engineering (Hons) and a Minor in Entrepreneurship from Nanyang Technological University (NTU) (Singapore). Favier was also the co-founder of a startup company where he formulated business goals, revenue models and marketing plans.

Contact: [email protected]

3D-Plus, 3M, AGC, Amkor, Ajinomoto, AKG, Analog Devices, Apple, ASE, A*Star (IME), AT&S, Atotech, Aurora semiconductors, BASF, BK Ultrasound, Blackberry, Boschmann, Brewer Science, Broadcom, Bosch, China Mobile, Cirrus Logic, Cypress, Deca Technologies, Denso, Dialog Semiconductor, Dow Dupont, Evatec, Fitbit, Freescale (NXP), Fujifilm, Global Foundry, Google, Hella, HiSilicon, Hitachi chemicals, Huawei, Huatian, Infineon, Intel, Lenovo, LGE, Marvell, Maxim IC, Mediatek, Medtronic, Nagase ChemteX, Nanium (Amkor), Nepes, Nepes Laweh, Nephos, Nokia, NXP, Oppo, Onda, PTI, Qualcomm, Qorvo, Rena, Rohm, Samsung, Schmoll maschinen, SEMCO, SEMSYSCO, Shinko Electric, Sivers IMA, Spectrum, SPIL, STATS ChipPAC (JCET), STMicroelectronics, Synaptics, Synergy, TI, TSMC, Unimicron, Xiaomi and more…

The main objectives of this report are: • To identify and describe which technologies can be classified as ‘Fan-Out Packaging’ • To define clearly the different market classes of Fan-Out Packaging • To analyze key market drivers, benefits and challenges of Fan-Out Packages by application • To describe the different existing technologies, their trends and roadmaps • To analyze the supply chain and Fan-Out landscape • To update the business status of Fan-Out technology markets • To provide a market forecast for the coming years, and estimate future trends

Fan-Out Packaging markets are studied from the following angles: • Top-down based on end-systems demand Yours needs are • Market valuations based on top-down and bottom-up models out of scope of this • Market shares based on production projections report? • Supply value chain analysis Contact us for a custom study: • State-of-the-art technologies and trends • End-user application adoptions

Preexisting information

Market Volume (in Munits) ASP (in $) Revenue (in $M)

Information Aggregation

Abbreviation Meaning Abbreviation Meaning Abbreviation Meaning ADAS Advanced Driver-Assistance Systems HBM High Bandwidth Memory PCB Printed Circuit Board AiP Antenna in Package HD FO High Density Fan-Out PDN Power Distribution Network APE Application Processor Engine HDI High Density Interconnect PMIC Power Management Integrated Circuit APU Application Processor Unit HPC High Performance Computing PMU Power Management Unit ASIC Application-Specific Integrated Circuit HVM High-Volume Manufacturing PoP Package-on-Package BEOL Back-end Of Line I/O Inputs/Outputs PTOR Production Tool of Record BGA Ball Grid Array IC Integrated Circuits PVD Physical Vapor Deposition BOM Bill Of Materials IDM Integrated Device Manufacturers PWB Printed Wiring Board CAGR Compound Annual Growth Rate inFO integrated Fan-Out QFN Quad-Flat No-Lead Package CSP Chip Scale Package IP Intellectual Property Radar RAdio Detection And Ranging DSP Digital Signal Processor IPD Integrated Passive Devices RCC Resin Coated Copper DTOR Development Tool of Record L/S Line/Space RCP Redistributed Chip Package ECD Electro-Chemical Deposition LiDAR Light Detection and Ranging RDL Redistribution Layer EMC Epoxy Mold Compound LTE Long-Term Evolution RF Radio Frequency ePLP embedded Package-Level-Packaging LVM Low Volume Manufacturing SiP System-in-Package ePoP embedded Package-on-Package MCM Multi-Chip Module SoC System-on-Chip eWLB embedded Wafer-Level BGA MCP Multi-Chip Package TMV Through-Mold-Via F2F Face-to-Face MEMS Micro-Electro-Mechanical System TPV Through-Package-Via FC Flip-Chip mmWave Millimeter wave TSV Through-Silicon-Via FO Fan-Out NR New Radio TTV Total Thickness Variation FOPLP Fan-Out Panel-Level Packaging OEM Original Equipment Manufacturer UBM Under Bump Metallization FOWLP Fan-Out Wafer-level Packaging OSAT Outsource Semiconductor Assembly and Test UHD FO Ultra-High-Density Fan-Out FPGA Field-Programmable Gate Array PA Power Amplifier WLCSP Wafer-Level Chip-Scale Package WLFO Wafer-Level Fan-Out

Embedded packaging technologies with connections Fan-Out Packaging fanned out of IC surface Embedded Die (Focus of the report)

Embedding in organic laminate Encapsulator type Embedding in epoxy mold compound

Lamination around Cavity dug in Process type the chip substrate

Foundry Advanced RDL Interconnection type BEOL + RDL Substrate Chip-First: CF

Chip-Last: CL Chip placing CF / CL CF / CL CL Face-Up: FU

Face-Down: FD Flip-Chip Chip orientation FU / FD FU / FD

Fan-Out Packaging can be understood in several ways depending on who we are talking to. It is especially confusing because when the hype around this package type began, many players used the name ‘Fan-Out’ to describe their solution to gain more attention in the market. An even more confusing aspect is that acknowledged Fan-Out solutions are not, or were not, called ‘Fan-Out’ by their creators. For instance, Infineon, creator of eWLB, one of the most widespread Fan-Out solutions, had not even called it ‘Fan-Out’ in its IP and referred to it for a long time as an ‘embedded die’ solution. An acknowledged characteristic of ‘Fan-Out’ packages is that, as the name suggests, interconnections are fanned out on the chip and because of that, bumping is not dependent on die surface. This means that Fan-Out has the potential to achieve any number of interconnects with standard pitches at any shrink stage of the wafer node technology. If the only definition of ‘Fan-Out’ is a package from which connections and bumping are out of the chip scale, then almost all packages can be defined as Fan- Out. Flip-Chip BGA, Flip-Chip CSP, Embedded Die, etc. Due to this, confusion is high in the industry. To make a fair comparison and to clarify the situation, Yole focuses on selected Fan-Out technologies that have at least one of these 2 key characteristics: Fan-Out solutions that use mold compound to embed the dies—not laminated materials. Fan-Out solutions that do not use IC substrates (PCB type of interposers) to fan out of chip area

Mold compound is used to Mold Chip embed the chip

No IC substrate (PCB type) used for fanning- Connections are out chip area fanned out of chip scale area

Core FO: Core Fan-Out UHD FO Networking, servers etc. >>18 HD FO: High-Density Fan-Out 2

) UHD FO: Ultra-High-Density Fan-Out I/O per mm >> 18 2 RDL L/S << 5/5µm

12 HD FO Mobile APE, AiP etc.

6 < I/O per mm2 < 12 15/15µm > RDL L/S > 5/5µm UHD FO Core FO RF, PMU, BB, AiP etc. 6

HD FO2-4x RDL IC Substrate 4 I/O per mm2 < 6 Fan-Out on Substrate

RDL L/S >15/15µm Core FO1-2x RDL I/O per Package Area ( I/O per mm per ( I/O Area per Package I/O In 2020 report, HD FO and UHD FO will be classified separately in order to be forward looking for market forecast due to the emergence of UHD FO ≤ 1

≥20/20 15/15 10/10 5/5 ≤2/2 RDL L/S Scaling (µm/µm)

FC-CSP/FC-BGA Fan-Out Fan-In (WLCSP) IC Substrate No IC Substrate No IC Substrate

Fan-out allows Die for standard IC Substrate Die Die packaging pitches independent PCB PCB PCB of the die surface, enabling thinner packages. Currently, FC-CSP/FC-BGA are the most standard packages competing with fan-out. However, their cost is increasing fast with I/O density, mainly due to advanced substrate cost. Fan-in WLCSP, fan-out’s main challenger, has earned large market share in the past five years due to its advantages (low cost, thin package). It is substrate-less, but faces inherent limitations due to available die area for re-routing. Though both packages are struggling to fill the gap between ICs and PCBs, their evolutions are asynchronous. ICs have followed Moore’s law throughout their history and experienced size decreases much faster than PCBs, creating a mismatch. Fan-out can have a number of interconnects with standard pitches independent of chip size, while also allowing multi-chip and 3D packaging solutions.This kind of flexibility can fill the gap between ICs and PCBs.

Carrier Reconstituted wafer backside after molding 01 04 Carrier removal (de-bonding) Tape lamination

02 Carrier with foil and chips 05 Standard WLP process WLP Fan-Out wafer Pick and place (Passivation, pattern, RDL, bonding)

03 Molding with liquid mold compound 06 After singulation Wafer-level molding Dicing

Fan-Out: Dies embedded in mold compound. No advanced substrate needed to fan out of chip surface.

2019 2025

HD FO $1 291M 42% Core FO $231M 8% 15.8% Core FO CAGR 1.0% $218M CAGR HD FO 17% Total Fan-Out Market Value $534M $3,046M 43% CAGR2019-2025 =15.9% $1,256M

UHD FO UHD FO $504M 20.2% $1 523M 40% CAGR 50%

2019: FAN-OUT PACKAGING 2025: FAN-OUT PACKAGING Application CAGR BY APPLICATION BY APPLICATION (x)PU + HBM 51.9% (x)PU (x)PU Partitioning 19.7% (x)PU APE Partitioning APE APE 8.5% Partitioning APE + PMIC 16.9% RF (Handset AiP) 76.3% Audio Codec 4.7% $1,256M Audio C. + PMIC -4.9% $3,046M (x)PU + HBM Baseband -4.3% Connectivity 14.0% RF PMIC 2.8% RF RF 2.6% PMIC APE + PMIC APE + PMIC Total 15.9% PMIC ConnectivityBaseband Audio Codec Connectivity Baseband Audio Codec RF (Handset AiP) Audio C. + PMIC Audio C. + PMIC

Detailed breakdown will be shown in full report

Fan-Out Packaging is expected to experience a sharp growth for RF AiP applications (driven by 5G) at a whopping 76% CAGR. For cost effective HPCs, exceptional growth is projected at 52% and 20% CAGR respectively for (x)PU + HBM and (x)PU die partitioning. Strong growth of 14% CAGR for connectivity is expected as well, especially Bluetooth (RF) + other functions like MEMs, PAs or switches.

HQ Former Nanium (Portugal) Korea

JCAP China

Korea

Former Stats ChipPAC Singapore The Philippines

Newly added companies/sites in 2020 report *Showing mainly HQ. Non-exhaustive list of players: Numerous companies have an interest in Fan-Out…

What’s new in 2020 report? • Added inFO Technology • Removed HQ to prevent confusion • Included manufacturing sites of the same company with different technologies, where ever possible

Amkor U.S. and Deca U.S. are no longer listed since these sites are not manufacturing in US.

eWLB Technology

RCP Technology

M-series Technology

InFO Technology

Other Fan-Out technology manufacturers

Non-exhaustive list of companies Fan-Out Packaging Technologies and Market | Sample | www.yole.fr | ©2020 20 FAN-OUT PACKAGING SUPPLY-CHAIN: POSITIONING OF PLAYERS How are the individual business models positioning themselves for Fan-Out Packaging?

eWLB pioneers to enter market and now Samsung Electronics (previously through leading it by volume within Core FO. Staying SEMCO) has commercialized FOPLP with with FOWLP for Core FO. APE/PMIC for galaxy watch (consumer). Position FOPLP to reduce cost. Focused on large-die size applications for future. Main focus is to enable HD FO for Samsung’s Attracts fabless customers like Mediatek internal smartphone and if possible secure FE

+ Packaging business for Apple’s APE which IDM

OSATS Running LVM and qualification lots for HD was lost to TSMC in 2015. FO. Not focused on Core FO. Outsourced majority of its production to Collaboration of OSATs & R&D institutes to OSATs. Runs R&D and LVM within internal assess FO capabilities. units. Focus is on automotive market. Fan-Out Packaging New Licensing Position taken by Deca : Only supplier of APE FE + Packaging for Technology transfer of M-Series and Apple’s iPhones and smartwatches. Adaptive Patterning to leading manufacturers.

Expecting TSMC to utilize inFO for 5G and HPC applications. Tapping into new pool of Since 2019, Fabless has been qualifying Fan- customers, such as Mediatek, Nephos, Out Packaging for mega-trend driven

HiSilicon and Nvidia for Fan-Out Packaging. applications (5G, HPC, IoT). FOUNDRY Emergence of new players in IoT and AiP Collaborated with R&D institutes to assess field in 2020. They have been running LVM

FO capabilities. qualification lots since 2019. LicensingFabless / / OEMs

Non-exhaustive list of companies Fan-Out Packaging Technologies and Market | Sample | www.yole.fr | ©2020 21 FAN-OUT PACKAGING LATEST DEVELOPMENTS IN SUPPLY CHAIN Key summary of leaders within each business model

FO SUPPLIER EXISTING CUSTOMERS NEW CUSTOMERS SPECULATIVE CUSTOMERS

Non-exhaustive list of companies Fan-Out Packaging Technologies and Market | Sample | www.yole.fr | ©2020 22 APPLE AND TSMC CONTRACT IS SET TO EXPIRE BY 2021: WHAT TO EXPECT? Overview of Samsung and TSMC’s battle for Apple’s APE business Timeline of iPhone APE Supplier Business

APE Die Supplier TSMC won the APE FE die business from Samsung but not the packaging business. APE Package Supplier TSMC successfully clinched FE + Packaging deal and displaced Samsung. Dominated ever since… In 2016, TSMC HD FO Packaging is commercialized iPhone 5 (A6) iPhone 6 (A8) iPhone 7 (A10) iPhone XS & XR (A12) iPhone 12 5G (A14)

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

? ?

iPhone 5S (A7) iPhone 6S (A9) iPhone 8 & X (A11) iPhone 11 (A13) iPhone ??

Samsung successfully gained back APE FE business with packaging support as incentive

Samsung dominated Apple’s APE business

Fan-Out Packaging Technologies and Market | Sample | www.yole.fr | ©2020 23 APPLE AND TSMC CONTRACT IS SET TO EXPIRE BY 2021: WHAT TO EXPECT? The Analyst’s Point of View (1/3) Why is the TSMC-APPLE contract expiring in 2021? It is understood that Apple’s contract for TSMC's foundry and packaging production of APE is set to expire by 2021. Consequently, we believe this also means that after Q3-2021 the business of Apple APE is open, no longer tied to TSMC. Knowing the history of how TSMC displaced Samsung before, a huge battle is brewing between TSMC and Samsung to secure this new sweet deal with Apple for the APE.

Is Samsung Electronics fighting to win back this business? Yes, Samsung Electronics is stepping up its game by strengthening the synergy between semiconductor and packaging. A strong indication is the acquisition of SEMCO FOPLP technologies. This is an attempt to expedite the yield and other technical breakthroughs for FE + Packaging solution for Apple. Equally important, Samsung Electronics has the same model as TSMC now. They are able to provide bundled APE FE + Packaging solution for Apple. The expiry of TSMC’s contract is a very good chance to grab market back from TSMC. Although Samsung adopted HD FO in its smartwatch with in-house FOPLP technology, it is understood that the cost is not low because of yield issues. Internally, Samsung is struggling to enable an HD FO APE within its own mobile. At the moment, it is not looking ideal, but Samsung has the resources and capability to make the breakthrough in due course. The question is whether Samsung can achieve it in the shortest time possible and come up with an attractive solution in 2020 because qualification needs to start before 2021. Samsung is powerful in smartphone components (especially display and memory). Moreover, Samsung is in control of many designs and devices. However, being an IDM, Samsung is a supplier of package, memory and logic who also competes at the same time with everyone. For example, the Competitor-Customer relationship with TSMC/Apple/Qualcomm makes the business political relationship with Apple very tricky.

Let’s revisit why TSMC won in the first place and what’s the situation now? TSMC succeeded because they positioned an APE die FE + Packaging bundle that matched up extremely well (if not better) than what Samsung could provide. TSMC is the leading chip manufacturer, and is also in a favorable position to gain more business due to the soured relationships between Apple and Samsung in the smartphone business. Moreover, in recent years, TSMC was committed to stay ahead of Samsung and Intel on front-end scaling even though progress is generally slowing down (defying Moore’s Law) and becoming extremely expensive to scale. At the moment, it is understood that Apple is still pleased with TSMC inFO_PoP technology though is still pressuring for lower cost. The relationship between Apple and TSMC is healthy.

Who are all the possible suppliers forTimeline Apple for 2021of iPhone APE Packaging APE Supplier business? Business TSMC and Samsung. APE Die Supplier What are speculated PROS/CONSTSMC won the APE of FEpotential die business suppliers from Samsung from but not Apple’s the packaging perspective? business. APE Package Supplier TSMC successfully clinched FE + Packaging deal and displaced Samsung. Dominated ever since… In 2016, TSMC HD FO Packaging is commercialized iPhone 5 (A6) iPhone 6 (A8) iPhone 7 (A10) iPhone XS & XR (A12) iPhone 12 5G (A14)

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

? ?

iPhone 5S (A7) iPhone 6S (A9) iPhone 8 & X (A11) iPhone 11 (A13) iPhone ??

Samsung successfully gained back APE FE business with packaging support as resistance

Samsung dominated Apple’s APE business

In February 2020, Deca becomes an independent technology development & licensing company. Deca is now A decade of innovation is now opening to the industry for advanced electronic interconnect, including: focused on enabling • M-Series™ fan-out structure, process, equipment & materials; industry • Adaptive Patterning™ real-time design providing freedom from historic physical mask constraints; leaders with • Technology roadmap to sub-micron Adaptive Patterning in partnership with leading direct write lithography M-Series™ and support equipment; fan-out & Adaptive • Emerging heterogeneous integration and chiplet implementations of M-Series & Adaptive Patterning. Patterning™ Deca’s business model now includes: • Technology transfers to leading manufacturing companies (Foundries, OSATs, semiconductor companies); • License agreements to over 90 issued and pending patents with associated know-how in M-Series and Adaptive Patterning; • Adaptive Patterning design systems in partnership with leading EDA providers combined with proven high- volume real-time design in manufacturing.

Nepes Revenue Target Analyst’s opinion “Nepes is making a bold move that matters…” 2018 2024

Nepes Group Revenue

Nepes Laweh Revenue ~$330M

Source: Korean and Chinese media news

*Yole internal data calculation is $246M for Nepes group 2018 Revenue

PROFILE Beijing ESWIN Technology Group Co., Ltd. ("ESWIN"), founded in March 2016, is a provider of products and services in the semiconductor field. Headquartered in Beijing, it has R & D centers in Beijing, Haining, Chengdu, Xi’an and Hefei in China, Southampton, United Kingdom, and Seoul, South Korea. Chengdu, Hefei, Suzhou and other places have multiple manufacturing bases and industrial parks, and have marketing offices in Hong Kong, Guangzhou, Shenzhen, Nanjing, Shanghai, Silicon Valley, and Seoul, Korea.

MANAGEMENT Source: ESWIN In June 2019, Mr. Wang Dongsheng stepped down as chairman of BOE, then FOPLP was invited to join ESWIN, committed to the semiconductor cause. In February 2020, Wang Dongsheng became chairman as ESWIN was The advanced packaging and testing business mainly includes three types of business: chip back-end packaging and testing, COF tape and reel, panel-level integrated packaging and testing. reorganized.

ESWIN understands the development trend of More than Moore semiconductor devices toward INVESTMENT miniaturization, high integration, and system integration. Among many advanced packaging technologies, ESWIN’s investors include individual shareholders, Beijing Singularity Power ESWIN believes Fan-Out Packaging has many unique technical advantages. In the industry, the main pain Investment Management Co., Ltd (SPC), IDG, market investment institutions point of Fan-Out Packaging is the high production cost on 300mm wafers, especially for large-size and local industry investment institutes. SPC was created and established In chips/systems. So, FOPLP technology uses a square carrier board, which has a large carrier board size, high utilization rate, high output rate, and less BOM waste. It can realize large-size chip/system 2015 by a professional team, including BOE and other industrial investment integration and is the main low-cost research and layout direction of the industry. funds. In 2018, ESWIN acquired Chipmore Technology Co., Ltd. (Chipmore), and Moreover, ESWIN has more than 20 years of established high-precision and large-screen technology as officially entered the field of chip packaging and testing. It offers full turnkey well as glass processing experience. This is integrated with mature semiconductor packaging technology services, covering wafer gold bumps, Cu Pillar, WLCSP, wafer testing, etc. to form FOPLP core technology with ESWIN's independent intellectual property rights. Therefore, Presently, ESWIN FOPLP project is divided into three phases of investment. ESWIN is positioning itself to provide customers with high efficiency, performance and low-cost The first phase is to have investments of several hundred million dollars. technical solutions and services.

*New player added into Fan-Out Packaging Report Fan-Out Packaging Technologies and Market | Sample | www.yole.fr | ©2020 29 FAN-OUT PACKAGING MARKET DRIVERS Large Die Partitioning: Fan-Out Package to achieve cost reduction, with elimination of Si Interposer and smaller die yield improvements

SoC Die (x)PU Die 1 Die 2 HPCs Cloud Si Interposers Computing IC Substrate IC Substrate Networking Data blocks HPC with Al PCB Board PCB Board

APE | AiP (5G) APE | AiP (5G) Advanced APE | AiP (5G) Advanced APE | AiP (5G) 5G APE APE APE Apple Apple Advanced Advanced Apple Apple iPhone 11 iPhone 12 iPhone 13 Smartphones Smartphones APE Apple iPhone XS Smartwatches iPhone 8 5G 5G Apple iPhone 7 APE APE & PMIC APE Samsung Apple 5G & Edge Galaxy Watch Series 4 More Radars Radar for the 77GHz Radars (AiP) next level of ADAS BK Ultrasound Sonic Window Radar Continental, Bosch (Multi-Chip Module in & Denso Radar Portable Ultrasound Device) Audio C. & PMIC Steelmate Radar PMIC Audio & PMIC Essential Connectivity: MCU & BT Onda RF 360 Camera China Mobile Audio C. & PMIC Aurora 4G Fitbit (Google) MORE of the same… Coolpad Google Charge 3 Pixel 2 Audio C. & PMIC Oppo power and connectivity RF RF F7 Basebands Audio Codec Audio Codec Samsung Blackberry Audio C. & PMIC Xiaomi KEYone Galaxy S II Connectivity AKG Headphones (Samsung) LGE Redmi Note 3 PMIC LG325G Google ARM-based USB-C audio interface Clip

* From 2020 onwards, market drivers are hypothesized based on interviews with industry players. Fan-Out Packaging Technologies and Market | Sample | www.yole.fr | ©2020 30 WHY IS FAN-OUT PACKAGING TRENDING FOR NEW APPLICATIONS?

END-MARKET Applications Devices Packaging Supplier *Fabless/IDM/OEM *Product/Model Name

APE series in Apple iPhone 7, Apple iPhone 8 and X, Apple iPhone XS APE TSMC Apple and XR, Apple iPhone 11 Marvell, Spreadtrum, Marvell PM820EAD in Onda Aurora 4G | Qualcomm PM 8150 in Samsung PMIC ASE, JCET, Amkor Qualcomm Galaxy S10 | SPRD SC2712A in Lenovo A390t | Qualcomm PM 8150 Qualcomm WCD9326 in Redmi Note 3 | Qualcomm WCD9335 Audio Codec ASE, JCET, Amkor Qualcomm found in Samsung Galaxy S7 Edge | Headphone Smartphones Intel SMARTI UE2 in Samsung Galaxy S II I9100 | Qualcomm RF Transceivers ASE, JCET,Amkor Intel, Qualcomm, Qorvo WTR2965 | Qorvo QPC1022 in LG Electronics V30 INTEL XGOLD 116 in LG Electronics LG325G and Samsung Baseband OSAT / IDM Intel C3312_DUOS

RF Chip + AiP TSMC Apple iPhone 5G mmWave (AiP)

Mobile & APE + PMIC Samsung Samsung Samsung Exynos 9110 in Samsung Galaxy Watch Consumer Smartwatches APE + Si Die TSMC Apple APE in Apple Watch Series 4

MCU + BT JCET Group Infineon (Cypress) CY 8 C 68237 FM BLE in Fitbit Charge 3

SYNAPTICS SD0002 ARM-based USB-C audio interface found in Headphones Audio Codec + PMIC OSAT Synaptic | Samsung AKG Headphones (Samsung Galaxy Note10+ & S20 Ultra 5G etc.)

Fan-Out IoT Devices APE + NOR + PMIC Nepes, Infineon NXP, Cypress NXP SCM-iMX6Q Packaging Telecom & Networking, Cloud HPCs TSMC, JCET & ASE Apple, HiSilicon Huawei server processor Infrastructure and Al chips DNMWR009 | NXP MR2001 in Continental ARS400 Radar | Infineon MMIC Infineon Denso and Continental Automotive & RASIC™ in Bosch MRR1Plus Radar Mobility MMIC + AiP JCET Group Mediatek & Steelmate MediaTek's Autus R10 MT2706 in Steelmate BSE151

Medical Handheld Portable Ultrasound Amkor Portugal BK Medical BK Ultrasound Sonic Window

*Non-exhaustive list of companies and products New: Newly covered in this year’s report Fan-Out Packaging Technologies and Market | Sample | www.yole.fr | ©2020 32 AUTOMOTIVE 77/79 GHZ RADAR CHIPSET WITH AIP Mediatek’s Autus R10 MT2706W

The Autus R10 tightly integrated CMOS design is optimized for performance and cost; including embedded RF and baseband processing, and 1T1R via integrated Antenna in Package. A simple, three wire interface is all that’s required to link to an external ECU. Mediatek positions this Radar Chipset as a compact, cost- performance optimized Ultra-Short-Range Radar (USRR) Platform.This Radar Chipset is found in Steelmate BSE151 System.

Automotive Blind Spot Detection Steelmate 79GHz Microwave Radar Mediatek Radar: MMIC Die + Antenna in Fan-Out Package

79GHz Radar is used in cars to warn Rx drivers of vehicles in blind spot zone. Die

eWLB Packaged. Based on tear down Tx logo pattern, we assumed this is packaged by JCET Group (STATS ChipPAC).

Source: Steel Mate Automotive, “ 79GHz Microwave Radar Blind Spot Source: by System Plus Consulting, “Mediatek MT2706W Automotive 77/79 GHz Radar Chipset with Detection System”, Manual Antenna-in-Package”, 2020

It is our understanding that there are no commercialized smartphone AiP products in H1-2020 - they would have to be 5G mmWave smartphones, not 5G Sub-6 smartphones. The earliest possible 5G mmWave smartphone available for teardown will be Apple’s 5G mmWave iPhone which is expected to be released in H2-2020. Knowing it is potentially packaged with Fan-Out Packaging,TSMC’s InFO_AiP will be focused here. RF architecture is evolving to accommodate high performance computing's power and footprint requirements. TSMC inFO covers the most comprehensive RF technology offering, covering sub-6GHz to mmWave to RF Front-end SOI applications. For 5G mmWave wireless communication, InFO_AiP integrates dipole and patch antenna with mmWave FEM chip leveraging high density RDL and fine pitch. TSMC’s proprietary low-Dk dielectric material and uniform RDL enable high gain and low loss. TSMC has qualified inFO_AiP with a package dimension of 12mm x 12mm x 0.9mm with 2 RDL layers.

RF Architecture for 5G mmWave AiP TSMC inFO positioned for 5G mmWave AiP

5G mm Wave AiP

5G mm Wave AiP Source: TSMC Source: TSMC

Fan-Out Packaging Technologies and Market | Sample | www.yole.fr | ©2020 34 FAN-OUT IS SEEING ADOPTION IN SMARTWATCHES Fitbit Charge 3: Fan-Out Packaging of Microcontroller + Bluetooth Fitbit Charge 3 Bottom view XRAY view

Die 2 Cypress Bluetooth Low Energy Packaged by (BLE) SoC JCET (OSAT)

Die 1 Cypress MCU, Touch Controller

SMARTWATCH End- Application SMARTWATCH Samsung Galaxy Watch Apple Watch S4 APU Packaging Samsung Galaxy Watch Model Apple Watch S4 APU Packaging Exynos 9110 Chipset A12 Custom APU + PMIC Devices APU + Dummy Si ePLP (Fan-Out) Packaging Process inFO_PoP (Fan-Out) 230um Package thickness (No bumps) 199um 660 I/O 1092 74mm2 Package Area 118mm2 8.9 I/O per mm2 I/O per Package Area 9.2 I/O per mm2 Source: Apple Watch Series 4 System in Source: Samsung ePLP for the Exynos 9110 3x : 8um/11um No. RDL Layers : Min. L/S 3x : 8um/11um package teardown from System Plus from System Plus Consulting Consulting HD FO (Substrate) Market Range HD FO (Wafer)

I/O Density and Minimal LS have achieved advanced requirements with HD FO, be it at substrate level technology or wafer level technology..

Parameters ≤ 2018 2019 2020 2021 2022 2023 2024 2025

Maximum package size 15x15mm >>25x25mm

Roadmap Side-by-Side Die 2~3 2~4 described here is for Max level of RDL volume 3x RDL 4x RDL production, and Min. Line/Space 8/8µm 5/5µm 2/2µm provides an Package minimum expected thickness 250µm 200µm 150µm average of (without BGA) the different Minimum die size 900µm 500µm 200µm technologies (X–Y directions) on the market. Maximum die size 10mm 12mm 15mm (X–Y directions)

Minimum bump pitch 400µm 350µm

Minimum die-to- die distance 250µm 200µm 150µm

Fan-Out Packaging Technologies and Market | Sample | www.yole.fr | ©2020 37 FAN-OUT PACKAGING TECHNOLOGY ROADMAP: MOBILE/TELECOM Two main areas of focus for Fan-Out in Mobile/Telecom market, following two trends in technologies: Core Fan-Out & HD Fan-Out ‘Core Fan-Out’ exists for a large range of applications and will become widespread, taking market share of WLCSP and Flip-Chip with larger embedding capability. ‘HD Fan-Out’ appeared in 2016 for APE and will become widespread in high-end phones with more dies embedded, and potentially memories. PAST to PRESENT FUTURE*

« HD Fan-Out » 2000 Area of Interest

1500

1000

500 « Core Fan-Out » I/Ocount Area of Interest 300 Baseband 100 Time

0 ≤2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Fan-Out Packaging Technologies and Market | Sample | www.yole.fr | ©2020 38 FAN-OUT PACKAGING TECHNOLOGY ROADMAP: DIFFERENT END-MARKETS PAST to PRESENT FUTURE* Core Fan-Out Exists in “Automotive & Transportation” and “Medical” New potential in “Automotive & Transport” - Sensors HD Fan-Out Not found in any other market apart from “Mobile & Consumer” New potential in “Telecom & Infrastructure” - 5G UHD Fan-Out Development Qualification: “Telecom & Infrastructure” - Data Centers and AI

>2000 High-Performance UHD FO: Ultra-High-Density Fan-Out High performance capability with FO on Substrate. « Ultra-High-Density Fan-Out » Area of Interest Core FO  HD FO: 1500 High-End « High-Density Fan-Out » Driver for higher integration in MEMS application SiPs Area of Interest 1000 « Core Fan-Out »

I/O counts I/O 500 Mid-End Area of Interest

300 Low-End

100 Low-End Mixed Signal ASIC, RF Time

0 ≤2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 *Future potential applications gathered from technical paper interest and interviews Fan-Out Packaging Technologies and Market | Sample | www.yole.fr | ©2020 39 FAN-OUT PACKAGING TECHNOLOGIES TSMC: New InFO technologies and summary

Metrics inFO_PoP inFO_oS & inFO_MS inFO_AiP inFO_MiM Qualification PRODUCTION HVM since 2016 LVM since 2019 Qualification LVM expected in 2020 Enables low transmission loss and High-volume production of Gen-3 Successful qualification of multiple Validated better performance as high antenna performance STATUS Successful qualification of Gen-4 16nm SoC chips. Better yield compared to FC. for mmWave system

Mobile APE+Memory: High Performance Computing: mmWave wireless communication: Advanced Mobile & HPC APPLICATION Smartphone, smartwatches, tablets Al chips, servers; networking 5G, Wi-Fi, modems, sensors

Integrate systems with lower TTV Enable low transmission loss and Validated and simulated better Enable better yield as compared to as compared to FC, at finer L/S for high antenna performance performance and form factor as BENEFITS a single large die SoC board-level I/O for mmWave system compared to FC and TSV.

SCHEMATIC Source: “inFO_AiP Technology for Source: TSMC [Online]. Available: Source: TSMC [Online]. Available: High Performance and Compact https://www.tsmc.com/english/dedic https://www.tsmc.com/english/dedic 5G Millimeter Wave Source: “3D-MiM (MUST-in-MUST) atedFoundry/technology/InFO.htm atedFoundry/technology/InFO.htm System Integration” TSMC: ECTC, Technology for Advanced System [Accessed: 16-Mar-2020] [Accessed: 16-Mar-2020] 2018 Integration” TSMC: ECTC, 2019 inFO is leading APE packaging in mobile and continues to develop and penetrate new applications

Fan-Out Packaging Technologies and Market | Sample | www.yole.fr | ©2020 40 FAN-OUT PACKAGING TECHNOLOGIES Deca’s validation of heterogeneous integration Deca is focused on precision processing for finer LS with adaptive patterning. Scaling M-Series™ up to 600mm panels Scaling Adaptive Patterning™ down to 2µm line & space and below

300mm round

Isolated line Isolated line Isolated line

8 µm 5 µm 2 µm

Nested lines Nested lines Nested lines

Source: Deca Technologies Large Panel 600mm x600mm

*PLC1.0 (Completed) *PLC 2.0 In 2016, Fraunhofer IZM and partners launched PLC 1.0 to tackle FOPLP’s main challenges.

Full Members After the successful completion of first FOPLP consortium, Fraunhofer IZM is Courtesy of Fraunhofer IZM currently organizing the second… Supply Chain Members Second consortium is still in progress as of 2019. It will be pre-competitive focused on exploring further details and physical limits of this technology. Deliverables include participation in research project steering and controlling and One-on-One technology transfer.

PTI, Nepes Laweh & Samsung Electronics have entered production in 2018. We are expecting these players to continue production through 2020. ASE is expected to be running HVM by 2022. Also ESWIN will potentially be the first FOPLP player in China to run LVM production by 2021.

R&D Sampling+LVM HVM

≤ 2016

Fan-Out Packaging Production, 300mm wfr eq. (%) By Carrier Types

Panel will progressively take a share of production but still in a limited way. FOPLP is expected to take off at a much later time when big die applications are adopted.

200mm (300mm Wfr Eq) 300mm Panel (300mm Wfr Eq)

Fan-Out Packaging Technologies and Market | Sample | www.yole.fr | ©2020 44 YOLE GROUP OF COMPANIES RELATED REPORTS Yole Développement Advanced Packaging Equipment and Materials for Fan-Out Packaging Quarterly Market Monitor 2019

Contact our Sales Team for more information

Status of the Advanced Packaging Industry 2019

Mediatek Autus R10 (MT2706) Fan-Out Packaging Contact our 77/79 GHz eWLB/AiP Radar Processes Comparison Sales Team Chipset 2020 for more information

o CONSULTING AND SPECIFIC ANALYSIS, REPORT BUSINESS o FINANCIAL SERVICES (in partnership with Woodside Capital • North America: Partners) • Steve LaFerriere, Senior Sales Director for Western US & Canada • Jean-Christophe Eloy, CEO & President Email: [email protected] – + 1 310 600-8267 Email: [email protected] - +33 4 72 83 01 80 • Ivan Donaldson, VP of Financial Market Development • Chris Youman, Senior Sales Director for Eastern US & Canada Email: [email protected] - +1 208 850 3914 Email: [email protected] – +1 919 607 9839 • Japan & Rest of Asia: o CUSTOM PROJECT SERVICES • Takashi Onozawa, General Manager, Asia Business Development • Jérome Azémar, Technical Project Development Director (India & ROA) Email: [email protected] - +33 6 27 68 69 33 Email: [email protected] - +81 34405-9204 • Miho Ohtake, Account Manager (Japan) o GENERAL Email: [email protected] - +81 3 4405 9204 • Camille Veyrier, Director, Marketing & Communication • Itsuyo Oshiba, Account Manager (Japan & Singapore) Email: [email protected] - +33 472 83 01 01 Email: [email protected] - +81-80-3577-3042 • Sandrine Leroy, Director, Public Relations • Toru Hosaka, Business Development Manager (Japan) Email: [email protected] - +33 4 72 83 01 89 Email: [email protected] - +81 90 1775 3866 • Email: [email protected] - +33 4 72 83 01 80 • Korea: Peter Ok, Business Development Director Email: [email protected] - +82 10 4089 0233 • Greater China: Mavis Wang, Yole Greater China General Manager and Executive Vice President. Email: [email protected] - +886 979 336 809 / +86 136 61566824 Follow us on • Europe & RoW: Lizzie Levenez, EMEA Business Development Manager Email: [email protected] - +49 15 123 544 182