Fan-Out and Embedded Die: Technologies & Market Trends 2015 Report by Yole Developpement

2. 2 REPORT OUTLINES • Report scope & definitions • Embedded Die in substrates o Scope of the report o Motivations and drivers o Companies cited in this report o Products and technologies o Glossary • Products available • Executive summary • Roadmaps • Advanced packaging growth o Supply chain • Fan-Out platform • Players and positioning within the supply chain o Motivations and drivers o Embedded Die Package commercialization status o Products and technologies o Market forecasts • Products available o Equipment & materials • Roadmaps • Challenges related to yield & supply chain o Supply chain for FOWLP • Cost considerations • Players and positioning within the supply chain • Conclusions & perspectives o FOWLP commercialization status • Company presentation o Market forecasts o Equipment & materials • Improvement of materials • Panel for FOWLP status ©2015 | www.yole.fr | Fan-Out and Embedded Die: Technologies & Market Trends

3. 3 REPORT SCOPE The main objectives of this report are the following: o To update the business status of both embedded wafer level package technologies (FOWLP and Embedded Die Package) markets o To provide a market forecast for the coming years, and estimate future trends o To analyze key market drivers, benefits and challenges of embedded wafer level packages by application o To describe the different existing technologies, their trends and the roadmaps The FOWLP and Embedded Die Package markets are studied from the following angles o State-of-the-art technology and trends o End-user applications and drivers o Market value o Industrial supply chain & value chain ©2015 | www.yole.fr | Fan-Out and Embedded Die: Technologies & Market Trends

4. 4 THE EVOLUTION OF SEMICONDUCTOR PACKAGING A bridging technology between ICs and PCBs Packaging fills the gap in between ICs and PCBs improvement speeds Feature sizes CMOS transistors: 28nm Feature sizes of PCBs 1970 Through hole technology 1980 Surface mount devices DevelopmentinCMOSprocessingcapabilities DevelopmentinPCBprocessingcapabilities 1990 CSPs/BGAs SiPs 2000 WLCSP more SiPs Flip Chip BGA PoP 2010 3DIC TSV Fan-out WLCSP Cu pillars Silicon interposers ©2015 | www.yole.fr | Fan-Out and Embedded Die: Technologies & Market Trends

5. 5 PACKAGING ADDEDVALUE: More Moore and More than Moore 3D approach allows to get all the benefit from chip miniaturization and package integration More Moore : miniaturization 130nm 90nm 65nm 45nm 32nm 22nm 14nm 10nm Analog+ RF PassivesPowerSensorsEnergy Sources Biochips MoreThanMoore:diversification SoC SiP IPD RF CMOS SMOS Analog Power Low Power CMOS High Perf. SOI Non Volatile Memory GaAS RF MEMS … 3D integration is seen today as a new paradigm for the future of the semiconductor industry, as it will enable several more decades of chip evolution at ever lower cost, higher performance and smaller- size features. … ©2015 | www.yole.fr | Fan-Out and Embedded Die: Technologies & Market Trends

6. 6 WAFER-LEVEL-PACKAGING MARKET DRIVERS WLP •Lower packaging cost •Lower test cost  I/Os density •Lower pitches •No standard •Smaller dies •Higher density of I/Os  Integration •IPD •SiP •3D  Thermal performance •Lower power consumption •Higher package density  Electrical performance •Smaller Interconnect lines •Higher frequencies •Higher ackage speed •Lower parasitics  Form-factor •Smaller thickness •Lower footprint • Improve chip-to-board coupling • New materials • Batch processing • Panel capability • Lower thickness • Multiple RDL • Interconnect optimization • Smallest thickness of the market • Integration capability • Low pitch capability  Cost ©2015 | www.yole.fr | Fan-Out and Embedded Die: Technologies & Market Trends Numerous market drivers lead to aWLP solution

7. 7 TWO TYPES OF EMBEDDED WAFER-LEVEL-PACKAGES • A different approach depending on substrate type: • FOWLP is based on a reconfigured molded wafer infrastructure • Embedded die in package is based on a PCB type of panel infrastructure There are two main substrate types for embedding technologies ©2015 | www.yole.fr | Fan-Out and Embedded Die: Technologies & Market Trends

8. 8 FAN-OUT WLP PRINCIPLE Embedding in a molding compound allow thin packaging Pick and place Wafer level Molding Carrier removal / de-bonding Tape lamination StandardWLB process (Passivation, pattern, RDL, bonding) Dicing Source: Infineon Carrier (Metal) Carrier with foil and chips Molding with liquid moldcompound WLP Fan-Out wafer After singulation Reconstituted wafer after molding ©2015 | www.yole.fr | Fan-Out and Embedded Die: Technologies & Market Trends

9. 9 FAN-OUT WLP KEY DIFFERENTIATORS Numerous advantages position FOWLP as a promising solution Simplified supply chain and manufacturing infrastructure No restriction in bump pitch No laminate substrate required Shorter interconnections Fan-out zone adaptable to customer needs High degree of package design freedom Reliable, miniaturized high performance package Smaller footprint and thinner package than Flip-Chip BGA Better board level reliability compared to WL-CSP RoHS and REACH compliant package Excellent electrical performance Lower thermal resistance compared to Flip-Chip BGA Mold Chip ©2015 | www.yole.fr | Fan-Out and Embedded Die: Technologies & Market Trends

10. 10 FAN-OUT WLP DRIVERS:WHERE IS THE THRESHOLD? • A lot of products are already packaged using Fan-in solution which is cheaper than Fan-Out • With die size reduction and higher pins count manufacturers will have two options: • Reducing ball pitch in order to have more connections within the die surface • Going Fan-Out and allowing an easier redistribution • Since pitch reduction is very challenging, Fan-Out approach is offering a good opportunity FOWLP has a sweet spot area where Fan-In cannot fit Diesize(mm/side) Pi n s - c o u n t Fan-out Fan-in ©2015 | www.yole.fr | Fan-Out and Embedded Die: Technologies & Market Trends

11. 11 FAN-OUT POTENTIAL APPLICATIONS Opportunities for FOWLP in mobile phones FOWLP has the potential to fit in many applications Orange: Devices that can be found in FOWLP packages today Discrete passives Green: Devices that could be found in the future in FOWLP Grey: Devices that will likely remain on WLCSP or flip-chip package or move to 3DIC ©2015 | www.yole.fr | Fan-Out and Embedded Die: Technologies & Market Trends

13. 13 FAN-OUT WLP:TECHNICAL CHALLENGES FOWLP technical challenges to overcome IC 1 IC 2Mold ©2015 | www.yole.fr | Fan-Out and Embedded Die: Technologies & Market Trends Chip-to-mold non- planarity Die shift Reliability Warpage Topography

14. 14 TECHNOLOGY ROADMAP FOR FOWLP Key parameters Roadmap of FOWLP follows the high demanding expectations from the market 2013 2014 2015 2016 Line/Space Package minimum thickness (with BGA) Max level of RDL Minimum die-to-die distance Minimum die side size Minimum mold clearance distance Minimum bump pitch Maximum package size ©2015 | www.yole.fr | Fan-Out and Embedded Die: Technologies & Market Trends

15. 15 FOWLP ACTIVITY MARKET FORECAST A high growth is expected ©2015 | www.yole.fr | Fan-Out and Embedded Die: Technologies & Market Trends CAGR ~ 10% Transition phase Ramp-up with fab-less wireless IC players and wide FOWLP infrastructure/supply-chain $0M $300M $600M $900M 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 FO-WLPrevenues(M$) FOWLP activity revenues (M$) Overall evolution since eWLB technology introduction Yole Developpement ©

16. 16 EMBEDDED DIE PACKAGING PROCESS FLOW Example with “chip-first – face-up” approach Principle of embedded die package in substrate 1) Die Bonding 2) Lamination 3) Laser drilling Adhesive on copper foil Pick & place on copper foil Relamination process Copper plating, imaging and etching 3) Structuring Source:AT&S ©2015 | www.yole.fr | Fan-Out and Embedded Die: Technologies & Market Trends

17. 17 EMBEDDED DIE PACKAGE KEY DIFFERENTIATORS Embedded Die package advantages Good for copy protection New suppliers Low manufacturing cots thanks to very mature products High potential for reducing I/Os thanks to design (wire-bond layout) High potential for components integration Small footprint thanks to more space given to surface components High mechanical reliability Improved thermal performance thanks to proximity with active High design flexibility since chip can be positioned wherever we want Reduced parasitics thanks to short interconnections Chip Laminated PCB ©2015 | www.yole.fr | Fan-Out and Embedded Die: Technologies & Market Trends

18. 18 EMBEDDED DIE PACKAGING Technical challenges Embedded Die Package technical challenges to overcome Embedded SiP ©2015 | www.yole.fr | Fan-Out and Embedded Die: Technologies & Market Trends Warpage Yield Die positionning Resolution

19. 19 EMBEDDED DIE PACKAGING:A NEW SUPPLY CHAIN • Supply chain and responsibilities can be defined case by case upon players will of implication • Embedded die packaging opens the door for substrate suppliers to realize the whole packaging, assembly and test themselves  Good opportunity for substrate suppliers to create new business and potential threat for OSATs market PCB manufacturers can create a new supply chain in semiconductor industry Wafer thinning Embedded Die Customization Wafer sort / Die preparation PCB Core Fabrication Component placement Multi-layer build up fabrication Embedded Die PCB sort Solder paste print Component placement and reflow Product level assembly and test 1) Die Customization (IDM orWafer Level Technology Provider) 2)Embedded Die Substrate Fabrication (PCB manufacturer) 3) Product level assembly and final testing ©2015 | www.yole.fr | Fan-Out and Embedded Die: Technologies & Market Trends

20. 20 TECHNOLOGY ROADMAP FOR EMBEDDED DIE Key parameters • Today, Embedded Die Packaging technology only targets low-cost, low I/O pin-count applications (mainly power and analog ICs) • However, to enter the digital space and more complex SiP module realization, embedded die technologies are set to evolve Roadmap of Embedded Die package shows the targets to achieve before being fully competitive in mobile market 2013 2014 2015 2016 Line/Space Package minimum thickness Chip layer stacking Pad Pitch on die Chip thickness (min-max) ©2015 | www.yole.fr | Fan-Out and Embedded Die: Technologies & Market Trends

21. 21 EMBEDDED DIE ACTIVITY MARKET FORECAST Embedded Die package market is still a niche $0M $100M $200M $300M 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Embedded die package revenues forecast (M$) Overall evolution since technology introduction ©2015 | www.yole.fr | Fan-Out and Embedded Die: Technologies & Market Trends

23. 23©2015 | www.yole.fr | Name of the report MEMS & Sensors LED/OLED Compound Semi. Imaging Photonics MedTech Manufacturing Advanced Packaging PV Power Electronics FIELDS OF EXPERTISE Yole Développement’s 30 analysts operate in the following areas

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28. 28 CONTACT INFORMATION o Consulting and Specific Analysis • North America: Steve LaFerriere, Director of Northern America Business Development,Yole Inc. Email: laferriere@yole.fr • Japan:Yutaka Katano, General Manager,Yole Japan & President,Yole K.K. Email: katano@yole.fr • RoW: Jean-Christophe Eloy, President & CEO,Yole Développement Email: eloy@yole.fr o Report business • North America: Steve LaFerriere, Director of Northern America Business Development,Yole Inc. Email: laferriere@yole.fr • Europe: Fayçal El Khamassi, Headquarter Sales Coordination & Customer Service Email: khamassi@yole.fr • Japan & Asia:Takashi Onozawa, Sales Asia & General Manager,Yole K.K. Email: onozawa@yole.fr • Korea: HaileyYang, Business Development Manager, Korean Office Email: yang@yole.fr o Financial services • Jean-Christophe Eloy, CEO & President Email: eloy@yole.fr o General • Email: info@yole.fr Follow us on