Advanced packaging revenue dropped 9% in Q1 2024, but recovery is expected in 2024

According to Yole Group, in the Advanced Packaging Market Monitor Q2 2024, advanced packaging revenue reached US$10.2 billion in Q1 2024. This quarter is anticipated to be the weakest of the year, with an 8.1% revenue decline from the previous quarter due to the seasonality that typically impacts the back-end business in the first half of the year. As demand shows gradual signs of recovery, Q2 2024 revenue is expected to rise by 4.6% to US$10.7 billion. Although demand remains soft and customers continue to digest inventories, 2024 is projected to be a year of recovery, with a stronger second half.

In terms of CapEx, Q1 2024 was slightly lower than the previous quarter. The leading players invested approximately US$9.9 billion in advanced packaging CapEx in 2023, marking a 21% decrease from the previous year, but a 20% increase is anticipated for 2024.