Deca Technologies today announced that it has signed a collaboration agreement with IBM to bring its M-Series and Adaptive Patterning technologies to IBM's advanced packaging production line in Bromont, Quebec, Canada. At the heart of the collaboration is the deployment of a production-ready packaging production line, with a focus on Deca's M-Series fan-out interconnect technology (MFIT).
According to Yole's 2023 Fan-Out Packaging Market Report, the fan-out packaging market revenue was $1.86 billion in 2022 and is expected to reach $3.8 billion by 2028, growing at a CAGR of 12.5%
There are also differences in different types of growth: ultra-high-density fan-out is growing the fastest, with a CAGR of 30% from 2022 to 2028, and its revenue will grow from $338 million in 2022 to $1.63 billion in 2028; High-density fan-out dominated in 2022 with revenue of USD 1,194 million, growing at a CAGR of 6.7% during 2022-2028 to reach USD 1,757 million by 2028; Core fan-out revenue was $329 million in 2022, growing at a CAGR of 2.8% to $389 million by 2028.
TSMC is currently the world's largest fan-out packaging manufacturer, accounting for 76.7% of the market share in 2022. Together with the three major outsourced semiconductor packaging and testing (OSAT) companies ASE (ASE), Amkor (Amkor) and JCET, the four companies accounted for more than 90% of the fan-out market in 2022.
Pictured: Deca and IBM are deploying M-Series advanced packaging technology at their Bromont facility in Canada
This collaboration marks a significant step forward for IBM in enhancing its advanced packaging capabilities. The Bromont facility is one of the largest semiconductor assembly and test sites in North America, with more than 50 years of packaging research and development. In recent years, IBM has continued to invest in the facility to enhance its capabilities in high-performance packaging and chiplet integration. The introduction of MFIT technology further strengthens the plant's strategic position to support key applications such as AI, high-performance computing (HPC), and data centers.
Deca's M-Series platform is currently the world's highest-volume fan-out packaging technology, with more than 7 billion units shipped. Based on this proven platform, MFIT technology enables a high-density, low-latency connection between processor and memory through embedded bridge die, providing chiplet systems with an alternative to all-silicon interposers, with better signal integrity, greater design flexibility, and scalability for large-format AI and HPC chips.
This collaboration not only demonstrates the shared vision of the two companies in advancing the next generation of packaging technology, but also injects new vitality into the development of global high-performance computing systems and chiplet integration. The combination of IBM's strong packaging manufacturing capabilities and Deca's proven technology platform is expected to accelerate the establishment of the North American supply chain system for advanced packaging.
"In the age of AI, advanced packaging and chiplet technologies are critical to enabling more efficient and faster computing solutions," said Scott Sikorski, business development leader for chips and advanced packaging at IBM. "With the addition of DECA, the Bromont facility will continue to be at the forefront of packaging technology innovation, enabling our customers to get to market faster and achieve better performance."
Tim Olson, Founder and CEO of Deca, said, "IBM's deep heritage in semiconductor technology and packaging makes it an ideal partner to advance the mass production of MFIT technology. "We are excited to partner with IBM to bring this advanced interconnect technology to the North American packaging ecosystem."
