System in package (SiP) will continue to gain momentum to become the mainstream IC packaging process in the future as it can further complete heterogeneous integration of diverse chip solutions needed in the 5G and AIoT era, according to industry sources.

The sources said global backend service leader ASE Technology Holding is expected to see its SiP revenues surge by at least US$100 million in 2018 from a year earlier, with the SiP growth momentum to persist through 2023.

SiP can help integrate diverse chips on a system, completing the 3C functions of "collect, compute and connect," the sources indicted, reasoning that biometric and sensor chips can collect data, and the data can then be computed by high-performance processors before being connected and transmitted through wireless communication, 5G and Bluetooth technologies.

This is a kind of innovation pursued for AIoT applications including Internet of Vehicles (IoV), edge computing, data center, smart home, smart plant and smart city, the sources commented.

The sources continued that while chip design costs are mounting steadily along with fabrication process advancing to 7nm, 5nm and even 3nm, advanced IC packaging technology will play a crucial role in lowering costs at chipmakers.

SiP can help to reduce the number of silicon IP validations needed for chipmakers and can offer greater flexibility in integrating heterogeneous chipsets boasting diverse functions. In addition, SiP can also help chipmakers cut system development costs, and reduce the complexity and space of PCBs needed, the sources noted.