Advanced IC packaging, such as fan-out WLP (Wafer Level Packaging) and 2.5D TSV (Through Silicon Via) will drive the packaging equipment market, particularly lithography and metrology/inspection. This will help specific equipment manufacturers in 2019, since the WFE (Wafer Front End) market will drop 17%. But the back end, led by companies such as KLA-Tencor (KLAC), Camtek (NASDAQ:CAMT), and Veeco (VECO) will be strong.
The IC industry is evolving as new technologies replace old ones. As dimensions on advanced ICs move below 10nm, packages that house and protect them from the environment and aid in bonding to the printed circuit board are also evolving. Traditional wire bonding is being replaced by flip chip (FC) bonding, which, in turn, is being replaced by WLP.