The China 3D IC and 2.5D IC Packaging Market is experiencing significant growth, driven by advancements in semiconductor technology and rising demand for high-performance computing. The market was valued at USD 1,850 Million in 2025 and is expected to reach USD 8,920 Million by 2035, expanding at a CAGR of 15.8% from 2024 to 2035. Growth is further fueled by strong investments from domestic and international semiconductor players and increasing adoption in sectors such as AI, 5G, and data centers.
The economic impact of tariffs on "China 3D IC and 2.5D IC Packaging Market".
Market Growth Drivers
Rapid Expansion in AI and High-Performance Computing: The growing adoption of artificial intelligence and high-performance computing in China is significantly driving the demand for advanced 3D and 2.5D IC packaging solutions. Major Chinese technology firms like Huawei are investing heavily in next-generation chip designs, leveraging these packaging technologies to improve performance, reduce latency, and boost energy efficiency. According to Huawei, their in-house AI chips developed with 2.5D packaging exhibit substantial gains in computational speed and integration density, thus accelerating market growth.
Surge in Domestic Semiconductor Manufacturing: In response to global supply chain challenges and to decrease reliance on imports, leading domestic foundries like SMIC (Semiconductor Manufacturing International Corporation) are expanding their investments in advanced packaging capabilities. Recent press releases from SMIC announced new 2.5D IC packaging lines in Shanghai, highlighting the market’s focus on local innovation and supply independence, which strengthens industry resilience and spurs growth.
Market Trends
Integration of Chiplets and Heterogeneous Architectures: A significant trend in the Chinese market is the adoption of chiplet-based designs using 2.5D/3D packaging. Companies like JCET Group are pioneering platform solutions that allow diverse functional blocks to be integrated using silicon interposers or stacked die architectures. This trend makes it possible to combine high-performance computing, memory, and specialized accelerators in a single module, which enhances product differentiation and efficiency.
Automotive and 5G Infrastructure Expansion: China's rapid deployment of 5G networks and the push towards smart automobiles are stimulating demand for advanced 3D and 2.5D packaged chips. Changjiang Electronics Technology Co., Ltd. (JCET) recently announced partnerships with top automotive OEMs to supply custom semiconductor packages optimized for next-generation EVs and autonomous vehicle systems, reflecting the sector’s broadening application landscape.
Market Opportunity
Government Policy Support and Funding: The Chinese government's policies favoring semiconductor self-sufficiency, alongside substantial funding and R&D incentives, create enormous market expansion opportunities. The National IC Industry Development Promotion Outline provides tax incentives and grant support to companies investing in 3D/2.5D technology solutions, such as SMIC and JCET.
International Collaborations and Technology Transfers: Ongoing collaborations with global technology leaders facilitate the transfer of intellectual property, advanced equipment, and packaging know-how, further enabling Chinese players like Huawei and SMIC to quickly scale their 3D/2.5D IC packaging capabilities and address emerging semiconductor market segments.
China 3D IC and 2.5D IC Packaging Market Revenue (USD Million), 2020-2035
The market revenue chart for China’s 3D IC and 2.5D IC Packaging from 2020 to 2035 illustrates consistent, accelerated growth. Beginning at USD 420 Million in 2020, the market exhibits a steady upward trend, closing in on USD 1,850 Million by 2025 owing to increasing semiconductor demand from AI, data centers, and telecommunications. Post-2025, the graph steepens further as new manufacturing capacities come online, reaching approximately USD 8,920 Million in 2035. This growth reflects robust R&D investment, persistent support for technology self-reliance, and broader industrial adoption, suggesting a highly optimistic outlook for advanced packaging in China.
China 3D IC and 2.5D IC Packaging Market Share by Region (%), 2025
The 2025 pie chart for regional share shows that the East China region, home to major technology and manufacturing hubs such as Shanghai and Jiangsu, leads with 38%. North China, including Beijing, takes second place at 23%, reflecting strong investment in R&D and chip design. South China, with growth expected in Shenzhen and Guangzhou, holds 20%. The Central region's share is 11%, largely driven by emerging manufacturing clusters, while the Western region trails at 8%. This regional breakdown underscores the concentration of advanced semiconductor packaging activity in China's coastal economic zones.
Recent Developments in China 3D IC and 2.5D IC Packaging Market (Last 6 Months)
In May 2024, SMIC announced the successful ramp-up of their new 2.5D packaging facility in Shanghai, significantly increasing production capacity for domestic AI and data center clients. This new line is expected to reduce turnaround time by 20% while supporting advanced chiplet integration—a vital step in China’s semiconductor localization push.
June 2024 saw JCET Group unveil a next-generation 3D stacking process that leverages Through Silicon Via (TSV) technology for high-performance computing platforms. This breakthrough, developed in conjunction with leading Chinese electronics OEMs, promises higher integration density and energy efficiency, marking an important achievement in domestic packaging innovation.
In April 2024, Huawei partnered with two leading academic institutions to develop proprietary design flows for 2.5D IC packaging used in their Ascend AI processor series. The collaboration aims to optimize system power and signal integrity, accelerating the deployment of AI training chips within the domestic and global cloud computing markets.
Press Releases