2025-11-17 - Advanced Packaging - Data Center Processors

Drive insight into the data center processor market as advanced packaging rapidly outpaces processor growth, with 3D stacking poised to approach one third of all packages by 2029.

The data center processor market plays an important role in the buildout of data centers to support infrastructure needed for AI applications. Advanced packaging is crucial to the development of this market as the processors continue to increase in size and power, breaking the limitations of traditional scaling. Data center processors will grow at an 11% CAGR from 2023-2029, while 2.5D, 3D, and wafer scale packaging will see growth rates much higher than that as demand for 2D packaging shrinks. 3D stacking, including hybrid bonding, will grow at a CAGR of 25% to almost a third of the total packages by 2029. This report includes wafer demand for data center processors and for interposers.