Thomas Sonderman, CEO, SkyWater Technology

2026: The Year Packaging Delivers at Scale

Advanced packaging is no longer a supporting act in semiconductor innovation. Performance gains are not coming from smaller nodes or faster clock speeds alone; they must now be unlocked through intelligent integration of advanced packaging processes into chip design from the start. In 2026, packaging firmly shifts from a final back-end-of-line process step to a front-line performance driver.

Bloomberg Intelligence projects that the global advanced packaging services (APS) market will reach nearly $80 billion by 2033, and the competitive advantage is shifting to those who can integrate faster, closer to home, and at scale.

We expect chiplet adoption to expand beyond high-performance computing into foundational silicon for automotive, AI acceleration, 5G/RF, and industrial control. Co-design will move "left," addressing packaging, test, and reliability earlier in the development cycle. Hybrid direct bonding, fan-out wafer-level packaging, and silicon interposers will enter mainstream manufacturing, delivering gains in density, thermal control, and interconnect performance. This translates into longer component life, higher computational throughput, and more reliable mission-critical systems.

Secure, traceable U.S. builds are now baseline, and onshoring advanced manufacturing will be critical to supporting long-term U.S. economic and supply-chain resiliency. The market values results over hype, and APS is the force multiplier reshaping how systems are conceived, built, and brought to market in the U.S.