Power Supply In Package Chip Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product (PSiP and PwrSoC), By Application (Telecom and IT, Automotive, Consumer Electronics, Medical Devices, and Military & Defense), By Region, By Competition, 2019-2029F

Market Overview

Global Power Supply In Package Chip Market was valued at USD 1.67 Billion in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 5.21% through 2029. The Power Supply in Package (PSiP) chip market pertains to the global industry focused on integrated circuit (IC) solutions that combine power management functionality into a single package alongside other semiconductor components. PSiP chips are designed to optimize power delivery and efficiency within electronic systems by integrating DC-DC converters, voltage regulators, and other power management circuits into a compact and often highly integrated package. One of the defining characteristics of the PSiP market is its emphasis on miniaturization and space efficiency. By consolidating multiple power management functions into a single package, PSiP chips help reduce the overall footprint of electronic devices and systems. This compact form factor is particularly beneficial in applications where space constraints are critical, such as mobile devices, wearable electronics, and IoT devices. The ability to integrate power management functions directly into the package also minimizes the need for external components, simplifying design complexity and enhancing reliability.

Key Market Drivers

 Miniaturization and Integration Trends in Consumer Electronics

The Power Supply In Package (PSiP) chip market is significantly driven by the ongoing trends towards miniaturization and integration in consumer electronics. As consumer demand for smaller, lighter, and more portable electronic devices continues to grow, there is an increasing need for power supply solutions that occupy minimal space while delivering high performance. PSiP chips address this demand by integrating multiple power components, such as DC-DC converters, voltage regulators, and sometimes passive components, into a compact package. This integration reduces the footprint of the power supply module significantly compared to traditional discrete solutions, enabling manufacturers to design sleeker and more energy-efficient products.

For example, in smartphones, wearables, and IoT devices, where space constraints are critical, PSiP chips offer a viable solution by consolidating power management functions into a single package. This not only saves valuable board space but also enhances overall system reliability by reducing the number of interconnections and potential points of failure. Manufacturers benefit from simplified design processes and faster time-to-market, as PSiP chips streamline assembly and testing procedures.

Miniaturization trends extend beyond consumer electronics to industrial applications such as industrial automation, robotics, and automotive electronics. In these sectors, compact power supply solutions are essential for optimizing space utilization and improving system performance. PSiP chips enable manufacturers to meet stringent size and weight requirements without compromising on power efficiency or reliability. As industries continue to embrace IoT and smart manufacturing technologies, the demand for PSiP chips capable of delivering high power density in compact form factors is expected to rise, further driving market growth.

Demand for Enhanced Power Efficiency 

Another key driver for the PSiP chip market is the increasing demand for enhanced power efficiency in electronic devices. Modern electronic systems, particularly those in high-performance computing, networking equipment, and server applications, require efficient power delivery solutions that can operate reliably under varying load conditions while minimizing energy losses. PSiP chips leverage advanced semiconductor technologies and packaging techniques to achieve higher power efficiency  compared to traditional discrete solutions.

By integrating power components in close proximity within the same package, PSiP chips reduce parasitic effects such as inductance and resistance, thereby improving overall power efficiency. This efficiency translates into reduced energy consumption, longer battery life in portable devices, and lower operating costs in data centers and telecommunications infrastructure. Moreover, PSiP chips with enhanced power efficiency help dissipate heat more effectively, ensuring reliable operation even in demanding environmental conditions.

For instance, in data centers where energy consumption and heat dissipation are critical concerns, PSiP chips play a crucial role in optimizing power delivery . These chips enable data center operators to achieve higher power densities, reduce cooling requirements, and improve overall energy efficiency, thereby lowering operational expenses and environmental impact.

Growth in Adoption of Advanced Semiconductor Technologies

The PSiP chip market is further propelled by the rapid adoption of advanced semiconductor technologies, such as SiP (System in Package) and advanced packaging techniques like fan-out wafer-level packaging (FOWLP). These technologies enable the integration of multiple functions and components into a single package, including power management functions traditionally handled by discrete components.

SiP and FOWLP techniques allow for tighter integration of diverse functionalities, including analog, digital, and RF components, alongside power management functions within a compact footprint. PSiP chips benefit from these advancements by offering enhanced performance, reliability, and cost-effectiveness compared to conventional approaches. They enable semiconductor manufacturers to deliver innovative solutions that meet the increasing demands for higher integration, reduced form factors, and improved power efficiency across a wide range of applications.

The Power Supply In Package (PSiP) chip market is driven by miniaturization trends in consumer electronics, the demand for enhanced power efficiency, and the growth in adoption of advanced semiconductor technologies. These drivers underscore the market's evolution towards compact, efficient, and integrated power supply solutions that cater to diverse applications spanning consumer electronics, industrial automation, telecommunications, and beyond. As technology continues to advance, PSiP chips are poised to play a pivotal role in powering the next generation of electronic devices and systems worldwide.

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Key Market Challenges

Thermal Management

One of the significant challenges facing the Power Supply in Package (PSiP) chip market is thermal management. As semiconductor devices continue to shrink in size and increase in complexity, they generate higher power densities within smaller areas. PSiP chips, which integrate power supply components into a single package, face the critical challenge of dissipating heat efficiently. Inadequate thermal management can lead to overheating, which not only compromises the performance and reliability of the PSiP chips but also shortens their operational lifespan.

Thermal issues arise due to the compact nature of PSiP designs, where multiple power components such as voltage regulators, inductors, and capacitors are densely packed into a confined space. Efficient heat dissipation becomes crucial to prevent thermal runaway and maintain stable operation. Traditional cooling methods such as heat sinks and fans may not always be feasible due to space constraints or may not provide sufficient cooling for high-power PSiP applications.

Thermal challenges are exacerbated by the trend towards higher operating frequencies and power efficiency demands in modern electronic devices. As PSiP chips are increasingly deployed in applications like smartphones, tablets, and wearable devices where size and weight are critical, addressing thermal management becomes even more complex. Manufacturers must innovate in thermal design, materials, and cooling solutions to ensure PSiP chips operate within safe temperature ranges without compromising performance or reliability.

To mitigate thermal challenges, advancements in materials science play a crucial role. New thermal interface materials (TIMs) with high thermal conductivity and low impedance are being developed to improve heat transfer between PSiP chips and heat sinks or thermal pads. Additionally, innovative packaging techniques such as embedded heat pipes, vapor chambers, and advanced cooling architectures are being explored to enhance thermal dissipation capabilities while maintaining compact form factors.

Simulation and modeling tools are employed during the design phase to predict and optimize thermal performance. These tools allow engineers to simulate heat generation and dissipation within PSiP packages, enabling proactive design adjustments to improve thermal efficiency and reliability. Ultimately, overcoming thermal management challenges in the PSiP chip market requires a multidisciplinary approach involving materials science, packaging innovations, and advanced thermal engineering strategies.

Electromagnetic Interference (EMI) Mitigation

Another significant challenge in the Power Supply in Package (PSiP) chip market is mitigating Electromagnetic Interference (EMI). PSiP chips integrate multiple power supply components into a compact package, often operating at high frequencies and switching speeds. This can inadvertently generate electromagnetic emissions that interfere with nearby electronic devices or communication systems, leading to potential performance degradation or compliance issues with regulatory standards.

EMI mitigation is critical, particularly in applications where PSiP chips are deployed in sensitive environments such as automotive electronics, medical devices, or aerospace systems. Regulatory bodies impose stringent limits on electromagnetic emissions to ensure electromagnetic compatibility (EMC) and avoid interference with critical electronic systems. Failure to meet these standards can result in costly redesigns, delays in product certification, or even market rejection.

PSiP chip designers face the challenge of minimizing electromagnetic emissions while maintaining efficient power conversion and signal integrity. Design considerations such as layout optimization, shielding techniques, and filtering mechanisms are essential to reduce EMI levels effectively. Layout optimization involves careful placement of components and signal traces within the PSiP package to minimize loop areas and signal coupling, thereby reducing radiated emissions.

Shielding techniques such as metal cans or conductive coatings can be employed to contain electromagnetic fields and prevent them from radiating outside the PSiP package. Effective grounding and routing of high-frequency signals using dedicated ground planes and controlled impedance traces help mitigate signal integrity issues and reduce susceptibility to external electromagnetic interference.

Key Market Trends

Integration of Advanced Digital Control and Monitoring Capabilities within PSiP designs

The Global Power Supply In Package (PSiP) Chip Market is currently witnessing a transformative trend towards the integration of advanced digital control and monitoring capabilities within PSiP designs. This trend marks a significant evolution in power supply technologies, driven by the increasing demand for smarter, more efficient, and reliable electronic systems across various industries. Digital control and monitoring enable PSiP chips to offer enhanced functionalities that go beyond traditional analog-based power supplies. By incorporating digital microcontrollers and intelligent algorithms, these advanced PSiP designs can dynamically adjust voltage and current outputs based on real-time load conditions. This capability not only optimizes power efficiency but also improves overall system performance and reliability.

Digital monitoring allows for comprehensive diagnostics and fault detection within the power supply unit. Engineers and system operators can remotely monitor critical parameters such as temperature, voltage levels, and current draw, enabling proactive maintenance and troubleshooting. This proactive approach minimizes downtime and enhances operational continuity, particularly in mission-critical applications where reliability is paramount. The integration of digital control also facilitates seamless compatibility with digital communication protocols such as I2C, SPI, and UART. This enables PSiP chips to communicate status information, telemetry data, and configuration settings directly to host controllers or central management systems. Such interoperability enhances system-level integration and scalability, supporting complex networked environments in telecommunications, data centers, and industrial automation sectors.

The trend towards digitalization in PSiP designs aligns with broader industry advancements in artificial intelligence (AI) and machine learning (ML). By leveraging digital control capabilities, PSiP chips can implement adaptive algorithms that optimize power delivery in real-time based on predictive analytics and historical data. This predictive maintenance approach anticipates potential failures, extends component lifespan, and reduces overall lifecycle costs for electronic devices and systems. In the context of energy efficiency and sustainability, digital control and monitoring play a crucial role in optimizing power consumption across diverse applications. By dynamically adjusting power outputs to match varying load demands, PSiP chips contribute to reducing energy wastage and carbon footprint. This capability is particularly relevant in sectors striving to meet stringent environmental regulations and sustainability goals, such as renewable energy systems and electric vehicles.

The adoption of PSiP chips with advanced digital features is gaining traction among manufacturers and system integrators seeking competitive advantages. These chips offer differentiation through enhanced performance metrics, reliability assurances, and future-proofing against evolving technological requirements. As consumer expectations for smarter and more connected devices grow, the demand for PSiP solutions capable of digital control and monitoring is expected to expand across global markets. The ongoing development of digital control technologies continues to drive innovation in PSiP chip designs. Advancements in semiconductor manufacturing processes, alongside improvements in digital signal processing (DSP) and embedded software capabilities, enable more sophisticated and efficient PSiP solutions. This evolution supports the industry's quest for higher power density, smaller form factors, and improved thermal management in next-generation electronic products.

The integration of advanced digital control and monitoring capabilities within PSiP designs represents a pivotal trend shaping the future of the Global Power Supply In Package Chip Market. As technological capabilities continue to evolve and customer expectations evolve, PSiP chips equipped with digital intelligence are poised to play a central role in powering the next wave of innovative electronic devices and systems across various sectors worldwide.

Adoption of Wide Bandgap (WBG) Materials for Enhanced Performance

Another significant trend in the Power Supply in Package (PSiP) chip market is the adoption of Wide Bandgap (WBG) materials, such as silicon carbide (SiC) and gallium nitride (GaN), to achieve higher efficiency and performance in power conversion applications. WBG materials offer superior electrical properties compared to traditional silicon-based semiconductors, including higher breakdown voltages, faster switching speeds, and lower on-resistance.

PSiP chips incorporating WBG materials enable manufacturers to develop power supplies that operate at higher frequencies and temperatures while maintaining high efficiency levels. This capability is particularly beneficial in applications requiring rapid switching and high power density, such as electric vehicles (EVs), renewable energy systems, and industrial automation.

For instance, in EVs, PSiP chips based on WBG materials facilitate the development of compact and lightweight onboard chargers and DC-DC converters, enhancing vehicle efficiency and extending driving range. Similarly, in renewable energy systems, such as solar inverters and wind turbines, PSiP chips with WBG materials improve energy conversion efficiency and reliability, contributing to the overall performance and cost-effectiveness of clean energy solutions.

The adoption of WBG materials in PSiP chips also aligns with sustainability goals by reducing energy losses and lowering carbon emissions in power conversion processes. As industries prioritize energy efficiency and environmental sustainability, the demand for PSiP chips leveraging WBG materials is expected to grow, driving innovation and market expansion in the power electronics sector.

Segmental Insights

Product Insights

The Power Supply in Package (PSiP) segment held largest market share in 2023. In the Power Supply in Package (PSiP) segment, several market drivers are reshaping the landscape and accelerating adoption across various industries. PSiP technology integrates multiple power components, such as DC-DC converters, regulators, and in some cases, passives like capacitors and inductors, into a single package. This integration offers several advantages over traditional discrete power solutions, making PSiP an attractive choice for applications ranging from consumer electronics to industrial automation and automotive sectors.

One of the primary drivers in the PSiP segment is the demand for miniaturization and space efficiency in electronic devices. As consumer expectations for smaller, lighter, and more portable products continue to rise, manufacturers are under pressure to reduce the footprint of electronic components without compromising performance. PSiP solutions address this challenge by consolidating multiple power components into a compact package, thereby reducing board space and enabling the design of sleeker, more compact devices. This miniaturization trend is particularly crucial in mobile devices, wearables, and IoT devices, where size constraints drive the adoption of integrated power solutions.

The increasing complexity and performance requirements of electronic systems are driving the need for enhanced power management solutions. PSiP technologies offer improved efficiency, higher power density, and better thermal management compared to discrete solutions. By integrating power components within close proximity, PSiP designs minimize parasitic inductance and resistance, thereby improving power delivery efficiency and reducing electromagnetic interference (EMI). These advancements support the development of high-performance applications such as data centers, telecommunications infrastructure, and automotive power systems, where reliable and efficient power management is critical.

The rapid growth of IoT devices and edge computing technologies is fueling demand for power solutions that can operate efficiently in compact and often harsh environments. PSiP solutions are designed to meet the stringent requirements of IoT devices by providing stable power delivery, low noise operation, and resilience to environmental factors such as temperature variations and vibration. This reliability is essential for sensors, actuators, and communication modules deployed in smart homes, industrial automation, and automotive IoT applications, where uninterrupted operation is paramount.

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Regional Insights

The Asia Pacific region region held the largest market share in 2023. The Power Supply in Package (PSiP) chip market in the Asia-Pacific (APAC) region is being driven by several key factors that underscore the region's pivotal role in the global semiconductor industry and its growing demand for efficient power management solutions.

The rapid expansion of consumer electronics and telecommunications sectors across APAC is a significant driver for PSiP chips. Countries like China, Japan, South Korea, and Taiwan are major hubs for electronics manufacturing, with a burgeoning market for smartphones, tablets, wearable devices, and IoT gadgets. PSiP chips offer compact, efficient power delivery solutions suitable for these compact and power-sensitive applications. They integrate power management functions such as voltage regulation, switching converters, and thermal management directly into a single package, reducing PCB footprint and enhancing overall system efficiency.

The automotive industry in APAC is increasingly adopting PSiP chips to meet the stringent power efficiency and reliability requirements of modern vehicles. With the rise of electric vehicles (EVs), hybrid vehicles, and advanced driver-assistance systems (ADAS), there is a heightened demand for compact and robust power solutions that can operate efficiently in challenging automotive environments. PSiP chips provide automotive manufacturers with solutions for power conversion, battery management, and thermal management, contributing to enhanced vehicle performance, range, and safety.

The rapid deployment of 5G infrastructure across APAC is accelerating the demand for PSiP chips in telecommunications equipment. 5G networks require high-speed data processing and low-latency communication capabilities, necessitating advanced power management solutions to ensure reliable and efficient operation of network infrastructure, base stations, and mobile devices. PSiP chips offer integrated power solutions that help telecom companies optimize power consumption, reduce operational costs, and improve network performance, thus supporting the widespread adoption of 5G technology across the region.

The emphasis on energy efficiency and sustainability initiatives in APAC countries is driving the adoption of PSiP chips in various industrial applications. PSiP technology enables efficient power conversion and management, reducing energy consumption and greenhouse gas emissions in manufacturing, transportation, and infrastructure sectors. Governments and regulatory bodies in APAC are promoting energy-efficient technologies to achieve environmental goals and reduce dependency on fossil fuels, creating a favorable market environment for PSiP chips that contribute to energy savings and sustainability.

Recent Developments

• In February 2024, Intel Corporation launched Intel Foundry as a sustainable systems foundry business geared towards the AI era. The company also introduced an expanded process roadmap aimed at maintaining industry leadership through the latter half of the decade. Additionally, Intel emphasized strong customer support and collaboration with ecosystem partners such as Synopsys, Cadence, Siemens, and Ansys. 

Key Market Players

• Infineon Technologies AG
• Texas Instruments Incorporated
• Semiconductor Components Industries, LLC
• STMicroelectronics International N.V.
• Analog Devices, Inc.
• NXP Semiconductors N.V.
• Renesas Electronics Corporation
• Vishay Intertechnology, Inc.
• Panasonic Corporation
• Lextar Electronics Corp. 

Report Scope:

In this report, the Global Power Supply In Package Chip Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Power Supply In Package Chip Market, By Product:

o   PSiP

o   PwrSoC

• Power Supply In Package Chip Market, By Application:

o   Telecom and IT

o   Automotive

o   Consumer Electronics

o   Medical Devices

o   Military & Defense

• Power Supply In Package Chip Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

§  Belgium

o   Asia Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

§  Indonesia

§  Vietnam

o   South America

§  Brazil

§  Argentina

§  Colombia

§  Chile

§  Peru

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Turkey

§  Israel

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Power Supply In Package Chip Market.

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Company Information

• Detailed analysis and profiling of additional market players (up to five).

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