To meet the emerging near-term and long-term packaging challenges, the electronics industry must begin to increase spending on packaging research and technology development. In the short-term the industry shift to manufacturing outsourcing (combined with decreased profitability in many electronics sectors) has driven a decrease in packaging research. The market forces will correct this trend as the impact of increasing package cost and the limits of packaging technology start to constrain industry growth. However, a short-term gap will develop in broad-based industry packaging capability for emerging technologies and new applications. This gap will create an opportunity for significant competitive advantage through packaging for those companies that increase their focus on packaging development today.
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