Global Bonding Wire Packaging Material Market 2016-2020

This market research report presents a detailed segmentation of the global bonding wire packaging material market by material type (gold, palladium-coated copper (PCC), copper, and silver) and by geography (APAC, Europe, North America, and ROW). The leading vendors in this market are TANAKA Precious Metals, Heraeus Deutschland, California Fine Wire, and MK Electron.

Overview of the global bonding wire packaging material market

Technavio’s market research analyst predicts that the global bonding wire packaging material market will generate a revenue of close to USD 3 billion by the end of 2020. One of the primary growth drivers for this market is the increased need for miniaturization, especially in the semiconductor industry. Bonding wires are an important part of assemblies, and metals like copper, aluminum, gold, and palladium are extensively used to produce bonding wires. In this market, the vendors need to constantly upgrade their offerings with more advanced and compact packaging materials as it will help them to cater to the consumer’s requirements. The demand for bonding wires has increased significantly owing to the growing need for miniaturization to meet the packaging requirements of the semiconductor industry.

An important trend that is spurring market growth is the extensive use of silver as an alternative material. Since the semiconductor industry is under constant pressure to introduce low-cost alternatives to gold without compromising on the quality, the use of silver as a bonding wire has been gaining traction during the forecast period. The silver bonding wire offers the same product quality and does not require significant investments in high-end bonding equipment. Silver wire became a viable option after its use in LED packaging and memory devices. The affordability of silver bonding wire will make it a preferred material in the semiconductor industry during the estimated period.

Segmentation by material type and analysis of the bonding wire packaging material market

• Gold
• Palladium-coated copper (PCC)
• Copper
• Silver

The PCC segment will dominate the bonding wire packaging material market and will grow at a CAGR of over 2% by the end of the forecast period. The use of PCC as an alternative material has been gaining traction due to the rising gold prices globally. Since these PCC-coated wires are resistant to corrosion and oxidation, they will replace gold wires as a packaging material during the next few years.

Geographical segmentation of the bonding wire packaging material market

• APAC
• Europe
• North America
• ROW

The APAC region dominated the global bonding wire packaging material market in 2015 and accounted for approximately 89% of the total market share. The presence of major semiconductor manufacturing giants like Samsung, LG, SK Hynix, MediaTek, Toshiba, and ROHM in this region will lead to the growth of this market in APAC. In addition, factors like recent technological advances and the use of alternative metals for packaging will also play a crucial role in fostering market growth through the end of 2020.

Competitive landscape and key vendors

The global bonding wire packaging material market is dominated by the four key suppliers. Most of the suppliers in this market offer very similar products, where the sole distinguishing factor is the type of alloy used. The chances for new players and startups entering and flourishing in this market are very high as the market is trending towards the adoption of flip chips.

Key vendors in this market are -

• TANAKA Precious Metals
• Heraeus Deutschland
• California Fine Wire
• MK Electron

Other prominent vendors in this market are AMETEK, EMMTECH, Inseto, Palomar Technologies, SHINKAWA, Sumitomo Metal Mining, and Tatsuta Electric Wire & Cable.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the global bonding wire packaging material market?
• What are the key market trends impacting the growth of the global bonding wire packaging material market?
• What are the challenges to market growth?
• Who are the key vendors in the global bonding wire packaging material market?
• What are the market opportunities and threats faced by the vendors in the global bonding wire packaging material market?
• Trending factors influencing the market shares of APAC, Europe, North America, and ROW.
• What are the key outcomes of the five forces analysis of the global bonding wire packaging material market?

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