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The global semiconductor packaging materials market size is estimated to grow/decline by USD 9.14 billion between 2022 and 2027 exhibiting a CAGR of 5.3%. The increasing miniaturization of electronic devices and the expanding application of semiconductor ICs in the Internet of Things (IoT) are driving significant market growth. Advanced semiconductor material packaging technologies further bolster this trend, enhancing performance and efficiency. Additionally, the surge in global demand for consumer electronics and smart electronic devices fuels further expansion. However, the market faces challenges, including its capital-intensive nature, which requires substantial investment for development and production. Technical problems with tape-based substrates and the concentration of consumption in specific regions pose additional hurdles. Furthermore, regulations associated with semiconductor packaging materials can complicate compliance and production processes. Overcoming these challenges necessitates continuous innovation, strategic investment, and regulatory compliance efforts. Addressing these issues will be essential for sustaining growth and leveraging the full potential of semiconductor technologies in various applications, from consumer electronics to advanced IoT solutions.
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Electronic components such as capacitors, resistors, and inductors require packaging materials to protect them from environmental factors and ensure their proper functioning. Semiconductor packaging materials also play a crucial role in enhancing the performance and reliability of electronic devices. Materials used in semiconductor packaging include lead-free solders, underfills, encapsulants, and substrates. The choice of packaging material depends on various factors such as the type of semiconductor device, the operating environment, and the desired performance characteristics. The semiconductor packaging materials market is driven by the increasing demand for miniaturized and high-performance electronic devices. The market is also influenced by factors such as the adoption of advanced packaging technologies, the growing use of semiconductors in automotive and industrial applications, and the rising trend of wireless communication and IoT devices.
The market share growth by the organic substrates segment will be significant during the forecast period. The market market experiences significant growth, catering to the increasing demand in consumer electronics and electronic equipment. These materials serve as the foundation for semiconductor devices and ICs in various applications, particularly in fan-out wafer-level packaging for smartphones and other devices. Semiconductor packaging suppliers provide wafers, encapsulants, underfill materials, and die-attach solutions for die manufacture and semiconductor design businesses.
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The organic substrates segment was valued at USD 11.10 billion in 2018. Bonding wires, solder balls, and wafer-level packaging dielectrics are essential components in the semiconductor integration process. Small outline packages, such as dual flat no-leads, quad flat packages, and dual in-line packages, are used in consumer electronics, smart homes, smart corporate settings, high-speed Internet, wireless broadband (WiBro), and memory chipmakers. Semiconductor packaging vendors play a crucial role in providing interposers, bridges, wires, and signals for energy-efficient process nodes and increased computing power in areas like artificial intelligence, 5G, PC/laptop, storage, and vehicle electrification.
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APAC is estimated to contribute 72% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
In APAC, the market is thriving due to the dominance of technology powerhouses like China, Taiwan, Japan, and South Korea. Consumer electronics and electronic equipment, driven by smartphones and devices, fuel the demand for semiconductor integration. Fan-out wafer-level packaging is a key technology, with semiconductor packaging suppliers providing wafers, die manufacture, and materials like bonding wires, encapsulants, underfill materials, and die-attach. Semiconductor design businesses utilize solder balls, wafer-level packaging dielectrics, small outline packages, dual flat no-leads, quad flat packages, and dual in-line packages. Consumer electronics, smart homes, and corporate settings, along with high-speed Internet, wireless broadband (WiBro), and memory chipmakers, require chips, interposers, bridges, wires, signals, energy, and process nodes for increased computing power and artificial intelligence applications. Semiconductor packaging vendors cater to various industries, including PC/laptop, storage, vehicle electrification, and 5G infrastructure or 5G technology.
The market is witnessing significant growth due to the increasing demand for advanced electronic devices and systems. The market is driven by various factors, including the miniaturization of electronic components, the need for higher performance and reliability, and the growing adoption of semiconductor packaging technologies such as Flip Chip, Wafer Level Packaging (WLP), and Surface Mount Technology (SMT). Electronics manufacturers are constantly seeking new materials and technologies to improve the performance, reliability, and cost-effectiveness of their semiconductor packaging solutions. Some of the key materials used in semiconductor packaging include Chips, Electrodes, Leadframes, Substrates, Packaging Resins, Encapsulants, and Solder Materials. Devices and applications that require high performance, low power consumption, and small form factors, such as smartphones, tablets, laptops, and wearable devices, are driving the demand for advanced semiconductor packaging materials and technologies. Additionally, the growing adoption of automotive electronics, industrial automation, and IoT devices is also expected to fuel the growth of the semiconductor packaging materials market. The market is highly competitive, with key players including 3M, DuPont, H.B. Fuller, Henkel, and Dow Inc. These companies are investing heavily in research and development to introduce new materials and technologies that meet the evolving needs of the electronics industry. In summary, the semiconductor packaging materials market is expected to continue its growth trajectory, driven by the increasing demand for advanced electronic devices and systems, and the ongoing development of new materials and technologies to meet the evolving needs of the industry. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing demand for smart electronic devices fuels market growth. The market is experiencing significant growth due to the global trend towards smaller, more portable electronic devices. To meet the demands of automotive and consumer electronics industries undergoing digital transformation, semiconductor packaging units are developing innovative solutions. Technologies like SiP, PoP, Flip-chip, and WLP are setting up new material standards. For instance, Flip-chip packaging uses conductive bumps to connect flipped chips, ensuring high system density and improved electrical performance. In the automotive sector, semiconductors are essential for advanced driver assistance systems, emissions control, and autonomous driving. In consumer electronics, the need for miniaturization and ultra-high-density I/O drives the adoption of semiconductor packaging materials.
Heterogeneous dies, Si Interposers, and low-profile semiconductor packages are upgraded versions catering to HPC applications, networking, and data center servers. Semiconductor sales are booming, with the Semiconductor Industry Association reporting record-breaking numbers. The internet, artificial intelligence industry, and mission-critical applications require semiconductors with superior electrical performance. The domestic IC industry is investing in chip production, with chip plants producing 12 and 16-nanometre chips and aiming for 2nm chips. The fabless segments are also contributing to the semiconductor sales growth. Hence, such applications are expected to drive the market growth during the forecast period.
The adoption of semiconductor ICs is an emerging market trend. The market is experiencing significant growth, driven by the increasing demand for ICs in consumer electronics and automotive industries. With digital transformation and semiconductor manufacturing, semiconductor packaging units are setting up to meet the needs of high-tech electronic devices. The Semiconductor Industry Association reports a CAGR of over 12% for the global semiconductor market, fueled by sales of smart devices like smartwatches, smartphones, and tablets. Semiconductor packaging materials play a crucial role in enabling features such as Wi-Fi connectivity, multimedia streaming, touchscreens, and internet access in electronic devices. Advanced packaging technologies, including redistribution layers (RDL) with 5µm lines and low-profile semiconductor packages, are essential for meeting the demands of HPC applications, networking, and data center servers. Semiconductor packaging materials are also critical for the automotive industry, with applications in mission-critical systems, security monitoring, and autonomous driving.
The sector is also focusing on developing Si Interposers and other advanced interconnection technologies for ultra-high-density I/O and two-dimensional connections. The artificial intelligence industry is another growing market for semiconductor packaging materials, with a need for high electrical performance and heterogeneous dies. In conclusion, the semiconductor packaging materials market is a key player in the digital transformation and growth of various industries, including consumer electronics, automotive, and data center equipment. With the increasing demand for advanced semiconductors and packaging technologies, the market is expected to continue growing, setting up new opportunities for innovation and development. Hence, such trends are expected to fuel the growth of the global market trends during the forecast period.
Regulations associated with semiconductor packaging materials hinder market growth. market is experiencing significant growth as IC manufacturers seek to maintain a competitive edge in the face of increasing wafer sizes and node migrations, coupled with surging capital expenditures. Automotive and consumer electronics industries, driven by digital transformation and smart manufacturing practices, are major consumers of semiconductors. The Semiconductor Industry Association reports that semiconductor sales in these sectors accounted for over 50% of the total semiconductor sales in 2020. Advanced semiconductor packaging materials are essential for these industries, enabling ultra-high-density I/O, two-dimensional connections, and low-profile semiconductor packages. Heterogeneous dies, such as Si Interposers, are increasingly being used in high-performance computing (HPC) applications, networking, and data center servers. These interconnection technologies offer improved electrical performance and enable the stacking of multiple dies vertically using interposers and through-silicon vias (TSVs). The semiconductor sector is also witnessing the development of new chip packaging materials for emerging applications, such as the internet of things (IoT), artificial intelligence (AI), and autonomous driving.
Further, semiconductor packaging materials play a mission-critical role in the design and development of electronic devices, from consumer electronics to advanced technologies such as AI and autonomous driving. The redistribution layer (RDL) and interconnect technologies are essential for ensuring the reliability and performance of these devices. With emissions regulations becoming increasingly stringent, the semiconductor industry is also focusing on developing sustainable semiconductor packaging materials. Hence, such factors are expected to significantly hinder the market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Amkor Technology Inc., ASE Technology Holding Co. Ltd., BASF SE, ChipMOS TECHNOLOGIES INC., DuPont de Nemours Inc., Henkel AG and Co. KGaA, Heraeus Holding GmbH, Hitachi Ltd., Honeywell International Inc., Indium Corp., Intel Corp., KYOCERA Corp., LG Innotek Co. Ltd., MITSUI and CO. LTD., Nan Ya Printed Circuit Board Corp., Nippon Steel Corp., Powertech Technology Inc., Samsung Electronics Co. Ltd., Taiwan SEMICONDUCTOR CO. LTD., and Texas Instruments Inc.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report encompasses the entire market adoption cycle, ranging from the initial innovator phase to the subsequent laggard stage. It emphasizes adoption rates across various regions, determined by penetration levels. Additionally, the report outlines essential purchasing factors and factors influencing price sensitivity. This aids companies in assessing and formulating effective growth strategies.
Customer Landscape
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market encompasses a wide range of materials used in the production of semiconductor packages. These materials include consumer electronics, electric components, and semiconductor devices. The semiconductor packaging process involves bonding and encapsulating semiconductor dies to create functional electronic packages.
In conclusion, the semiconductor packaging materials market is a critical component of the electronics industry, providing materials that protect, enhance, and enable the functionality of semiconductor devices. The market is expected to grow significantly in the coming years due to the increasing demand for advanced electronic devices and the adoption of new packaging technologies.
Market Scope |
|
Report Coverage |
Details |
Page number |
201 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.3% |
Market growth 2024-2028 |
USD 9.14 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.74 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 72% |
Key countries |
China, Taiwan, US, Japan, and South Korea |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Amkor Technology Inc., ASE Technology Holding Co. Ltd., BASF SE, ChipMOS TECHNOLOGIES INC., DuPont de Nemours Inc., Henkel AG and Co. KGaA, Heraeus Holding GmbH, Hitachi Ltd., Honeywell International Inc., Indium Corp., Intel Corp., KYOCERA Corp., LG Innotek Co. Ltd., MITSUI and CO. LTD., Nan Ya Printed Circuit Board Corp., Nippon Steel Corp., Powertech Technology Inc., Samsung Electronics Co. Ltd., Taiwan SEMICONDUCTOR CO. LTD., and Texas Instruments Inc. |
Market dynamics |
Parent market analysis, market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Material
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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