MILPITAS, CA – The global semiconductor packaging materials market will grow from $17.6 billion in revenue in 2019 to $20.8 billion in 2024, a 3.4% CAGR, says SEMI and TechSearch International.
A number of semiconductor industry growth drivers will power the surge, including big data, high-performance computing, artificial intelligence, edge computing, advanced memory, the 5G infrastructure buildout, 5G smartphone adoption, growth of electric vehicle adoption and enhanced safety features for automobiles.
Laminate substrates, the largest materials segment, will see a CAGR of more than 5%, driven by demand for system-in-package and high-performance devices. Wafer-level packaging dielectric will register the highest growth with a 9% CAGR over the forecast period. The trend toward smaller, thinner packaging will dampen growth of leadframes, die attach, and encapsulant materials, though new technologies are being developed to enhance performance. With the steady advance of semiconductor packaging technology innovation, the next several years are expected to present areas of opportunity, including new substrate designs to support narrow bump pitch with higher density; low Dk and Df laminate materials for 5G mmWave applications; coreless structure based on a modified leadframe technology called molded interconnect solution/system; mold compounds to provide underfill for copper pillar flip chip; smaller fillers and narrower particle size distribution needed in resin materials to address narrow gaps and fine-pitch flip chip; die attach materials with no-to-low resin bleed, no-to-low outgassing, and processed within <5 μm placement; dielectrics with lower dielectric loss required for higher frequency applications such as 5G; void-free deposition and low-overburden deposition required for TSV plating.
The global laminate substrate market for IC packages is expected to log a 5% CAGR based on square meters of materials processed. Overall leadframe shipments are forecast to see a CAGR of more than 3%, with LFCSP registering the strongest unit growth, with a CAGR of nearly 7%. Encapsulation material revenue will register a CAGR of under 3%, growth driven by rising demand for smaller, thinner packaging form factors. Die attach material revenue will grow at a CAGR of nearly 4%. Solder ball revenue will expand at a CAGR of 3%. The WLP dielectrics market is expected to increase by a 9% CAGR. The wafer-level plating chemical market is forecast at a CAGR of over 7%.