Market Highlights
Semiconductor packaging entails enclosing one or more discrete semiconductor devices or integrated circuits within a casing crafted from materials such as plastic, ceramic, metal, or glass. Packaging has undergone ongoing evolution in terms of its attributes, integration capabilities, and energy efficiency due to the rising demand across a diverse range of industry verticals. Furthermore, heightened demand has led to a sustained transformation in packaging, encompassing enhancements in its features, integration possibilities, and energy-efficient properties.
The COVID-19 pandemic expedited the embrace of remote work and digital services, resulting in an increase in requirements for electronic devices and the underlying infrastructure that sustains these technologies. Consequently, there was a surge in demand for semiconductor packaging solutions, primarily to facilitate the manufacturing of devices like laptops, tablets, and networking equipment. In 2020, the market has experienced a notable upsurge. Furthermore, in 2021, the market surpassed the previous year's levels. The semiconductor packaging market is thriving as it evolves with new technologies, materials, and designs. Innovations like flip-chip, WLP, and fan-out packaging are driving improved performance, smaller form factors, and cost-efficiency in the industry. Overall, the semiconductor packaging materials market is expected to grow at a promising CAGR of 3.2% in the long run to reach US$ 30.4 Billion by 2028.
Segments Analysis
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Segmentations
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List of Sub-Segments
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Dominant and Fastest-Growing Segments
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Material-Type Analysis
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Lead Frames, Bond Wires, Ceramic Packages, Substrates, Encapsulation Resins, Die Attach Materials, and Others
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Substrates is expected to be the most preferred material in market over the next five years.
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Application-Type Analysis
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DAO (Discrete, Analog, and Optoelectronics & Sensors), Logic, and Memory
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Logic devices are likely to remain the largest application in the market by 2028.
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End-Use-Type Analysis
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Communication, Computer, Consumer Electronics, Industrial, Automotive, and Government
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The computer segment is expected to remain the largest end-user type in the market during the forecast period.
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Regional Analysis
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North America, Europe, Asia-Pacific, and The Rest of the World
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Asia-Pacific is expected to remain the largest market over the next five years.
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Based on the material type, the semiconductor packaging materials market is segmented into lead frames, bond wires, ceramic packages, substrates, encapsulation resins, die attach materials, and others. Among them, substrates are expected to remain the most preferred material in the market during the forecast period. Substrates with superior electrical properties are essential for high-frequency applications, including radio-frequency (RF) devices, wireless communication, and radar systems. These substrates play a pivotal role in establishing both the physical and electrical connections between the semiconductor die and the packaging, thus facilitating the ongoing trend of component miniaturization and integration.
Based on application type, the market can be segmented into DAO (Discrete, Analog, and Optoelectronics & Sensors), logic, and memory. Logic devices are likely to remain dominant in the market over the next five years. Semiconductor packaging is becoming more customized to meet specific application requirements. Logic devices can be tailored to provide specific functionality, power efficiency, and performance, making them versatile for various industries and use cases. Moreover, emerging packaging techniques, such as fan-out wafer-level packaging (FOWLP) and 2.5D/3D packaging, rely on advanced semiconductor packaging solutions, including logic devices. These technologies offer increased functionality, performance, and space efficiency.
Based on the end-use type, the semiconductor packaging materials market is segmented into communication, computer, consumer electronics, industrial, automotive, and government. Among them, the computer segment is anticipated to continue its dominant position in the semiconductor packaging materials market during the forecast period, driven by advancements in technologies and related infrastructures. Furthermore, emerging technologies like artificial intelligence (AI), machine learning, and quantum computing are also boosting high demand for advanced semiconductor materials and packaging in the computer segment.
In terms of regions, Asia-Pacific is expected to remain the largest as well as the fastest growing market for semiconductor packaging materials during the forecast period. Asia-Pacific is the epicenter of semiconductor packaging material production, driven by Taiwan, South Korea, China, and Japan. The region has the presence of several leading semiconductor manufacturers and foundries, such as Taiwan Semiconductor Manufacturing Company Limited, Samsung Electronics, and SK Hynix, which generates substantial demand for packaging materials to facilitate their production processes. Shinko Electric, a renowned Japanese firm, is recognized for its proficiency in crafting substrates for a diverse array of semiconductor applications. Their product range encompasses various substrates tailored to meet specific semiconductor needs.
Key Players
The market is highly populated, with the presence of several local, regional, and global players. Most of the leading semiconductor fabrication material suppliers also have a presence in the semiconductor packaging materials market. The following are the key players in the semiconductor packaging materials market.
- Ibiden Co., Ltd.
- Kyocera Corporation
- LG Chem Ltd.
- Amkor Technology, Inc.
- Henkel AG & Co. KGaA
- Toppan Printing Co., Ltd.
- DuPont de Nemours, Inc.
- Honeywell International Inc.
- Merck KGaA
- JX Metals Corporation
Research Methodology
This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s semiconductor packaging materials market realities and future market possibilities for the forecast period. The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.
This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.
Report Features
This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market.
The following are the key features of the report:
• Market structure: Overview, industry life cycle analysis, supply chain analysis
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Product portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve.
• Attractive market segments and associated growth opportunities
• Emerging trends
• Strategic growth opportunities for existing and new players
• Key success factors
The semiconductor packaging materials market is segmented into the following categories.
Semiconductor Packaging Materials Market, by Type
- Lead Frames (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Bond Wires (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Ceramic Packages (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Substrates (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Encapsulation Resins (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Die Attach Materials (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Others (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
Semiconductor Packaging Materials Market, by End-use Type
- Communication (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Computer (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Consumer Electronics (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Industrial (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Automotive (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Government (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
Semiconductor Packaging Materials Market, by Region
- North America (Country Analysis: The USA and The Rest of North America)
- Europe (Country Analysis: Germany, The UK, The Netherlands, Austria, and The Rest of Europe)
- Asia-Pacific (Country Analysis: Japan, China, India, South Korea, Taiwan, and The Rest of Asia-Pacific)
- Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)
Customization Options
With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:
Company Profiling
- Detailed profiling of additional market players (up to three players)
- SWOT analysis of key players (up to three players)
Competitive Benchmarking
- Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances
Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com
