Semiconductor Packaging Material Market Summary
As per Market Research Future Analysis, the Global Semiconductor Packaging Material Market was valued at USD 16.46 Billion in 2023 and is projected to grow to USD 31.15 Billion by 2032, with a CAGR of 7.23% from 2024 to 2032. The growth is driven by increasing demand in consumer electronics and advancements in packaging technologies, particularly 3D semiconductor packaging. The underfill materials segment leads the market, accounting for 35% of revenue, while consumer electronics dominate the end-use industry with 70.4% of market income. North America is the largest regional market, supported by technological advancements and high spending in electronics.
Key Market Trends & Highlights
Key trends driving the Semiconductor Packaging Material Market include advancements in technology and increasing consumer demand.
- Market size in 2023: USD 16.46 Billion; projected to reach USD 31.15 Billion by 2032.
- CAGR of 7.23% expected from 2024 to 2032.
- Consumer electronics account for 70.4% of market revenue.
- Underfill materials segment holds 35% of market share.
Market Size & Forecast
2023 Market Size: USD 16.46 Billion
2032 Market Size: USD 31.15 Billion
CAGR from 2024 to 2032: 7.23%
Largest Regional Market Share in 2024: North America.
Major Players
Key companies include ASE, Henkel, Intel Corporation, Samsung Electronics Co. Ltd, and SK Hynix.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Semiconductor Packaging Material Market Trends
-
Growing use in consumer electronics is driving the market growth.
Market CAGR for semiconductor packaging material is being driven by the rising use in consumer electronics. The expanding use of consumer electronics due to rising per capita incomes worldwide and the greater affordability of electronic equipment due to improving living standards is predicted to drive the semiconductor packaging market size internationally. Consumer electronics items such as laptops, fitness bands, tablets, smartwatches, and other electronic gadgets that need complicated semiconductor integration are projected to boost the semiconductor packaging industry's growth.
The increased usage of 3D semiconductor packaging technology is expected to create new opportunities for developing semiconductor packaging market share throughout the forecast period. To meet the surge in customer demand for smaller, lighter, and portable devices (such as mobile phones, PDAs, digital cameras, and others), volumetric system miniaturization and interconnection (VSMI), a method of semiconductor manufacture, is required. When 3D semiconductor packaging is compared to traditional semiconductor packaging, the items are more compact, which provides advantages. These factors are expected to broaden the range of alternatives accessible to this business. Furthermore, as demand for smartphones, devices, and the Internet of Things (IoT) grows in tandem with market revenue for semiconductor packaging, particularly fan-out wafer-level packaging, semiconductor packaging suppliers are developing procedures and strategies to reduce the overall cost of advanced packaging while maximizing operational efficiency. Because of the high cost of operation, they are typically used for high-end products and applications in specialized industries, such as wafers and die manufacture.
Additionally, market vendors may profit from diverse growth opportunities as packaging solutions continue to develop. FAB-LESS and other semiconductor design businesses can generate innovative packaging solutions. Still, they will always require an OSAT vendor to put them into practice and make the new packaging technology a reality. The major reason is the need for internal or in-house assembly and testing capabilities, which typically necessitate large investments. Using OSAT is the best way to save money while developing new package improvements. Thus, driving the Semiconductor Packaging Material market revenue.
Semiconductor Packaging Material Market Segment Insights
Semiconductor Packaging Material Product Type Insights
Based on product type, the Semiconductor Packaging Material market segmentation includes substrates, lead frames, bonding wires, encapsulants, underfill materials, die-attach, solder balls, wafer-level packaging dielectrics, and others. The underfill materials category dominated the market, accounting for 35% of market revenue. The increased demand for high-performance sophisticated electronics for retail and commercial applications is expected to help this sub-expansion category grow. Other factors contributing to the sub-segment growth include increased affordability and penetration of consumer electronics such as mobile phones and wireless due to rising per capita income worldwide.
Semiconductor Packaging Material Product Technology Insights
Based on technology, the Semiconductor Packaging Material market segmentation includes grid array, small outline package, dual flat no-leads, quad flat package, dual in-line package, and others. The grid array segment dominated the market. Because it is widely employed in all sorts of critical semiconductor packing. Significant expenditures in electronics applications, easy availability of raw materials, low-cost manufacturing, and a cheap labor force are driving category expansion.
Semiconductor Packaging Material End Use Industry Insights
Based on the end-use industry, the Semiconductor Packaging Material market segmentation includes consumer electronics, aerospace & defense, healthcare, communication, automotive, and others. The consumer electronics category generated the most income (70.4%). With a rise in spending and many electronics equipment manufacturing businesses offering consumer electronics products such as smartphones, portable digital assistants, audio devices, tablets, and others, especially in developing countries such as India, China, Vietnam, and Indonesia.
Figure 1: Semiconductor Packaging Material Market, by End Use Industry, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Semiconductor Packaging Material Regional Insights
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Semiconductor Packaging Material market area will dominate this market, The presence of developed countries such as the United States and Canada, as well as the early adoption of cutting-edge technologies such as AI, the Internet of Things, and other products, are expected to support the growth of the North American semiconductor packaging market over the forecast period.
Further, the major countries studied in the market report are The US, Canada, German, Italy, Spain, China, Japan, India, France, the UK, Australia, South Korea, and Brazil.
Figure 2: SEMICONDUCTOR PACKAGING MATERIAL MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe has the second-largest Semiconductor Packaging Material market share. People's increased disposable income and preferences for smart homes and smart corporate settings are significant drivers of European consumer electronics growth. Furthermore, the German Semiconductor Packaging Material market dominated, while the UK Semiconductor Packaging Material market grew fastest in Europe.
From 2023 to 2032, the Asia-Pacific Semiconductor Packaging Material Market will develop at the quickest CAGR. The increasing per capita income of Asian-Pacific area inhabitants due to economic development has increased spending on semiconductor-based equipment and products such as cellphones, personal computers, high-definition (HD) television sets, and others. Furthermore, China's Semiconductor Packaging Material market had the highest market share, whereas India's Semiconductor Packaging Material market was the Asia-Pacific region's fastest growing.
Semiconductor Packaging Material Key Market Players & Competitive Insights
Leading market companies are extensively spending R&D on increasing their product lines, which will help the Semiconductor Packaging Material market grow even more. Important market developments include new product releases, contractual agreements, acquisitions and mergers, greater investments, and collaboration with other organizations. The Semiconductor Packaging Material industry must produce cost-effective merchandise to flourish and thrive in a more competitive and increasing market climate.
Manufacturing locally to reduce operating costs is an effective business strategy manufacturers use in the worldwide Semiconductor Packaging Material industry to serve clients and expand the market sector. The Semiconductor Packaging Material industry has recently provided some of the most important benefits. ASE, S2C, and other major competitors in the Semiconductor Packaging Material market seek to improve market demand by investing in R&D efforts.
ASE is producing revolutionary advanced packaging and system-in-package solutions to match growth momentum across various end areas, including 5G, Automotive, High-Performance Computing, and a large portfolio of existing assembly and test technologies. To discover more about our advancements in SiP, Fanout, Flip Chip, MEMS & Sensor, and 2.5D, 3D, and TSV technologies, all of which are ultimately aimed at applications that improve lifestyle and efficiency. In June 2022, VIPack, an innovative packaging platform designed to provide vertically integrated package solutions, was presented by Innovative Semiconductor Engineering, Inc. VIPack is ASE's next-generation 3D heterogeneous integration architecture, which expands design principles while achieving ultra-high density and performance. The platform uses sophisticated redistribution layer (RDL) methods, embedded integration, and 2.5D and 3D technologies to enable clients to achieve unparalleled innovation when combining numerous chips into a single package.
The SK Group comprises 186 subsidiaries and affiliates that all share the SK brand name and the group's management style, known as the SKMS (SK Management System). Chey Tae-won's estate controls the group through a holding company called SK Inc. The energy and chemicals segment is the foundation of SK Group. While its primary businesses are in the energy, petroleum, and chemical industries, the group also owns SK Telecom, the nation's largest wireless mobile phone service provider. It provides services in construction, marketing, local telephone, high-speed Internet, and wireless broadband (WiBro), as well as SK Hynix, the world's fourth largest chipmaker. In July 2022, The new facility was unveiled as part of a USD 22 billion US investment package in semiconductors, renewable energy, and bioscience projects by SK Group, which owns one of the largest memory chipmakers, SK Hynix. The White House announced a USD 15 billion investment in the semiconductor sector, including R&D activities, materials, and the construction of an advanced packaging and testing facility.
Key Companies in the Semiconductor Packaging Material market include.
- Sumitomo Chemical Co., Ltd.
- Kyocera Chemical Corporation
- Powertech Technology, Inc.
- Tianshui Huatian Technology Co. Ltd
- Fujitsu Semiconductor Limited
- Chipbond Technology Corporation
- Samsung Electronics Co. Ltd
- Interconnect Systems, Inc. (ISI)
Semiconductor Packaging Material Industry Developments
-
Q2 2024: Amkor Technology opens new advanced semiconductor packaging facility in Vietnam Amkor Technology inaugurated a new advanced semiconductor packaging and test facility in Bac Ninh, Vietnam, marking a significant expansion of its global manufacturing footprint to meet growing demand for advanced packaging solutions.
-
Q2 2024: ASE Technology Holding Announces Strategic Partnership with TSMC for Advanced Packaging Materials ASE Technology Holding entered into a strategic partnership with TSMC to jointly develop and supply advanced packaging materials, aiming to accelerate innovation in high-performance computing and AI chip packaging.
-
Q1 2024: Henkel Launches New High-Performance Semiconductor Packaging Material for AI Applications Henkel introduced a new line of high-performance semiconductor packaging materials specifically designed for AI and high-performance computing applications, expanding its product portfolio in the advanced packaging sector.
-
Q2 2024: DuPont Opens New Semiconductor Packaging Materials R&D Center in Taiwan DuPont opened a new research and development center in Hsinchu, Taiwan, focused on developing next-generation materials for advanced semiconductor packaging, supporting the region's growing semiconductor ecosystem.
-
Q1 2024: Shin-Etsu Chemical to Invest $200 Million in New Packaging Material Plant in Japan Shin-Etsu Chemical announced a $200 million investment to build a new plant in Japan dedicated to producing advanced semiconductor packaging materials, aiming to strengthen supply for domestic and global chipmakers.
-
Q2 2024: Samsung Electronics Expands Semiconductor Packaging Material Production in South Korea Samsung Electronics expanded its semiconductor packaging material production capacity at its South Korean facilities to meet rising demand from AI and automotive sectors.
-
Q3 2024: Sumitomo Bakelite Co., Ltd. Announces Launch of New Epoxy Molding Compound for Advanced Packaging Sumitomo Bakelite Co., Ltd. launched a new epoxy molding compound designed for advanced semiconductor packaging, targeting applications in high-performance and miniaturized devices.
-
Q2 2024: LG Chem Signs Supply Agreement with Intel for Semiconductor Packaging Materials LG Chem signed a multi-year supply agreement with Intel to provide advanced packaging materials for use in next-generation processors.
-
Q1 2024: Hitachi Chemical Acquires Stake in US-Based Semiconductor Packaging Startup Hitachi Chemical acquired a minority stake in a US-based startup specializing in innovative semiconductor packaging materials, aiming to accelerate its entry into the advanced packaging market.
-
Q2 2024: Toray Industries Develops New Heat-Resistant Film for Semiconductor Packaging Toray Industries announced the development of a new heat-resistant film for semiconductor packaging, designed to improve reliability and performance in high-power applications.
-
Q1 2024: BASF Launches Environmentally Friendly Packaging Material for Semiconductor Industry BASF introduced a new environmentally friendly packaging material for the semiconductor industry, aiming to reduce the environmental impact of chip manufacturing.
-
Q2 2024: Mitsui Chemicals Announces Expansion of Semiconductor Packaging Material Production in Malaysia Mitsui Chemicals announced the expansion of its semiconductor packaging material production capacity at its Malaysian facility to support growing demand from global chip manufacturers.
Semiconductor Packaging Material Market Segmentation
Semiconductor Packaging Material Product Type Outlook
- Wafer Level Packaging Dielectrics
Semiconductor Packaging Material Technology Outlook
Semiconductor Packaging Material End Use Industry Outlook
Semiconductor Packaging Material Regional Outlook
| Attribute/Metric |
Details |
| Market Size 2023 |
USD 16.46 Billion |
| Market Size 2024 |
USD 17.82 Billion |
| Market Size 2032 |
USD 31.15 Billion |
| Compound Annual Growth Rate (CAGR) |
7.23% (2024-2032) |
| Base Year |
2023 |
| Market Forecast Period |
2024-2032 |
| Historical Data |
2018- 2022 |
| Market Forecast Units |
Value (USD Billion) |
| Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Type, End Use Industry, and Region |
| Geographies Covered |
North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered |
The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled |
Henkel, Hitachi Chemical Company, Sumitomo Chemical Co., Ltd., Kyocera Chemical Corporation, and Toray Industries, Inc., |
| Key Market Opportunities |
The adoption of 3D semiconductor packaging |
| Key Market Dynamics |
Increasing utilization of consumer electronics |
Semiconductor Packaging Material Market Highlights:
Frequently Asked Questions (FAQ):
The Semiconductor Packaging Material market size was valued at USD 16.46 Billion in 2023.
The Semiconductor Packaging Material market is projected to grow at a CAGR of 7.23% during the forecast period, 2024-2032.
North America had the largest share in the Semiconductor Packaging Material market
The key players in the Semiconductor Packaging Material market are Henkel, Hitachi Chemical Company, Sumitomo Chemical Co., Ltd., Kyocera Chemical Corporation, and Toray Industries, Inc..
The Underfill Materials dominated the Semiconductor Packaging Material market in 2022.
The Consumer Electronics had the largest share in the Semiconductor Packaging Material market.
