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Packaging Materials Outlook – Dan Tracy, Senior Director, Industry Research & Statistics, SEMI

March 12, 2013

From 2004 through 2011, the packaging materials market has grown at a compound annual growth rate of over 10%, which is a reflection of the material changes in packaging. The packaging materials market is expected to surpass $24 billion in 2012 and grow to $25 billion in 2013. When compared to wafer fab materials sold into the semiconductor market, the share of packaging materials has increased over this timeframe: from 41% in 2004 to almost 50% share forecasted for 2012. Preliminary estimates show total packaging revenues approaching $26 billion by 2014.

The growth in the share of packaging materials consumed by the semiconductor industry parallels the ramp in laminate substrate based packaging. Beginning in the late 1990s and into the 2000s, new package types based on laminate (plastic) substrate technology were introduced into the market. Ball grid array (BGA) and flip chip packaging were the early volume drivers, though this technology was further developed for usage in chip-scale, stacked-die, and package-on-package technologies. As a result of the new materials and advanced substrates consumed in these technologies, the share of packaging materials consumption has increased.

In terms of total material revenues, laminate substrates now represent a market larger than that reported for silicon wafers. Total revenues for laminate substrates are expect to reach $10.4 billion in 2012 compared to $9.7 billion for silicon wafers. The laminate substrate market is forecasted to grow to $11.1 billion in 2013 and up to $11.6 billion in 2014 (see figure below) .

packagingMaterial2013

As new opportunities emerge in supplying materials, there are changes underway throughout the packagingmaterial supplier base. Consolidation is occurring at some levels. Leadframe plants have closed in recent years, especially following the flood in Thailand in 2011. Hitachi Chemical has acquired Nitto Denko’s mold compound business, while Sumitomo Metal Mining and Hitachi Cable recently announced an agreement to integrate their leadframe businesses. In addition, earlier this year Sumitomo Metal Mining announced its exit from the bonding wire market.

Counter to some of the consolidation, material suppliers in Korea and China seek a more prominent position in the market. Korean companies are focusing on providing solutions to address opportunities in the advanced and 3D packaging segment of the market. Some domestic suppliers in China are boosting their capacity and technological capabilities to serve the growing package & assembly operations located there.

Provided by A Longford – PandA Europe

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From → News, Packaging news

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