Semiconductor packaging material consists of material used for protecting electronic components such as ICs and semiconductors from external impact, corrosion and other similar factors. These materials are used in conjunction with various other advanced packaging technologies for packaging of integrated circuits and semiconductors.

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Semiconductor packaging material can be classified in eight sub-types which include bonding wires, organic substrates, encapsulation resins, leadframes, die attach materials, ceramic packages, solder balls and thermal interface materials amongst others. The organic substrates accounts for the largest market share in semiconductor packaging material. Organic substrates are extensively used as base materials for semiconductor packaging. Bonding wires have been used widely as packaging material for semiconductors, but recently there has been a shift towards copper bonding wires for semiconductor packaging. The market for encapsulation resins is expected to witness strong growth in the next few years since encapsulation resins are relatively novel packaging materials. The semiconductor packaging materials are application specific and available across the globe. The various packaging technologies include GA, SOP, QFN, DFN, QFA and similar others which generally depends on the end-use.

The market for semiconductor packaging material is expected to witness strong growth in the next few years on account of explosive growth in communication and mobile computing devices such as tablets and smartphones across the globe. Growth in mobile devices is also anticipated to drive the demand for wafer level packages. With the continued growth in the mobile devices market the market for semiconductor packaging materials is expected to witness strong growth in the next few years. The increase in demand for semiconductor packaging material is expected to be in line with the growth in the electronics industry across the globe. The semiconductor packaging material market is currently concentrated in Asia Pacific due to vast electronic industry present in the region. With growing demand for electronics and mobile communication devices the demand for semiconductor packaging materials is also expected to witness robust growth in the next few years.

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Owing to the growing electronics industry in Asia-Pacific region and increased demand for mobile computing devices particularly in countries such as China, India Indonesia etc. the demand for semiconductor packaging material is anticipated to witness strong growth in these regions. Asia Pacific was the dominant market for semiconductor packaging material followed by Europe and North America. In North America, U.S was one of the largest markets for semiconductor packaging material. U.S economy has been recently recovered and has been close to pre-recession levels. Looking forward, the packaging industry in North America is expected to show stable growth in the next few years, which in turn is anticipated to drive the semiconductor packaging material market in this region. In Europe, Germany accounted for the largest market share followed by Italy, France and the U.K. The semiconductor packaging material market in North America and Europe is characterized by similar market conditions. In the Rest of the World (RoW), especially in countries such as Brazil, the market is expected to witness strong growth on account of increased demand for semiconductors from the electronics industry in this region.

Some of the major companies operating in the global semiconductor packaging material market are Hitachi Chemical Co. Ltd., BASF SE, Henkel AG & Company, Sumitomo Chemical Co. Ltd., Alent plc, and Kyocera Chemical Co. Ltd., among others.

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This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers’ or customers’ journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.

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