Global Advanced IC Substrates Market – Growth, Trends, Impact of COVID-19 and Forecast (2022)



Advanced IC Substrates Market (hereafter referred to as the “Researched Market”) was valued at USD 7.73 Billion in 2020, and is expected to reach USD 12.24 Billion by 2027, growing at a CAGR of 6.85% over the forecast period 2022 – 2027.

New York, Feb. 18. 2022 (GLOBE NEWSWIRE) — announces the publication of the report “Global Advanced IC Substrates Market – Growth, Trends, COVID-19 Impact, and Forecasts (2022 – 2027)” –
? Players are continuously advancing on packaging technologies to meet their stringent requirements with smaller footprint, higher performance and lower energy consumption. The demand for consumer electronics and mobile communication devices is pushing electronics manufacturers to offer ever more compact and portable products.

The growing trend towards miniaturization is driving the demand for advanced packaging. The advent of 5G, which has influenced demand in recent years, is expected to continue as the use of FCBGA in 5G base stations and HPCs increases in countries adopting the communication technology globally. whole.
FCBGA is expected to hold a major share of market demand, due to its availability of routing density, as it can be tuned for maximum electrical performance. Major market players operating in this space are Unimicron, ASE Group, IBIDEN, and SCC. For example, Unimicron and Kinsus are expanding their substrate capabilities. Unimicron has invested a total of TWD 20 billion in R&D and expanding its production capacity of advanced flip-chip substrates through 2022.
Apart from this, the global demand for IoT, in consumer and industrial space, is expected to add to the growing demand for IC substrate. According to the Internet and Television Association, the global number of IoT devices is expected to reach 50.1 billion by 2020, and industrial demand for IoT is expected to exceed consumer demand in the next few years. Such developments should positively influence the market.
The advanced substrates industry is following the trends of miniaturization, greater integration and higher performance, thereby realizing huge investments by several players in ongoing ED and SLP packaging and showing increased interest in these technologies.
The higher power density and board integration translate into thermal benefits, enabling further improvements in system reliability. Such technology brings enormous value to the market due to its widespread adoption in automotive applications.
It also extends to the telecommunications and infrastructure segment, where ED is a suitable substrate solution for increased material efficiency. For this reason, players are investing huge sums in new factories where ED is expected to be the main constituent of the product.
Despite the potential of IC substrates, changing preferences are likely to slow down market growth. For example, some companies use a silicon interposer with multiple RDLs for a better connection between logic and HBM. Others use fan-out-on-substrate with RDLs. FCBGA needs a supplier of substrate, wafer bumps and wafer fabrication capability for RDLs, assembly and testing. But FO WLP only requires pad assemblies and fabrications for RDL and pad bumps and testing. Consequently, the industry is witnessing a move towards FOWLP.
Changes in business/business style of work and consumer behavior during the COVID-19 outbreak have fueled demand for certain types of products, and this is expected to open up both new markets and new avenues of business. market access. For example, the demand for semiconductors used in wired communications continues to grow as more companies improve their security, thereby increasing cloud business. Video streaming on many networks has also increased the use of fixed broadband.

Main market trends

Growing application of advanced substrates in IoT and mobile device manufacturing to drive market growth

Growing functionality of consumer electronics products and growing adoption of smart appliances and smart wearables are some of the major factors that are expected to drive the adoption of advanced IC substrates during the forecast period.

The growing adoption of high-performance mobile devices (including 5G) and the growing penetration of advanced technologies, such as AI and HPC, are fueling the need for advanced IC substrates. Smartphones occupy a significant share of the market and with the advent of 5G smartphones, the demand is expected to increase further. Global companies, like Samsung, are increasingly investing in the semiconductor industry to become leading smartphone vendors in the 5G smartphone space.
In January 2022, Chinese shipments of smartphones compatible with 5G networks increased by 63.5% to reach 266 million in 2021, as lower prices boosted demand, according to the report by the Chinese Academy of Information and Communications (CAICT). The report also states that 5G smartphone shipments accounted for 75.9% of Chinese shipments, which is above a global average of 40.7%.
The increasing adoption of smart wearables, like smartwatches and fitness bands, and their increasing functionality are also extending the growth of the mobile and consumer segment. For example, in April 2021, Fitbit announced its new Luxe fitness tracker, which is a buttonless tracker. It is supported for Android and iOS devices. It also supports Google Fast Pair for faster pairing to Android devices, as well as connected GPS when paired to the phone. These advancements will further develop the need for FC CSP.
The growth of the game console market and the increasing advancements of these products are further expanding the reach of the mobile and consumer segment. In 4-5 years, game consoles have become high-tech gadgets, and companies like Sony, Microsoft, and Nintendo are investing more and more in product development to reach the current 8th generation consoles. For example, in May 2021, Sony announced that it would spend $18.39 billion over the next three years. The company has benefited from strong demand for the company’s PlayStation 5 game consoles launched in major markets in November 2020. In the fiscal year that began in April 2021, the company aimed to ship 14.8 million of PlayStation 5 consoles.
In addition, on the supplier side, Unimicron manufactures high-value IC substrates, such as FC CSP (Flip Chip ice Scale Package), and supplies them to Qualcomm, MediaTek and Broadcom. When it comes to smartphones, the majority of the CSP Wafer Level (WL) volume is driven by smartphone demand as it remains the biggest consumer of this platform.

Asia-Pacific to register the fastest growth over the forecast period

Semiconductor packaging maker’s growth in the region correlates with end-user growth in the region as the fastest growing market for smartphones, indicating increased investment in renewable energies and automotive (EV in particular), among others.

China holds a large share of the semiconductor industry and is home to one of the largest numbers of pure-play foundries operated by domestic and international chipset manufacturers, thus enjoying a substantial share of demand and manufacturing facilities.
The growing emphasis placed by the Chinese government on the semiconductor industry is leading to an increase in demand for advanced integrated circuit substrates. The country has an aggressive growth strategy to meet 70% of China’s semiconductor demand with domestic production by 2025. In addition, the 14th Five-Year Plan (2021-2025) for Technology Independence also supports the target set by the government.
The growing emphasis on 5G rollout in the country is further influencing 5G chipsets and enabling the production of devices in the country. With the government’s decision to accelerate the deployment of 5G, production is expected to increase over the next few years. According to Viavi solutions, as of February 2021, 341 Chinese cities have 5G.
The Japanese government is taking strong measures to revive industries such as consumer electronics and automobiles. With that in mind, Japan announced a $2.2 billion stimulus package to help its manufacturers move production facilities out of China as COVID-19 disrupted the supply chain. The package specifies $2 billion for companies that return production to Japan and stay for those looking to move production to other countries.
Additionally, investments in the smartphone segment in Asia-Pacific countries are expected to drive the demand for advanced IC substrates. For example, in May 2021, AT&S, an Austrian electronics component supplier, announced that it was investing 450 million euros in expanding the capacity of its Chongqing plant.

Competitive landscape

The advanced IC substrates market is moderately competitive and consists of few major players. In terms of market share, some of the players like ASE Group, TTM Technologies Inc., KYOCERA Corporation, Siliconware Precision Industries Co. Ltd. and IBIDEN Co. Ltd, and others currently dominate the market. However, with advancements in IC packaging technology, new players are increasing their presence in the market, thereby expanding their business footprint in emerging economies.

February 2021 – Advanced Semiconductor Engineering Inc. (ASE) and Siemens Digital Industries Software have collaborated and announced that they have developed two new enabling solutions to help joint customers create and evaluate multiple IC package assemblies ( complex CI) and interconnect scenarios in a user-friendly and robust graphical environment for data before and during physical design implementation.
June 2021 – AT&S announced plans to develop a new IC substrate production facility in Southeast Asia, subject to Supervisory Board approval. In addition, between 2021 and 2026, a new production complex for high-end substrates will be built for a total investment of up to 1.7 billion euros.

Additional benefits:

The Market Estimate (ME) sheet in Excel format
3 months of analyst support
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