Date: 16/12/2011

Chip packaging material market to reach $25.7 Billion by 2015, estimates by SEMI

SEMI has reported the market for semiconductor packaging materials, including thermal interface materials, is expected to reach $22.8 billion in 2011 and grow to $25.7 billion by 2015. Laminate substrates remain the largest segment of the market, worth an estimated $9.7 billion globally in 2011, and on a unit basis are projected to grow at a compound annual growth rate of eight percent over the next five years.

The report, titled "Global Semiconductor Packaging Materials Outlook: 2011/2012 Edition," covers laminate substrates, flex circuit/tape substrates, leadframes, bonding wire, mold compounds, underfill materials, liquid encapsulants, die attach materials, solder balls, wafer level package dielectrics and thermal interface materials.

Several areas are experiencing stronger growth as new material ramp up in production in packaging, including underfill materials, wafer-level dielectrics, copper bonding, leadframe CSP, and others.

Semiconductor Packaging Materials Segment

Estimate of 2011

Global Market

($M)

Laminate Substrates

$9,720

Flex Circuit/Tape Substrates

$106

Leadframes

$3,601

Bonding Wire

$5,458

Mold Compounds

$1,349

Underfill Materials

$204

Liquid Encapsulants

$544

Die Attach Materials

$697

Solder Balls

$494

Wafer Level Package Dielectrics

$68

Thermal Interface Materials

$537

The findings in the report are based on more than 140 indepth interviews conducted with packaging subcontractors, semiconductor manufacturers and materials suppliers. It includes previously unpublished data on revenue, unit shipments and market shares for each packaging material segment; a five-year forecast of revenue and units (2011-2015), average selling price data and trends; and an analysis of regional market trends.

The report also identifies important technology and business trends affecting the packaging materials market, as well as opportunities for suppliers. Some of the key opportunities include:
Companies targeting laminate substrates with 9 micron lines and spaces
New improved materials to reduce warpage in thin core substrates
Resin materials with low ionic levels compatible with copper bonding wire
Mold compound or encapsulant materials for high wire density packaging and matrix substrates
No-flow or "wafer applied" underfill for flip chip die
Reworkable package underfill materials
Thermally conductive die attach film (DAF) materials
Improved materials for redistribution layers (RDLs) in wafer level packages (WLPs) with higher resolution at thicker layers

The report is available for purchase from SEMI for $4,000 (SEMI members), and $5,000 (non-members).