Semiconductor Packaging Materials Market Size
Projected to reach $20.8 billion in 2024


The semiconductor industry is expected to continue growing, driven by big data, high-performance computing, AI, edge computing, advanced memory, 5G, and automotive semiconductors. Packaging materials are a key component directly linked to the performance and reliability of next-generation semiconductors.
The Semiconductor Equipment and Materials International (SEMI) announced on the 29th that the semiconductor packaging materials market size is expected to grow from $17.6 billion in 2019 to $20.8 billion in 2024, recording an average annual growth rate of 3.4%, citing the latest 'Global Semiconductor Packaging Materials Outlook' report from electronics industry research firm TechSearch.

Laminate substrates, the largest segment in the packaging materials sector, are expected to grow at a compound annual growth rate of more than 5% from 2019 to 2024, driven by increasing demand for system-in-package (SIP) and high-performance semiconductors. Dielectric materials used in wafer-level packaging are expected to grow at an average annual rate of 9%.

Meanwhile, the packaging trend toward smaller and thinner packaging to improve semiconductor performance is expected to slow the growth of leadframe, die attach, and encapsulant materials.

As semiconductor packaging technology continues to evolve, opportunities are expected to emerge in the materials market in the following areas over the next few years.

▲New substrates supporting high-density, miniaturized bumps ▲Low-k laminate materials (low Dk) and low-dielectric factor (low Df) laminate materials for 5G mmWave ▲Coreless based on MIS (Molded Interconnect Solution/System) leadframe technology ▲Mold compound providing underfill for copper pillar flip chips ▲Miniaturization of resin material particles to solve miniaturization problems ▲Die attach materials below 5µm with no-to-low resin bleed and no-to-low outgassing ▲Low-k materials required for high-frequency applications ▲Void-free deposition and low-overburden deposition required for Through-Silicon Via (TSV)

According to the report, the semiconductor materials market is expected to see the following growth prospects from 2019 to 2024:

△The global semiconductor packaging laminate substrate market will record a compound annual growth rate of 5% on a square meter basis △The average annual growth rate of total lead frame shipments will be slightly over 3% △The average annual growth rate of LFCSP (QFN type) will reach approximately 7% △The average annual growth rate of encapsulation material revenue will be approximately 3% due to the increasing demand for small and thin form factors △Die attach material revenue is expected to grow at a CAGR of approximately 4% △Solder ball revenue is expected to grow at a CAGR of 3% △The wafer-level packaging dielectric materials market is expected to grow at a CAGR of 9% △The wafer-level plating chemical market is expected to grow at a CAGR of 7%