The global Advanced IC Substrate Market (henceforth referred to as the market studied) was valued at USD 7.86 billion in 2019 and is expected to reach USD 9.9 billion by 2025 with a CAGR of 5.3%. Players are continuously advancing over the packaging technologies in order to answer their stringent requirements with a smaller footprint, higher performances, and lower power consumption. The demand for consumer electronics and mobile communications devices is driving the electronics manufacturers to deliver ever-more compact and portable products.
- The advanced substrate industry is following the trends of miniaturization along with greater integration, and higher performance thereby making huge investments by several players across the ongoing ED and SLP packaging are showing increased interest in such technologies.
- The higher power density and board integration resulting in thermal benefits thereby enabling further improvements in system reliability. Such technology brings huge value to the market due to extended adoption across automotive applications.
- It is also driving across the telecom and infrastructure segment where ED is a suitable substrate solution for increased hardware efficiency. Due to this, players are investing huge amounts in new plants where ED will be the main product constituent.
- The advent of 5G, which influenced the demand during 2018, is expected to be continued, as the use of FCBGA in 5G base stations and HPCs is increasing in countries that adopt the communication technology, worldwide.
- With the outbreak of COVID-19, the production of IC substrate has come to an abrupt end in China during the months of February and March, which influenced the demand of the product worldwide, and influenced the price as well. With the increasing number of cases in the United States, the North American electronics industry is under pressure due to the lack of supply of raw materials and products as the global supply chain is disrupted.
Key Market Trends
Rising Application of Advanced Substrates in Manufacturing of IoT Equipment to Drive the Market Growth
- The global demand for IoT is augmented by both consumer and industrial sectors, as the growing application of the technology is driving the demand from both the sectors. According to the Internet & Television Association, by 2020, the global growth of IoT is expected to reach 50.1 billion units.
- The growth in demand is augmenting the vendors to produce IoT specific chipsets. Some of the major IoT chipset vendors operating in the market include Altair, Huawei, Intel, Qualcomm, Samsung, Sierra, and many more. Moreover, Qualcomm's networking solutions for Wi-Fi environments such as Pro 1200 are embeded with FCBGA.
- With the increase in sheer numbers of IoT devices, the chip requirement for building IoT devices is expected to skyrocket over the forecasted period; along with this, the innovation in reducing energy consumption combined with miniaturization of chips is going to be the priority of manufacturers.
- The growth in IoT is helping IC substrate manufacturers, for instance, Apple is moving to adopt TSMC's antenna in package technology and ASE's FC_AiP process to package mmWave antenna for its 5G iPhones and 5G iPads that are set to launch in 2020. The growth in IoT has resulted in greater use of the latest semiconductor packages that can enhance the performance of ICs and minimize the cost in various instances.
Asia-Pacific to Register the Fastest Growth During the Forecast Period
- The growth of the semiconductor packaging manufacturer in the region correlates with the end-user growth in the region, as the fastest-growing market for smartphones, thereby witnessing a rising investment in renewable, automotive (EVs specifically), among various others.
- Some of the prominent players across the region have made the investment over the advancement in the IC fabrication technology. For instance, in 2018, Taiwan-based Powertech Technology announced an investment of more than USD 1.68 billion, in the country, in an advanced factory, to ride on the next technology wave of high-performance computing, and connected cars. This is set to fuel innovation in the advance IC substrates in the aforementioned applications.
- Moreover, investments in the smartphone segment in the countries of the region is poised to drive the demand for advanced IC substrate in the operating countries. For instance, in 2018, Samsung inaugurated its new mobile phone manufacturing facility in the state of Uttar Pradesh, India, as the world’s largest mobile devices manufacturing factory.
The advanced IC substrates market is moderately competitive and consists of a few major players. In terms of market share, some of the players currently dominate the market. However, with the advancement in the IC packaging technology, new players are increasing their market presence thereby expanding their business footprint across the emerging economies.
- June 2019 - TTM Technologies, Inc. announced that it has agreed to acquire certain manufacturing and intellectual property assets from i3 Electronics, Inc. in order to strengthen its advanced technology PCB capabilities and IP portfolio for emerging applications in the aerospace and defense end market and high-end commercial customers.
- June 2019 - Kyocera Corporation and Vicor Corp. collaborated on developing next-generation Power-on-Package solutions to maximize performance and minimize time-to-market for emerging processor technologies. As a part of the collaboration between the two technology leaders, Kyocera will provide the integration of power and data delivery to the processor with organic packages, module substrates and motherboard designs. Vicor will provide Power-on-Package current multipliers enabling high density, high current delivery to processors.
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