Semiconductor packaging material market to grow in 2024
Powered by strong semiconductor demand across diverse end applications, the global semiconductor packaging materials market is expected to start a growth cycle with a 5.6% compound annual growth rate (CAGR) projected through 2028, SEMI, TECHCET and TechSearch International reports.
The researchers highlight AI as an expected growth driver for advanced packaging applications, despite currently low unit volumes due to the newness of the market segment.
"After a challenging 2023, which saw a 15.5% decline in the semiconductor packaging materials market, our latest report forecasts a return to growth in 2024," said Lita Shon-Roy, TECHCET President and CEO, in a press release. "The global packaging materials market is expected to exceed USD 26 billion by 2025 and continue solid growth through 2028."
Jan Vardaman, President of TechSearch International, adds that substrates account for a large portion of the revenue for the packaging materials market, and within the category, FC-BGA substrates make up the majority of the revenue growth
"The CAGR for flip chip BGA/LGA revenue is expected to be 7.6% from 2023 to 2028. Other key growth areas include wafer-level packaging (WLP) dielectrics and flip chip underfill. The laminate substrates segment is expected to grow 7.3% annually in volume, while leadframes and bonding wire are also forecasted to recover, growing by 5.0% and 6.4%, respectively," Jan Vardaman continues.
