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SEMI: Semiconductor packaging materials market to reach $11.7B

Posted: 16 Mar 2004 ?? ?Print Version ?Bookmark and Share

Keywords:semiconductor? semi? packaging material?

The market for semiconductor packaging materials is expected to grow from $7.9 billion in 2003 to $11.7 billion by 2008, according to SEMI and TechSearch International's latest report entitled "Global Semiconductor Packaging Materials Outlook."

The laminate substrates segment of the market which is worth $2 billion in 2003 is projected to overtake leadframes as the largest semiconductor packaging material segment in 2005.

The report also identifies important technology and business trends affecting the packaging materials market, as well as opportunities for suppliers. Some of the key findings include:

  • Tightening supply conditions are resulting in price increases for wire bond substrates in 2004, which in turn will trigger some suppliers to invest in additional manufacturing capacity.
  • Unit shipments of quad flat no-lead (QFN) leadframe packages grew 52 percent in 2003 over 2002. The report says this rapid growth will continue as existing leadframe-based manufacturing infrastructure is leveraged to serve growing demand for compact electronics such as mobile phones.
  • The shift to new resin formulations for advanced packaging has created opportunities for the suppliers of mold compounds, underfills, and liquid encapsulants. In particular, technical limitations of underfill materials for the flip chip assembly process will lead to the development of new formulations that have potential to capture a larger market share.

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