Global Advanced IC Substrate Market Worth USD 14.2 Billion With a CAGR of 6.98%

Introduction

With the proliferation of new IC types such as BGA (ball grid array) and CSP (chip scale package), which require different package carriers, IC substrate has significantly changed. A network of conductive traces and holes connects the IC chip(s) and the PCB via IC substrates. Integrated circuit substrates perform essential functions, including circuit support and protection, heat dissipation, and signal and power distribution. Packaging is a crucial aspect of contemporary ICs.

Similar to the circuit boards they attach to, they require a specific substrate. In addition to protecting the exposed IC, the substrate enables connections between the IC and the PCB's network of traces. Consequently, the substrate has a significant impact on circuit performance. It is composed of several layers and a central support core. A network of conductor pads and drill holes are also present on the IC substrate. Their density frequently exceeds that of typical PCBs. Consequently, their fabrication can be somewhat challenging.

Market Dynamics 

Increasing Usage in Manufacturing IoT Equipment Spurs the Demand for Advanced IC Substrate

The global demand for IoT is supported by both the consumer and industrial sectors, as the rising technology adoption drives the market. Vendors are producing IoT-specific chipsets due to the increase in demand. Altair, Huawei, Intel, Qualcomm, Samsung, and Sierra are only a few prominent IoT chipset manufacturers on the market. As IoT devices become more prevalent, the demand for chips used in IoT device development is expected to increase over the forecast period. The innovation of reducing energy consumption will also be a top priority for manufacturers, alongside the reduction of chip size.

The IoT enhancements are advantageous for IC substrate manufacturers. Apple intended to use TSMC's antenna in package technology and ASE's FC AiP process to package the mmWave antenna for its 5G iPhones and 5G iPads, which were released in 2020. Increased adoption of the newest semiconductor packages has resulted from expanding the Internet of Things. These packages can improve IC performance and reduce costs in various situations.

Vendors are producing more IoT-specific chipsets in response to rising demand. Altair, Huawei, Intel, Qualcomm, Samsung, and Sierra are among the market's most well-known IoT chipset manufacturers. Adopting the most recent semiconductor packages has increased in tandem with the Internet of Things, improving IC performance while lowering costs in various situations. Smart industrial automation, also known as Industry 4.0 and IoT, is a new technology strategy for developing, producing, and managing the entire supply chain. As a result of the adoption of Industry 4.0 and IoT in manufacturing, the market for substrates will expand significantly.

Trend for Miniaturization in Semiconductor Devices Creates Prospects for Advanced IC Substrate Market

Rapid technological advancements have enabled the sale of multifunctional products on a single platform. Due to advances in industries such as computing, networking and telecommunications, and consumer electronics, the demand for compact and dependable semiconductor devices has increased. This has driven the need for the materials required to produce high-performance semiconductor components. For space and size savings, portable electronic equipment also requires packaging techniques that are smaller and thinner. Due to highly integrated, high-speed applications like aerospace and some consumer devices, the need for increased electrical performance to reduce noise impacts is also apparent.

As a result of these factors for the development of final products, the role of IC packaging in developing electronic systems is growing in importance. The demand for small electronic devices is increasing in every industry, including communications, automotive, industrial manufacturing, and medical equipment. Micro electro-mechanical systems (MEMS) and 3D chip packaging have emerged due to this trend's pressure on semiconductor IC manufacturers to invest more in research & development to make ICs smaller and more efficient, resulting in the creation of potential opportunities for the industry of advanced IC substrates.

Regional Insights

Asia-Pacific will command the market during the forecast period, with Taiwan as its leading country, expanding at a CAGR of 6.2%. Taiwan holds a significant market share for advanced IC substrates due to the sheer number of manufacturers and rising investments in the semiconductor industry. Taiwan is home to several key producers, such as ASE Group, Unimicron, and Kinsus, whose rapidly growing production rates. Taiwan's IC industry possesses a complete supply chain, from upstream IC design to downstream IDM and IC packaging and testing, as well as a skilled labor division.

In January 2021, there were 120.7% more mobile connections than people in Taiwan. Moreover, 5G deployment has expanded across the nation. Chunghwa Telco, a primary telecommunications provider in Taiwan, has announced its intention to deploy 10,000 5G base stations by the end of 2021. The company announced that the construction of its 5G network is proceeding ahead of schedule. The expansion is consistent with the government assistance provided.

North America will make significant progress throughout the forecast. The sheer number of companies operating in the United States, such as Apple Inc., Dell Technologies, Intel, and others give the country a substantial share of the market for advanced IC substrates. As a result, the nation controls a significant portion of the global electronic industry. The region's electronics industry is expanding steadily and has a substantial presence in several designs and fabless manufacturing companies. The US Census Bureau forecasts that the semiconductor and other electronic component industries will generate 105.16 billion USD in revenue by 2023. Along with the semiconductor industry's growth, the demand for complex IC substrates also increases. 

Key Highlights

• The global advanced IC substrate market had a revenue holding of USD 8.26 billion in 2021. It is expected to reach USD 14.2 billion by 2030, growing at a CAGR of 6.98% during the forecast period (2022–2030).
• By type, the global advanced IC substrate market is segmented into FC BGA and FC CSP. The FC BGA section is projected to advance at a CAGR of 7.37% and hold the largest market share over the forecast period.
• By application, the global advanced IC substrate market is segmented into Mobile & Consumer, Automotive & Transportation, IT & Telecom, and Others. The Mobile & Consumer section is projected to advance at a CAGR of 6.8% and hold the largest market share over the forecast period.
• By region, the global advanced IC substrate market is analyzed across North America, Europe, Asia-Pacific, and the Rest of the World. APAC dominates the other regions.

Competitive Players

1. ASE Group
2. AT&S Austria Technologie & Systemtechnik AG
3. Siliconware Precision Industries Co. Ltd
4. TTM Technologies Inc.
5. IBIDEN Co. Ltd
6. KYOCERA Corporation
7. Fujitsu Ltd
8. STATS ChipPAC Pte. Ltd
9. Shinko Electric Industries Co. Ltd
10. Kinsus Interconnect Technology Corp.
11. Unimicron Corporation

Recent Developments

• July 2024 - With the release of their glass substrate suite, Onto Innovation Inc. (NYSE: ONTO) showcased their JetStep® X500 panel-level packaging lithography system and Firefly® G3 sub-micron automatic metrology and inspection system. The former boasts hybrid substrate handling capabilities, while the latter is ideal for panel-level packaging and advanced integrated circuit substrates (AICS).
• May 2024 - DuPont exhibited the entirety of its line of cutting-edge circuit materials and solutions at the Shanghai International Electronic Circuits Exhibition in 2024. DuPont, which offers products in the areas of fine line, signal integrity, power, and thermal management, was displayed from May 13 to May 15 at Booth #8L06 at the National Exhibition and Convention Center (NECC).

Segmentation

1. By Type
   1. FC BGA
   2. FC CSP
2. By Application
   1. Mobile & Consumer
   2. Automotive & Transportation
   3. IT & Telecom
   4. Others