PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1532812
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1532812
Package Substrate Market was valued at USD 4,208.32 million in 2023, expanding at a CAGR of 5.10% from 2024 to 2032.
The substrate of the package establishes electrical connections between the chip and various circuits on the traditional PCB, while also offering protection, structural support, heat dissipation pathways for the chip, and ensuring compliance with standard installation dimensions. In recent years, technological advancements have led to a significant increase in the utilization of semiconductor package substrates such as BGA, CSP, and flip-chip (FC) across various industries. These semiconductor packaging materials are crucial in safeguarding IC chips from external factors and facilitating the electrical connection required for mounting the chips on printed wiring boards.
Package Substrate Market- Market Dynamics
The market is anticipated to experience growth due to the emergence of electric and autonomous vehicles, as well as advancements in mobile technology
Electric and autonomous vehicles necessitate advanced electronic systems, leading to a growing need for high-performance package substrates to guarantee effective electrical connections and overall device performance. The International Energy Agency reports that the electric car market is experiencing strong growth, with sales approaching 14 million in 2023. The proportion of electric cars in total sales has risen from approximately 4% in 2020 to 18% in 2023. Furthermore, ongoing developments in mobile technology, such as the evolution of 5G networks and more powerful mobile processors, are driving the demand for sophisticated package substrates. These substrates play a critical role in ensuring efficient electrical connections and overall device performance. Nevertheless, the expansion of network infrastructure, particularly in developing regions, is fueling the need for high-performance package substrates. Additionally, high manufacturing costs could impede market growth.
Package Substrate Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 5.10% over the forecast period (2024-2032)
Based on Type segmentation, FCCSP was predicted to show maximum market share in the year 2023
Based on Application segmentation, Mobile Devices was the leading type in 2023
Based on region, Asia Pacific was the leading revenue generator in 2023
The Global Package Substrate Market is segmented based on Type, Application, and Region.
The market is segmented into five categories according to Type: FCCSP, WBCSP, SiP, BOC, and FCBGA. FCCSP leads the market. FCCSP allows for the development of smaller and more condensed semiconductor packages, a key requirement for contemporary electronic devices with advanced functionality in constrained spaces.
The market is segmented into two categories according to Application: Mobile Devices, Automotive Industry, and Other sectors. Mobile Devices hold the largest market share. With the increasing power of mobile devices, effectively managing heat dissipation poses a growing challenge, necessitating ongoing innovation in substrate materials and designs.
Package Substrate Market- Geographical Insights
The market is geographically spread across North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further segmented by countries contributing to business activities. Asia Pacific stands out as the dominant market, driven by the increasing demand for consumer electronics. With a significant portion of the global population residing in the Asia Pacific region, there is a high demand for consumer electronics. China leads as the largest producer and exporter of consumer electronics worldwide, boasting the most extensive electronics manufacturing ecosystem with a labor force of nearly 150 million workers in the electrical goods sector. Following closely, Europe is the second-largest region for market growth, attributed to the growing industrial automation sector and the necessity for durable electronic components.
The competitive landscape of the Package Substrate Market is shaped by technological advancements, product innovations, manufacturing capabilities, and strategic partnerships. Firms allocate significant resources to research and development to create cutting-edge substrates that deliver superior performance, miniaturization, and reliability. The introduction of new materials such as organic substrates, along with innovative manufacturing methods like Fan-Out Wafer Level Packaging (FOWLP), plays a crucial role in maintaining a competitive advantage. Companies that offer customized solutions tailored to meet specific customer needs and provide strong technical support employ essential competitive strategies. These approaches help in establishing enduring relationships with key clients and gaining a deeper insight into market demands.
Fujitsu announced on Tuesday that it will be selling its Tokyo-listed semiconductor packaging unit, Shinko Electric Industries, to a consortium led by Japan Investment Corp. This move is part of the company's efforts to divest noncore units, and the deal is valued at 700 billion yen (USD4.8 billion).
Amkor Technology is increasing its production capacity for advanced packaging, aiming to produce 5,000 wafers of 2.5D packaging per month by the first half of 2024. This is a significant increase from the 3,000 units produced in early 2023, as reported by industry sources.
GLOBAL PACKAGE SUBSTRATE MARKET KEY PLAYERS- DETAILED COMPETITIVE INSIGHTS
Amkor Technology
ASE Group
AT&S AG
Daeduck
Eastern
Fujitsu
Hitachi
Ibiden Co., Ltd.
Kinsus
Kyocera
LG Innotek
Nan Ya Printed Circuit Board Corporation
Samsung Electro-Mechanics
Shenzhen Fastprint Circuit Tech
Shinko Electric Industries
Simmtech
TTM Technologies
Unimicron Technology Corporation
Zhen Ding Technology
Others