Advanced IC Substrate Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 18.11 Billion |
| Market Size (2029) | USD 31.54 Billion |
| CAGR (2024 - 2029) | 11.73 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Advanced IC Substrate Market Analysis
The Advanced IC Substrates Market size is estimated at USD 18.11 billion in 2024, and is expected to reach USD 31.54 billion by 2029, growing at a CAGR of 11.73% during the forecast period (2024-2029).
Players are continuously advancing their packaging technologies to cater to stringent requirements with a smaller footprint, higher performances, and lower power consumption. The demand for consumer electronics and mobile communication devices drives electronics manufacturers to deliver more compact and portable products.
- The increasing trend of miniaturization is driving the demand for advanced packaging. The advent of 5G, which influenced the demand over the past few years, is expected to continue as the use of FCBGA in 5G base stations and HPCs is increasing in countries adopting communication technology.
- FCBGA is expected to hold a significant share of the market demand, owing to its routing density availability, as it can be tuned for maximum electrical performance. The key players in the market are Unimicron, ASE Group, IBIDEN, and SCC. For instance, Unimicron and Kinsus are expanding their substrate capacities. Unimicron has announced that it would be investing a total of TWD 20 billion in R&D and expansion of its production capacity for advanced flip-chip substrates through 2022.
- Apart from this, the global demand for IoT, in both the consumer and industrial spaces, is expected to add to the increasing demand for the IC substrate. According to the Ericsson the In 2022, the number of short-range internet of things (IoT) devices reached 10.3 billion worldwide. That number is forecast to increase to 25 billion by 2027. The wide-area IoT devices amounted to 2.9 billion in 2021 and are predicted to reach 5.4 billion by 2027., and industrial IoT demand is expected to exceed consumer demand over the coming years. Such developments are expected to influence the market positively.
- The advanced substrate industry follows miniaturization trends, greater integration, and higher performance. Owing to this, several players across the ongoing ED and SLP packaging are making huge investments and showing an increased interest in such technologies.
- The higher power density and board integration result in thermal benefits, thereby enabling further improvements in system reliability. Such technologies bring massive value to the market due to extended adoption across automotive applications.
- They also drive 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 is expected to be the main product constituent.
- Despite the potential of IC substrates, changing preferences are likely to slow down market growth. For instance, some companies utilize a silicon interposer with multiple RDLs for a better connection between logic and HBM. Others use fan-out-on-substrate with RDLs. FCBGA needs a substrate supplier, wafer bumps, and wafer fab capacity for RDLs and assembly and testing. But FO WLP only requires assembly and wafer fabs for RDLs and wafer bumps and testing. Hence, the industry is witnessing a shift toward FOWLP.
- Amid COVID-19, and post of it the rising adoption of electric vehicles, robotic applications, sensing products such as image sensors, 5G smartphone penetration, increased demand for smart consumer electronics, medical wearables, and industry 4.0 has fueled technological advancements by increasing demand for advanced and tiny chip requirements, For instance, According to Ericsson 5G subscriptions are forecast to increase drastically worldwide from 2019 to 2028, from over 12 million to over 4.5 billion subscriptions
Advanced IC Substrate Market Trends
Mobile Devices and Consumer Electronics to Hold Major Market Share
- The demand for mobile communication devices and consumer electronics is pushing manufacturers of mobile and consumer electronics to create products that are smaller and more portable. The growing trend of miniaturization is driving demand for advanced packaging.
- The increasing functionality of mobile devices and consumer electronics products, as well as the growing popularity of smart devices and smart wearables, are some of the major factors anticipated to drive the adoption of advanced IC substrates during the forecast period. The increasing adoption of cutting-edge technologies like AI and HPC and high-performance mobile devices (including 5G) drives demand for advanced IC substrates.
- Furthermore, smartphones command a significant share of the market, and with the advent of 5G smartphones, the demand is expected to increase even further. Global companies, like Samsung, are increasingly investing in the semiconductor business to become prominent smartphone vendors in the 5G smartphone space. In January 2022, China's shipments of smartphones compatible with 5G networks increased by 63.5% to 266 million in 2021 as falling prices boosted demand, according to the report by the China Academy of Information and Communications (CAICT). The report also stated that 5G smartphone shipments accounted for 75.9% of Chinese shipments, higher than the global average of 40.7%.
- The increasing adoption of smart wearables, like smartwatches and fitness bands, and their increasing functionality are also expanding the growth of the mobile and consumer segments. According to Ericsson, the number of cellular IoT connections with critical IoT and broadband worldwide in 2022 was 1.5 billion. By 2028, the forecast is that the number of cellular IoT connections with the same connection type will continue to rise steadily each year up to 3.3 billion.
- Besides this, smart appliances are expected to see significant applications and observe growth in their sales during the forecast period, owing to the increasing penetration of smart homes. Many consumer electronic companies are also increasing their investments in the market studied to develop more energy-efficient ICs.
China to Witness Significant Growth
- China's IC industry is expected to witness rapid growth in the coming few years while calling for increasing R&D input and strengthening independent innovation as part of the broader objective to establish a relatively complete semiconductor industry chain system.
- According to WSTS and SIA, semiconductor sales in China reached 14.76 billion USD in January 2024. The January 2023 figure is a significant increase from the month of January in 2023 where sales in China reached 11.66 billion USD.
- Moreover, as per a report by CNBC in December 2022, China was working on a more than CNY 1 trillion (USD 143 billion) support package for its semiconductor industry, in a major step towards self-sufficiency in chips and to counter the United States' moves aimed at slowing its technological advances. Beijing has planned to roll out what is expected to be one of its most significant fiscal incentive packages, allocated over five years, mainly as subsidies and tax credits, to strengthen semiconductor production and research activities at home.
- Moreover, in March 2023, Thinktrans, a China-based manufacturer of IC substrates, was seeking to raise CNY 500 million to CNY 1 billion (USD 72.45 million to USD 144.9 million) in Series A funds. Thinktrans designs and manufactures IC substrates in-house and sells them directly to three groups of clients: IDMs, OSATs, and design houses. While most of the company's clients are based in Greater China, the CEO has also identified the US, Japan, and South Korea as potential markets for continued expansion.
- The growing emphasis on the semiconductor industry by the government of China is leading to an increase in demand for advanced IC substrates. The country has an aggressive growth strategy to meet 70% of China's semiconductor demand with domestic production by 2025. Additionally, the government's 14th Five-Year Plan (2021-2025) for technology independence also supports the objective.
Advanced IC Substrate Industry Overview
The advanced IC substrates market is moderately competitive and consists of a few major players. The players dominating the market are ASE Group, TTM Technologies Inc., Kyocera Corporation, Siliconware Precision Industries Co. Ltd., and Ibiden Co. Ltd. The existing players in the market are striving to maintain a competitive edge by catering to newer technologies such as 5G telecommunication, high-performance data centers, compact electronic devices, etc.
In February 2023, South Korea-based LG Innotek announced that it acclerated its business activities on a full scale to target the Flip-Chip Ball Grid Array (FC-BGA) substrate market. The company recently unveiled the latest FC-BGA for the first time at 'CES 2023'. For the development of FC-BGA, the company is actively utilizing technologies such as the ultra-fine circuit, high-integration array, high-multi-layer substrate matching, and coreless technologies.
In January 2023, LG Innotek celebrated at the brand-new Gumi plant, which will manufacture FC-BGA. LG Innotek is building the newest FC-BGA production lines in the Gumi No. 4 factory, which was purchased in June 2022 and had a total gross area of about 220,000 square meters. Innotek LG intends to accelerate the development of FC-BGA. By the first half of this year, the new plant is expected to have a sophisticated production system in place, and in the second half of 2023, full-scale production will begin.
Advanced IC Substrate Market Leaders
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ASE Kaohsiung (ASE Inc.)
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AT&S Austria Technologies & Systemtechnik AG
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Siliconware Precision Industries Co. Ltd
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TTM Technologies Inc.
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Ibiden Co. Ltd
*Disclaimer: Major Players sorted in no particular order
Advanced IC Substrate Market News
- May 2024 - SCHMID Group advances integrated circuit packaging by introducing glass cores. Teaming up with partners, SCHMID's Advanced IC Packaging Lab Solution stands out as the exclusive provider of a complete TGV lab. This lab covers all essential steps, transforming a raw glass substrate into an advanced IC package. While the primary beneficiaries currently are the rapidly expanding AI and data center sectors, the potential of glass cores extends to various high-speed computing applications, including automotive uses.
- September 2023 - Intel has unveiled cutting-edge glass substrates to address the surging computational demands. These substrates, surpassing traditional organics, boast a tenfold boost in design flexibility, a pivotal advantage in the dynamic realms of data centers and AI. The core objective of this product is to streamline the ongoing transistor scaling within a package, bolstering data-centric applications and advancing Moore's Law, which suggests a doubling of transistors in an integrated circuit every two years. These pioneering substrates are poised to enter sectors that stand to gain the most, especially in applications necessitating larger form factors (like data centers, AI, and graphics) and heightened speed capabilities.
Advanced IC Substrate Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
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4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Consumers
- 4.2.3 Threat of New Entrants
- 4.2.4 Threat of Substitutes
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Industry Value Chain Analysis
- 4.4 Assessment of the COVID-19 Impact on the Industry
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Rising Application of Advanced Substrate in Manufacturing of IoT Equipment
- 5.1.2 Increasing Trend of Miniaturization in Semiconductor Devices
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5.2 Market Restraints
- 5.2.1 Complexity in the Manufacturing Process
6. MARKET SEGMENTATION
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6.1 By Type
- 6.1.1 FC BGA
- 6.1.2 FC CSP
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6.2 By Application
- 6.2.1 Mobile and Consumer
- 6.2.2 Automotive and Transportation
- 6.2.3 IT and Telecom
- 6.2.4 Other Applications
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6.3 By Geography
- 6.3.1 United States
- 6.3.2 China
- 6.3.3 Japan
- 6.3.4 South Korea
- 6.3.5 Taiwan
- 6.3.6 Latin America
- 6.3.7 Middle East and Africa
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles*
- 7.1.1 ASE Kaohsiung (ASE Inc.)
- 7.1.2 AT&S Austria Technologies & Systemtechnik AG
- 7.1.3 Siliconware Precision Industries Co. Ltd
- 7.1.4 TTM Technologies Inc.
- 7.1.5 Ibiden Co. Ltd
- 7.1.6 Kyocera Corporation
- 7.1.7 Fujitsu Ltd
- 7.1.8 JCET Group
- 7.1.9 Panasonic Holding Corporation
- 7.1.10 Kinsus Interconnect Technology Corp.
- 7.1.11 Unimicron Corporation
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Advanced IC Substrate Industry Segmentation
IC substrates serve as the connection between the IC chip(s) and the PCB through a conductive network of traces and holes. IC substrates support critical functions, including circuit support and protection, heat dissipation, and signal and power distribution.
The advanced IC substrate market is segmented by type (FC BGA and FC CSP), application (mobile and consumer, automotive and transportation, IT and telecom), and geography (United States, China, Japan, South Korea, Taiwan, and the rest of the world). The report offers market forecasts and size in value (USD) for all the above segments.
| By Type | FC BGA |
| FC CSP | |
| By Application | Mobile and Consumer |
| Automotive and Transportation | |
| IT and Telecom | |
| Other Applications | |
| By Geography | United States |
| China | |
| Japan | |
| South Korea | |
| Taiwan | |
| Latin America | |
| Middle East and Africa |
Advanced IC Substrate Market Research FAQs
How big is the Advanced IC Substrates Market?
The Advanced IC Substrates Market size is expected to reach USD 18.11 billion in 2024 and grow at a CAGR of 11.73% to reach USD 31.54 billion by 2029.
What is the current Advanced IC Substrates Market size?
In 2024, the Advanced IC Substrates Market size is expected to reach USD 18.11 billion.
Who are the key players in Advanced IC Substrates Market?
ASE Kaohsiung (ASE Inc.), AT&S Austria Technologies & Systemtechnik AG, Siliconware Precision Industries Co. Ltd, TTM Technologies Inc. and Ibiden Co. Ltd are the major companies operating in the Advanced IC Substrates Market.
Which is the fastest growing region in Advanced IC Substrates Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Advanced IC Substrates Market?
In 2024, the Asia Pacific accounts for the largest market share in Advanced IC Substrates Market.
What years does this Advanced IC Substrates Market cover, and what was the market size in 2023?
In 2023, the Advanced IC Substrates Market size was estimated at USD 15.99 billion. The report covers the Advanced IC Substrates Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Advanced IC Substrates Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Advanced IC Substrate Industry Report
Statistics for the 2024 Advanced IC Substrate market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Advanced IC Substrate analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
