Semiconductor Advanced Substrate Market Size (2024 - 2029)

Semiconductor Advanced Substrate Market Analysis

The Semiconductor Advanced Substrate Market is expected to register a CAGR of 6.81% during the forecast period(2024-2029).

As the demand for IoT devices is increasing, it further drives the growth of advanced substrates in manufacturing IoT equipment. Further, the demand for consumer electronics and mobile communication devices drives electronics manufacturers to deliver more compact and portable products.

• IC packaging provides physical/mechanical support for the device and is also responsible for the interconnection between the chip and external terminal, such as the printed circuit board (PCB). The encapsulation helps in the prevention of physical damage and corrosion of the metallic parts. The type of package used in manufacturing IC depends on various parameters such as power dissipation, size, cost, and other requirements.
• 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 that adopt communication technology worldwide.
• The consumer and industrial sectors are driving IoT demand globally, as the technology's rising use drives demand from both sectors. According to Ericsson Mobility Report, the number of IoT devices with cellular connections is expected to reach 5.5 billion by 2027, compared to 1.9 billion at the end of 2021.
• Further, by 2050, it is expected that there will be around 24 billion interconnected devices, with almost every object connected to IoT. Such a growing trend is propelling the demand for advanced substrates market over the forecast period.
• Vendors in the market are making strategic investments to stronghold their market presence. For instance, in Feb 2022, LG Innotek announced to spend KRW 413 billion (~USD 311.56 Million) on manufacturing flip-chip ball grid array (FC-BGA). Further, Compatriots Daeduck Electronics and Korea Circuit had previously announced spending plans of KRW 400 billion (~USD 301.61 million) and KRW 200 billion (~USD 150.78 million), respectively. Whereas, Samsung Electro-Mechanics, which already manufactures FC-BGA, last year announced another KRW 1 trillion (~USD 754 million) spending plan in the sector.
• Despite the effects of the COVID-19 pandemic, the global semiconductor market observed robust growth in the latter half of 2020, which continued in 2021 and 2022 as well. The industry was riddled with a high deficit and increasing demand, which led to a significant supply chain gap that was primarily attributed to the COVID-19 pandemic. The initial spread of the virus led to the shutting down or the reduction of foundry capacity utilization, fearing the decreasing demand for the chips across major sectors, like consumer electronics. The diminished output led to a global shortage of semiconductors as the demand increased despite the initial estimates by semiconductor foundries.

Semiconductor Advanced Substrate Industry Segmentation

Advanced Substrate provides vertically integrated solutions for sophisticated and unique microelectronics packaging requirements in Silicon Photonics, Chip on Board Packages for Medical, Defense, IoT Sensors, Telecom, and Commercial applications.

The scope of the report covers the segmentation of advanced Substrate based on platform type, End-user, and Geography. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study further analyzes the overall impact of COVID-19 on the ecosystem. The semiconductor advanced substrate market is segmented by platform (advanced IC substrate (product category (FC BGA, FC CSP)), substrate-like-PCB (end-user application (smartphone)), embedded die (mobile, automotive)) and geography (Japan, China, Taiwan, United States, Korea, Rest of the World). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.