Global Semiconductor and IC Packaging Materials Market to Reach $34.3 Billion by 2026

Semiconductor or integrated circuit (IC) packaging materials are advanced electronic solutions intended to connect an IC chip to package substrates, another packages or a printed circuit board (PCB). These materials hold critical significance for semiconductor wafer-level packaging, 3D integration and heterogeneous integration technologies. The semiconductor industry continues to become more and more complex and dynamic due to ever-changing technology trends in the electronics sector. Continuous technology developments and breakthrough understanding in the electronics, over the decades have helped improvements in semiconductors industry in terms of technology and materials used, making it indispensable in a wide range of applications. Global market for semiconductors is driven by major end-use application markets such as building & home automation, industrial automation, medical devices, and aerospace. Rapid advances in electronics technology like cloud computing, AI and smart automobiles are creating the requirement of high-integration, high-speed ICs that score high in terms of energy efficiency. These developments along with increasing thinning and miniaturization of electronic devices such as wearable devices and smart phones are driving the need for semiconductor packages featuring high density and multilayer, low profiles.

Amid the COVID-19 crisis, the global market for Semiconductor and IC Packaging Materials estimated at US$25 Billion in the year 2020, is projected to reach a revised size of US$34.3 Billion by 2026, growing at a CAGR of 5.3% over the analysis period. Organic Substrates, one of the segments analyzed in the report, is projected to grow at a 5.8% CAGR to reach US$10.7 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Bonding Wires segment is readjusted to a revised 4.9% CAGR for the next 7-year period. This segment currently accounts for a 18.6% share of the global Semiconductor and IC Packaging Materials market.

The U.S. Market is Estimated at $3.2 in 2021, While China is Forecast to Reach $8.7 Billion by 2026

The Semiconductor and IC Packaging Materials market in the U.S. is estimated at US$3.2 Billion in the year 2021. The country currently accounts for a 12.84% share in the global market. China, the world`s second largest economy, is forecast to reach an estimated market size of US$8.7 Billion in the year 2026 trailing a CAGR of 6.2% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 3.5% and 4.6% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 4.1% CAGR while Rest of European market (as defined in the study) will reach US$9.2 Billion by the end of the analysis period. Digital transformation is now visible in all industrial sectors. Over 60% of companies in North America, Europe and Asia expect to witness a higher velocity of change in digital transformation during the years 2020 through 2023, thus creating demand for semiconductor and IC packaging materials.

Lead frames Segment to Reach $4.2 Billion by 2026

In the global Lead frames segment, USA, Canada, Japan, China and Europe will drive the 3.2% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$2.2 Billion in the year 2020 will reach a projected size of US$2.7 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$1.5 Billion by the year 2026.