Semiconductor Advanced Substrate Market - Forecasts from 2023 to 2028

The global semiconductor advanced substrate market is expected to grow at a CAGR of 11.52% during the forecast period

The printed circuit boards (PCBs) and semiconductor chips are connected by an advanced semiconductor advanced substrate, which serves as a baseboard. It has great heat dissipation performance and is cost-effective, strong, lightweight, and energy-efficient. Additionally, it boosts PCB functionality and dimensional control, reduces overall PCB weight, and offers excellent dependability and exceptional electrical qualities. Because of this, it is now commonly employed to create miniaturized electrical goods with the newest features.

Further, as the demand for high-end smartphones continues to expand significantly, the semiconductor advanced substrate market has experienced tremendous expansion.

Market Drivers:

Rising demand for miniaturization trends in the semiconductor industry

The semiconductor advanced substrate market is primarily pushed by the rapid technological advancements that have made it feasible to buy things for several uses on a single platform. The growth of computing, networking, communications, and consumer electronics has increased the demand for small, dependable semiconductor devices. The demand for the materials needed to make high-performance semiconductor components has been driven by this. Portable electronic equipment likewise requires smaller and thinner packaging strategies for space and downsizing savings. Due to highly integrated, fast-moving applications like aerospace and some consumer electronics, the necessity for improved electrical performance to lessen noise consequences is particularly obvious.

Increased research and development to aid market growth

The elements used for creating the final products have increased the significance of IC packaging in the development of electronic systems.  Due to the demand from semiconductor IC producers to devote more to research and development to make ICs smaller and more efficient, tiny electro-mechanical systems (MEMS) and 3D chip packaging have emerged, creating potential opportunities for the advanced IC substrate industry.

Increasing usage in manufacturing IOT equipment

Due to the increasing adoption of technology in both the consumer and industrial sectors, there is a growing need for loT on a global scale. Because of the rising demand, vendors are producing chipsets tailored specifically for loT. Only a few of the market's players include Altair, Huawei, Intel, Qualcomm, Samsung, Sierra, and many other top loT chipset producers. Due to the increasing number of loT devices, it is predicted that the demand for the chips used in developing loT devices will increase throughout the course of the estimated time. Along with chip downsizing, the innovation in reducing energy consumption will be a primary priority for manufacturers.

Increased Demand from consumer electronics

Manufacturers of mobile and consumer electronics are being compelled to develop smaller, more portable items by the demand for mobile phones and consumer electronics. The demand for sophisticated packaging is being driven by the expanding miniaturization trend.

Some of the key elements projected to significantly influence the adoption of advanced IC substrates during the forecast period include the increased functionality of mobile devices and consumer electronics items, as well as the rising popularity of smart gadgets and smart wearables. The need for sophisticated substrates is driven by the growing uptake of advanced technologies like AI and HPC as well as high-performance mobile devices.

Market Restraints:

The complexity of the process

The IC substrate is thin and easily deformed when a board is thinner than 0.2 mm, especially in projecting circumstances. To manage substrate warpage and lamination thickness and overcome the difficulties, advancements in board shrinking, lamination parameters, and layer positioning technologies are needed. It is also difficult because of the costs involved in upholding ideal levels of thermal, electrical, and physical limits.

Despite their benefits, the highest I/O abilities, and substrate flexibility for diverse performance needs, flip chips have not shown to be a cost-effective packaging approach. When assembly costs are taken into account, flip-chip packaging becomes a costly option. These factors hinder the semiconductor advanced substrate market size.

Asia Pacific expected to be a significant semiconductor advanced substrate market

A significant percentage of the semiconductor advanced substrate market share is occupied by Taiwan, because of the sheer number of producers there and the growing amount of money being invested in the country's semiconductor industry. Some important manufacturers, including ASE Group, Unimicron, and Kinsus, have their headquarters in Taiwan and have brisk production rates. From upstream design through downstream IDM and IC packaging and testing, as well as a skilled division of labor, the IC sector in Taiwan has a complete supply chainThe SG implementation has also spread more widely across the country. For instance, Chunghwa Telecom Co., Ltd., announced its plans to accelerate the 5G base station development in Taiwan and achieve a 96% population coverage across the nation.

Market Key Developments:

• In February 2023, Samsung Electro-Mechanics expanded the spectrum of chip products that can be utilized in autos by developing an automotive semiconductor package on an FC BGA substrate, especially for driving assistance systems. Its flip-chip ball grid array (FCBGA) can be employed with advanced driver assistance systems (ADAS), one of among the most technically challenging automotive semiconductor substrates to produce. Although many of the FCBGAs produced by Samsung Electro-Mechanics were used in PCs and cellphones, the new FCBGA will be used for high-performance autonomous driving.
• In February 2023, Matrix Electronics and Advanced Engineering (AE) planned to launch a new generation of automated robot handling and peeling systems to fabricate printed circuit boards and integrated circuit substrates. Advanced Engineering's cutting-edge PCB automation solutions and, more recently, IC substrate automation technologies continue to astound the PCB industry. The AE engineering teams focus on accelerating manufacturing for their clients with consistency and precision at their specialized shop in Hallein, Austria. They provide a full set of automation hardware and software.
• In June 2022, VIPackä, a cutting-edge packaging platform that offers vertically integrated package solutions, was introduced by ASE Group. The 3D heterogeneous integration architecture developed by ASE is being updated with the VIPackä, which achieves ultra-high performance and density while expanding design concepts.

Segmentation:

By Type

• Advanced IC Substrate
• FC BGA
• FC CSP
• Substrate-like-PCB (SLP)
• Embedded Die

By Application

• Consumer Electronics
• Automotive and Transportation
• IT and Telecom
• Others

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Indonesia
• Thailand
• Others