Advanced IC substrate industry: exciting developments on the horizon
Substrate manufacturers are expanding their capacities to support advanced packaging growth, with new entrants joining the market.
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The advanced IC substrate market, currently dominated by organic core substrates, saw revenue decline in 2023, marking a year of correction. However, starting in 2024, the industry is poised for growth, with an expected CAGR of 9% projected to bring the market to US$25.53 billion by 2029. This growth will largely be driven by the rising demand for FC[3] BGA[4] substrates for FCBGA[5] and 2.5D/3D advanced packages, fueled by AI[6] accelerators for HPC[7] and data centers, 5G, AI PC[8] CPU[9]s, XPUs, and automotive sectors.
The competition to commercialize glass core substrates is heating up, with numerous players entering the fray, striving to lead in GCS[10]-based product commercialization. Leading companies like Absolics, Intel, and Samsung are at the forefront, backed by an extensive network of equipment, material, and glass suppliers in their sub-supply chains. Exciting advancements are expected in the realm of glass core substrates. In this regard, do not miss the chance to read the Glass to enable next-gen IC substrates – An interview with Absolics by Yole Group!
In addition to its quarterly Advanced Packaging Market Monitor, and its Status of the Advanced Packaging Industry, Yole Group released its new annual Status of the Advanced IC Substrate Industry 2024 report. With this study, the market research and strategy consulting company delivers market trends and drivers, forecasts, technology roadmaps, and supply chain analysis of four advanced IC substrate platforms. It also provides an overview of the Chinese IC substrate industry.
According to Bilal H. , Ph.D., Technology and Market Analyst at Yole Group: “The core of advanced IC substrate manufacturing is concentrated in three Asian countries. However, other nations, notably China, have been making significant strides with ongoing investments since the 2021 shortage, positioning themselves to capture future market share, particularly in high-end substrates like FCBGA.”
In the U.S., domestic substrate suppliers lag the market leaders, but a government program has been established to boost U.S. substrate manufacturing. Despite efforts to diversify supply chains, strengthen local semiconductor ecosystems, and meet the demands of AI products, advanced IC substrate production will remain centered in Asia. Increased investment in expansion and new plants for high-end substrates, driven by local government incentives, especially in the U.S. and China, is expected to further this trend. New entrants have emerged in the advanced substrates market to serve AI industry leaders. For example, Zhen Ding is committing over US$1 billion by 2027 to become a global supplier of high-end substrates. Additionally, new companies are challenging Ajinomoto's dominance in ABF products.
Yole Group’s semiconductor packaging team invites you to follow the technologies, related devices, applications, and markets on www.yolegroup.com.
In this regard, do not miss Gabriela Pereira , Technology & Market Analyst, Semiconductor Packaging’s presentation, Fan-out Packaging Reaching New Heights: Market and Technology Overview at the IEEE ELECTRONICS SYSTEM-INTEGRATION TECHNOLOGY CONFERENCE – ESTC 2024 in Berlin, Germany, from September 11 to 13.
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[1] IC: Integrated Circuit(s)
[2] CAGR: Compound Annual Growth Rate
[3] FC: Flip Chip
[4] BGA: Ball Grid Array
[5] FCBGA: Flip Chip Ball Grid Array
[6] AI: Artificial Intelligence
[7] HPC: High-Performance Computing
[8] PC: Personal Computer
[9] CPU: Central Processing Unit
[10] GCS: Glass Core Substrate
Source: www.yolegroup.com