![Advanced IC Substrates Market Size Advanced IC Substrates Market Summary](https://s3.mordorintelligence.com/advanced-ic-substrates-market/advanced-ic-substrates-market-size-image-1735457702743.webp)
Study Period | 2019 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Market Size (2025) | USD 20.23 Billion |
Market Size (2030) | USD 35.23 Billion |
CAGR (2025 - 2030) | 11.73 % |
Market Concentration | Low |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
Advanced IC Substrates Market Analysis
The Advanced IC Substrates Market size is estimated at USD 20.23 billion in 2025, and is expected to reach USD 35.23 billion by 2030, at a CAGR of 11.73% during the forecast period (2025-2030).
The advanced IC substrates industry is experiencing significant transformation driven by technological advancements and infrastructure developments. Global sales of semiconductor substrate manufacturing equipment reached a new milestone of USD 108.5 billion in 2022, representing a 5.9% increase from the previous year, indicating robust industry growth. This expansion is further supported by substantial investments in manufacturing facilities, with 33 new semiconductor manufacturing facilities starting construction in 2022, followed by 28 more planned for 2023, demonstrating the industry's commitment to expanding production capabilities and meeting growing demand.
The telecommunications sector is emerging as a crucial driver for advanced IC substrates, particularly in the context of 5G infrastructure deployment. According to Ericsson's forecasts, 5G subscriptions are expected to surge to over 4.5 billion by 2028, necessitating substantial investments in infrastructure and creating increased demand for semiconductor substrates in base stations and high-performance computing applications. This evolution is prompting manufacturers to develop more sophisticated substrate solutions that can handle higher frequencies and increased data processing requirements.
The industry is witnessing significant technological advancement in manufacturing processes and automation. In February 2023, Matrix Electronics and Advanced Engineering introduced new automated robot handling and peeler systems for producing printed circuit boards and integrated circuit substrates, representing a significant step forward in manufacturing efficiency. Similarly, Samsung Electro-Mechanics has expanded its technological capabilities by developing specialized FC-BGA substrates for advanced driver assistance systems (ADAS) in March 2023, demonstrating the industry's adaptation to emerging automotive applications and the growing advanced semiconductor packaging market.
The Internet of Things (IoT) ecosystem continues to drive substantial demand for advanced IC substrates. The global short-range IoT device market reached 10.3 billion units in 2022 and is projected to expand to 25 billion by 2027, indicating significant growth potential for substrate manufacturers. This growth is complemented by major infrastructure investments, such as South Korea's March 2023 announcement to create the world's largest semiconductor base over the next two decades, with private-sector investments of approximately USD 228 billion, highlighting the industry's long-term growth trajectory and commitment to technological advancement in advanced semiconductor packaging and IC packaging materials.
Advanced IC Substrates Market Trends
Rising Application of Advanced Substrate in Manufacturing of IoT Equipment
The increasing proliferation of Internet of Things (IoT) devices across various industries is creating substantial demand for advanced semiconductor substrates. According to Ericsson's latest projections, cellular IoT connections are expected to reach 3.3 billion by 2028, representing significant growth from 1.5 billion connections in 2022. This explosive growth in IoT connectivity is driving manufacturers to develop more sophisticated semiconductor substrates capable of supporting the complex requirements of IoT equipment, including enhanced processing capabilities, improved power efficiency, and reliable connectivity features. The integration of advanced ABF substrates in IoT manufacturing enables the development of smaller, more efficient devices while maintaining optimal performance and reliability.
The advancement in IoT applications across healthcare, manufacturing, defense, consumer, automotive, and industrial sectors is creating new opportunities for IC substrate manufacturers. These applications require various technologies developed for the Internet, portable consumer products, and large-scale computing, necessitating sophisticated semiconductor industry technologies. The chip requirement for building IoT devices is experiencing unprecedented growth, particularly in applications such as connected medicine, smart transport systems, and industrial automation. This trend is further supported by major technology companies investing in IoT-specific chipsets, with vendors like Altair, Huawei, Intel, Qualcomm, Samsung, and Sierra actively developing specialized solutions for the IoT market.
Increasing Trend of Miniaturization in Semiconductor Devices
The semiconductor industry is witnessing a significant push toward miniaturization, with major companies focusing on developing smaller, more powerful semiconductor components that consume less power. This trend is particularly evident in the mobile and consumer electronics sector, where manufacturers are constantly striving to create more compact and efficient devices. The rapid advancement in technology has led to the availability of products that incorporate multiple features on a single platform, creating an increasing need for small, robust semiconductor devices. This miniaturization trend is driving innovations in IC packaging material technology, particularly in applications like RF/wireless devices, consumer electronics, and data center/edge computing.
The demand for improved electrical performance and noise reduction in highly integrated, high-speed applications is becoming increasingly critical, especially in aerospace and consumer electronics sectors. Portable electronic equipment requires smaller, thinner packaging systems to save space, making miniaturization a central factor in electronic systems development. This trend is further exemplified by recent developments in the industry, such as Samsung Electro-Mechanics' creation of automotive semiconductor package FC BGA substrates specifically for driving assistance systems in February 2023, demonstrating the industry's commitment to advancing miniaturization while maintaining high performance. The development of ultra-advanced chips continues to push the boundaries of miniaturization, with companies like Taiwan Semiconductor Manufacturing Co. planning to produce 2-nanometer chips by 2025.
Segment Analysis: By Type
FC BGA Segment in Advanced IC Substrates Market
The FC BGA (Flip Chip Ball Grid Array) segment continues to dominate the Advanced IC Substrates market, holding approximately 61% market share in 2024. This significant market position is driven by FCBGA substrate's superior electrical conductivity and faster performance capabilities compared to other BGA substrate types. The segment's prominence is particularly evident in high-performance computing applications, including server processors, artificial intelligence chips, and graphics processing units. Major manufacturers like Samsung Electro-Mechanics and LG Innotek have significantly expanded their FC BGA production capabilities to meet the growing demand from data centers, gaming consoles, and automotive applications. The segment's growth is further supported by its widespread adoption in network devices, AI processors, and electric automotive infotainment systems, where high-density interconnects and superior thermal performance are crucial requirements.
![Market Analysis of Advanced IC Substrates Market: Chart for By Type](https://s3.mordorintelligence.com/advanced-ic-substrates-market/advanced-ic-substrates-market-Advanced-IC-Substrates-Market-Market-Share-by-Type-Segment-2024-1737047948810.webp)
FC CSP Segment in Advanced IC Substrates Market
The FC CSP (Flip Chip Chip Scale Package) segment is emerging as the fastest-growing segment in the Advanced IC Substrates market, with a projected growth rate of approximately 13% during 2024-2029. This accelerated growth is primarily driven by the increasing demand for miniaturized electronic devices and the rising popularity of smart wearables. The segment's expansion is further fueled by its crucial role in applications where both performance and form factors are essential, particularly in 5G-enabled devices, advanced driver-assistance systems (ADAS), and high-performance mobile devices. The segment's growth trajectory is supported by continuous technological advancements in flip chip substrate manufacturing processes, enabling optimized electrical paths for high-frequency signals and making FC CSP particularly suitable for baseband, RF, and in-substrate antenna applications.
Segment Analysis: By Application
Mobile and Consumer Segment in Advanced IC Substrates Market
The Mobile and Consumer segment dominates the Advanced IC Substrates market, commanding approximately 63% market share in 2024. This significant market position is driven by the increasing functionality of mobile devices and consumer electronics products, along with the growing popularity of smart devices and smart wearables. The segment's growth is further bolstered by the rising adoption of cutting-edge technologies like AI and high-performance computing (HPC) in mobile devices, particularly with the advancement of 5G smartphones. The demand is also being fueled by the increasing adoption of smart wearables like smartwatches and fitness bands, along with their expanding functionality. Additionally, smart appliances are experiencing substantial growth in their applications due to the increasing penetration of smart homes, with many consumer electronic companies increasing their investments in developing more energy-efficient ICs.
IT and Telecom Segment in Advanced IC Substrates Market
The IT and Telecom segment is projected to be the fastest-growing segment in the Advanced IC Substrates market, with an expected growth rate of approximately 14% during 2024-2029. This remarkable growth is primarily driven by the expanding 5G infrastructure investments, increasing number of data center servers, growing IoT connections, and continuous advancements in networking devices. The segment's growth is further accelerated by the rising demand for high-performance computing applications and the deployment of advanced networking technologies. The expansion of data centers globally presents significant opportunities for market vendors, particularly with the increasing adoption of GPUs in emerging applications including HPC, Blockchain, and AI/ML. The segment is also benefiting from the advancements in IP-based services like IPTV, triple play, and VoIP, which are creating new application avenues for advanced IC substrates.
Remaining Segments in Advanced IC Substrates Market
The Automotive and Transportation segment, along with Other Applications (including Healthcare, Infrastructure, Aerospace, and Defense), complete the market landscape for Advanced IC Substrates. The Automotive and Transportation segment is experiencing significant growth driven by the increasing adoption of ICs in electric automotive applications, particularly in autonomous vehicles, connected cars, infotainment systems, and Advanced Driver Assistance Systems (ADAS). The Other Applications segment encompasses diverse industries such as healthcare, where connected healthcare solutions are driving demand, aerospace and defense applications requiring high-end accelerometers and advanced networking equipment, and industrial applications benefiting from the growth of Industry 4.0 and IoT integration. These segments collectively contribute to the market's diversification and technological advancement.
Advanced IC Substrates Market Geography Segment Analysis
Advanced IC Substrates Market in Taiwan
Taiwan dominates the global advanced IC substrates market, commanding approximately 45% of the market share in 2024. The country's prominence in this sector is anchored by the presence of major manufacturers such as ASE Group, Unimicron, and Kinsus, which consistently demonstrate significant production capabilities. Taiwan's semiconductor ecosystem is particularly robust, featuring an intricate network of packaging and testing companies that support the semiconductor substrate industry. The country's technological leadership is further reinforced by its advanced manufacturing capabilities, particularly in high-density interconnect (HDI) and substrate-like PCB technologies. Taiwan's success in this sector is also attributed to its strong focus on research and development, with many companies investing heavily in next-generation substrate technologies. The government's supportive policies and strategic initiatives have created an environment conducive to innovation and growth in the semiconductor industry. Furthermore, Taiwan's geographic positioning and established relationships with global technology leaders have helped maintain its competitive edge in the advanced IC substrates market.
![Market Analysis of Advanced IC Substrates Market: Forecasted Growth Rate by Region](https://s3.mordorintelligence.com/advanced-ic-substrates-market/advanced-ic-substrates-market-Advanced-IC-Substrates-Market-Forecasted-Five-Year-Growth-Rate-By-Region-1737128984002.webp)
Advanced IC Substrates Market in China
China's advanced IC substrates market is experiencing remarkable growth, projected to expand at approximately 14% annually from 2024 to 2029. The country's aggressive growth strategy in the semiconductor industry is driven by its ambitious goal to meet 70% of domestic semiconductor demand through local production. China's market dynamics are shaped by a mix of domestic manufacturers like Shennan Circuits Company and international players who have established production facilities within the country. The government's substantial investment in semiconductor infrastructure, including a reported trillion-yuan support package, demonstrates its commitment to achieving technological self-sufficiency. Chinese manufacturers are rapidly advancing their capabilities in high-end substrate technologies, particularly in FCBGA substrates production. The country's focus on developing indigenous technological capabilities, coupled with its massive domestic market, positions it as a crucial player in the global advanced IC substrates landscape. Additionally, China's strategic emphasis on emerging technologies like 5G, artificial intelligence, and electric vehicles is creating sustained demand for advanced IC substrates.
Advanced IC Substrates Market in South Korea
South Korea has established itself as a powerhouse in the advanced IC substrates market, driven by its comprehensive semiconductor ecosystem and strategic investments. The country's market is characterized by the strong presence of major players like Samsung Electro-Mechanics and other key manufacturers who are continuously expanding their production capabilities. South Korean companies are particularly focused on developing cutting-edge technologies in FCBGA substrates, especially for applications in high-performance computing and automotive electronics. The nation's technological prowess is supported by robust research and development initiatives, with companies investing heavily in next-generation substrate technologies. The government's supportive policies, including significant investments in semiconductor infrastructure, have created a favorable environment for market growth. South Korean manufacturers are also at the forefront of developing advanced packaging solutions, particularly for 5G applications and artificial intelligence processors. The country's strong integration with global supply chains and its strategic partnerships with international technology leaders further enhance its market position.
Advanced IC Substrates Market in United States
The United States is strategically positioning itself to strengthen its presence in the advanced IC substrates market through focused initiatives and investments. The implementation of the CHIPS Act has created a robust framework for developing domestic semiconductor capabilities, including advanced packaging and coreless substrates technologies. American companies are increasingly focusing on high-value applications, particularly in areas such as artificial intelligence, data centers, and defense applications. The country's market is characterized by strong research and development capabilities, with numerous collaborations between industry leaders and academic institutions. The United States is particularly focused on developing next-generation substrate technologies that can support advanced computing applications. The emphasis on securing supply chains and reducing dependence on foreign manufacturers has led to increased investments in domestic production capabilities. Furthermore, the presence of major technology companies and their growing demand for advanced IC substrates is driving innovation and market growth in the country.
Advanced IC Substrates Market in Other Countries
The advanced IC substrates market extends beyond the major players to include significant contributions from other regions, particularly Japan and various European countries. Japan maintains a strong position through companies like Ibiden and Kyocera, which are known for their high-quality BGA substrates manufacturing capabilities. European countries, particularly Austria through AT&S, are emerging as important players in the market with significant investments in advanced manufacturing facilities. These regions are characterized by their focus on specialized applications and high-value market segments. The market in these countries is driven by strong research and development capabilities, established manufacturing infrastructure, and growing demand from various end-use industries. Their strategic focus on innovation and quality has enabled them to maintain competitive positions in specific market niches, particularly in automotive and industrial applications. The diverse technological capabilities and specialized expertise of these countries contribute significantly to the global advanced IC substrates ecosystem.
Advanced IC Substrates Industry Overview
Top Companies in Advanced IC Substrates Market
The advanced IC substrates market is characterized by intense innovation and strategic expansion among key players, including ASE Group, AT&S, Siliconware Precision Industries, TTM Technologies, Ibiden, Kyocera Corporation, Fujitsu, JCET Group, Panasonic, Kinsus, and Unimicron. Companies are heavily investing in research and development to advance their substrate technologies, particularly focusing on miniaturization, greater integration, and higher performance capabilities. The industry demonstrates strong operational agility through strategic manufacturing locations across Asia Pacific, Europe, and North America to meet regional demand efficiently. Market leaders are pursuing aggressive capacity expansion through new facility construction and existing plant upgrades, particularly in emerging markets. Strategic collaborations with semiconductor manufacturers and technology providers have become increasingly common to strengthen market positions and enhance technical capabilities.
Asian Dominance Shapes Market Competition Dynamics
The advanced IC substrates market exhibits a relatively consolidated structure dominated by established Asian manufacturers, particularly from Taiwan, Japan, South Korea, and China. These companies leverage their strong technological capabilities, extensive manufacturing experience, and proximity to major semiconductor manufacturing hubs to maintain their market positions. The industry is characterized by high barriers to entry due to substantial capital requirements, complex manufacturing processes, and the need for advanced technological expertise, which has led to the emergence of specialized players alongside diversified electronics conglomerates.
The market has witnessed significant merger and acquisition activities as companies seek to expand their technological capabilities and geographic presence. Major players are actively pursuing vertical integration strategies to strengthen their position in the semiconductor value chain, while also forming strategic partnerships with key customers in high-growth segments such as 5G, automotive electronics, and high-performance computing. The industry structure is further influenced by government initiatives and policies, particularly in Asian countries, which provide substantial support for domestic semiconductor ecosystem development.
Innovation and Adaptability Drive Future Success
Success in the advanced IC substrates market increasingly depends on companies' ability to innovate and adapt to rapidly evolving technological requirements. Market leaders are focusing on developing next-generation substrate technologies to address the growing demand for higher performance, smaller form factors, and improved thermal management capabilities. Companies are also investing in advanced manufacturing processes and automation to improve production efficiency and quality while reducing costs. The ability to maintain strong relationships with key customers and adapt to their changing requirements has become crucial for maintaining market share.
For new entrants and smaller players, success lies in identifying and focusing on specific market niches where they can develop specialized expertise and competitive advantages. The industry faces challenges from the high concentration of buyers in the semiconductor industry and the growing threat of substitute technologies such as wafer-level packaging. Regulatory compliance, particularly regarding environmental standards and trade restrictions, is becoming increasingly important for maintaining market access and competitive positioning. Companies must also manage supply chain risks and maintain sufficient capacity to meet fluctuating demand patterns while ensuring long-term sustainability. The role of semiconductor substrates and IC packaging materials is critical in this context, as these components are essential for advanced semiconductor packaging solutions.
Advanced IC Substrates 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
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Advanced IC Substrates Market News
- March 2024: AST, a subsidiary of TOPPAN Holdings Inc., a renowned Japanese printing technology pioneer and a prominent supplier of top-notch FC-BGA substrates, commenced the construction of its new factory on Pesawat Drive, close to Jurong Lake District in Singapore. This state-of-the-art facility will be the pioneering manufacturing hub in Singapore for high-end FC-BGA substrates, which are integral components in cutting-edge semiconductor products like network switches and artificial intelligence (AI)/machine learning (ML) devices.
- February 2024: Intel Corporation introduced Intel Foundry as a more eco-friendly systems foundry business tailored for the AI era. Additionally, it revealed an enhanced process roadmap aimed at securing a prominent position in the industry until the end of this decade. The company also disclosed the incorporation of Intel Foundry FCBGA 2D+ into its wide range of ASAT offerings, which already consist of FCBGA 2D, EMIB, Foveros, and Foveros Direct. Intel Foundry intends to introduce a new node every two years, along with node advancements, providing customers with a continuous path to enhance its products using Intel's cutting-edge process technology.
- November 2023: AT&S announced its collaboration with semiconductor giant AMD by providing top-notch IC substrates. These substrates, crafted by AT&S, play a crucial role in enhancing the performance and energy efficiency of AMD's cutting-edge data center processors. These processors are set to revolutionize the digital landscape, enabling transformative experiences ranging from AI to VR. In response to the ever-growing need for robust and sustainable computing solutions, AMD continuously pushes the boundaries of chip design and packaging innovation, resulting in faster and more energy-efficient chips.
Advanced IC Substrates 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 Impact of Macro Economic trends 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 Rest of the World
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
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Advanced IC Substrates 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, application, and geography. By type, the market is divided into FC BGA and FC CSP. By application, the market is segmented into mobile and consumer, automotive and transportation, IT and telecom, and other applications such as healthcare, infrastructure, aerospace, and defense. By geography, the market is segmented into the United States, China, Japan, South Korea, Taiwan, and Rest of the World. The market sizes and forecasts are provided in terms of value (USD) for all the 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 | |
Rest of the World |
Advanced IC Substrates Market Research Faqs
How big is the Advanced IC Substrates Market?
The Advanced IC Substrates Market size is expected to reach USD 20.23 billion in 2025 and grow at a CAGR of 11.73% to reach USD 35.23 billion by 2030.
What is the current Advanced IC Substrates Market size?
In 2025, the Advanced IC Substrates Market size is expected to reach USD 20.23 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.
What years does this Advanced IC Substrates Market cover, and what was the market size in 2024?
In 2024, the Advanced IC Substrates Market size was estimated at USD 17.86 billion. The report covers the Advanced IC Substrates Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Advanced IC Substrates Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Advanced IC Substrates Market Research
Mordor Intelligence provides a comprehensive analysis of the advanced semiconductor packaging industry. We leverage our extensive expertise in semiconductor substrate technologies and manufacturing processes. Our detailed research covers critical components, including ABF substrate technologies, BGA substrate implementations, and FCBGA substrate solutions. The report offers an in-depth analysis of emerging technologies such as coreless substrate development and flip chip substrate innovations. It is available in an easy-to-download report PDF format.
Our research offers stakeholders valuable insights into IC packaging material trends and build up substrate technologies that are shaping the advanced semiconductor packaging market. The report delivers actionable intelligence for manufacturers, suppliers, and investors. It features detailed technical specifications, competitive analysis, and future growth projections. Stakeholders gain a comprehensive understanding of market dynamics, technological advancements, and strategic opportunities through our meticulously researched data and expert analysis.