Advanced IC Substrates Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 18.11 Billion |
| Market Size (2029) | USD 31.54 Billion |
| CAGR (2024 - 2029) | 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 18.11 billion in 2024, and is expected to reach USD 31.54 billion by 2029, growing at a CAGR of 11.73% during the forecast period (2024-2029).
- IC substrates play a crucial role in connecting IC chips to the PCB by utilizing a conductive network of traces and holes. They are essential for supporting various functions like circuit support, protection, heat dissipation, and signal and power distribution. The advancement in IC technology, with the introduction of new types like BGA and CSP, has led to the evolution of IC substrates to accommodate different package carriers. The increasing demand for 5G-enabled smartphones and growing investments in the field of smart wearables are expected to drive the market's growth.
- Ever since the electronics industry embraced IC substrates a few decades ago, they have been utilized in various applications, ranging from personal computers and smartphones to high-performance computing (HPC) and other electronic systems. The substrate technology has progressed from early lead frame, wire-bonding ball grade array (BGA), and chip scale packaging (CSP) to flip chip (FC) BGA, FCCSP, and even more advanced technologies like CoWoS, embedded die in IC substrate. The increasing demand for global IoT is driven by both consumer and industrial industries. In these industries, the demand for IC substrates is also rising due to the expanding applications of the technology.
- As artificial intelligence (AI), machine learning (ML), and 5G networks continue to advance, the volume of data being generated increases substantially each year. This rapid expansion of data will necessitate the enhancement of current networking, data processing, and storage systems, leading to a greater need for high-speed and high-frequency devices. Consequently, miniaturization, increased integration, and improved performance have emerged as crucial technological priorities for the development of advanced substrates. Numerous companies have made investments in advanced substrates to cater to the growing global market demand.
- The advanced IC substrates market has experienced notable expansion, given its reliance on the continued growth of high-end smartphones. With the market for smartphones and consumer electronics reaching a saturation point, manufacturers of substrates are striving to broaden their market reach by enhancing technology processing to improve performance and form factor. Consequently, the integration of SLP technology in high-end consumer electronics like smartwatches and tablets is expected to propel the use of advanced IC substrates.
- Advancements in automotive technology are propelling the semiconductor industry and its packaging applications. With the emergence of smart vehicles that enable autonomous driving and various driver-assisted functionalities, the demand for innovative packaging solutions is on the rise. The shift toward electric vehicles on a global scale is also contributing to the growth of advanced packaging technologies, consequently boosting the market for advanced IC substrates. For instance, As per the International Energy Agency (IEA), in the Net Zero Scenario, electric vehicle sales are projected to account for approximately 65% of the total car sales by 2030. Furthermore, the global electric vehicle fleet is expected to grow significantly, reaching a staggering 350 million vehicles by the same year.
- In February 2023, Samsung Electro-Mechanics created an automotive semiconductor package on an FC BGA substrate specifically for driving assistance systems, expanding the range of chip products that can be used in automobiles. Advanced driver assistance systems (ADAS), one of the most technically difficult automotive semiconductor substrates to develop, can be used with its flip-chip ball grid array (FCBGA). Although many of Samsung Electro-Mechanics' FCBGAs were used in PCs and smartphones, the new FCBGA will be used for high-performance autonomous driving.
- Furthermore, the implementation of different government programs aimed at boosting the local production of electronic components and fostering domestic manufacturing is projected to significantly influence the expansion of the advanced IC substrates market. Additionally, South Korea introduced the K-Chips Act in March 2023, allocating a substantial investment of USD 422 billion toward chips and other strategic industries. Such government initiatives in boosting local production across other countries like Malaysia, India, and the United States are expected to increase the demand for advanced IC substrates in the coming years.
- The market encounters various obstacles, extending beyond technical hurdles. It is confronted with exceptionally rigorous technical demands and numerous patent limitations, which have established a formidable benchmark. The establishment, production, and subsequent functioning of the IC substrate production line all demand substantial financial investment, with equipment capital investment being the most substantial aspect.
- The COVID-19 pandemic led to significant shifts in the market foundations, impacting customer behavior, business revenues, and corporate operations. This crisis expedited the integration of automation and Industry 4.0 technologies in factories, driving growth in the chip industry and boosting sales. Due to the pandemic, there was a notable increase in the demand for semiconductor chips across various industries, fueling the necessity for advanced IC substrates.
Advanced IC Substrates Market Trends
Mobile Devices and Consumer Electronics Are Expected to Hold Major Market Shares
- The need for mobile communication devices and consumer electronics is compelling mobile and consumer electronics manufacturers to develop smaller and more portable products. The rising inclination toward miniaturization is the main driver behind the demand for advanced packaging. The expanding capabilities of mobile devices and consumer electronics, along with the surging popularity of smart devices and smart wearables, are expected to significantly contribute to the adoption of advanced IC substrates in the projected timeframe.
- The selection of the package for an integrated circuit (IC) is influenced by various factors such as power dissipation, size, price, and other considerations. With the increasing demand for 5G-enabled smartphones and smart wearables worldwide in the coming years, the requirement for advanced IC substrates is expected to increase. Additionally, the growing adoption of state-of-the-art technologies like AI and HPC, along with high-performance mobile devices, including 5G, is fueling the demand for sophisticated IC substrates.
- The global demand for smartphones is projected to witness growth as a result of factors such as the increasing usage of the Internet, the intense promotional campaigns by smartphone manufacturers, and the rising number of subscriptions to social media platforms. Smartphones hold a substantial market share, and the introduction of 5G smartphones is expected to further drive the demand. Renowned global companies like Samsung are investing significantly in the semiconductor industry to establish themselves as prominent vendors in the 5G smartphone market.
- Ericsson reported that the global count of smartphone mobile network subscriptions reached nearly 6.4 billion in 2022; the figure is expected to surpass 7.7 billion by 2028. Notably, China, India, and the United States have the highest number of smartphone mobile network subscriptions. The widespread adoption of 5G technology continues to accelerate, with 1.6 billion connections already established worldwide. According to GSMA Intelligence, this figure is expected to rise to 5.5 billion by 2030. These factors are likely to lead to increased product demand.
- The surge in demand for 5G-capable devices like smartphones is fueling the growth of 5G penetration. According to GSMA, one-third of the global population is expected to have access to 5G networks by 2025. These escalating numbers of communication devices and mobile subscriptions would consequently boost the demand for IC substrates. The proliferation of IoT applications in a wide range of consumer devices led to a rise in smart devices and compact semiconductors, thereby boosting the need for sophisticated IC substrates.
- Numerous companies are producing energy-efficient integrated circuits (ICs), particularly for the consumer electronics industry. Graphics processing units (GPUs), PCs, gaming laptops, and various portable devices have evolved to become viable solutions for a range of emerging applications such as high-performance computing, blockchain, and AI/ML. The increasing need for neural processing units (NPU) to offload tasks from CPUs and other system-on-chip (SoC) components, particularly during AI data processing, is projected to drive up the market demand.
- Increasing investments by the manufacturers of consumer electronics are further expected to increase the potential of the market. In January 2023, LG Innotek organized an event at its newly established Gumi facility, where it was expected to produce FC-BGA. The manufacturing of the flip-chip ball grid array (FC-BGA) is scheduled to commence in February 2023. Following this initial phase, the second phase will commence in 2026. LG Innotek aimed to enhance its FC-BGA production capacity to 7.3 million units per month in 2023; it expects to further increase it to 15 million units per month in 2026.
The United States is Expected to Witness Significant Growth
- The United States is poised for significant expansion in the market over the coming years, necessitating a greater focus on research and development and enhancing independent innovation to build a comprehensive semiconductor industry chain system. The advancement in the region's semiconductor industry, coupled with the enactment of the CHIPS Act to enhance domestic production, led to a surge in demand for advanced IC substrates. The increasing need for these substrates in industries such as automotive and mobile is anticipated to propel the market forward.
- The expansion is driven by the rise in connected and consumer electronics, along with companies' focus on improving quality and offering comprehensive testing solutions. The demand for high-performance, affordable, versatile, and highly integrated chips is expected to grow alongside the increasing sales of consumer electronics, requiring advanced assembly and packaging solutions. As per CTA, smartwatch sales reached USD 7.1 billion in 2022, marking an 8% increase compared to 2021. Moreover, the consumer electronics market experienced growth due to the expansion of 5G, with 5G devices estimated to make up 73% of smartphone shipments in 2023.
- Increasing investments and EV sales in the region's automotive industry are expected to influence the market's growth. The EV market in the United States is thriving, with impressive sales figures. According to COX Enterprise, the sales of battery electric vehicles in the country reached a remarkable 258,900 units in the first quarter of 2023. This represented a substantial year-over-year growth of around 44.9% compared to the figures from the same period in 2022. The first quarter of 2023 surpassed the fourth quarter of 2022, making it the most successful quarter for BEV sales in the country over the previous two years.
- The market's growth is expected to be driven by the increasing efforts to promote the adoption of EVs. According to the IEA, California enforced new ZEV mandates for cars and trucks in 2022 and 2023. These mandates established a minimum sales requirement for ZEVs in the passenger LDV category, with the goal ranging from 35% in 2026 to 100% in 2035. Furthermore, milestones have been set for the sale of zero-emission heavy-duty vehicles (HDVs), with the aim of achieving 100% adoption between 2035 and 2042, depending on the specific vehicle segment. These factors contribute to the rise in EV adoption and will generate more demand for IC substrates.
- The region's chip production capabilities will be enhanced as a result of the growing government efforts to promote semiconductor R&D activities. This, in turn, will drive the market demand. In February 2024, the US government made a noteworthy announcement regarding the dedication to semiconductor-related research and development. It disclosed its intention to allocate a significant sum of USD 11 billion toward this endeavor. It also introduced the National Semiconductor Technology Center (NSTC), an innovative initiative backed by a budget of USD 5 billion. These strategic investments in the semiconductor industry will contribute to the overall expansion of the market in the region.
- The increasing adoption of 5G technology and growing investments in the communications industry are further expected to boost the market's growth. The profits of IC substrate manufacturers are boosted by the advancements in IoT. Apple planned to incorporate mmWave antenna into its 5G iPhones and 5G iPads by utilizing TSMC's antenna in package technology and ASE's FC AiP process. The expansion of IoT led to increased utilization of the latest semiconductor packages, which can improve the performance of ICs and reduce costs in various applications.
Advanced IC Substrates Industry Overview
The advanced IC substrates market is moderately competitive and consists of a few major players. The players dominating the market include ASE Group, TTM Technologies Inc., Kyocera Corporation, Siliconware Precision Industries Co. Ltd, and Ibiden Co. Ltd. The existing players in the market are striving to maintain a competitive edge by catering to newer technologies such as 5G telecommunication, high-performance data centers, and compact electronic devices.
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
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
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
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
5.2 Market Restraints
5.2.1 Complexity in the Manufacturing Process
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 FC BGA
6.1.2 FC CSP
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
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
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 18.11 billion in 2024 and grow at a CAGR of 11.73% to reach USD 31.54 billion by 2029.
What is the current Advanced IC Substrates Market size?
In 2024, the Advanced IC Substrates Market size is expected to reach USD 18.11 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 2023?
In 2023, the Advanced IC Substrates Market size was estimated at USD 15.99 billion. The report covers the Advanced IC Substrates Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Advanced IC Substrates Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Advanced IC Substrates Industry Report
The Advanced IC Substrate market is comprehensively covered in this report, which details IC substrate manufacturers and segments the market by type, application, and geography. The report offers market forecasts and size in value for all segments, providing a thorough industry analysis. The market research highlights key trends and growth rate, offering a detailed market overview.
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