This market research report was originally published at the Yole Group’s website. It is reprinted here with the permission of the Yole Group.
Substrate manufacturers are expanding their capacities to support advanced packaging growth, with new entrants joining the market.
OUTLINE
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The advanced IC substrate market is expected to have a CAGR 24-29 of 9% to US$25.53 billion in 2029.
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Competition to commercialize glass core substrates is intensifying as more players enter the field.
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Absolics, Intel, and Samsung are the key players, backed by a vast network of equipment, materials, and glass suppliers within their sub-supply chains.
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 BGA substrates for FCBGA and 2.5D/3D advanced packages, fueled by AI accelerators for HPC and data centers, 5G, AI PC CPU 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 -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!
“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.”
Bilal Hachemi, Ph.D.
Technology and Market Analyst, Yole Group
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.
Acronyms
- IC : Integrated Circuit(s)
- CAGR : Compound Annual Growth Rate
- FC : Flip Chip
- BGA : Ball Grid Array
- FCBGA : Flip Chip Ball Grid Array
- AI : Artificial Intelligence
- HPC : High-Performance Computing
- PC : Personal Computer
- CPU : Central Processing Unit
- GCS : Glass Core Substrate
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.
Interested in an on-site meeting with us? Send a request to [email protected].
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