International Electronics Business 13, according to a market research organization report predicted that with the new advanced IC substrate practitioners began mass production, the global advanced IC substrate business in the next five years of the golden age can be expected in 2027 to write a record $ 29 billion in revenue.
Market research firm Yole Intelligence released its latest annual report, "Advanced 2022ICStatus of the Advanced IC Substrate Industry 2022, focuses on three major platforms for advanced IC substrates: advanced IC carrier boards, circuit board SLPs, and EDs.
According to Yik Yee Tan, Senior Technology and Market Analyst at Yole Intelligence, "The global market value of advanced IC substrates will grow from $15.8 billion in 2021 to approximately $29.6 billion in 2027, at a compound annual growth rate (CAGR) of 111 TP3 T. This growth is primarily driven by the mobile and consumer, automotive and mobility segments, and high demand in the telecom and infrastructure markets."
IC Substrates are mainly driven by Advanced Packaging (AP) and Baseband for Flip Chip Scale Packaging (FC CSP), and by 5G Wireless Devices, High Performance Computing (HPC), Graphics Processors (GPU), Servers, and Automotive for FC Ball Grid Arrays (FC BGA). The value of this market is expected to grow from $12.6 billion in 2021 to approximately $24.3 billion in 2027, with a CAGR of 12%.
Substrate-level printed circuit boards (SLPs), which are primarily used in high-end smartphones, will generate revenues of $3 billion in 2021 and grow to $4.3 billion by 2027, with a CAGR of 6.71 TP3T.
Embedded chips (EDs) in laminate substrates are relatively new in the market but have a CAGR of 39% and are expected to increase from $142 million in 2021 to approximately $1 billion by 2027.
The main substrate technology trends are the continued increase in complexity with larger size areas, more layering and finer pitches, as well as the reduction of line/width pitch (L/S) through the use of semi-additive processes (SAP), modified SAP (mSAP) or advanced mSAP (amSAP). In recent years, the development of SLP technology has continued steadily, while the goal of ED technology is to enable multi-chip embedding to serve a wider range of applications.
The ABF substrate market is estimated at $4.8 billion in 2021. The top five global ABF substrate manufacturers are Ibiden, Unimicron, NYPCB, Shinko, and AT&S, accounting for nearly 75% of the total ABF substrate market.Kinsus, SEMCO, Access, Daeduck, Toppan, and Kyocera account for the rest of the market.
The IC substrate market, especially the FC BGA market for ABF substrates, is bullish. Several companies have announced massive investments and capacity expansions of over $15.5 billion in 2021 and 2022. More investments will take place in Asia, with nearly 46% in China. The largest investor is Austria-based AT&S, focusing on FC BGAs and aiming to become one of the top three global IC substrate suppliers in the near future.
