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Semiconductor plastic packaging materials market to approach $21 billion by 2017

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Harmeet
New Update

SAN JOSE, USA: The market for semiconductor packaging materials, including thermal interface materials, is expected to maintain its $20 billion value through 2017, despite shifts away from the use of precious metals such as gold in wire bonding, according to a new study by SEMI and TechSearch International.

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Despite continued price pressure, organic substrates remain the largest segment of the market, worth an estimated $7.4 billion globally in 2013 growing to more than $8.7 billion by 2017.

Most packaging material segments are encountering low revenue growth as end users seek lower cost solutions for packaging and downward pricing pressures are severe. In addition, the transition to copper and silver bonding wire has significantly reduced impact of gold metal pricing in wire bond packages.

The SEMI report, titled "Global Semiconductor Packaging Materials Outlook-2013/2014 Edition," covers laminate substrates, flex circuit/tape substrates, leadframes, bonding wire, mold compounds, underfill materials, liquid encapsulants, die attach materials, solder balls, wafer level package dielectrics and thermal interface materials.

Several areas are experiencing stronger growth. The expansion of CSPs with laminate substrates is driven by explosive growth in mobile computing and communications devices such as smartphones and tablets.

The same products are driving growth in wafer level packages (WLPs), which are in turn driving use of dielectric materials used for redistribution. The growth in flip chip adoption continues to expand the market for underfill materials. A number of key segments are seeing a consolidation of the supplier base, though new entrants in Asia are entering some segments.

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