Semiconductor & IC Packaging Materials Market Driven by AI, 5G & EV Demand | Intel, Amkor Technology, Deca Technologies, Siemens, Samsung, Advanced Semiconductor Engineering Inc

Global Semiconductor and IC Packaging Materials Market reached US$ 43.1 billion in 2023 and is expected to reach US$ 93.7 billion by 2031, growing with a CAGR of 10.2% during the forecast period 2024-2031.

The Semiconductor and IC Packaging Materials Market size is witnessing significant growth, driven by evolving industry trends and emerging opportunities across global markets. The latest research report by DataM Intelligence delivers in-depth analysis, offering a strategic overview of market dynamics, key drivers, and competitive challenges. With a blend of qualitative and quantitative insights, this professionally developed report equips businesses with actionable intelligence to make informed decisions, seize growth opportunities, and maintain a competitive edge in a rapidly changing landscape.

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Market Overview:

Semiconductor and IC packaging materials, encompassing substrates, lead frames, bonding wires, die-attach compounds, encapsulants, and underfills-play a vital role in protecting and electrically connecting semiconductor chips while ensuring thermal and mechanical stability. The market is surging due to growing demand from consumer electronics, automotive systems, 5G infrastructure, IoT devices, and high-performance computing, all requiring advanced miniaturized and multi-functional packaging like fan-out wafer-level, SiP, and 3D solutions. Asia-Pacific remains the dominant production hub, driven by strong manufacturing ecosystems in China, Taiwan, South Korea, and Japan. Key growth opportunities are counterbalanced by challenges such as supply chain volatility, escalating raw material costs, and the drive toward more sustainable, lead-free, and halogen-free packaging technologies.

Key Highlights from the Semiconductor and IC Packaging Materials Report:

➤ The Semiconductor and IC Packaging Materials market is expected to grow at a 10.2% CAGR from 2025 to 2031.
➤ Market size is projected to reach USD 93.7 billion by 2031.
➤ Organic Substrates represent the leading segment, as they provide cost-effective, high-density interconnect solutions essential for advanced packaging technologies
➤ Asia-Pacific (APAC) dominates the market, led by countries like China, Taiwan, South Korea, and Japan, which are global hubs for semiconductor manufacturing and assembly.
➤ Rising Demand for Consumer Electronics & 5G Devices
➤ Shift Toward Advanced Packaging Technologies

Research Methodology:

Our research methodology blends qualitative and quantitative techniques to deliver a comprehensive and insightful market analysis. We start by collecting data from reputable industry sources through secondary research, then validate and enrich our findings with primary research, including expert interviews and targeted surveys. Using advanced analytical tools, we examine the data to identify emerging trends and understand market behavior. To deepen our competitive analysis, we incorporate market segmentation and Porter's Five Forces framework. This thorough and systematic approach ensures that our insights are accurate, actionable, and aligned with your strategic goals.

Market Segmentation:

By Type (Organic Substrates, Bonding Wires, Leadframes, Ceramic Packages, Die Attach Materials, Thermal Interface Materials, Solder Balls, Encapsulation Resins, Others)

By Technology (Grid Array, Wafer-level Packaging, Small-outline Package (SOP), Flat no-leads Packages, Dual In-line Packages, 3D Packaging, Others)

By End-User (Consumer Electronics, Automotive, Healthcare, IT & Telecommunication, Aerospace and Defense, Others)

TheDominating segment and fastest growing segments in Semiconductor and IC Packaging Materials Market

Organic Substrates:

Organic substrates hold the largest share in the semiconductor and IC packaging materials market due to their cost-effectiveness, scalability, and ability to support high-density interconnects. They are widely used in flip-chip, ball grid array (BGA), and other advanced packaging solutions, making them indispensable for high-performance and consumer electronics applications.

Wafer-Level Packaging (WLP) Materials:

Wafer-level packaging materials are experiencing the fastest growth, driven by the rising demand for miniaturized devices, 5G smartphones, wearables, and IoT applications. Their ability to deliver superior electrical performance, reduced form factor, and lower production costs positions WLP as the preferred choice for next-generation semiconductor designs.

Regional Analysis for Semiconductor and IC Packaging Materials Market:

The regional analysis of the Semiconductor and IC Packaging Materials Market covers key regions including North America, Europe, Asia Pacific Middle East and Africa and South America. This comprehensive regional breakdown helps identify unique market trends and growth opportunities specific to each area.

⇥ North America (U.S., Canada, Mexico)
⇥ Europe (U.K., Italy, Germany, Russia, France, Spain, The Netherlands and Rest of Europe)
⇥ Asia-Pacific (India, Japan, China, South Korea, Australia, Indonesia Rest of Asia Pacific)
⇥ South America (Colombia, Brazil, Argentina, Rest of South America)
⇥ Middle East & Africa (Saudi Arabia, U.A.E., South Africa, Rest of Middle East & Africa)

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Strategic investments (2025)

✅ Jan 2025- GlobalFoundries: Announced a $575M advanced chip packaging & photonics center, supported by U.S. CHIPS grants/state funds.
✅ Apr 1, 2025 - Ajinomoto: Plan to invest JPY 25B (~US$166M) by 2030 to expand ABF build-up film capacity ~50% (critical substrate insulation for advanced CPU/GPU packages).
✅ May-Aug 2025- Entegris: Continuing U.S. capacity build-out; Colorado Springs ~$600M advanced materials campus moves toward initial operations in 2025; reiterated growth in Q2 updates.
✅ Aug 12, 2025- India (ISM): Government approved 4 additional semiconductor projects (total 10), including advanced packaging/3DHI activity-bolstering local materials demand (e.g., substrates, chemicals).
✅ Aug 16, 2025- Tata Electronics × Merck KGaA: In talks for an exclusive long-term specialty chemicals/materials supply deal for Tata's Dholera fab-securing critical electronics materials.

Mergers & acquisitions / Corporate actions (2025)

✅ Feb 17-Mar 18, 2025- DNP-led SPV → Shinko Electric Industries: Tender offer completed; Shinko delisted June 6, 2025. Major move in IC package/substrate capacity under a printing/materials giant.
✅ 2025 (closing expected)- Merck KGaA divests Surface Solutions (pigments) to GNMI for €665M to refocus capital on semiconductor materials; closing targeted in 2025.
✅ 2025- DuPont: Electronics business separation accelerated; targeted Nov 1, 2025 spin (later named Qnity)-a structural move sharpening focus on semiconductor materials.

Recent technology & market developments (2025)

✅ Jan 3, 2025- Industry outlook highlights chiplet adoption & WLP/fan-out growth, with capacity constraints in advanced packaging.
✅ Apr 11, 2025- Shinko: Received Intel EPIC Supplier Award 2025, underscoring leading substrate/package supply performance.
✅ Apr-Jul 2025- ABF focus: Analyses emphasize Ajinomoto's >95% ABF share and planned capacity expansion; U.S. policy groups flag ABF single-source risk and potential onshoring pathways.
✅ Q1-Q3 2025- Materials suppliers: Merck and Entegris report resilient semiconductor materials demand tied to AI/advanced nodes in quarterly updates.

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Key Players:

Intel, Amkor Technology, Deca Technologies, Siemens, Samsung, Advanced Semiconductor Engineering Inc, Taiwan Semiconductor Manufacturing Company, Microchip Technology, Synapse Electronique and FlipChip International LLC. among others

Assessing the Effects of U.S. Tariffs on the Semiconductor and IC Packaging Materials Market:

The U.S. tariff war is transforming the way businesses evaluate market trends and plan strategically. With rising costs and supply chain disruptions, companies are placing greater emphasis on analyzing consumer behavior, exploring alternative sourcing options, and adapting operations to stay competitive. This climate of uncertainty has amplified the need for real-time insights and data-driven strategies to effectively manage evolving trade conditions and economic challenges

Frequently asked questions:

➠ What is the global sales value, production value, consumption value, import and export of Semiconductor and IC Packaging Materials market?
➠ Who are the global key manufacturers of the Semiconductor and IC Packaging Materials Industry? How is their operating situation (capacity, production, sales, price, cost, gross, and revenue)?
➠ What are the Semiconductor and IC Packaging Materials market opportunities and threats faced by the vendors in the global Semiconductor and IC Packaging Materials Industry?
➠ What focused approach and constraints are holding the Semiconductor and IC Packaging Materials market?
➠ What are the different sales, marketing, and distribution channels in the global industry?

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