Semiconductor & IC Packaging Materials Market to Hit US$ 93.7 Billion by 2031 | CAGR 10.2% | North America Leads with 35% | Key Players: Intel, TSMC, Samsung, ASE, Amkor, Siemens

Market Size and Overview

The global Semiconductor and IC Packaging Materials Market reached US$ 43.1 billion in 2023 and is projected to grow to US$ 93.7 billion by 2031, registering a CAGR of 10.2% during 2024-2031. The market expansion is driven by the increasing demand for electronic hardware capable of delivering high performance, speed, and bandwidth while maintaining low latency and power consumption. Advanced packaging technologies are meeting these requirements by enabling heterogeneous integration, which is essential for high-speed computing, artificial intelligence (AI), and 5G applications. Major semiconductor packaging vendors are experiencing significant revenue growth, fueled by demand for high-performance computing, IoT devices, and 5G infrastructure. For instance, Amkor's computing division which includes data centers, infrastructure, PCs/laptops, and storage accounted for 20% of total sales, up from 18% in Q2 2022. Additionally, government-led initiatives, including policies promoting automotive electrification, are further supporting market demand. In 2023, North America dominated the market with approximately 35% share, driven by robust investments in semiconductor manufacturing. Notably, Texas Instruments announced plans to invest US$ 3.5 billion per year in U.S.-based semiconductor chip production through 2025, reflecting the region's strategic role in advancing semiconductor capabilities and packaging material demand.

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Recent Developments:

✅ October 2025: Amkor Technology announced a US$ 7 billion advanced packaging and testing campus in Peoria, Arizona, aimed at scaling U.S. semiconductor packaging capacity with up to 750,000 sq ft of cleanroom space and 3,000 jobs, reinforcing domestic supply chain capabilities and meeting rising demand for high‐performance packaging solutions.

✅ April 2025: Applied Materials became the largest shareholder (9%) in BE Semiconductor Industries (BESI), strengthening collaboration on hybrid bonding tools crucial for next‐generation chip stacking and advanced packaging technologies.

✅ 2025: Intel unveiled new ribbonFET packaging technology to boost transistor density and reduce power consumption, driving efficiency and enabling higher performance IC packages for computing and communications.

✅ November 2024: 3M entered a strategic partnership with TSMC to expand production capacity for copper‐pillar technology, a key advanced packaging material supporting automotive, industrial, and consumer electronics demand.

✅ Recent Supply & Production Expansion: Tata Electronics and Intel signed a strategic partnership to manufacture and package semiconductors in India, enhancing local OSAT capabilities and supporting advanced packaging growth in the region.

Mergers & Acquisitions:

✅ December 2025: A leading U.S. semiconductor packaging firm completed the acquisition of a European IC materials specialist, expanding its product portfolio and strengthening its position in advanced packaging solutions for high‐performance computing and 5G applications.

✅ August 2025: A major global OSAT provider acquired an Asian packaging automation and testing company, enhancing its end‐to‐end services and accelerating time‐to‐market for customers in automotive, consumer electronics, and industrial segments.

✅ May 2025: A prominent semiconductor equipment manufacturer acquired a materials technology startup focused on next‐generation under‐fill and thermal interface materials, boosting its capabilities in advanced packaging process technologies.

✅ March 2025: Two regional packaging materials suppliers merged to form a larger consolidated entity, improving supply chain reach and diversifying offerings across IC substrates, encapsulants, and solder materials.

✅ January 2025: A major IC packaging solutions provider acquired a specialized materials research and development firm to advance innovation in copper pillar and wafer‐level packaging technologies.

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Key Players:

Intel
Amkor Technology
Deca Technologies
Siemens
Samsung
Advanced Semiconductor Engineering Inc. (ASE)
Taiwan Semiconductor Manufacturing Company (TSMC)
Microchip Technology
Synapse Electronique
FlipChip International LLC

Market Segmentation:

By type, organic substrates lead with approximately 20%, followed by bonding wires (15%), leadframes (12%), ceramic packages (10%), die attach materials (10%), thermal interface materials (8%), solder balls (7%), encapsulation resins (5%), and others (13%), reflecting the growing need for advanced packaging solutions in high-performance computing and electronics.

By technology, grid array packages dominate with around 25%, followed by wafer-level packaging (20%), small-outline packages (SOP, 15%), flat no-leads packages (10%), dual in-line packages (DIP, 10%), 3D packaging (12%), and others (8%), driven by high-density integration and heterogeneous packaging trends.

By end-user, consumer electronics account for 30%, automotive 25%, IT & telecommunication 20%, healthcare 10%, and aerospace and defense 15%, highlighting the critical role of advanced packaging materials in supporting high-speed computing, connectivity, safety systems, and defense applications.

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Regional Insights:

North America leads with an estimated 35% share, fueled by heavy investments from companies like Intel and Texas Instruments, along with policies supporting domestic semiconductor manufacturing. Asia-Pacific accounts for approximately 40%, driven by major production hubs in China, Taiwan, South Korea, and Japan, where companies such as TSMC, Samsung, and ASE dominate IC packaging and wafer-level solutions.

Europe holds around 15%, supported by robust automotive, aerospace, and industrial electronics sectors adopting advanced packaging materials.

The Rest of the World (RoW), including Latin America, the Middle East, and Africa, captures about 10%, with gradual growth fueled by emerging electronics manufacturing and investment in advanced packaging capabilities. Overall, the market is witnessing rapid growth in regions emphasizing high-performance computing, 5G, AI, and automotive electrification, which require sophisticated semiconductor packaging materials.

Market Dynamics:

The global Semiconductor and IC Packaging Materials Market is being driven by rapid technological advancements that enable high-performance, energy-efficient, and reliable integrated circuits. Key packaging materials including IC substrates, bonding wires, die attach materials, and ceramic packages are essential in producing faster and more compact electronic devices. Technological breakthroughs, such as Intel's Foveros 3D packaging technology, supported by a US$ 3.5 billion investment in its Rio Rancho facility, and government incentives like India's US$ 10 billion semiconductor plan, are boosting market adoption and production capabilities.

Rising demand for consumer electronics, fueled by digitization, miniaturization, and multi-chip modules, is further driving the market. Advanced packaging materials allow for smaller form factors while improving device performance and reliability. Additionally, continuous R&D investments by leading players in innovative packaging technologies and operational efficiency enhancements strengthen market growth.

However, market expansion faces challenges due to the high cost of raw materials and the complexity of IC production processes. Wafer manufacturing, diverse chip packaging, and intricate integrated circuit patterning require significant initial investment, which can limit adoption, especially among smaller manufacturers. Despite these challenges, the growing need for high-performance computing, automotive electronics, 5G, and AI applications continues to propel the semiconductor and IC packaging materials market forward.

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