Global Semiconductor Packaging Materials Research Report 2025 (Status and Outlook)

 

Report Overview:

Semiconductor materials encompass a wide variety of types and can be broadly categorized into manufacturing materials and packaging materials based on their application. Among them, packaging materials constitute the core components of the integrated circuit (IC) packaging process, primarily including package substrates, lead frames, bonding wires, encapsulation materials, die-attach materials, and ceramic substrates. Semiconductor packaging materials have a direct impact on packaging performance, and their physicochemical, process, and application properties vary significantly depending on the packaging format. As a result, packaging materials and packaging technologies exhibit a relationship of mutual dependence and reinforcement. For example, in the case of epoxy molding compounds (EMC), as packaging formats evolve from TO and DIP to SiP and FOWLP, requirements for warpage control, reliability, and void formation become more stringent, and the number of factors to be considered in formulation design increases accordingly.

In the global packaging materials market, package substrates account for the largest share—over 50%. Lead frames and bonding wires follow, while encapsulants, underfill materials, die-attach materials, wafer-level dielectric materials, and wafer-level electroplating chemicals make up the remainder of the market.

According to data from Bossonresearch, the global semiconductor packaging materials market is estimated at USD 21.63 billion in 2024, and is expected to grow steadily at a CAGR of approximately 6.72% from 2025 to 2033. This growth is driven on one hand by market expansion associated with key emerging technologies that support the development of the semiconductor industry—including big data, high-performance computing (HPC), artificial intelligence (AI), edge computing, advanced memory, 5G infrastructure build-out, the proliferation of 5G smartphones, the rise of electric vehicles, and enhanced automotive safety features. According to WSTS, global semiconductor sales surpassed USD 600 billion for the first time in 2024. On the other hand, these technological trends also accelerate the advancement of advanced packaging technologies, making them a crucial engine for the continued growth of the packaging materials market.

 

Analysis of Semiconductor Packaging Technology Roadmaps

Semiconductor packaging technologies can be broadly categorized into conventional packaging and advanced packaging. Conventional packaging involves dicing the wafer into individual chips and using a lead frame as the carrier, with interconnection achieved through wire bonding. Typical formats include DIP, SOP, TO, QFP, etc. These technologies offer advantages such as cost-effectiveness and strong versatility, but they feature low packaging efficiency (die area/substrate area) and can no longer meet the requirements for high performance and high functional density in the “post-Moore era.”

Advanced packaging, on the other hand, is based on innovative design concepts and integrated processes that enable package-level reconstruction of chips. Major formats include flip-chip (FC), wafer-level packaging (WLP), and 2.5D/3D packaging. By optimizing interconnections, enabling heterogeneous integration, and improving functional density, advanced packaging provides critical support for enhancing chip performance. When traditional manufacturing nodes face physical limits, advanced packaging becomes the most effective pathway to overcome performance bottlenecks and meet the computing power and complexity demands of applications such as artificial intelligence, autonomous driving, and high-performance computing.

Stage	Period	Packaging Type	Representative Packaging Formats
First Stage	Before the 1970s	Through-hole packages	Transistor Outline (TO), Ceramic Dual In-line Package (CDIP), Plastic Dual In-line Package (PDIP)
Second Stage	After the 1980s	Surface-mount packages	Plastic Leaded Chip Carrier (PLCC), Plastic Quad Flat Package (PQFP), Small Outline Package (SOP), Plastic Quad Flat No-Lead (PQFN), Small Outline Transistor (SOT), Dual Flat No-Lead Package (DFN)
Third Stage	1990s	Ball Grid Array (BGA)	Plastic BGA (PBGA), Ceramic BGA (CBGA), Enhanced BGA (EBGA), Flip-Chip BGA (FCBGA)
		Wafer-Level Packaging (WLP)	WLP
		Chip-Scale Packaging (CSP)	Lead-frame-based CSP, Flexible-substrate CSP, Rigid-substrate CSP, Wafer-based CSP
		Multi-Chip Module (MCM)	MCM-C (ceramic substrate), MCM-D (thin-film substrate), MCM-L (laminated PCB)
Fourth Stage	Late 20th century	Advanced Packaging	System-in-Package (SiP), 3D packaging, Bumping, MEMS packaging, TSV (Through-Silicon Via) wafer-level system packaging
Fifth Stage	Early 2000s	Advanced Packaging	Flip-Chip (FC), Surface Activated Bonding (SAB), Fan-Out Packaging, Fan-In Packaging

The outsourced semiconductor assembly and test (OSAT) industry is characterized by strong foundry-type attributes, while also being both capital-intensive and labor-intensive, which encourages the formation of industrial clusters. Driven by semiconductor industry migration, labor-cost advantages, and tax incentives, the Asia-Pacific region has gradually become the world’s core base for IC packaging and testing.

Today, global packaging technologies are rapidly shifting from third-generation conventional packaging (represented by CSP and BGA) toward fourth- and fifth-generation advanced packaging, such as SiP, flip-chip (FC), and bumping. According to Bosson Research, the market size of advanced IC packaging reached USD 44 billion in 2024, and by 2025, the market share of advanced packaging is projected to surpass 50%, becoming the primary driver of industry upgrades and value growth in the packaging sector.

Key Development Trends

1.       Advanced Packaging Materials

Advanced packaging technology has become a key pathway for the semiconductor industry to surpass the limits of Moore’s Law. As electronic products continue to move toward miniaturization, higher performance, and lighter form factors, packaging technologies are evolving toward smaller size, higher pin density, and increased integration. In this evolution, advanced packaging materials—serving as critical upstream components—enable essential functions such as electrical interconnection, mechanical protection, and thermal management. They form the foundation that supports continuous innovation in advanced packaging technologies. With the global advanced packaging market expected to grow at a CAGR exceeding 10% over the next several years, demand for upstream materials is expanding rapidly. These materials include package substrates, epoxy molding compounds (EMC), photoresists (PSPI), electroplating chemicals, and temporary bonding adhesives. As packaging technologies advance, performance requirements for materials continue to rise, such as higher thermal stability, improved thermal conductivity, lower dielectric constants, and enhanced flowability and compatibility for larger form-factor packages.

Package substrates serve as the essential interface between semiconductor dies and external circuitry, providing mechanical support, protection, heat dissipation, and electrical interconnections. The widespread adoption of advanced packaging formats such as FCBGA and 2.5D/3D has significantly increased substrate cost contribution, which can reach 70–80% of total packaging cost in high-end applications. This trend drives increasingly strict requirements for dimensional precision, material uniformity, and thermal performance. Glass substrates, benefiting from favorable dielectric loss and thermal expansion properties, are emerging as promising alternatives to traditional ABF substrates and silicon interposers. The global market for glass substrates in high-end packaging is showing strong growth potential and is projected to expand at a CAGR exceeding 4%.

Epoxy molding compounds represent the most widely used category of packaging materials, accounting for approximately 97% of the global packaging materials market. Their main functions include chip protection, thermal conduction, structural support, and insulation. In applications involving 2.5D/3D packaging and high-power devices, the performance requirements for EMC continue to increase. EMC materials must exhibit high heat resistance and low melt viscosity to accommodate automotive electronics and high-temperature lead-free solder environments. High thermal conductivity combined with strong insulation performance helps mitigate heat accumulation in chips, which can be achieved through specialized fillers or optimized resin formulations. Additionally, low warpage and high flowability ensure uniform material distribution in large-form-factor packaging, improving overall yield. To support high-speed signal transmission, EMC materials must also provide low dielectric constant and dielectric loss. As packaging scales increase, EMC products are gradually transitioning from traditional solid-pellet formats to granular or liquid forms to better support board-level FOWLP and similar processes.

Temporary bonding adhesives are used in wafer-level packaging to attach wafers to temporary carriers, enabling wafer thinning, redistribution layer (RDL) formation, and through-silicon via (TSV) processing. Common formats include wax-based materials, composite tapes, and spin-coated adhesives, with the latter representing the mainstream solution. As 2.5D/3D packaging continues to develop, requirements for thermal stability, bonding strength, and mechanical robustness in temporary bonding adhesives are becoming more stringent. Demand for these materials is expected to increase steadily, particularly in wafer thinning and multilayer stacking applications.

2. China’s Push for Self-Reliance in Semiconductor Packaging Materials

China has accelerated localization efforts in key semiconductor packaging material segments such as package substrates, epoxy molding compounds, and photoresist materials. In package substrates, companies including Shennan Circuits, Xingsen Technology, and Unimicron’s China operations have achieved small-batch supply and qualification in mid-range and parts of high-mid-range markets. In the EMC segment, manufacturers such as Huahai Chengke and Zhongke Kehua are refining formulations to meet advanced packaging requirements including high temperature resistance, high thermal conductivity, strong insulation, low warpage, and high flowability. In photoresist materials, domestic production of PSPI and masks is progressing, with companies such as Dinglong, Strong New Materials, and Essencore gradually entering the low- to mid-resolution RDL packaging market. Meanwhile, domestic suppliers of electroplating chemicals, electronic adhesives, and CMP materials are also making steady progress. Copper interconnect plating solutions, conductive adhesives, and underfill materials can now meet most mid- to low-end packaging needs, although high-end plating additives, EUV photoresists, and high-precision CMP materials still depend on foreign suppliers.

As Chinese companies continue to improve material purity, reliability, and formulation optimization, the localization rate of high-end packaging materials is expected to increase significantly over the next three to five years. Overall, China’s localization of semiconductor packaging materials follows a pattern of rapid advancement in low- to mid-end markets, pilot breakthroughs in mid-high segments, and continued catch-up in the high-end domain. Localization not only reduces reliance on imported materials and enhances supply chain security but also helps domestic packaging firms control costs and build technical competence. With growing demand from China’s IC design and advanced packaging industries, domestic packaging materials are expected to play an increasingly important role in next-generation packaging technologies.

Global Semiconductor Packaging Materialss Market: Competitive Landscape

From a global perspective, the semiconductor packaging materials market exhibits a distinctly stratified competitive landscape, strongly influenced by the rapid advancement of advanced packaging technologies. The industry can be divided into the mid-to-low-end materials segment and the high-end materials segment, with clear geographic concentration patterns. Mid-to-low-end packaging materials—such as mainstream epoxy molding compounds (EMC), copper alloy lead frames, and copper bonding wires—have formed relatively mature global supply chains, mainly supported by suppliers in Europe, the United States, and Asia. These products are cost-effective with stable supply.

In contrast, high-end packaging materials remain highly concentrated in the hands of a small number of multinational suppliers. Key examples include Ajinomoto (ABF substrates), Sumitomo Bakelite (high-performance EMC), Kyocera (aluminum nitride substrates), Tanaka Precious Metals (gold/silver alloy bonding wire), as well as leading U.S./European vendors of ArF/EUV photoresists and high-end CMP slurries. These companies collectively constitute a clear global monopoly in high-end materials.

The global semiconductor packaging materials market exhibits three major characteristics:

(1) Mid-to-low-end materials are mature, competitive, diversified, and price-sensitive.

(2) High-end materials are highly concentrated, technologically demanding, and significantly dependent on imports.

(3) Advanced packaging technologies continue to evolve rapidly, accelerating demand for high-end materials while reshaping global supply chain structures and driving localized supply chain expansion.

In the future, companies that take the lead in high-precision packaging materials—through breakthroughs in R&D, capacity expansion, and supply-chain integration—will secure a core position in the global semiconductor ecosystem.

Material	Application	International Suppliers
Packaging Substrates	Provide electrical connection, protection, mechanical support, heat dissipation, and assembly functions; connect chip bumps to substrate routing	Ibiden, Shinko, Kyocera; Samsung Electro-Mechanics, Simmtech, Daeduck; AT&S
Electroplating Chemicals	Used for bumping, RDL fabrication, and TSV metallization	Rohm and Haas, Dow Chemical, Ishihara Sangyo, BASF, Atotech
Epoxy Molding Compounds (EMC)	Protect chips from environmental exposure; provide thermal, insulation, moisture-resistance, mechanical support	Sumitomo Bakelite, Panasonic, Kyocera, Showa Denko, Hitachi Chemical; Nepes, AMC
Electronic Adhesives	Die attach, underfill, wafer-level packaging; bonding, protection, thermal management, stress mitigation	Conductive adhesives: Henkel, Sumitomo, Mitsui Chemicals, Hitachi, DuPont, 3M; Underfill: Namics, Showa Denko, Henkel
Lithography Materials	High-density substrates, interposers, bumping, RDL, TSV; includes photoresists, PSPI, and photomasks	PSPI: Toray, HD Microsystems; Photomasks: Photronics, Toppan, DNP
CMP Materials	Chemical mechanical planarization, achieving planar surfaces and low roughness; includes slurry and polishing pads	Dow, Cabot, Hitachi, Fujimi, Entegris
Temporary Bonding Adhesives	Used in wafer thinning, RDL wafer-level packaging, and TSV-related CMP for 2.5D/3D packaging	Brewer Science, TOK, 3M, DuPont, Taesung, Mivac

 

Global Semiconductor Packaging Materialss Market: Market Segmentation Analysis

The research report includes specific segments by region (country), manufacturers, Type, and Application. Market segmentation creates subsets of a market based on product type, end-user or application, Geographic, and other factors. By understanding the market segments, the decision-maker can leverage this targeting in the product, sales, and marketing strategies. Market segments can power your product development cycles by informing how you create product offerings for different segments.

Key Company

Kyocera

Sumitomo Bakelite

Panasonic

Toray

Henkel

3M

DuPont

BASF

Enthone

Shinko

Ibiden

Simmtech

AT&S

Toppan

DNP

Photronics

Brewer Science

HD Microsystems

FUJIMI

Nepes

AMC

Huizhan Materials

Shennan Circuits

FastPrint

Zhen Ding Technology

China Resin

Dinglong

Phichem

Debond

Anji Microelectronics

 

Market Segmentation (by Type)

Package Substrates
Lead Frames
Bonding Wires
Encapsulation Materials
Underfill Materials
Die-Attach Materials
Wafer-Level Packaging Dielectrics
Wafer-Level Electroplating Chemicals
Others

 

Market Segmentation (by Application)

Consumer Electronics
Home Appliances
Automotive Electronics
Industrial Applications
Others

 

Geographic Segmentation

North America

Europe

Asia-Pacific

South America

Middle East and Africa

 

Key Benefits of This Market Research:

• Industry drivers, restraints, and opportunities covered in the study

• Neutral perspective on the market performance

• Recent industry trends and developments

• Competitive landscape & strategies of key players

• Potential & niche segments and regions exhibiting promising growth covered

• Historical, current, and projected market size, in terms of value

• In-depth analysis of the Semiconductor Packaging Materialss Market

• Overview of the regional outlook of the Semiconductor Packaging Materialss Market:

 

Key Reasons to Buy this Report:

• Access to date statistics compiled by our researchers. These provide you with historical and forecast data, which is analyzed to tell you why your market is set to change

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• The concise analysis, clear graph, and table format will enable you to pinpoint the information you require quickly

• Provision of market value (USD Billion) data for each segment and sub-segment

• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market

• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region

• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled

• Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players

• The current as well as the future market outlook of the industry concerning recent developments which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions

• Includes in-depth analysis of the market from various perspectives through Porter’s five forces analysis

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• Market dynamics scenario, along with growth opportunities of the market in the years to come

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Chapter Outline

Chapter 1 mainly introduces the statistical scope of the report, market division standards, and market research methods.

 

Chapter 2 is an executive summary of different market segments (by region, product type, application, etc), including the market size of each market segment, future development potential, and so on. It offers a high-level view of the current state of the Semiconductor Packaging Materialss Market and its likely evolution in the short to mid-term, and long term.

 

Chapter 3 makes a detailed analysis of the Market's Competitive Landscape of the market and provides the market share, capacity, output, price, latest development plan, merger, and acquisition information of the main manufacturers in the market.

 

Chapter 4 is the analysis of the whole market industrial chain, including the upstream and downstream of the industry, as well as Porter's five forces analysis.

 

Chapter 5 introduces the latest developments of the market, the driving factors and restrictive factors of the market, the challenges and risks faced by manufacturers in the industry, and the analysis of relevant policies in the industry.

 

Chapter 6 provides the analysis of various market segments according to product types, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different market segments.

 

Chapter 7 provides the analysis of various market segments according to application, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different downstream markets.

 

Chapter 8 provides a quantitative analysis of the market size and development potential of each region and its main countries and introduces the market development, future development prospects, market space, and capacity of each country in the world.

 

Chapter 9 details the production of products in major countries/regions and provides the production of major countries/regions.

 

Chapter 10 introduces the basic situation of the main companies in the market in detail, including product sales revenue, sales volume, price, gross profit margin, market share, product introduction, recent development, etc.

 

Chapter 11 provides a quantitative analysis of the market size and development potential of each region in the next five years.

 

Chapter 12 provides a quantitative analysis of the market size and development potential of each market segment (product type and application) in the next five years.

 

Chapter 13 is the main points and conclusions of the report.