KUALA LUMPUR (July 30): The global semiconductor packaging materials market is expected to grow at a 3.4% compound annual growth rate (CAGR) from US$17.6 billion in revenue in 2019 to US$20.8 billion in 2024, said US-based Semiconductor Equipment & Materials International (SEMI).

In the Global Semiconductor Packaging Materials Outlook released July 28, SEMI and TechSearch International forecast a number of semiconductor industry growth drivers will power the increase including big data, highperformance computing (HPC), artificial intelligence (AI), edge computing, advanced memory, the 5G infrastructure build-out, 5G smartphone adoption, growth of electric vehicle adoption and enhanced safety features for automobiles.

Packaging materials are key to the growth of these applications, enabling advanced packaging technologies that undergird the higher performance, reliability and integration of next-generation chips.

SEMI and TechSearch said laminate substrates, the largest materials segment, will see a CAGR of over 5%, driven by demand for system-in-package (SIP) and high-performance devices.

The report said wafer-level packaging dielectric will register the highest growth with a 9% CAGR over the forecast period.

The trend towards smaller, thinner packaging will dampen growth of leadframes, die attach, and encapsulant materials, though new technologies are being developed to enhance performance, added the report.

The 2020 outlook is the ninth edition of the report.