Regional Trends in Packaging Materials


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Regional Trends in Packaging Materials

by Dan Tracy, SEMI and Jan Vardaman, TechSearch International

The plastic packaging materials market is estimated to reach $15.5 billion in 2007, growing to over $20 billion by 2011. In this market, several regional trends have emerged over the past few years.

Given the strong growth in the use of laminate substrate technology for ball-grid array (BGA), chip-scale packaging (CSP), and flip-chip packaging, where substrates are manufactured has changed. IC package substrate production has transitioned from Japan to Taiwan and will slowly expand into China. Companies in Taiwan—such as ASE, Kinsus, Phoenix Precision Technology, and UniMicron—have all expanded production capacity to meet growing demand, with ASE having production in Shanghai.

For other material segments, growth and investment in packaging materials manufacturing in China (see map) continues. Many semiconductor makers and packaging subcontractors have plants in China. As such, top global suppliers for leadframes, bonding wire, mold compounds, and other resin materials now have operations in China and are expanding their capacity there to meet growth in customer demand.


Finally, Korean-headquartered material suppliers have been increasing the percentage of sales obtained overseas versus domestic sales. Based on surveys of seven Korean suppliers, the collective sales for these companies outside of Korea have grown at a 28% CAGR over the past several years, so now overseas sales represent about 60 percent of their total aggregate sales (an estimated $930 million in 2007).

Combined Total Sales and Percentage Export for
Seven Korean Packaging Material Suppliers

 

2003

2004

2005

2006

2007E

Combined Revenues (US$ million)

$498

$634

$700

$821

$930

% Sales from Export

40%

48%

41%

51%

58%

All of the information in this article was derived from a recently completed market research study, Global Semiconductor Packaging Materials Outlook—2007-2008 Edition, produced by Semiconductor Equipment Materials International (SEMI) and TechSearch International. In developing this report, over 100 in-depth interviews were conducted with semiconductor manufacturers, packaging subcontractors and packaging materials suppliers throughout the world.

TO ORDER YOUR COPY of Global Semiconductor Packaging Materials Outlook—2007-2008 Edition, please contact Dr. Dan P. Tracy, research development director, Industry Research and Statistics, SEMI via email at dtracy@semi.org, or telephone 1.408.943.7987 or facsimile 1.408.943.7915. You can also visit www.semi.org and select “STORE” from the horizontal menu to find Global Semiconductor Packaging Materials Outlook.