Laminate Substrates, Valued at $4.2 Billion, Will Lead Sector Growth

SAN JOSE, Calif., Jan. 23 /PRNewswire/ -- The market for semiconductor packaging materials, including thermal interface materials, is expected to grow from $12.0 billion in 2005 to $19.5 billion by 2010, according to a new study by SEMI and TechSearch International. Laminate substrates are the largest segment of the market, worth $4.2 billion globally in 2005, and are projected to grow at a compound annual growth rate of 18 percent over the next five years.

The report, titled "Global Semiconductor Packaging Materials Outlook -- 2005 Edition," covers laminate substrates, flex circuit/tape substrates, leadframes, bonding wire, mold compounds, underfill materials, liquid encapsulants, die attach materials, solder balls, wafer level package dielectrics and thermal interface materials.

    Semiconductor Packaging Materials Segment         2005
                                                     Global
                                                     Market
                                                       $M
    Laminate Substrates                             $4,202.0
    Flex Circuit/Tape Substrates                     $319.00
    Leadframes                                      $3,010.0
    Bonding Wire                                    $1,808.5
    Mold Compounds                                  $1,569.3
    Underfill Materials                                $97.0
    Liquid Encapsulants                                $98.9
    Die Attach Materials                              $462.5
    Solder Balls                                      $137.0
    Wafer Level Package Dielectrics                     $7.9
    Thermal Interface Materials                       $284.0

The findings in the report are based on 130 in-depth interviews conducted with packaging subcontractors, semiconductor manufacturers and materials suppliers. It includes previously unpublished data on revenue, unit shipments and market shares for each packaging material segment; a five-year forecast of revenue and units (2006-2010), average selling price data and trends; and an analysis of regional market trends. The implications of "green" manufacturing are also covered in the study.

The report also identifies important technology and business trends affecting the packaging materials market, as well as opportunities for suppliers. Some of the key opportunities include:

     *    Increased supply of wire bond and flip chip substrates to alleviate
          the current supply imbalance for these materials
     *    Continued migration to smaller diameter gold bonding wire
          technologies for cost reduction and super fine pitch bonding without
          wire sweep
     *    Substrates, die attach, liquid encapsulants, green mold compounds
          and underfills that do not degrade moisture sensitivity levels and
          are compatible with low-k dielectrics and lead-free processing at a
          competitive price
     *    Materials and processes for higher pin count wafer level packaging
          as this technology is expected to be used for DDR3 memory.

The report is available for purchase from SEMI for $4,000 (SEMI members), and $5,000 (non-members). A company-wide site license is also available.

About SEMI:

SEMI is a global industry association serving companies that provide equipment, materials and services used to manufacture semiconductors, displays, nano-scaled structures, micro-electromechanical systems (MEMS) and related technologies. SEMI maintains offices in Austin, Beijing, Brussels, Hsinchu, Moscow, San Jose (Calif.), Seoul, Shanghai, Singapore, Tokyo and Washington, D.C. For more information, visit www.semi.org.

About TechSearch International:

Founded in 1987, TechSearch International (Austin, Texas) is a technology licensing and consulting company specializing in accurate, relevant and timely information on advanced packaging technology and market developments. For more information, visit TechSearch International Inc. at www.techsearchinc.com

CONTACT: Dan Tracy, +1-408-943-7987, or Email Contact, or Scott Smith,
+1-408-943-7957, or Email Contact, both of SEMI

Web site: http://www.semi.org/
http://www.techsearchinc.com/