Increasing investments in 5G infrastructure and growing demand for consumer electronics are increasing the Semiconductor & IC Packaging Materials Market size during the forecast period 2023-2028

The Semiconductor & IC Packaging Materials Market size is estimated to reach US$25.3 billion by 2028, growing at a CAGR of 8.5% from 2023 to 2028. Growing demand for smartphones, laptops and PCs, the flourishing semiconductor industry, the incorporation of IoT and growing investments towards 5G and wireless infrastructure boost the growth of the Semiconductor & IC Packaging Materials industry. In April 2021, TSMC said that it would invest US$100 billion to increase its semiconductor output. However, the high cost of raw materials and complex fabrication process hampers market growth.

Moreover, technological advancements in packaging technologies and growing investments in the semiconductor industry to cater to the growing consumer electronics demand are creating ample opportunities for the Semiconductor & IC Packaging Materials market to grow. In November 2021, Amkor Technology announced plans to open an intelligent factory in Vietnam that would provide Advanced Systems in Package assembling and testing services to the world's premier semiconductor and electronics manufacturing businesses.

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North America generated approximately 28% of the global revenues in the Semiconductor & IC Packaging Materials industry in 2022. Growing sales for smartphones, high uses of semiconductors and integrated circuits across various industry verticals are boosting the growth of the Semi Semiconductor & IC Packaging Materials market in this region. In June 2022, according to a report published by Semiconductor Industry Association, sales of semiconductors in the U.S. market were US$11.9 billion in the month of April. Such huge demand also boosts the adoption of Semiconductor & IC Packaging Materials.

Semiconductor & IC Packaging Materials Market Growth Drivers:

Increasing investments in 5G infrastructure and wireless technologies:

The growing investment in 5G infrastructure, as well as the growing number of data center servers, IoT connections and networking devices, are driving the growth of Semiconductor & IC Packaging Materials market. For instance, in July 2020, mobile operators in South Korea such as KT, LG Uplus and SK Telecom agreed to invest a total of US$22 billion in 5G infrastructure across the country through 2022. The additional investment would go towards improving 5G quality in Seoul and six other metropolitan cities. Additionally, the expanding IoT market and rising demand for wireless technologies, where reduced footprint and increased efficiency are critical, are expected to drive the market for Semiconductor & IC packaging materials. According to Ericson, the number of wide-area IoT devices would increase from 2.1 billion in 2021 to 5.2 billion by 2027. These factors would positively influence the Semiconductor & IC Packaging Materials industry outlook during the forecast period.

Major Players in this Market:

Major players in the Semiconductor & IC Packaging Materials Market include Intel, Amkor Technology, Deca Technologies, Siemens, Samsung and Advanced Semiconductor Engineering Inc. In July 2022, SkyWater Technology announced plans to build a US$1.8 billion semiconductor manufacturing facility at Purdue Research Foundation’s Discovery Park in Indiana to support U.S. innovation, manufacturing and workforce development.