Die Attach Paste Market - Forecast(2024 - 2030)

Report Code: CMR 1611 Report Format: PDF + Excel

Overview

The Die Attach Paste market size is forecast to reach USD 842.6 million by 2029, after growing at a CAGR of 3.8% during the forecast period 2024-2029. Die attach paste is a specialized adhesive material used in semiconductor packaging and assembly processes to bond semiconductor chips (die) to substrates such as lead frames, substrates, or carrier wafers. It serves as a critical interface between the semiconductor chip and the substrate, providing electrical connectivity, thermal dissipation, and mechanical support. Die attach paste formulations typically consist of a mixture of adhesive polymers, filler materials, and other additives to achieve the desired properties such as adhesion strength, thermal conductivity, and reliability.

The growing demand for semiconductor devices across various industries driving the need for die attach paste. The increasing revenue in the Die Attach Paste market is primarily propelled by the escalating need for microelectronic devices. Advancements in technology prompt a surge in demand for compact and highly efficient electronic gadgets, consequently fueling the requirement for Die Attach Paste.

Report Coverage

The report “Die Attach Paste Market– Forecast (2024-2029)”, by IndustryARC, covers an in-depth analysis of the following segments of Die Attach Paste.

By Type: No-Clean Pastes, Resin Based Pastes, Water Soluble Pastes

By Conductivity: Conductive (Isotropic, Anisotropic), Non-Conductive

By Filler Material: Silver, Alumina, Silica, Epoxy Resin, Others

By Application: SMT Assembly, Semiconductor Packaging, Automotive, Medical, Others

By End User: Industrial, Commercial

By Geography:  North America, South America, Europe, APAC, RoW

Key Takeaways

·       Solutions with improved thermal dissipation, dependability, and stability are needed since electrical/hybrid vehicles and 5G communication are becoming more and more popular (bond joint temperatures can reach 175°C with a 50–100°C delta in a matter of seconds or minutes). The greatest electrical conductivity, second-best thermal conductivity, and excellent thermal stability of AG make pure silver sintering die attach paste as an appealing option.

·       The North American region shows the fastest growth rate during the forecast period owing to the semiconductor industry in North America witnessing significant growth, fueled by increasing demand for electronic devices across various sectors. As semiconductor manufacturers expand their production capacity and invest in new technologies, the demand for die attach paste used in semiconductor packaging and assembly rises correspondingly.

·       The adoption of advanced packaging technologies such as flip-chip bonding, wafer-level packaging, and 3D integration is driving the need for specialized die-attach paste formulations.

By Type - Segment Analysis

No-Clean Pastes led the market with a leading market share in 2023. No-clean pastes are formulated to leave minimal or no residues after soldering, eliminating the need for post-soldering cleaning processes. This aligns with environmental regulations aimed at reducing the use of hazardous cleaning chemicals and minimizing waste generation, making no-clean pastes an attractive option for electronics manufacturers striving to meet sustainability goals. No-clean pastes streamline the soldering process by eliminating the time-consuming and resource-intensive cleaning steps required with traditional fluxes. This results in improved process efficiency, shorter production cycles, and higher throughput, enabling manufacturers to meet tight production deadlines and customer demands more effectively.

The miniaturization and integration of micro and nanoelectronics are the main areas of strategic investment for the Institute for Electronics and Nanotechnology in 2019. The trend towards miniaturization, higher component densities, and advanced packaging technologies in electronics manufacturing drives the demand for no-clean pastes. These pastes are well-suited for fine-pitch soldering, flip-chip bonding, and other advanced assembly processes, enabling manufacturers to achieve higher levels of integration and performance in their products.

By Conductivity - Segment Analysis

Conductive die attach paste occupy a major share of the market in 2023. Conductive die-attached pastes play a crucial role in the attachment of chips to lead frames, where their electrical conductivity is a key factor. These pastes consist of organic resins blended with inorganic fillers. The resins, which can be either thermosetting (like epoxy, phenolics, cyanate esters, and silicone) or thermoplastics (such as polyimides and polyurethanes), determine the adhesive's mechanical properties. Meanwhile, the fillers, which include metal options like silver, copper, gold, nickel, and palladium, contribute to their electrical and thermal conductivity. These pastes facilitate electrical connections between lead frames, I/O leads, and various circuit components, while also aiding in electrostatic dissipation and electrical grounding.

According to Invest India, domestic electronics production was valued at $101 billion in FY23 and is divided into the following categories (based on FY22 data): mobile phones occupy 43% share, IT hardware, consumer electronics, strategic electronics, industrial electronics segments occupied 5%, 12%, 5%, 12% respectively. With the proliferation of electronic devices across various sectors such as consumer electronics, automotive, healthcare, and telecommunications, there is a continuous demand for conductive die-attached pastes used in semiconductor packaging.

By Application – Segment Analysis

In 2023, SMT Assembly held the majority of the die attach paste market. Surface Mount Technology (SMT) assembly is a method of electronic component assembly that involves mounting electronic components directly onto the surface of printed circuit boards (PCBs).

According to FS Technology, the market for SMT assembly services reached $6 billion in 2023 and is predicted to rise further. By 2035, it is expected to exceed $15 billion at a compound annual growth rate of 7%. This strong development trend is attributable to automation, miniaturization, and cost-effectiveness. As the SMT assembly market grows, there is a parallel increase in the production of semiconductor devices. These devices often require die attach paste for bonding semiconductor chips to substrates during the assembly process. The higher demand for semiconductor devices translates into a greater need for die attach paste.

Die attach paste offers a cost-effective solution for bonding semiconductor chips in SMT assembly applications. Compared to alternative bonding methods such as soldering or epoxy adhesives, die attach paste can provide cost savings while maintaining high reliability and performance, making it a preferred choice for manufacturers aiming to optimize production costs.

By End Use-Segment Analysis:

Industrial Segment dominated the market in 2023. The industrial sector encompasses a wide range of applications where semiconductor devices are used extensively. Semiconductor manufacturing is a critical aspect of industrial processes, as semiconductors serve as the backbone of various electronic devices and systems. Die attach paste is an essential material in semiconductor packaging and assembly processes, making it indispensable for industrial applications. The Semiconductor Industry Association stated that Global Semiconductor sales were $526.8 billion in 2023; the market rose during the second half of the year, and sales are expected to rise by 13.1% in 2024.

Industrial applications often demand high-performance electronic components that can withstand harsh operating conditions, such as elevated temperatures, vibration, and mechanical stress. Die attach paste plays a crucial role in ensuring the reliable bonding of semiconductor chips to substrates, providing excellent thermal conductivity, electrical insulation, and mechanical stability required for industrial environments.

By Geography - Segment Analysis

The APAC region in the die Attach Paste market is anticipated to hold a major share during the forecast period (2024-2029).   APAC, particularly countries like China, Japan, India, South Korea, and Taiwan, serves as a global manufacturing hub for electronics, semiconductor devices, and related components. According to the Ministry of Economy, Trade and Industry (METI), the Production of Electronic devices has increased from 318,945 million yen in 2022 to 341,195 million yen in 2023. The region hosts numerous semiconductor fabrication facilities, assembly plants, and electronic manufacturing services (EMS) providers, driving significant demand for die attach paste.

The rapid industrialization and urbanization observed in APAC countries have fueled the growth of various industries. These industries rely heavily on semiconductor devices and electronic components, driving the demand for die attach paste in manufacturing processes.

Many APAC governments provide favorable policies, incentives, and investments to support the growth of the semiconductor and electronics industries. Initiatives aimed at promoting research and development, innovation, and infrastructure development further contribute to the expansion of the die attach paste market in the region.

Drivers – Die Attach Paste Market

·  Miniaturization Trends In Electronics Is A Driver For Dis Attach Paste Market​​​:

Miniaturization involves the reduction in the size and weight of electronic devices while maintaining or even enhancing their functionality. Consumers increasingly prefer smaller, lighter, and more portable electronic products such as smartphones, wearables, and IoT devices. Die attach paste enables the precise and reliable bonding of semiconductor chips to substrates, facilitating the production of compact electronic devices without compromising performance.

On 17 January 2022, The University of Strathclyde is collaborating on an international initiative that has obtained funding from the Engineering and Physical Sciences Research Council (EPSRC). It has received £1.9 million in EPSRC funding for the development of a breakthrough new method of merging microscale semiconductor light sources and transistors onto a single chip. The development of new methods for integrating semiconductor light sources and transistors onto a single chip could lead to the creation of innovative electronic devices with enhanced functionalities. These devices may require die attach paste for bonding semiconductor chips during the manufacturing process, thereby increasing the overall demand for die attach materials.

Manufacturers strive to differentiate their products by offering innovative features, sleek designs, and compact form factors. Miniaturization allows manufacturers to create unique selling points for their electronic devices, attracting consumers who value portability, convenience, and aesthetics. Die attach paste enables manufacturers to achieve miniaturization goals while ensuring the reliability and performance of their products.

·  Increasing Demand For Semiconductor Devices Propels The Market:

Semiconductor devices are essential components in a wide range of electronic products, including smartphones, computers, automotive electronics, and industrial machinery. The growing demand for these electronic devices drives the need for semiconductor manufacturing, which in turn increases the demand for die attach paste used in the assembly process.

The consumer electronics market continues to grow rapidly due to increasing consumer demand for smartphones, tablets, wearables, and other electronic devices. As manufacturers strive to meet this demand, they require efficient and reliable assembly processes, where die attach paste plays a critical role in ensuring the secure attachment of semiconductor chips to substrates.

The Korean government's announcement of the K-Semiconductor Strategy (May 2021), the Semiconductor Powerhouse Strategy (July 2022), and the Strategy for Strengthening the System Semiconductor Ecosystem (March 2023) demonstrates its strong commitment to establishing a semiconductor powerhouse by fostering the system semiconductor sector rather than focusing solely on memory semiconductors. The Korean government's strategies aim to bolster the entire semiconductor ecosystem, including system semiconductors, which are critical components in various electronic devices and systems. As the system semiconductor sector expands, there will be a corresponding increase in the demand for semiconductor manufacturing materials and equipment, including die attach paste.

Challenges – Die Attach Paste Market

· Technological Complexity Is A Significant Challenge ​​​​​​:

Developing die attach paste with the required properties, such as thermal conductivity, adhesion strength, and reliability, demands intricate formulation techniques. Achieving the optimal balance of these properties while ensuring compatibility with different semiconductor materials and packaging processes is technically demanding. The production of die attach paste requires precise control over various parameters, including particle size distribution, and curing characteristics. Even slight variations in manufacturing conditions can affect the performance and consistency of the paste, necessitating stringent quality control measures and advanced manufacturing technologies.

Different semiconductor applications may have unique requirements for die attach paste, depending on factors such as operating conditions, material compatibility, and reliability standards. Formulating custom die attach paste solutions tailored to specific applications requires in-depth technical expertise.

Market Landscape

In 2023, the Major players in the die attach paste market are Henkel Adhesive Technologies, AI Technologies Inc., Sumitomo Bakelite Co., Ltd., MacDermid Alpha Electronics Solutions, KCC Corporation, Indium Corporation, Heraeus Group, Shenmao Technology, AIM Solder, Kyocera Corporation, and Others.

Developments:

  •    Toyo Ink SC Holdings, the parent company of specialized chemicals manufacturer Toyo Ink Group, made a silver nanoparticle paste for die-attach applications. This lead-free material is designed to fulfill the demands of next-generation power electronics, sintering at low temperatures using both pressureless and pressure-assisted processes in July 2023.
  •  On September 29, 2022, Sumitomo Bakelite Co., Ltd. made plans to expand its manufacturing capabilities for semiconductor packaging materials by acquiring more land and constructing a new facility. It aims to invest around 6.6 billion yen in land, structures, manufacturing lines, and supporting infrastructure. The company will increase the market share of business in China with the building of this new factory.

1.Die Attach Paste Market- Market Overview
    1.1 Definitions and Scope
2.Die Attach Paste Market- Executive Summary
3.Die Attach Paste Market- Landscape
    3.1Comparative analysis 
    3.1.1Market Share Analysis- Top Companies
        3.1.2Product Benchmarking- Top Companies
        3.1.3Top 5 Financials Analysis
        3.1.4Patent Analysis- Top Companies
        3.1.5Pricing Analysis
4.Die Attach Paste Market - Startup companies Scenario Premium 
    4.1Top startup company Analysis by
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Market Shares
        4.1.4 Market Size and Application Analysis
        4.1.5 Venture Capital and Funding Scenario
5.Die Attach Paste Market– Industry Market Entry Scenario Premium 
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing business index
    5.3 Case studies of successful ventures
    5.4 Customer Analysis - Top Companies
6.Die Attach Paste Market- Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porters five force model
        6.3.1 Bargaining power of suppliers
        6.3.2 Bargaining powers of customers
        6.3.3 Threat of new entrants
        6.3.4 Rivalry among existing players
        6.3.5 Threat of substitutes 
7.Die Attach Paste Market -Strategic analysis
    7.1 Value chain analysis
    7.2 Opportunities analysis
    7.3 Market life cycle
    7.4 Suppliers and Distributors Analysis
8.Die Attach Paste Market– By Type (Market Size -$ Million)
    8.1 No-Clean Pastes
    8.2 Rosin Based Pastes
    8.3 Water Soluble Pastes
    8.4 Others
9.Die Attach Paste Market– By Conductivity (Market Size -$ Million)
    9.1 Conductive
        9.1.1 Isotropic
        9.1.2 Anisotropic
    9.2 Non-Conductive
10.Die Attach Paste Market– By Filler Material (Market Size -$ Million)
    10.1 Silver
    10.2 Alumina
    10.3 Silica
    10.4 Epoxy Resin
    10.5 Others
11.Die Attach Paste Market– By Application (Market Size -$ Million)
    11.1 SMT Assembly
    11.2 Semiconductor Packaging
    11.3 Automotive
    11.4 Medical
    11.5 Others
12.Die Attach Paste Market– By End-User (Market Size -$ Million)
    12.1 Industrial
    12.2 Commercial
13.Die Attach Paste Market– By Geography (Market Size -$ Million)
    13.1 North America
        13.1.1 U.S.
        13.1.2 Canada
        13.1.3 Mexico
    13.2 South America
        13.2.1 Brazil
        13.2.2 Argentina
        13.2.3 Colombia
        13.2.4 Chile
        13.2.5 Rest of South America
    13.3 Europe
        13.3.1 U.K
        13.3.2 Germany
        13.3.3 Italy
        13.3.4 France
        13.3.5 Spain
        13.3.6 Rest of Europe
    13.4 Asia Pacific
        13.4.1 China
        13.4.2 India
        13.4.3 Japan
        13.4.4 South Korea
        13.4.5 Rest of Asia Pacific
    13.5 RoW 
        13.5.1 Middle East
        13.5.2 Africa
14.Die Attach Paste Market- Entropy
    14.1 New Product Launches
    14.2 M&A’s, Collaborations, JVs, and Partnerships
15.Die Attach Paste Market Share Analysis Premium
    15.1 Market Share by Country- Top Companies
    15.2 Market Share by Region- Top Companies
    15.3 Market Share by Type of Product / Product Category- Top Companies
    15.4 Market Share at Global Level- Top Companies
16.Die Attach Paste Market- List of Key Companies by Country Premium  
17.Die Attach Paste Market Company Analysis - Market Share, Company Revenue, Products, M&A, Developments
    17.1Company 1
    17.2Company 2
    17.3Company 3
    17.4Company 4
    17.5Company 5
    17.6Company 6
    17.7Company 7
    17.8Company 8
    17.9Company 9
    17.10Company 10