Glass, chiplets will propel advanced IC substrate market, says Yole
The advanced IC substrate market is set to be worth US16.6 billion in 2024 and enjoy a compound annual growth rate (CAGR) of 9 percent over the period 2024 to 2029, according to Yole Group.
The competition to commercialize glass-cored substrates – which resist warping under heat – is intensifying as more players enter the field, the analyst said. Yole lists startup Absolics, Intel and Samsung among the key players.
The growth that is forecast will be driven by rising demand for flip-chip ball grid array substrates and 2.5D/3D advanced packages. This demand is across a broad front including high-performance computing and data centers, 5G, CPUs and XPUs for AI personal computers and automotive sectors.
“The core of advanced IC substrate manufacturing is concentrated in three Asian countries,” said Bilal Hachemi, an analyst at Yole referring to Taiwan, Japan and South Korea. “However, other nations, notably China, have been making significant strides with ongoing investments since the 2021 shortage, positioning themselves to capture future market share, particularly in high-end substrates like FCBGA.”
Yole said that a US substrate supply chain had been slow to develop but this was changing with the establishment of a government program to boost US substrate manufacturing. Despite this advanced IC substrate production will remain centered in Asia, Yole asserts.
New entrants have emerged in the advanced substrates market to serve AI industry leaders. For example, Zhen Ding is committing over US$1 billion by 2027 to become a global supplier of high-end substrates.
Related links and articles:
News articles:
Absolics awarded US$75 million CHIPS funds for glass substrates
Intel tips glass substrate for chiplet packaging
DNP improves chip packages with glass-cored substrate
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