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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.