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IC Substrate Market to Boom, Reaching US$29 Billion by 2028

Published: 11.21.2023

The demand for IC substrate is poised for significant growth in the coming years, with its value projected to increase from US$15.1 billion in 2022 to nearly US$29 billion by 2028. This growth is fueled because of surging demands in the AI, 5G, and automotive sectors, according to Yole Intelligence.

IC substrates are a critical component of integrated circuits (ICs), providing a platform for mounting and interconnecting the various electronic components on the chip. They are also essential for heat dissipation, which is important as ICs become smaller and more powerful.

The growing integration of AI, 5G technology, and automotive electronics is driving the need for advanced IC substrates.

The emergence of 5G technology requires sophisticated IC substrates to meet the increased demands for bandwidth and decreased latency. There is a need for highly effective ICs to oversee the routing and switching of data traffic, facilitating streamlined and dependable communication throughout the network. Additionally, ICs are needed to execute vital network functions such as authentication, authorization, and accounting, contributing to the overall efficiency and reliability of the communication system.

Furthermore, the rising prevalence of electric vehicles contributes to the demand for ICs that control electric motor functionalities, facilitating efficient power conversion and torque control. Additionally, these ICs play a crucial role in managing the battery charging and discharging processes, ensuring optimal battery health and performance.

The IC substrate market is also driven by the miniaturization trend. As ICs become smaller, they require thinner and more flexible substrates. This is leading to the development of new substrate materials, such as organic substrates and glass-ceramic substrates.

The IC substrate market is dominated by a few large players, including Ibiden, Unimicron, Semco, and Shinko Electric Industries. These companies are well-positioned to benefit from the growth of the market, as they have the expertise and resources to develop and manufacture advanced IC substrates.

The Asia Pacific region is the largest market for IC substrates, accounting for over 60% of global market share. This is due to the region's strong manufacturing base and the growing demand for electronic devices. The European and North American markets are also significant, but they are expected to grow more slowly than the Asia Pacific region in the coming years.

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