Epoxy molding compound is the most important encapsulation material and supports the development of the integrated circuit industry. More than 90% of integrated circuits use epoxy molding compound as the packaging material. The vigorous development of the packaging market is expected to drive the demand for epoxy molding compounds. It is estimated that the demand epoxy molding compounds in China will be at least 200,000 tons in 2025.
Epoxy molding compound drives the IC industry
Epoxy molding compound, also known as EMC, is combined with epoxy resin, phenolic curing agent, curing accelerator, filler and mold release agent. It can package small electronic components, such as transistors, integrated circuits, capacitors, resistors, etc., with the advantages of low cost, convenient operation, and high production efficiency.
Silica powder is the main material of epoxy molding compound
Silica powder accounts for about 60%-90% in epoxy molding compound. The improvement of the performance of epoxy molding compound must be realized by improving the performance of silica powder, so there are higher requirements for the particle size, purity and sphericity of silica powder.
The particle size distribution of microsilica powder directly affects EMC viscosity, flash, fluidity, content in epoxy molding compound and impact on device gold wire during packaging. Higher quality silica powder can reduce epoxy molding compound flashing, and has better fluidity and higher electrical insulation.
The foreign-funded manufacturers are in a monopoly position
①DO, SMX, TO, DIP and other packaging technologies
Chinese manufacturers dominate, but the overall level of domestic and foreign capital in the field of TO is equal. The market is mainly dominated by plastic packaging compound manufacturers such as JIANGSU HHCK ADVANCED MATERIALS, Hengsuo HYSOL HUAWEI, and Chang Chun Petrochemical, etc.
②SOD, SOT, SOP, QFP and other packaging technologies
It still dominated by foreign-funded manufacturers, the market share of Chinese-funded manufacturers has gradually increased. Most of the product performance has reached the level of similar foreign-funded products. Thus, there is still a certain room for substitution. The market share is mainly dominated by Sumitomo Bakelite, HKTDC Sourcing, HHCK ADVANCED MATERIALS, etc.
③QFN, BGA and other packaging technologies
Foreign-funded manufacturers are basically in a monopoly position, most of the products of domestic-funded manufacturers are still in the stage of import assessment. Some small number of Chinese-funded manufacturers have achieved small batch production, and there is a large room for substitution.
④SiP, MUF, FOWLP and other packaging technologies
Foreign-funded manufacturers are in a monopoly position, while Chinese-funded manufacturers are still in the stage of product development or customer assessment, and the product categories are relatively single.
The market share is mainly occupied by leading foreign manufacturers such as Sumitomo Bakelite, Astey, and Kyocera, while the layout of domestic manufacturers is relatively limited.
China’s demand for epoxy molding compounds will be achieved 200,000 tons
According to Yole data, the packaging market is expected to grow at a compound annual growth rate of 6.9% from 2022 to 2028, reaching 136 billion USD in 2028, of which advanced packaging is 78.6 billion USD, accounting for 57.79%, and traditional packaging is 57.5 billion USD.
Based on statistics, the demand for plastic packaging semiconductor components in the world currently accounts for more than 98% of the total market. It is estimated that by 2025, the demand for epoxy molding compounds in China’s electronic packaging field will reach 210,000-320,000 tons.
At present, China’s epoxy molding compound production capacity accounts for about 35% of the global production capacity. It is now the world’s largest production base of epoxy molding materials and packaging fillers.