Bonding wire packaging material: Key market research findings
- Rising need for miniaturized semiconductor devices
- Silver bonding wire as upcoming alternative
- Leading vendors are TANAKA Precious Metals, Heraeus Deutschland, California Fine Wire, and MK Electron
Technavio has released a new report on the global bonding wire packaging material market, which is envisaged to generate revenues worth $3 billion between 2016 and 2020. The demand for bonding wires has increased due to growing need for miniaturization to meet the packaging requirements of the semiconductor industry. Fine and ultra-fine bonding wires of gold, aluminum, copper, and palladium are used for the production of bonding wires. Vendors in the market are constantly upgrading their offerings with more advanced and compact packaging materials, such as bonding wires with smaller diameters, to cater to the consumer requirements. APAC accounted for more than 89% of the total market revenue, owing to the presence of major semiconductor manufacturing giants like Samsung, LG, SK Hynix, MediaTek, Toshiba, and ROHM.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“Currently, the semiconductor industry is under constant pressure to introduce low-cost alternatives to gold without compromising on the quality. To counter this, vendors are coming up with silver bonding wire as a low-cost alternative to traditional gold wire. Silver bonding wire does not require a huge investment in high-end bonding equipment. Such materials are gaining huge prominence among packaging manufacturers, bonding equipment suppliers, wire suppliers, and bonding component manufacturers,” says Asif Ghani, Lead Analyst, Semiconductor, Technavio Research
The palladium-coated copper (PCC) segment will dominate the bonding wire packaging material market and is anticipated to occupy more than 40% of the total market share by the end of the forecast period. The use of PCC as an alternative material has been gaining traction due to the rising gold prices globally. Since these PCC-coated wires are resistant to corrosion and oxidation, they will replace gold wires as a packaging material during the next few years. Also, the market will witness increased the adoption of oxidation- and corrosion-resistant PCC wires by semiconductor manufacturers.
The global bonding wire packaging material market is dominated by the four key suppliers. Most of the suppliers in this market offer very similar products, where the sole distinguishing factor is the type of alloy used. The chances for new players and startups entering and flourishing in this market are very high as the market is trending towards the adoption of flip chips.
A more detailed analysis is available in the Technavio report, Global Bonding Wire Packaging Material Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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