Die Bonding Pastes Market

Die Bonding Paste Market Growth Outlook (2023 to 2033)

Based on the analysis by Fact.MR, the global die bonding paste market is estimated to be valued at US$ 693.0 million in 2023 and it is anticipated to grow at a CAGR of 4.9% to reach US$ 1,118.2 million by the end of 2033.

The increased production of consumer electronics during the forecast period will drive up the demand for die-bonding paste owing to increase consumer spending on electronic devices to facilitate personal and professional work.

Report Attributes	Details
Die Bonding Paste Market Size (2022A)	US$ 660.7 Million
Estimated Market Value (2023E)	US$ 693.0 Million
Forecasted Market Value (2033F)	US$ 1,118.2 Million
Global Market Growth Rate (2023-2033)	4.9% CAGR
East Asia Market Share (2023)	37.7%
North America Market Share (2023)	15.9%
Key Companies Profiled	Alpha Assembly Solution Henkel Adhesives Nordson EFD Showa Denko Materials (America) Inc. Shenmao Technology SMIC (Senju Metal Industry Co.)

Historic and Future Pathway Analysis for the Die Bonding Paste Market

According to Fact.MR, historically, from 2018 to 2022, utilization of die bonding paste increased at around 4.9% CAGR, wherein, countries such as the United States, China, Japan, Germany, and the UK held a significant share in the global market.

• Short Term (2023-2026): Growing application in the SMT assemblies is expected to boost the demand for die bonding paste in the near future.
• Medium Term (2026-2029): Rise in consumer electronic components across China is expected to drive the growth of the market in the coming years.
• Long Term (2029-2033): Surging demand for die-bonding pastes in consumer electronics end-user industries to create lucrative growth opportunities for market players during the forecast period.

According to the Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit growth at 4.9% CAGR between 2023 and 2033.

Market Dynamics Overview

“Growing Consumption of Consumer Electronics Components Drive the Market”

Die bonding pastes have a wide range of applications in the field of electrical and electronics engineering and these pastes are mainly used in semiconductor housings, LED/optoelectronics, and SMT assemblies. The global die-bonding paste market will grow at a steady CAGR of around 5.0% during the valuation period.

Die Bonding pastes are used to attach semiconductor devices/wafers to PCB (Printed Circuit Board). Further, it reduces stress during system operation. Some die bond pastes are electrical insulation as well as thermally conductive. Various versions such as sintering paste, semi-sintered paste, and solder paste are available in the market.

Among various end-user industries, consumer electronics components are expected to have the largest market share during the forecast period and grow rapidly throughout the forecast period. Growing consumer electronics also shows an upward trend in the consumption of die bond paste in the semiconductor packaging industry. This will increase die bonding pastes sales in the coming year.

Other end-use industries, for instance, telecommunications use die bonding pastes, as they are extensively used in communication electronics and are projected to add revenue in the coming year.

"Health Issue associated with the Ingredients to Manufacture Die Bonding Pastes: Restrain"

The ingredients used to make die-bonding pastes is inherently toxic and direct contact with the skin can cause a variety of health problems, including, skin itching, eye irritation, or in some cases, allergies upon direct contact with the paste. Therefore, when handling die paste, it is mandatory to take necessary precautions such as wearing gloves and washing hands immediately after use. Also, the amount of paste processed should be limited or monitored to avoid serious health problems.

The die bonding process requires high pressure during the semiconductor processing may result in the breaking of the semiconductor chip which further hampers the growth of the market.

Country-wise Insights

Why China Has Great Demand for Die Bonding Paste?

China holds a huge market share in die-bonding pastes. This is because the country has a large number of key players attributed to the high availability of raw materials and low operating costs. Domestic companies are equipped with advanced manufacturing and test infrastructure which is one of the significant reasons for the higher production rate of die-bonding pastes.

The presence of domestic end-user industries is high which allows manufacturers to cooperate with local market players for continuous business opportunities. Also, China is a major exporter of die-bonding pastes around the world because of its high production capacity. All these factors are therefore responsible for predicting a higher market share for China in the global market.

Why is Taiwan Considered One of the Key Markets for Die Bonding Pastes?

Since the 1990s, Taiwan's electronics industry has experienced tremendous growth in both production and sales. Taiwan has similar economic statistics to China for almost all of these industries.

As a result, the consumption of die bond paste in these industries has also increased and continues to increase. Also, organizations such as the TEEMA (Taiwan Electrical and Electronic Manufacturers Association) in Taiwan act as the backbone for all electronics and material manufacturers, providing a solid platform between governments.

Category-wise Insights

How is the semiconductor packaging industry driving market growth?

The semiconductor packaging industry plays an important role in the global electronics industry. It is also the most important demand driver for die bond paste. A semiconductor package is a plastic, glass, metal, or ceramic package that contains one or more discrete building blocks (semiconductor devices or integrated circuits). This package delivers a way to connect to external environments.

A wide range of semiconductor packaging applications in automotive and consumer electronics plays an important role in defense as well as aerospace. US Army researchers work on new ways to package silicon carbide (SiC) power semiconductors to enable their use in high-power military and commercial applications.

The semiconductor packaging industry reduces costs and improves the overall efficiency of the integrated circuit. Consumer demand for semiconductor packaging has increased the need for die-bonding materials at an exponential rate. In addition, advances in adhesive paste formulations and lifecycles increase usage rates in the semiconductor packaging industry.

Which die-bonding paste has the highest market share?

Conductive die bonding paste has a higher market share in the conductive segment. The majority of semiconductors packaging applications use conductive die-bonding pastes in circuits resulting in a high market share.

Due to the high adoption rate, most of the major companies' product portfolios include a large number of products in conductive chip adhesive paste.

Eminent Players Key Stratagems

Prominent die-bonding paste manufacturers are Alpha Assembly Solution, Henkel Adhesives, Nordson EFD, Showa Denko Materials (America) Inc., Shenmao Technology, and SMIC (Senju Metal Industry Co.)

Market Key players rely on organic and inorganic strategies to gain market position in lucrative markets. These strategies include product launches, collaborations with key players, partnerships, acquisitions, and strengthening regional and global sales networks.

For instance, Henkel, one of the leading market players in die bond pastes, has invested in expanding its product portfolio. High thermal conductivity chip bonding paste for high-performance electronic devices

Fact.MR has provided detailed information about the price points of key manufacturers of die bonding paste positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Die Bonding Paste Industry Research

• By Conductivity :

  • Conductive Die
  • Non-conductive Die

• By Paste :

  • Sintering Paste
  • Semi- Sintering Paste
  • Solder Paste
  • Epoxy Paste
  • Silver-Glass Paste

• By Application :

  • SMT Assemblies
  • Semiconductor Packaging
  • LED/Optoelectronics
  • Others

• By End-Use Industry :

  • Consumer Electronics
  • Industrial Use
  • Automotive
  • Medical
  • Communications

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa