Sinolink Securities released a research report stating that the semiconductor packaging materials industry is expected to see both volume and price growth driven by advanced packaging and storage demand. Epoxy molding compounds (EMC) are upgrading with advanced packaging, with high-end products priced up to 10 times higher than basic models, presenting significant localization opportunities. Key fillers such as silicon micropowder (e.g., Low-α spherical alumina) are also experiencing rising demand. Meanwhile, upstream materials for substrates, including Low-CTE electronic fabric and carrier copper foil, face supply shortages and overseas monopolies, making them focal points for domestic substitution.
Sinolink Securities highlights the following key points: 1. **Epoxy Molding Compounds (EMC)**: - EMC, a critical encapsulant in semiconductor packaging, faces increasing performance demands due to advancements in IC packaging. - Localization rates remain low, with high-performance EMC estimated at only 10-20%, and even lower for advanced packaging. - Overseas competitors like Sumitomo Bakelite and Resonac dominate, but domestic firms could reshape the competitive landscape. - As domestic packaging shifts toward advanced technologies (e.g., FOWLP/FOPLP), EMC product structures are evolving, driving higher unit values. For instance, advanced packaging EMC prices are 5-6 times higher than high-performance EMC and over 10 times higher than basic EMC.
2. **Silicon Micropowder**: - A key raw material for EMC, silicon micropowder helps reduce thermal expansion coefficients. - Companies like Lianyungang Highborn Technology supply critical materials such as Low-α spherical alumina, which addresses challenges in high-density stacked packaging for storage applications.
3. **Substrate Upstream Materials**: - **Low-CTE Electronic Fabric**: - Essential for storage, FC-BGA, and 5G high-frequency communication applications, it has become a major supply bottleneck. - Mitsubishi Chemical reported extended lead times (16-20 weeks) due to raw material shortages and surging demand. - **Carrier Copper Foil**: - Primarily used in IC substrates, this market (~¥5 billion) has long been monopolized by Japan’s Mitsui Mining & Smelting. - Growing demand for advanced chips (e.g., SLP) driven by AI development is accelerating domestic substitution, as Japanese firms show limited expansion plans.
**Risks**: - Slower-than-expected localization progress. - Delays in entering overseas supply chains. - Intensified industry competition.
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