Northeast Securities has released a research report stating that solder paste is primarily used in the SMT industry for soldering electronic components such as resistors, capacitors, and ICs onto PCB surfaces. Due to higher precision requirements, the optical module and semiconductor sectors typically demand higher-grade solder paste. Globally, high-end solder paste is dominated by Japanese and American companies, while domestic firms have achieved technological breakthroughs, with T7 solder paste for 1.6T optical modules already being sold in small batches. Semiconductor development is driving growth in the solder paste sector, and advanced packaging technology is expected to simultaneously boost both the volume and price within the industry. The main viewpoints of Northeast Securities are outlined below.
Widespread Use in Electronics with Varied Types for Different Applications
Solder paste is a type of electronic soldering material. Compared to traditional solid solder wire, it offers better fluidity and wettability, making it suitable for soldering micro and high-density components. Its primary use is in the SMT industry for soldering surface-mount components like resistors, capacitors, and ICs onto PCBs. Downstream applications include consumer electronics, automotive electronics, and industrial electronics. It is categorized by temperature into low-temperature, medium-temperature, and high-temperature solder pastes. Low-temperature paste can achieve a minimum soldering temperature of around 149°C, medium-temperature around 178°C, and high-temperature around 217°C. Different applications typically require specific paste types; for instance, ultra-fine powder low-temperature paste is suited for micro-new products and极小封装器件, while mass consumer electronics production lines often use no-clean solder paste. The optical module and semiconductor fields generally require higher-grade solder paste due to their greater precision demands.
A Key Component in Optical Module Manufacturing
Solder paste is an integral part of optical modules, used in multiple stages of production. Processes such as SMT mounting of optical devices, high-precision flip-chip bonding in optical chip packaging, and surface mounting of other passive components all require solder paste. For current typical optical module products, the mainboard SMT process usually employs T4 to T6 grade paste, with some opting for T5 to T6. Optical devices, COB, and high-speed FPC often use higher-end T5 to T7 solder paste. The FPC process for 800G/1.6T optical modules upgrades to T6~T7 specifications. As optical module products advance, the requirements for solder paste will become increasingly stringent.
Product Upgrades Fuel Exponential Value Growth in a Favorable Industry Structure
The upgrade of solder paste products for optical modules is driving exponential growth in their value. According to public information, a 100G optical module uses 0.2~0.3g of T4 solder paste, priced around 1.5 yuan per gram. In contrast, a 1.6T module uses 2~2.4g of T7 solder paste, priced at 30 yuan per gram. This represents a nearly 10-fold increase in usage volume, a nearly 20-fold increase in unit price, and a combined value increase of 200~300 times. As optical modules advance to 3.2T and subsequently evolve to CPO (Co-Packaged Optics) stages, the value contribution from solder paste is expected to continue growing. Globally, the high-end solder paste market is dominated by companies like Senju (Japan), Alpha (USA), and Heraeus. Domestically, Wittol has achieved technological breakthroughs and has begun small-batch sales of T7 solder paste for 1.6T optical modules (a breakthrough achieved prior to its IPO).
Semiconductor Growth and Advanced Packaging to Drive Volume and Price Increases
Demand for solder paste in the semiconductor sector is also robust. Public data indicates that discrete devices, general-purpose ICs, flip-chip advanced chips, IGBTs, and others all require solder paste. Furthermore, advanced packaging technologies, represented by advanced BGA, necessitate the use of T6 or higher-grade solder paste products. The value contribution from these applications is no less than that from optical modules of 1.6T and above. Related companies include Wittol (which has achieved sales of optical module solder paste), Huaguang New Material, and Youyan Powder Material, among others.
Risk warnings: Data center demand growth may fall short of expectations; progress in domestic substitution may be slower than anticipated; macroeconomic development may not meet expectations.
Comments