Semiconductor and Electronics

ABF Substrate Market is Expected to Reach USD 4,399.5 million by 2030

Aug 2023

Semiconductor and Electronics

As per the report published by Kings Research, the global ABF Substrate Market was valued at USD 998.7 million in 2022 and is projected to reach USD 4,399.5 million by 2030, growing at a CAGR of 20.10% from 2023 to 2030.

The ABF substrates market is expected to experience significant growth in the upcoming years, due to the numerous benefits they offer. These substrates provide better signal integrity and greater design flexibility, which are expected to lead to increased demand and widespread adoption. These enhanced features play an important role in the growing popularity and market expansion of ABF substrates.

Key Insights

  • Based on the type, the 4-8 layer segment generated the highest revenue of USD 479.9 million in 2022
  • Based on application, the PC segment acquired the highest market share of 38.32% in 2022
  • On the basis of region, Asia Pacific accounted for the largest market share of 53.52% in 2022

Semco to Establish ABF Substrate Manufacturing in Vietnam to Fulfill Intel's Growing Demands

December 2021: Semco, a leading semiconductor packaging materials provider, announced their plans to establish new ABF substrate manufacturing capabilities in Vietnam. This strategic move is aimed at catering to the specific requirements of Intel, a prominent semiconductor company. By expanding its ABF substrate capacity, Semco aims to meet Intel's growing demand for these substrates.

Samsung Boosts ABF Substrate Production in Vietnam to Meet Surging Market Demand

October 2021: Samsung expanded the production capacity of ABF substrates at its Vietnam facility. The move aligns with the growing market demand for ABF substrates, driven by their advantageous features like enhanced signal integrity and increased design flexibility.

Growing Demand for High-Density Interconnect to Fuel Market Growth

The market demand for high-density interconnect solutions is on the rise as the demand for high-performance electronic devices continues to grow. ABF substrates are well-suited to meet this demand, due to their fine-pitch capabilities. The increasing need for ABF substrates, which enable the development of advanced electronic products, is a significant factor driving the market growth.

Automotive Electronics Creates Lucrative Opportunities for ABF Substrate Manufacturers

In the automotive industry, vehicles are being equipped with more and more sophisticated electronics and connectivity features. The demanding requirements of automotive applications can be met by ABF substrates due to their dependability, durability, and thermal properties. Manufacturers can take advantage of the opportunity by providing ABF substrates especially made for automotive electronics like infotainment systems, advanced driver-assistance systems (ADAS), and electric vehicle parts.

Questions on Durability of ABF Substrates Hindering Market Growth

One notable drawback of ABF substrates is their potentially lower mechanical durability compared to traditional FR-4 substrates. This characteristic can pose limitations on their suitability for certain applications that require robust and resilient substrates. Sectors such as automotive, aerospace, and industrial equipment, which demand substrates with high mechanical strength, may be hesitant to adopt ABF substrates due to these limitations. The reduced mechanical durability of ABF substrates could impact their reliability and longevity in harsh operating conditions. Consequently, this limitation may impede the widespread adoption of ABF substrates in these sectors, causing the ABF substrates market to experience a slower rate of growth.

Asia Pacific Emerges as Dominant Region in ABF Substrate Market, Driven by Industrial Growth and Strategic Expansions

The Asia Pacific region's strong presence in the ABF substrate market is attributed to several factors, including its speedy industrial development, significant investment efforts, and strategic expansion initiatives led by key industry players. The region's thriving business landscape, coupled with the growing number of consumers, further cements its position as a dominant market force in the ABF substrate market. 

The ABF substrate market is experiencing noteworthy growth in North America. The region generated a significant revenue of USD 228.1 million in 2022. The growth is driven by several factors including advancements in technology, the prevalence of major semiconductor companies, and the rising demand for sophisticated electronic products. A well-established industrial foundation and emphasis on innovative practices are pivotal in propelling the expansion of the ABF substrate market.

Market Players Focusing on Expanding Geographical Presence to Expand Product Portfolio

The market is consolidated with key players such as Ajinomoto Co. Inc., Unimicron Technology Corp, Nan Ya Printed Circuit Board Corporation, AT&S, Samsung Electro-Mechanics (SEMCO), Kyocera, TOPPAN, ASE Material, LG Inno Tek, Shennan Circuit, and others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position. 

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