Electronic Circuit Board Level Underfill Material Market to Reach USD 540.9 Million with 5.2% CAGR by 2033

Introduction

The Global Electronic Circuit Board Level Underfill Material Market is anticipated to experience significant growth, with projections indicating a rise from USD 325.8 Million in 2023 to USD 540.9 Million by 2033. This market is expected to achieve a Compound Annual Growth Rate (CAGR) of 5.2% during the forecast period from 2024 to 2033. Several growth drivers are propelling this expansion, notably the increasing complexity of electronic assemblies and the heightened requirement for durability and reliability in consumer electronics, automotive, and aerospace sectors.

However, the market faces challenges such as stringent environmental regulations and the high costs associated with advanced underfill materials. Recent developments in the sector include innovations in underfill compositions to enhance thermal management and mechanical performance, addressing both miniaturization trends and the thermal challenges of next-generation electronics. These advancements are critical as they help improve the performance and lifespan of electronic components, thus fostering market growth amidst technological evolution and increasing consumer demands for high-quality electronic products.

Recent developments in the Electronic Circuit Board Level Underfill Material market involve key initiatives from major industry players like Henkel AG & Co. KGaA, Namics Corporation, ASE Group, and Hitachi Chemical Co., Ltd., focusing on innovations and strategic expansions.

Henkel AG & Co. KGaA has made significant strides with the introduction of a new semiconductor-grade capillary underfill (CUF) material, Loctite Eccobond UF 9000AG. This product is tailored for advanced silicon node flip chip applications, balancing high filler loading with fast flow capabilities to meet the stringent demands of next-generation semiconductor packaging. This underfill material is designed to enhance the reliability of electronic assemblies by providing robust interconnect protection and compatibility with high-volume manufacturing environments.

Namics Corporation, ASE Group, and Hitachi Chemical Co., Ltd. also continue to play crucial roles in the market, primarily through their contributions to developing and deploying advanced underfill materials that address the challenges of thermal management and mechanical performance in electronic devices. These companies contribute to the overall market growth by focusing on the expansion of product lines and the improvement of underfill formulations to meet the evolving requirements of the electronics industry.

Each of these players is focusing on enhancing the performance and lifespan of electronic components through their innovative underfill solutions, which are critical in supporting the reliability and durability required in today’s electronic devices. Their efforts are central to the market’s growth, as they respond to the increasing complexity of electronic assemblies and the miniaturization of components.

Key Takeaways

• Market Value: Estimated to escalate from USD 325.8 Million in 2023 to USD 540.9 Million by 2033, growing at a CAGR of 5.2%.
• Material Type Analysis: Epoxy-based underfills lead with 38.9%; favored for their superior adhesion and thermal stability essential in protecting high-performance electronic components.
• Application Analysis: CSP (Chip Scale Package) dominates with 43.2%; prevalent in modern electronics due to advantages like reduced size and enhanced performance.
• Dominant Region: North America leads with 40.2% market share; bolstered by technological advancements and stringent environmental regulations.
• High Growth Region: Europe holds a 25% market share; driven by continuous innovations and stringent environmental standards.
• Analyst Viewpoint: The market for electronic underfill materials is seen as competitive and growing, with technological advancements and high demand for reliability in electronics fueling the market’s expansion.

Electronic Circuit Board Level Underfill Material Statistics

• The printed circuit board (PCB) was invented by Viennese engineer Paul Eisler in 1936.
• The world’s largest PCB ever manufactured is 28 meters long and is used in an unmanned solar aircraft by Johnson Electronics.
• Around 70-80% of production costs for a new product come from decisions made during the design phase, particularly true for PCBs.
• Automotive PCB requires that the operating temperature must meet -40°C to 85°C.
• In 1995, the PCB industry became a $7.1 billion industry for the first time, and by 2000, it had grown to over $10 billion. Since 2012, the PCB market has exceeded $60 billion worldwide.
• U.S. re-exports accounted for 41.5% of U.S. total exports of electronic products in 2019.
• China, Mexico, and Canada accounted for a combined 31.8% of U.S. domestic exports of electronic products in 2019.
• U.S. imports of circuit apparatus assemblies increased by $768 million (6.2%) to $13.1 billion from 2018 to 2019.
• In 2022, the global trade of parts of electronic integrated circuits amounted to $22.5 billion, making it the 143rd most traded product out of 4,648.
• Between 2021 and 2022, exports of parts of electronic integrated circuits grew by 37.7%, from $16.4 billion to $22.5 billion.
• Trade in parts of electronic integrated circuits represented 0.095% of total world trade in 2022.
• The top exporter of parts of electronic integrated circuits in 2022 was China, with exports valued at $3.71 billion.
• The top importer of parts of electronic integrated circuits in 2022 was Malaysia, with imports valued at $3.49 billion.
• Parts of electronic integrated circuits ranked 340th in the Product Complexity Index (PCI) out of 4,653 products in 2022.
• The fastest growing export origins between 2021 and 2022 were China ($1.53 billion), Chinese Taipei ($615 million), Malaysia ($511 million), South Korea ($418 million), and the United States ($415 million).
• The fastest growing import destinations between 2021 and 2022 were Malaysia ($784 million), Thailand ($634 million), United States ($629 million), South Korea ($603 million), and the Philippines ($393 million).

Emerging Trends

• Increasing Use of Epoxy-Based Underfills: Epoxy-based underfills are gaining popularity due to their excellent adhesion and thermal stability. These materials enhance the reliability of electronic devices by protecting solder joints from mechanical stress and thermal cycling, leading to longer lifespans for electronics.
• Growth in Application for Consumer Electronics: With the rise in demand for smartphones, tablets, and wearables, underfill materials are increasingly used in consumer electronics. These devices require robust protection for miniaturized components, driving the need for advanced underfill solutions that ensure durability and performance.
• Development of Low-Cost Underfill Materials: The market is seeing a push towards more cost-effective underfill materials. Innovations focus on reducing production costs without compromising quality, making high-performance underfills accessible for a broader range of applications, particularly in price-sensitive consumer electronics.
• Advancements in No-Flow Underfills: No-flow underfills, which do not require a separate reflow process, are becoming more prevalent. These materials simplify the manufacturing process, reduce production times, and lower costs, while still providing reliable protection for electronic components against mechanical and thermal stresses.
• Adoption of Environmentally Friendly Materials: There is a growing emphasis on environmentally friendly underfill materials. Manufacturers are developing bio-based and recyclable options to meet increasing regulatory requirements and consumer demand for sustainable electronics, reducing the environmental impact of electronic waste.
• Enhanced Thermal Conductivity: New underfill materials are being developed with enhanced thermal conductivity to better dissipate heat from electronic components. This improvement is crucial for high-performance applications, such as advanced computing and telecommunications, where effective thermal management is essential.
• Increased Integration of Nanotechnology: Nanotechnology is playing a significant role in the development of underfill materials. Nanofillers are being incorporated to improve mechanical properties, thermal conductivity, and electrical insulation, resulting in more reliable and efficient underfill solutions for modern electronic devices.

Use Cases

• Enhanced Mechanical Stability Underfill materials are used to enhance the mechanical stability of electronic components on circuit boards. By filling the gaps between the components and the board, these materials protect against mechanical stresses such as vibrations and shocks, ensuring the longevity and reliability of devices, especially in high-stress environments like automotive and aerospace applications.
• Thermal Cycling Protection Underfill materials help protect electronic components from thermal cycling. These materials manage the expansion and contraction caused by temperature fluctuations, reducing the risk of solder joint failures. This use case is particularly crucial for consumer electronics and industrial equipment exposed to varying temperatures.
• Moisture Resistance Underfill materials provide a barrier against moisture, which can cause corrosion and electrical shorts. By sealing gaps on the circuit board, underfills ensure that devices such as smartphones and outdoor electronic systems remain operational in humid or wet conditions, enhancing their durability and performance.
• Miniaturization of Electronics As electronic devices become smaller, underfill materials play a crucial role in maintaining the integrity of compact designs. They support the densely packed components on miniaturized circuit boards, preventing failures due to mechanical or thermal stresses. This use case is essential for modern gadgets like wearables and advanced medical devices.
• Improved Signal Performance Underfill materials can improve the signal performance of high-frequency electronic devices. By reducing the risk of solder joint failure and maintaining stable connections, these materials ensure consistent signal integrity in telecommunications equipment and high-speed computing devices, enhancing overall system performance.
• Extended Product Lifespan The use of underfill materials extends the lifespan of electronic products by protecting against various physical and environmental stresses. This reliability is vital for applications in critical sectors such as healthcare and military, where device failure can have significant consequences. Underfills help maintain performance over longer periods, reducing the need for frequent replacements.
• Enhanced Manufacturing Yields In the manufacturing process, underfill materials help improve yields by reducing the occurrence of defects during production. They provide additional support to components, ensuring better alignment and adhesion during soldering. This benefit is significant for manufacturers of high-volume electronic products, leading to cost savings and higher quality outputs.

Key Players Analysis

Henkel AG & Co. KGaA has significantly advanced in the electronic circuit board level underfill material sector with the launch of their new Loctite Eccobond UF 9000AG. This semiconductor-grade capillary underfill (CUF) formulation is designed for advanced silicon node flip chip applications, offering robust interconnect protection and compatibility with high-volume manufacturing. This product features high filler loading with fast flow capability, ensuring enhanced reliability and volume demands for next-generation semiconductor packaging.

Namics Corporation, a prominent player in the electronic circuit board level underfill material sector, specializes in providing high-performance underfill materials that enhance the reliability of semiconductor devices. Recently, the company has been focusing on innovative solutions for advanced packaging applications, emphasizing materials that offer superior protection and performance under thermal and mechanical stress. Namics continues to lead with its advanced formulations, catering to the evolving needs of the electronics industry.

ASE Group, a leader in semiconductor manufacturing, focuses on electronic circuit board level underfill materials to enhance device reliability. Their advanced underfill solutions, such as capillary underfills, are crucial for protecting delicate components in flip chips and BGAs. ASE Group continues to invest in technology to improve thermal and mechanical performance, supporting the miniaturization trend in electronics. The company reported steady growth in this sector, reflecting the increasing demand for reliable electronic packaging materials.

Hitachi Chemical Co., Ltd. is a key player in the electronic circuit board level underfill material market, providing high-performance solutions for semiconductor packaging. Their underfill materials are designed to enhance the mechanical strength and reliability of electronic assemblies. Recently, Hitachi Chemical launched mass production of advanced functional laminate materials for 5G-compatible printed wiring boards, supporting the growing demands of the telecommunications sector. This expansion aligns with their strategic focus on innovation and market growth.

Panasonic Corporation has been actively developing high-performance underfill materials for electronic circuit boards. Recently, they launched the production of molded underfill (MUF) semiconductor encapsulation materials at their Shanghai facility, enhancing their capacity to meet the growing demand from the Chinese market. These materials offer improved reliability and thermal performance, crucial for high-density semiconductor packages used in smartphones and other portable devices.

MacDermid Alpha Electronics Solutions, a leader in electronic circuit board materials, focuses on providing innovative underfill solutions to enhance the reliability of electronic assemblies. Their recent advancements include high-performance capillary underfills designed to address the challenges of miniaturization and high I/O counts in modern electronic devices. This positions MacDermid Alpha as a key player in supporting the evolving needs of the electronics industry.

Parker LORD Corporation, a key player in the electronic circuit board level underfill material sector, has enhanced its market presence through strategic collaborations and acquisitions. In 2020, they partnered with Brightwater United Aero Group to improve global customer support and previously acquired LORD Corporation for $3.8 billion, integrating advanced engineering materials into their portfolio. These initiatives strengthen their capabilities in providing high-reliability underfill solutions for electronic assemblies, supporting the growing demand for miniaturized and durable electronic devices.

H.B. Fuller Company is actively engaged in the electronic circuit board level underfill material market, offering innovative solutions to enhance the reliability of electronic components. Their focus includes high-performance underfills that cater to the needs of various industries, such as consumer electronics and automotive. Recently, H.B. Fuller has expanded its product offerings and market reach, reflecting their commitment to supporting advanced electronic manufacturing processes and addressing the increasing demand for durable underfill materials.

Dow Inc. is a major player in the electronic circuit board level underfill material market, focusing on innovative solutions for flip chip and 3D packaging. They collaborate with industry partners to develop both capillary and wafer-applied underfill materials, addressing thermal and mechanical challenges in advanced semiconductor packaging. In 2023, Dow reported $45 billion in sales and highlighted its commitment to sustainability and innovation in its 2023 Intersections Report.

ELANTAS GmbH specializes in providing high-performance underfill materials for electronic circuit boards, enhancing the durability and reliability of electronic assemblies. Their products are widely used in applications requiring protection against thermal and mechanical stress. ELANTAS continues to expand its market presence through technological advancements and strategic partnerships, maintaining a strong position in the global electronic materials market.

AI Technology, Inc. (AIT) specializes in advanced underfill materials for electronic circuit boards, providing solutions like their UF-MC7883-FP capillary underfill, which offers high thermal conductivity and stress relief for flip-chip packages. Their recent developments include moisture-resistant die-attach adhesives, enhancing performance in high-temperature and high-humidity environments. AIT continues to innovate with proprietary modified cyanate ester technology, ensuring reliability and efficiency in electronic packaging applications.

Indium Corporation is a prominent provider of underfill materials for electronic circuit boards, focusing on high-performance solutions that improve the reliability and thermal management of electronic assemblies. Their products are crucial for advanced packaging technologies, addressing the needs of high-density and miniaturized devices. Indium Corporation remains at the forefront of the industry by continuously innovating and expanding its product portfolio to meet the evolving demands of the electronics market.

Zymet specializes in high-reliability underfill encapsulants designed to enhance board level reliability for electronic components, particularly in harsh environments. Their products feature high thermal and mechanical performance, making them suitable for automotive and enterprise applications. Zymet’s recent innovations include the UA-3307-B edgebond adhesive, which has demonstrated significant improvements in thermal cycling performance for automotive applications. This adhesive supports large BGA packages, maintaining reliability even under extreme temperature variations.

Conclusion

The market for electronic circuit board level underfill materials is expected to grow significantly in the coming years. This growth can be attributed to the increasing demand for smaller and more powerful electronic devices, which require reliable protection to ensure their performance and longevity.

Advancements in underfill materials, which offer better thermal and mechanical stability, are also driving the market forward. Additionally, the rise in the adoption of IoT devices and the expansion of the automotive electronics sector are contributing to the increased use of these materials. As manufacturers continue to innovate and improve the properties of underfill materials, the market is likely to see sustained growth and development.

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