MRO Magazine

Silver Bonding Wire as a Low-cost Alternative Driving the Global Bonding Wire Packaging Material Market until 2020, Says Technavio


July 1, 2016
By Business Wire News

LONDON

According to the latest market study released by Technavio, the global bonding wire packaging material market is expected to grow at a CAGR of more than 2% during the forecast period.

This research report titled ‘Global Bonding Wire Packaging Material Market 2016-2020’ provides an in-depth analysis of the market in terms of revenue and emerging market trends. This market research report also includes up to date analysis and forecasts for various market segments and all geographical regions.

According to Asif Gani, a lead semiconductor equipmentresearch analyst from Technavio, “The semiconductor industry is constantly introducing low-cost alternatives to gold without compromising on the quality. Silver bonding wires are cost-effective and do not require huge investment in high-end bonding equipment. The combined effort of packaging manufacturers and bonding equipment suppliers helped in reducing material costs for bonding wire to a large extent.”

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The report categorizes the global bonding wire packaging material market into four major material segments:

  • Copper
  • Gold
  • PCC
  • Silver

Global bonding wire packaging material market by PCC

The palladium-coated copper (PCC) segment will dominate the market, accounting for a market share of approximately 40% by 2020. Copper was considered the best alternative to gold by semiconductor manufacturers due to its low price and physical and electrical abilities. However, due to limitations such as oxidation and corrosion, the semiconductor manufacturers started adopting oxidation- and corrosion-resistant PCC wires. As a result, the market share of PCC wires is likely to remain steady during the forecast period.

Global bonding wire packaging material market by gold

The gold segment will be the second largest segment in the market and is expected to reach USD 700 million by 2020, growing at a steady CAGR of nearly 12%. “Although numerous cost-effective materials like copper and silver are available in the market, gold still accounted for the largest market share of 40% in 2015. However, the market share of gold declined, primarily because of continuous rise in its prices, which created huge price pressure on semiconductor vendors. As a result, semiconductor manufacturers had to replace gold with cheaper materials, without compromising on the quality of the end products,” says Asif.

Global bonding wire packaging material market by copper

The copper segment is anticipated to reach USD 609 million by 2020. Copper is used both as a pure material and as a coating of palladium for bonding wire. This was the first material adopted in the bonding wire packaging market after the soaring prices of gold created huge pricing pressure on the semiconductor industry. Some of the benefits of copper are as follows:

  • Long reliability and more suitable for automotive ICs
  • Better electro-conductivity
  • Ideal for use in high-speed ICs due to good heat release

Global bonding wire packaging material market by silver

The silver segment is expected to reach USD 435 million by 2020, growing at a steady CAGR of nearly 6%. The market for silver wire is expected to grow during the forecast period because of its low cost compared to copper for high-end bonding equipment. Initially silver was used in the LED packaging and memory devices market, which made the semiconductor manufacturers use silver in bonding wire for packaging material.

The key vendors emphasized by Technavio’s research analysts in this report are:

  • California Fine Wire
  • Heraeus Deutschland
  • MK Electron
  • TANAKA

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Do you need a report on a market in a specific geographical cluster or country but can’t find what you’re looking for? Don’t worry, Technavio also takes client requests. Please contact enquiry@technavio.com with your requirements and our analysts will be happy to create a customized report just for you.

About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

If you are interested in more information, please contact our media team at media@technavio.com.

Technavio Research
Jesse Maida
Media & Marketing Executive
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UK: +44 208 123 1770
www.technavio.com