Semiconductor Lead Frame Market Size, Share & COVID-19 Impact Analysis, By Packaging Type (Dual Inline Pin Package, Small Out-Line Package, Small Outline Transistor, Quad Flat Pack, Dual Flat No-Leads, Quad Flat No-Leads, Flip Chip, Others), By Application (Integrated Circuit, Discrete Device, Others), By Industry Vertical (Consumer Electronics, Industrial and Commercial Electronics, Automotive, Others), and Regional Forecast, 2022-2029

The global semiconductor lead frame market size was valued at USD 3.18 billion in 2021. The market is projected to grow from USD 3.33 billion in 2022 to USD 5.32 billion by 2029, exhibiting a CAGR of 6.9%. North America dominated the global market with a share of 47.80% in 2021.

The global COVID-19 pandemic has been unprecedented and staggering, with semiconductor lead frame experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a growth of 1.7% in 2020 as compared to 2019.

Semiconductor lead frames are essentially a thin layer of metal that connects the wiring on the semiconductor surface from electrical terminals that are small and tiny to the coating of thin metal plates used in semiconductor packages such as flat packages, small outline packages, and ICs. Additionally, its application on PCB boards to support and fix the IC chips and pins lead frames is the prime factor of the product adoption in the industry. It supplements the chip performance and enables longer operation time. Also, in terms of design, one size is sometimes not always compatible with all and will not be useful for customized specifications and features. 

Dual inline pin package, small out-line package, small outline transistor, quad flat pack, dual flat no-leads, and many more are lead frame packaging used in semiconductor processes. Like any other material, lead frames are manufactured by tooling. The tools can be either open tools, which are available and can be used free of charge, or custom tools.

Furthermore, these lead frame packages are used in almost all semiconductor devices that conduct electricity to individual circuits of the PCB board. Lead frame is the primary part of consumer electronic devices as it is widely used in Integrated Circuits (ICs) and semiconductor packing.

COVID-19 IMPACT

Supply Chain & Manufacturing Disruption Hindered Market Proliferation Amid the COVID-19 Pandemic

The unprecedented emergence of the COVID-19 pandemic has hit the commercial and industrial setup. The key players are experiencing supply chain disruptions and hindrances in the whole working process, which results in financial losses. Semiconductor shortage in tandem with increased raw material costs has created bottlenecks in the production line for manufacturers.

The demand for semiconductors is quite moderate as compared to the pre-pandemic period, and the laminar flow of the supply chain has enabled manufacturers to focus on technology upgrades such as 3D printing PCB board. According to the Semiconductor Industry Association (SIA), post-pandemic semiconductor sales have risen sharply by 15.8%, owing to rising electronic device usage and network subscriptions. The rush wave in the semiconductor demand has pushed semiconductor production. Manufacturers’ investment and acquisition strategies have helped the players to earn a vulnerable profit by intensifying the use of advanced packaging materials.

The COVID-19 outbreak has negatively impacted several economies as factories and manufacturing facilities were closed and lockdowns were implemented. Product shortages increased and the supply demand gap broadened and obstructed production globally. Owing to shortage of materials, hike in transportation and logistics prices, and disruption in the supply chain, manufacturers were forced to hike prices.

LATEST TRENDS

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Surging Demand for Advanced Packaging in Small Electronic Solutions to Boost Market Growth

The evolution of 5G and advancement in network infrastructure is a need for the modern work culture. Post-pandemic, a rise in internet penetration, mobile subscriptions, and work-from-home culture have come into existence. Moreover, the demand for servers, network drivers, and electronic applications in automotive and other industries intensified market growth.

Advanced packaging is an integral part of the semiconductor industry, providing a lucrative opportunity to advance the upper edge in semiconductor technologies. The technologies are poised to witness adoption across various electronic systems as leading firms invest billions of dollars in advanced packaging. Thus, to attain a leading position in the market, key players use Advance Chemcut Etch, which has enabled faster, guaranteed quality.

Rising adoption of lead frames in electric vehicles due to advantages of integrating them with battery insulation and advanced cooling will attract consumers and boost market growth.

SEMICONDUCTOR LEAD FRAME MARKET GROWTH FACTORS

Increasing Demand for Consumer Electronics to Bolster Market Augmentation

Over the years, consumer electronics demand has risen significantly, and consumers need latest technologies that can have faster internet accessibility. The rising market penetration of consumer electronics owing to digitization, improvement in the standard of living, and luxury products has increased the demand for lead frames. Global mobile networks and 5G penetration has boomed in the past year and is resulting in more advancements in the chipset and semiconductor market due to smartphones.

Lead frames are an integral part of consumer electronic devices as they are widely used in Integrated Circuits (ICs) and semiconductor packing. A semiconductor lead frame plays the role of arbiter between substances and provides better cooling and conductivity. This packaging plays a crucial function in defensive IC chips as it encircles the surroundings and ensures the mounting of chips on wiring boards. However, such packaging offers cost-effectiveness for production that economically benefits market players.

RESTRAINING FACTORS

Lack of Capital Expenditure and Production Bottlenecks to Restrain Market Expansion

Shortages and supply chain disruptions have adversely affected the world, where logistics operations and inactive trade activities are the major causal factors. These factors resulted in the downfall of lead frames, which are used in almost all smartphones and electronic components. Additionally, rising prices of raw materials, such as copper, have prompted manufacturers to look for alternatives.

While technological advancements have created the necessity for more advanced packaging materials, leading companies lack the funds needed to integrate and adapt to new products.

SEGMENTATION

By Packaging Type Analysis 

Extensive Capabilities of QFN Lead Frames Support the Semiconductor Lead Frame Market Growth During the Forecast Period

By packaging type, the market is segmented into DIP Dual Inline Pin Package), SOP (Small Out-Line Package), SOT (Small Outline Transistor), QFP (Quad Flat Pack), DFN (Dual Flat No-Leads), QFN (Quad Flat No-Leads), FCF (Flip Chip), and others.

The QFN segment holds a major share in the market. QFN packages are miniature in size and widely used in consumer electronics, automotive designs, industrial, and other applications. Demand for infotainment devices, electronic components in automotive, and consumer electronics has significantly raised semiconductor usage globally. Almost every PCB in the electronic device uses the lead frame to conduct electricity to the small ICs of the board. Furthermore, growing PCB board manufacturing for electronic devices that support high temperature and provide reliability have expanded the application of advanced packages such as DIP, SOP, and SOT. Additionally, heat dissipation capabilities offered by QFP, FCF, and DFN packages for small PCB boards have made the package a preferred choice for small electronic devices.

By Application Analysis

Rising Application of Integrated Circuits to Propagate the Adoption of Lead Frames in the Market

By application, the market is segmented into integrated circuit, discrete device, and others.

The application of lead frames has risen in Integrated Circuits (ICs) of smartphones, tablets, and electronic devices, which have major applications in automotive infotainment devices and consumer electronic industry. IC offers advantages such as miniature size, cost-effectiveness, and easy heat dissipation. These advantages make the product easier to handle and upend the growth of integrated circuits in the lead frame market. In the digital era, IoT operational tools and industrial applications have supported the use of discrete devices that are single ICs and can respond quickly. Additionally, other applications of lead frame in medical equipment and remote devices led to considerable demand.

By Industry Vertical Analysis

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Growing Adoption of Consumer Electronics to Fulfill the Necessity of Modern Society

Based on industry vertical, the market is segmented into consumer electronics, industrial and commercial electronics, automotive, and others.

According to our analysis, the consumer electronics segment dominates the market during the forecast period due to the growing use of smartphones and connected devices. Significantly, consumer electronics using lead frame became a preference for manufacturers as it offers more conductivity and heat dissipation.

Moreover, connected devices have become a need for intelligent electronic devices and Wi-Fi enabled devices that are growing IoT use in the industrial sector for dynamic and quick decision making. Industrial commercial electronics devices that include PCB, and VCB panels are reinforcing the global semiconductor market share expansion.

Additionally, technological advancement in robotic technology and entertainment devices has diverted the market sales to small package lead frames. Consumers are demanding lightweight, precise, and cost-effective devices, raising their use in automotive and other industrial sectors.

REGIONAL INSIGHTS

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The report provides an in-depth analysis of five major regions, North America, Asia Pacific, the Middle East & Africa, Europe, and Latin America.

Asia Pacific is proposed to show major lead frame market growth, owing to a strong supply chain of semiconductor devices from dominant countries such as Taiwan and South Korea. Furthermore, rising circuits, discrete devices, and logic circuits across Taiwan, Japan, China, and India have given a push to the sales of electronic devices. The devices are well utilized in the industry such as consumer electronics, automotive, Industrial, and commercial sectors. Meanwhile, prevailing players in the market have been taking on the edge over the market through capacity expansions and investment strategies to attract more consumers and raise the bar of competition.

China is expected to grow significantly owing to investments, capacity expansions, electrification, and automation. China’s semiconductor demand is rising owing to the use of integrated circuits and PCB board manufacturing. Key players in the market seek more reliable products and packages that can handle highly rugged use and provide better performance with good heat dissipation. In order to ensure product availability, product manufacturers have planned to expand their facilities to fulfill consumer needs. Furthermore, technological innovations have helped industries to build a miniature, effective lead frame that is broadly used in automotive electronic devices, and consumer electronic devices. For instance,

• In October 2021, a reliable manufacturing facility by Dai Nippon Printing Co., Ltd was developed that manufactures high-definition silver-plated lead frames and semiconductor chips

North America is expected to dominate the market during the forecast period due to rising demand for automotive electronic devices, increasing adoption of connected devices, and advancing favorable policies by governments and initiatives to expand the domestic production of semiconductor components in this region. Further, market analysis and insights reveal that majority of key players in the semiconductor industry are investing huge amounts in expanding the semiconductor facility in this region. Such an increase in investments by leading players and government initiatives for developing the semiconductor industry are expected to strengthen the market growth.

With the rapid adoption of consumer electronics and IoT devices, Latin America is anticipated to grow at a moderate rate. The depth analysis in the research report reveals that growing 5G infrastructure in developing nations has boosted sales. Furthermore, rising demand for chips and lead frames in IoT and consumer electronics manufacturing is driving the market growth. In addition, foreign direct investment across Latin America and the Caribbean countries reached about USD 134 billion in 2021. These investments are made to expand the country's smart city capabilities and boost the adoption of wireless communication technologies that will intensify the lead frame sales in this region.

The Europe market is driven by favorable policies introduced by the EU countries. Consumer electronics demand and sales are also rising in this region which will aid market expansion. Additionally, the European Chips Act was launched in Europe, which provides financial assistance of USD 50 to the manufacturers to help expand their production capabilities. Furthermore, research and development activities by France and the U.K. to minimize carbon emissions and bring upgrades in the automotive industry through the adoption of EVs will surge the demand for semiconductor lead frames in the market.

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The Middle East & Africa region is growing at a moderate pace owing to the rising adoption of digital technology-based devices and rapid digitalization in the Gulf countries. Also, foreign direct investment by the U.S. in semiconductor industry-related activities will help manufacturers in developing innovative products. Nowadays, semiconductor lead frames are present in every electronic device, such as smartphones, automotive, and electronic appliances. Such an increase in the adoption of 5G technology-based devices and growing internet penetration are expected to create ample opportunities for the market growth during the forecast period.

KEY INDUSTRY PLAYERS

Key Players Focus on Applications that Promote the Demand for Semiconductor Lead Frame

Key players are focusing on application areas that are expected to intensify in the long term and enlarge trends in the semiconductor lead frame industry. These trends focus on applications of lead frames in technology such as robotics, autonomous systems, personal and secure connected devices, advanced electronic communication and network devices, cars and infrastructure, and more energy-efficient systems. These applications are estimated as possible promoters that can intensify and increase demand for the semiconductor lead frames they develop and manufacture.

•             In October 2021, Shinko decided to invest in growth markets as the growing use of Artificial Intelligence (AI) and IoT will expand the applications of semiconductors, further enlarging the market.

In our analysis, the market is assessed as moderately fragmented and as it is a subsidiary market of the semiconductor industry. However, technological advancements and competitive pricing are the factors that brace the global market size expansion. These factors are a few of the many that have kept the pace of market growth steady. Moreover, many well-company profiles are listed in the market along with some regional players fulfilling this demand rise.

• February 2022: Mitsui High-tec planned to build a plant for manufacturing generator and motor parts for electric and hybrid vehicles in Poland while Dentons is going to assist them.


• October 2021: Shinko decided to invest in growth markets as the growing use of AI and IoT will expand the applications of semiconductors, further enlarging the market.

LIST OF KEY COMPANIES IN SEMICONDUCTOR LEAD FRAME MARKET:

• Mitsui High-tec, Inc. (Japan)


• Shinko Electric Industries Co., Ltd. (Japan)


• Chang Wah Technology Co., Ltd (China)


• Haesungds (Korea)


• ASMPT (Singapore)


• Ningbo Hualong Electronics Co., Ltd (China)


• Wuxi Huajing Leadframe Co., Ltd (China)


• QPL Limited (Hong Kong)


• SDI Group, Inc. (Taiwan)


• Dynacraft Industries Sdn Bhd (Malaysia)

KEY INDUSTRY DEVELOPMENTS:

• May 2021: Chang Wah Technology (CWTC), a Taiwan-based lead frame manufacturer, is planning to expand production capacities for IC packaging in order to fulfill the strong demand for automotive control modules and power management units.


• November 2021: Haesung Industrial Co., Ltd in collaboration with LT Precision Co., Ltd made an investment worth USD 293 million that will add 370 new jobs in Changwon, Gyeongnam.


• October 2021: Dai Nippon Printing Co., Ltd., a Japanese printing company, introduced advanced technology-based high-definition HD silver-coated lead frames. These lead frames come with improved adhesiveness and roughness to meet high industry standards.


• November 2021: Haesung Industrial Co., Ltd bought an additional 16.4% stake in Haesungds Co., Ltd and currently owns a total of 26% stake in the company.


• January 2021: Batten & Allen, a plating and electronic component manufacturer, announced that to integrate its expertise into the lead frame plating process and provide a power module for the electronic equipment industries.

REPORT COVERAGE

An Infographic Representation of Semiconductor Lead Frame Market

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The research report provides a detailed analysis of the type, application, and industry vertical. It provides information about leading companies and their business overview, types, and leading applications of the product. Besides, it offers insights into the competitive landscape, SWOT analysis, and current market trends and highlights key drivers and restraints. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the market's growth in recent years.

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