Overseas LED manufacturers have transferred packaging capacity to China

In order to reduce the cost of production, the international semiconductor manufacturers and packaging testing foundry enterprises have their packaging capacity transferred to China, which directly led to the rapid expansion of the scale of China's semiconductor packaging industry. At the same time, the continuous expansion of the scale of China's chip manufacturing as well as the huge and rapid growth of the terminal electronic applications market has greatly promoted the growth of China's semiconductor packaging industry. Two aspects of the impact of China's semiconductor packaging industry, despite the impact of the financial crisis, but the importance of the global semiconductor packaging market has become increasingly prominent.

The early development of the industry, the main focus has been relatively mature in the packaging of low pin count products Chinese foreign and joint venture enterprises packaging. However, with the rapid development of foreign and joint ventures to the advanced packaging production line to China, the product based on the package substrate. Ball array packaging, chip level packaging, epitaxial wafer level packaging and system level packaging will become the mainstream. Epitaxial wafer package has begun to take shape. Silicon perforation technology has been applied to image sensors and has been mass production. In support of the government's special funds, local packaging technology companies are also rapid progress.

The Yangtze River Delta region is still the most promising areas of IC packaging and testing industry. However, in order to reduce costs, in recent years, many enterprises choose the Midwest to new packaging factory. A part of integrated device manufacturers and packaging foundry production capacity will be transferred to the central and western regions, this trend will continue for several years.

China's semiconductor packaging materials market in 2009 will be more than $2 billion 200 million, an increase of about 1% over 2008. It is expected to reach $3 billion 100 million in 2011.

From 2004 to 2011, the average annual compound growth rate (CAGR) of around 20%, the main driving force for growth from the substrate, high-end packaging materials still rely mainly on imports. In the lead frame section, a number of new products for the production of the etching line, but the domestic enterprises and overseas leading technology gap is still very large. In recent years, copper wire gradually began to replace the gold wire, applied to copper wire diameter greater than 2mil and low pin number of products. More than 90% (in meters) of copper wire is used in discrete devices and power devices (lead frame for the base). The copper wire process applied to the packaging substrate has also been mass produced. The packaging factory, packaging material, reduce cost and increasing production efficiency will decrease the cost effective way, especially for substrates, bonding wire and lead frame materials, packaging materials suppliers will face the future price pressure of more than 20%.

China's packaging equipment market reached $452 million in 2008. Affected by the economic crisis, China's packaging equipment market in 2009 is expected to decline by about 34%, to $300 million. With the rapid growth of China's packaging equipment market, some of the leading equipment manufacturers in China set up production lines. However, local packaging equipment accounts for less than 15% of China's market share and is mainly used in the low-end market.