Advanced IC Substrate Market Set to Reach $25.53 Billion by 2029 Driven by AI and 5G Applications

According to the latest research from Yole Group, the advanced IC substrate market is anticipated to experience immense growth, with a CAGR of 9% from 2024 to 2029 resulting in a projected  $25.53 billion propelled by the rising demand for cutting-edge technologies such as AI accelerators, 5G infrastructure, and advanced automotive electronics.

One of the main factors driving the expansion of the advanced IC substrate market is the increasing need for FC BGA (Flip Chip Ball Grid Array) substrates vital for the 2.5D and 3D advanced packaging technologies required in high-performance computing, data centers, and AI applications.

Another significant trend in the market is the shift from organic to GCS (glass core substrates). Glass core substrates provide superior electrical performance, higher density integration, and lower signal loss, making them ideal for advanced semiconductor applications. Leading companies such as Absolics, Intel, and Samsung are spearheading efforts to commercialize GCS-based products, enhancing competition within the industry.

While Asia continues to dominate the IC substrate manufacturing landscape, with key players concentrated in the region, investments in substrate manufacturing are on the rise in other parts of the world. The U.S. and China, in particular, have made significant strides in substrate production, thanks to government incentives aimed at strengthening local semiconductor ecosystems. These efforts are expected to diversify supply chains and reduce reliance on a limited number of suppliers.

The rapid growth of the advanced IC substrate market reflects the increasing complexity of semiconductor devices and the rising demand for innovative packaging solutions to support next-generation technologies. As the industry continues to expand, investments in new manufacturing facilities, especially for glass core substrates, are expected to intensify. The competition to lead in this burgeoning market will be fierce, with Absolics, Intel, and Samsung driving innovation and pushing the limits of IC substrate technology.