ROSS BERNTSON, Indium Corporation
As we enter 2025, the semiconductor industry remains a dynamic landscape, propelled by technical advancements and shifting market demands. One of the most significant drivers of growth continues to be Artificial Intelligence (AI), which is heavily reliant on advanced packaging technologies, such as CoWoS, 2.5D, and 3D packaging. These package structures enhance performance, flexibility in design, and energy efficiency, and demand is expected to spur substantial consumption of materials including the water washable flip-chip semiconductor flux and metallic thermal solutions.
Despite the enthusiastic projections for electric vehicles (EVs) over the past years, the anticipated growth in EV adoption has not met expectations, leading to a cautious approach in this sector. This slower growth impacts material suppliers, necessitating strategic adjustments to align with the evolving market dynamics, though the electronics and semiconductor content per car continue to increase.
Conversely, the broader power semiconductor market is witnessing a significant growth driven by the surging demand for power modules, with the introduction of wide band gap (WBG) material, enhanced charging infrastructure, and renewable energy solutions. As the world advocates for sustainable energy, the need for efficient power semiconductors has skyrocketed, presenting lucrative opportunities for companies specializing in these technologies.
A notable trend reshaping the semiconductor landscape is the regionalization of the supply chain due to the current geopolitical situation. With policies like the CHIPS and Science Act in the U.S. and the EU Chips Act and CHIPS JU in Europe, there is a concerted effort to bolster domestic and nearshoring of semiconductor manufacturing. Other high-level government investments and initiatives from selected countries like Japan and Korea are having a significant positive impact on regions throughout the global semiconductor ecosystem. This shift is partly driven by the need for supply chain resilience and strategic autonomy. As a result, we are likely to see increased investments and material demand in these regions.
Simultaneously, India plans to emerge as a significant player in semiconductor manufacturing. With its strategic initiatives and favorable policies, India is positioning itself as a vital hub, attracting global attention and investments. This emergence presents an exciting opportunity for material suppliers to tap into a burgeoning market.
In summary, the semiconductor industry in 2024 is characterized by a blend of challenges and opportunities. While the automotive sector faces headwinds, AI and power semiconductors offer promising growth avenues. At Indium Corporation, we are confident in our ability to support this dynamic industry with over 90 years of innovation fueled by curiosity and exceptional technical expertise. We remain committed to being the strategic partner of our customers, helping to advance the industry and meet the evolving demands of this vibrant field.