Advanced Packaging Materials | Epoxy Molding Compound (EMC): Key Materials for Electronic Packaging
01 Overview
Epoxy Molding Compound (EMC) is a thermosetting chemical material used for semiconductor packaging. It is a powdered molding compound made of epoxy resin as the base resin, high-performance phenolic resin as the curing agent, fillers such as silicon micropowder, and a variety of additives.
Epoxy molding compounds are mainly used for packaging and protection of electronic components, such as integrated circuits, semiconductor devices, LED chips, power modules, electronic transformers, sensors, etc. Its excellent electrical properties, mechanical properties and chemical resistance can make electronic components have good insulation, heat resistance, corrosion resistance and mechanical strength, effectively protecting electronic components from moisture, corrosion and mechanical damage, thereby improving the reliability and service life of electronic components. Currently, more than 95% of electronic components are encapsulated with epoxy molding compounds.
Data shows that in 2023, the market size of China's semiconductor epoxy molding compound industry will reach 6.242 billion yuan, a year-on-year increase of 15.36%. With the continuous improvement of domestic semiconductor packaging manufacturing process level and the rapid development of downstream application scale, the market size of semiconductor epoxy molding compound is expected to maintain a high growth rate.
02 Types of Epoxy Molding Compounds
According to different forms, epoxy molding compounds can be divided into cake-shaped epoxy molding compounds, sheet-shaped epoxy molding compounds, granular epoxy molding compounds (GMC) and liquid epoxy molding compounds (LMC).
Pancake shape: This form of epoxy molding compound is often used in traditional packaging processes to encapsulate chips through transfer molding technology.
Sheet: This form of epoxy molding compound is suitable for certain specific packaging requirements.
Granular: GMC refers to granular epoxy molding material. Granular epoxy molding material adopts the method of uniform powder spreading in the molding process. After preheating, it becomes liquid. The carrier board with the chip is immersed in the resin to form. It has the advantages of simple operation, short working hours and low cost. It is mainly used in some specific packaging processes, including system-level packaging (SiP) and fan-out wafer-level packaging (FOWLP). GMC has the advantages of simple operation, short working hours and low cost.
Liquid: Liquid molding compound is also called underfill or encapsulation material, which is often used for filling and encapsulating the bottom of the chip. Liquid epoxy molding compound is also called liquid epoxy molding compound, which has the advantages of high reliability, medium and low temperature curing, low water absorption, and low warpage. It is mainly used in HBM packaging process.
According to the different packaging forms, EMC can be divided into two categories: epoxy molding compounds for discrete devices and epoxy molding compounds for integrated circuits. Some epoxy molding compounds can be used to encapsulate both discrete devices and small-scale integrated circuits, and there is no clear boundary between them.
The manufacturing process of different epoxy molding compounds is basically the same. Only the epoxy molding compounds for compression molding do not need to be preformed and biscuited, but need to control the particle size of the crushed particles. Users can directly use granular materials for packaging. The manufacturing process includes raw material pretreatment, weighing, mixing, mixing and cross-linking reaction, calendering, cooling, crushing, preforming (some products do not need it) and other links.
The transfer molding method is generally used to encapsulate electronic components using epoxy molding compounds. This method squeezes the epoxy molding compound into the mold cavity, embeds the semiconductor chip in it, and cross-links and cures it to form a semiconductor device with a certain structural appearance. The curing mechanism is that the epoxy resin undergoes a cross-linking reaction with the hardener under heating and catalyst conditions to form a compound with a certain stable structure.
03 Development History of Epoxy Molding Compounds
EMC epoxy molding compound has the typical "one generation packaging, one generation material" characteristics. With the continuous development of packaging technology, the performance requirements of EMC are also constantly changing.
The first stage is TO/DIP packaging: focus on the thermal/electrical performance of EMC materials. Nowadays, foreign brands have basically withdrawn from DIP technology with low technical barriers; but in TO technology, domestic and foreign product brands are comparable.
The second stage SOT/SOP packaging: focus on the reliability and continuous molding of EMC materials. In lower-end applications, domestic products can basically achieve substitution, but in high-end segments such as high voltage, foreign products are significantly ahead.
The third stage QFN/BGA packaging: focus on EMC warping, porosity, etc. Foreign products are in a monopoly position and only very small quantities are sold domestically.
The fourth stage of advanced packaging technology: higher quality requirements are put forward for all performance of EMC materials. The localization rate is zero, and domestic companies are accelerating to catch up with the technological gap.
04 Technical points of epoxy molding compound
Reliability: Epoxy molding compounds need to pass a series of standard tests to ensure their reliable performance. Common assessment items include: moisture sensitivity level test (JEDEC MSL), high and low temperature cycle test (TCT), strongly accelerated heat and humidity test (HAST), high pressure cooking test (PCT), high temperature and high humidity test (THT), and high temperature storage test (HTST).
As the packaging level increases, the standard tests that packaging materials need to pass are more numerous and more difficult; taking the JEDEC MSL test as an example, basic products do not require this test, high-performance products need to pass at least JEDEC MSL 3, and advanced packaging products need to pass JEDEC MSL1.
Adhesion: The filling of epoxy molding compound needs to ensure zero delamination, that is, there are no defects such as pores inside. The adhesion requirements of epoxy molding compound are related to the type of surface metal and the type of substrate/frame.
Stress and warpage: Stress and warpage play a key role in the surface morphology and final yield of the product. Due to the different expansion coefficients of EMC materials and substrate materials, internal stress will be formed during the process, which will lead to warpage.
Continuous demoulding: In order to ensure production efficiency and production costs, packaging manufacturers will set a lower limit on the number of continuous demoulding times. The continuous demoulding characteristics are related to the resin type, filler particle size, and release agent type and content.
05 Application of Epoxy Molding Compounds in Advanced Packaging
The upstream of the epoxy molding compound industry chain includes epoxy resin, high-performance phenolic resin, silicon powder, additives, etc. Among them, silicon powder occupies the largest share, accounting for 60%-90%, which is the main material of epoxy molding compound and directly affects the performance improvement of epoxy molding compound. The second is epoxy resin, which occupies about 10% of the share. The midstream of the industry chain is the epoxy molding compound manufacturer; the downstream of the industry chain is the fields of consumer electronics, photovoltaics, automotive electronics, industrial applications, etc.
The continuous growth of markets such as artificial intelligence, 5G, high-performance computing, and the Internet of Things has promoted the development of advanced processes and advanced packaging. The continued high demand for low power consumption, larger data storage, and faster transmission speeds has driven key memory suppliers to provide advanced packaging solutions, such as multi-chip packages based on universal flash memory, multi-chip packages based on NAND, and high-bandwidth memory for high-end applications. The main feature of these advanced packages is the vertical or staggered stacking of multiple chips, in which epoxy molding compounds are crucial.
HBM puts forward the requirements of dispersion and heat dissipation for EMC
HBM (High Bandwidth Memory), high bandwidth memory. It is a type of DRAM designed for data-intensive applications that require extremely high throughput. It is often used in fields that require high memory bandwidth, such as high-performance computing, network switching and forwarding equipment.
HBM uses SiP and TSV technology to stack several DRAM dies vertically like floors, making the height of the plastic package significantly higher than that of a traditional single chip. The higher height requires that the peripheral plastic packaging material have sufficient dispersion, so the EMC must be changed from the traditional injection molding cake to the powdered granular granular epoxy molding material (GMC) and liquid epoxy molding material (LMC). GMC accounts for as much as 40%-50% in HBM . For EMC manufacturers, such an upgrade requires taking both dispersion and insulation into account in the formulation, which makes the formulation difficult.
Epoxy molding compounds can be formulated according to different needs. Generally, automotive applications require a more robust package, and EMC with a higher filler content will be used to improve its toughness. However, the flexible modulus will increase accordingly, resulting in a decrease in the strain capacity of the overall package. Handheld devices require a larger package bending/strain margin due to user usage conditions. Therefore, epoxy molding compounds with a slightly lower filler content (less than 80%) will be used.
06 The current status and future trends of epoxy molding compounds
In recent years, China's semiconductor packaging materials industry has made great breakthroughs in some areas, but there is still a certain gap between the overall and foreign manufacturers. At present, Japanese and American manufacturers still occupy a large share of mid-to-high-end products, while Chinese manufacturers still mainly focus on meeting domestic demand in China, with a small export volume, and most of them are still concentrated in the field of epoxy molding compounds for discrete devices and small-scale integrated circuit packaging. Domestic epoxy molding compound products are mainly used in consumer electronics, mainly occupying the mid-to-low-end market, with a market share of about 35%, while high-end epoxy molding compound products are basically monopolized by Japanese and American products.
With the advancement of semiconductor manufacturing processes and the further development of chips towards high integration and multifunctionality, epoxy molding compound manufacturers need to develop and optimize formulas and production processes in a targeted manner according to the customized needs of downstream customers, so as to flexibly and effectively respond to successive generations of packaging technologies. Due to the characteristics of high integration, multifunctionality, and high complexity of advanced packaging, molding compound manufacturers need to make a more complex balance between various performance indicators in the development of formulas for advanced packaging products, and the complexity and development difficulty of product formulas are particularly high; at the same time, epoxy molding compounds used in FOWLP/FOPLP need to be presented in a granular form, requiring manufacturers to more effectively combine formulas and production process technologies, so that product performance can effectively match downstream packaging processes, packaging designs, and package reliability, etc., and higher requirements are placed on product performance.
07 Analysis of the competition landscape of major global markets
Epoxy molding compound originated in the United States in the mid-1960s, and then developed in Japan, and has always occupied a high position in technology. Sumitomo Bakelite is the world's leading manufacturer in the field of epoxy molding compound, occupying 40% of the global market share. As the birthplace of semiconductor molding compound, the United States rarely produces epoxy molding compound, while Japan, China and South Korea are the world's three largest producers of semiconductor epoxy molding compound.
Foreign companies such as Sumitomo, Hitachi, Panasonic, Kyocera, and Samsung have a market share of over 90% in China and almost monopolize the high-end market; China's epoxy encapsulation materials started early, and Huahai Chengke has already been listed, but domestic materials are still concentrated in the mid- and low-end packaging and testing markets such as TO/SOP/SOT. Benefiting from the rapid growth in demand for electronic components for electric vehicles and data centers, as an indispensable material for semiconductor packaging, the market size of epoxy encapsulation materials is expected to continue to grow.
Sumitomo Bakelite
Sumitomo Bakelite is a chemical industry company headquartered in Tokyo, Japan, founded in 1913. The company is mainly engaged in research and development, production and sales in the fields of plastics, electronic materials, chemical materials, etc. Sumitomo Bakelite's epoxy molding compound business currently has a global market share of about 40%, ranking first in the world. The current business is divided into three sectors: semiconductor materials, high-performance plastics, and quality of life products. Among them, the semiconductor materials sector's revenue mainly comes from the epoxy molding compound business. The revenue of this sector accounted for only about 29% in the fiscal year ending March 2024, but the operating profit accounted for 52%, which is the sector with the highest operating profit margin of Sumitomo Bakelite.
Sumitomo Bakelite's epoxy molding compound business is divided into three parts according to downstream application fields: information communication, automobile and other fields, with revenue accounting for approximately 50%, 30% and 20% respectively. Therefore, Sumitomo Bakelite's epoxy molding compound business still relies on consumer electronics.
Resonac (Merger of Showa Denko and Hitachi Chemical)
Japan Resonac is a new company formed by the merger of Showa Denko Group and Showa Denko Materials Group (formerly Hitachi Chemical Group) in January 2023. The company's main businesses include semiconductor materials, mobile transportation (automotive parts/lithium-ion battery materials), innovative materials, as well as chemical raw materials and life sciences. From the perspective of downstream application areas, Resonac's epoxy molding business can be divided into five parts, namely home appliances, automobiles, smartphones, PCs and servers, as well as other fields. The revenue share of these five businesses is approximately 35%, 20%, 15%, 15%, and 15%. The low- and mid-end epoxy molding compounds for home appliances account for a large proportion of the company's business revenue.
Changchun Sealing Plastics (Changshu) Co., Ltd.
Changchun Sealing Plastics (Changshu) Co., Ltd. was established on May 19, 2003. It is a well-known domestic epoxy molding compound manufacturer, with Taiwan listed company Changchun Group holding 70% and Sumitomo Bakelite holding 30%. Changchun Group is the second largest petrochemical enterprise in Taiwan, with hundreds of products, including general chemicals, synthetic resins, thermosetting plastics and high-performance engineering plastics, electronic materials, semiconductor chemicals, etc.
Jiangsu Huahai Chengke New Materials Co., Ltd.
Huahai Chengke was founded in 2010 and listed on the Shanghai Stock Exchange Science and Technology Innovation Board in April 2023. The company focuses on the research and development and industrialization of semiconductor packaging materials. Its main products are epoxy molding compounds and electronic adhesives, which are widely used in consumer electronics, photovoltaics, automotive electronics, industrial applications, the Internet of Things and other fields.
Relying on its core technology system, the company has formed a comprehensive product layout that can cover the fields of traditional packaging and advanced packaging, and has built a comprehensive product system that can be applied to traditional packaging (including DIP, TO, SOT, SOP, etc.) and advanced packaging (QFN/BGA, SiP, FC, FOWLP, etc.). Focusing on the iron-free demand for advanced packaging such as BGA, fingerprint module, fan-out, etc., the company is further developing iron-free production line technology; in response to the increasing demand for automotive-grade epoxy molding compounds, sulfur-free epoxy molding compound products are being further developed ; and continuous investment in research and development of granular (GMC) and liquid molding compounds (LMC) that can be used in the HBM field. During the 24H1 reporting period, the company conquered the sulfur-free bonding technology of epoxy molding compounds, and added a new invention patent for sulfur-free epoxy resin composition and use suitable for semiconductor packaging, which provides protection for the company's core technology and intellectual property rights of sulfur-free advanced packaging materials. On November 11, 2024, Huahai Chengke issued an announcement that it intends to purchase 100% of the equity of Hengsuo Huawei Electronics Co., Ltd.
Jiangsu Zhongke Chemical New Materials Co., Ltd.
Founded in 2011, the company is a national high-tech enterprise specializing in the research and development, production and sales of semiconductor packaging materials. It has an annual production capacity of more than 10,000 tons of semiconductor packaging materials, focusing on the development of epoxy molding compounds in application fields such as large-scale integrated circuit advanced packaging and third-generation semiconductors. From the product point of view, the company's epoxy molding compound technology is inherited from Beijing Kehua and is backed by the Institute of Chemistry of the Chinese Academy of Sciences. The company's products are mainly used in semiconductor packaging and board-level packaging, covering downstream third-generation semiconductors, ICs, automotive regulations, industrial regulations and other applications. Downstream customers include Huatian Technology, Tongfu Microelectronics, Changdian Technology, China Resources Microelectronics, Riyuexin Group and other domestic and foreign packaging leading companies.
In December 2024, granular EMC (GMC) for WLCSP/FOPLP packaging has been put into mass production, liquid EMC (LMC) for WLP packaging is in the R&D and verification stage, and sheet EMC (SMC) for hollow packaging such as SAW is in the R&D and verification stage. In July 2024, the company registered for IPO guidance with the Jiangsu Securities Regulatory Bureau and is about to launch an IPO.
Shanghai Feikai Materials Technology Co., Ltd.
Feikai Materials was founded in 2002. Its epoxy molding compounds are mainly used in power discrete devices, integrated circuit surface mount and substrate packaging products. Mid-to-high-end packaging epoxy molding compounds are gradually transforming from traditional surface mount IC SOP/SSOP, DFN, and QFP products to advanced substrate packaging BGA and MUF. It has the characteristics of low warpage, low water absorption, and high reliability. It can pass the high MSL level and is environmentally friendly EMC that does not contain bromine, antimony, etc. In June 2024, it stated: The company's MUF material products include liquid packaging materials LMC and GMC granular packaging materials. The liquid packaging material LMC has been mass-produced and sold in small quantities, and the granular filling packaging material GMC is still in the research and development sample delivery stage.
Wuxi Chuangda New Materials Co., Ltd.
The company was founded in 2003. Its main business is the research and development, production and sales of high-performance thermosetting packaging materials. Its main products include epoxy molding compounds, phenolic molding compounds, silicone rubber, conductive silver glue, unsaturated polyester molding compounds and other thermosetting packaging materials, which are widely used in packaging in semiconductor and automotive fields.
Tianjin Kaihua Insulation Materials Co., Ltd.
The company was established on June 19, 2000. It is one of the earliest domestic companies producing electronic packaging materials, with an annual production capacity of more than 4,000 tons and an annual output value of 100 million yuan. It is a high-tech enterprise that is mainly engaged in the development, research, production and sales of electronic packaging materials epoxy powder encapsulation materials and epoxy plastic encapsulation materials. In August 2024, the company's fundraising project added 3,000 tons of epoxy powder encapsulation material production capacity and 2,000 tons of epoxy plastic encapsulation material production capacity. It is expected that with the expansion of application areas, the market capacity will continue to increase.
Jiangsu Zhongpeng New Materials Co., Ltd.
The company was established in 2006 and its predecessor was Jiangsu Zhongpeng Electronics Co., Ltd. It is a manufacturer specializing in the production of epoxy molding compound products for semiconductor device packaging.
