DISCRETE POWER DEVICES PACKAGING - INDUSTRY OVERVIEW

Discrete power device packaging, a big and slow-growing market

Extracted from:
Discrete Power Device Packaging: Materials Market and Technology Trends report, Yole Développement, 2019
Power Discrete Packaging Comparison, System Plus Consulting, 2018

OUTLINES:

  • Discrete power device packaging: a big, slow-growing market reaching $3.7B by 2024.
  • Packaging innovators’ focus is moving away from discretes.
  • Discrete power packaging still offers opportunities for materials suppliers and packaging companies.


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LYON, France – May 28, 2019: The discrete power devices market represents almost US$13.5 billion in 2018 with a 2.9% CAGR between 2018 and 2024. This industry is clearly well established and mature, confirms Yole Développement (Yole).Therefore, the discrete power device market is following the global rise of the power electronic industry.
In parallel, Yole’s analysts announce a US$3.7 billion market only for the packaging part, with a 1.1% CAGR during the same period.
“The discrete power device packaging industry still offers business opportunities, especially for materials suppliers and packaging companies”, comments Milan Rosina, PhD. Principal Analyst, Power Electronics & Batteries, at Yole.

Yole Group of companies including Yole Développement and System Plus Consulting proposes today a complete view of the discrete power devices packaging industry with two dedicated reports, Discrete Power Device Packaging: Materials Market and Technology Trends and Power Discrete Packaging Comparison.
Both companies combine their expertise to perform valuable and comprehensive analyses of the current packaging solutions taking into account the status of the power electronics industry. Discover today the status of the packaging technologies for discrete power devices.

Amongst the discrete power device industry’s key characteristics and needs are low cost per device, a large selection of products and suppliers, and use of proven, highly standardized products and technologies, including packaging technologies.

“In fact, packaging technologies for discrete power devices including lead frame, die attach, electrical interconnections, and encapsulation should have the aforementioned characteristics,” explains Shalu Agarwal, PhD. Technology & Market Analyst, Power Electronics & Materials at Yole. “It is difficult to match the high volume, standardized products and low cost required by device integrators with the acceptable additional costs equated to innovative packaging technologies”.
Under this context, the combination of market growth and market size for different packaging solutions gives the complex result with many different variables, including device demand evolution, die size, package type and interconnection method used, device size following downsizing trends, semiconductor content per packaged device, and more. Some of these factors favor a market increase, others a market decrease, participating in a rather flat market evolution. As a consequence, the discrete power packaging market’s evolution remains pretty flat but is still growing grow between 2018 and 2024.

Major packaging innovations will be realized on the electrical interconnections level, due to the growing adoption of copper clips as a substitute for more conventional wire and ribbon bonding.
“In fact, the adoption of new material on device level and new markets application pushed the manufacturers to find new packaging technological solutions. These innovations came from sectors other than power, such as MEMS and advanced packaging and this pushed the old supply chain to adapt itself.”, asserts Elena Barbarini, Head of Department Devices at System Plus Consulting.

Discrete device makers such as Infineon Technologies, ON Semiconductor, ROHM Semiconductor and Fuji Electric can manufacture power devices internally or by subcontracting the packaging to OSAT companies. Device makers and OSATs are both looking to offer innovative packaging solutions to their customers. Generally, during the first technology adoption phases, the innovative products are made internally.
Once the demand for units becomes important, the devices manufacturers license the technology to other companies or use OSATs, which have huge manufacturing capacities. Die-attach materials, epoxy molding compounds, and interconnection materials are typically supplied by the same materials suppliers, which also provide these solutions to other markets. Lead frames are supplied primarily by numerous Asian materials suppliers, since low cost and high volumes are important factors.
With increasing application requirements (i.e. thermal cycling capability in electric vehicles), along with reducing device size and increasing device package-design complexity, players that can provide specific solutions and ensure tight angular and dimensional tolerances in high volume production are increasingly sought by device packaging companies.
“Advanced packaging companies like Amkor, ASE, Carsem, and UTAC have significant experience in the packaging of various complex devices for smartphones and microelectronic applications”, comments Milan Rosina from Yole. “Indeed power electronics, especially at low and mid power range, represents a real opportunity for them to adapt and transfer their existing advanced packaging solutions to power devices, and thus enlarge their product and customer portfolio.”
Advanced packaging solutions’ highest added-value is not in “rather simple” discrete devices, but in devices integrated with a driver, multichip devices, etc. Nevertheless, it is worth following the transformation trends in advanced packaging towards power devices, in order to not miss out on the growing business opportunities in discrete power device packaging.

Yole’s discrete power device packaging report is offering an overview of the main applications, along with market drivers and future trends. It also presents a deep analysis of each packaging component and examines the discrete power device supply chain. At the end, Yole’s analysts review the shifting business models, synergies with other industries, and opportunities for newcomers.
System Plus Consulting’s report is a detailed analysis of the current packaging solutions for discrete power devices. Analysts propose a complete review of the technologies with a detailed physical and manufacturing and cost analysis. Process used for the cost simulation are dedicated to wire bonded components, components with wire/ribbon bonding, components with clip and wire and components with clip bonding only.
The complete collection of power electronics reports powered by the whole Yole Group of Companies is available on i-micronews.com, power electronics reports section.

Yole Group of Companies announces its participation to two key conferences dedicated to the power electronics industry: SIA PARIS (June 12-13, 2019 in Paris) and 7th CORPE Symposium on June 13 in Aalborg, Denmark. Make sure to meet our experts and debate about the latest innovations and market status!

Acronym:
OSAT : Outsourced Semiconductor Assembly & Test

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