Global semiconductor and IC packaging materials market generated revenue of USD 48.48 billion in 2025, and is projected to grow to USD 114.28 billion in 2034
Dec. 19, 2025 –
According to projections from Towards Packaging, the global semiconductor and IC packaging materials market is set to increase from USD 53.48 billion in 2026 to nearly USD 114.28 billion by 2034, reflecting a CAGR of 10.2% during 2025 to 2034.
The global semiconductor and IC packaging materials market generated revenue of USD 48.48 billion in 2025, and is projected to grow to USD 114.28 billion in 2034, according to research conducted by Towards Packaging, a sister firm of Precedence Research.
The significance of the semiconductor and IC Packaging Materials market depends on its vital role in enabling modern electronics by protecting, connecting, and managing the performance of integrated circuits (ICs).
Semiconductors are materials such as silicon that have electrical conductivity between that of a conductor and an insulator. IC (Integrated Circuit) packaging is the procedure of encasing a semiconductor chip in a protective casing to then shield it from environmental damage, facilitate its connection to few circuits, and dissipate heat.
This market is significant because packaging materials are important for the functionality, reliability, and even miniaturization of devices, which are driven by the expansion of consumer electronics, automotive, and with telecommunications sectors.
The main drivers for the semiconductor and IC packaging materials market are the rising demand for consumer electronics and even advanced technologies such as 5G, AI, and IoT. These technologies need more sophisticated, smaller, and thus, higher-performing semiconductor devices, which in turn drives the requirement for advanced packaging materials that can enhance thermal performance, electrical properties, as well as miniaturization.