Ceramic substrates are used in the production of printed circuit boards (PCBs), electronic components, and in other applications, such as in the automobile industry. There are various types of ceramic substrates, including alumina, aluminum nitride, silicon nitride, and beryllium oxide. These substrates are ideal for high-temperature and high-power applications where reliability and performance are crucial. For instance, they are utilized in a variety of applications, including power electronics, automotive electronics, and consumer electronics such as smartphones and tablets. These substrates are also used in LED lighting. One such example of a company that offers substrates for LED lighting is Kyocera Corp. Kyocera manufactures multilayer packages and single-layer submounts for high-power and high-brightness light-emitting diodes (LEDs) using alumina (Al2O3) and aluminum nitride (AlN) ceramics. Owing to such uses, the global ceramic substrate market is expected to grow at a CAGR of 5.8% during the forecast period (2023–2030).
Key Drivers of the Ceramic Substrate Market
Increasing Demand for Semiconductors
Ceramic substrates such as alumina, aluminum nitride, and beryllium oxide are used by semiconductor manufacturers. These materials are employed in the semiconductor industry due to their qualities such as hardness and wear resistance, resistance to strong acids and alkalis at high temperatures, and excellent thermal conductivity. These materials also have exceptionally high bulk resistivity and a very low dielectric constant. Owing to this, ceramic substrates are used in the semiconductor manufacturing extensively. Hence, the growth and demand of the semiconductor industry positively affect the ceramic substrates market. Some growth factors include government schemes and private companies investments in the semiconductor industry. For instance, by introducing the CHIPS and Science Act in August 2022, Washington lawmakers took a significant step toward encouraging investment in chip manufacturing and innovation in the US. According to the Semiconductor Industry Association, after the act, around 50 new semiconductor ecosystem projects have been announced across the US, including the development of new semiconductor manufacturing facilities, upgrades and expansions of existing sites, and facilities that provide the materials and equipment required in chip manufacturing. Additionally, approximately $210 billion in private investments in 20 states have been announced to enhance local manufacturing capacity.
Ceramic Substrates Use in the Automobile Industry
Alumina ceramic substrate is an important material in the vehicle sector, providing superior overall performance that is important in automobile engines, sensors, shock absorbers, and others. With its high-temperature resistance and insulating capabilities, alumina ceramic substrate can reduce diesel engine fuel consumption by more than 30%. It also helps the diesel engine start and is utilized in the combustion chamber to prevent heat loss. The use of an alumina ceramic substrate raises the engine’s thermal efficiency to 48%. Owing to this, ceramic substrate is increasingly being used in the automobile industry. Hence, the growth of the automobile industry also increases the demand for ceramic substrates.
Expansions and Innovations by Major Market Players
The ceramic substrate market has significant contributors such as Kyocera Corp., Murata Manufacturing Co. Ltd., Coorstek Inc., Ceramtec, and Maruwa Co. Ltd., among others. These players assist in the market’s growth with the launch of new products and through collaborations and investments. Some of the recent developments in the market include-
• In December 2022, Taiwanese semiconductor company Vanguard International Semiconductor (VIS) started mass manufacturing the first 650V gallium nitride power chips on a unique ceramic substrate.
• In September 2022, TT Electronics unveiled the TFHP series thin film, high power chip resistors, which combine high power and high accuracy in a single resistor by leveraging an aluminum nitride (AIN) ceramic substrate having nearly six times the conductivity of alumina. This high power density component reduces PCB space and can improve reliability by limiting temperature rise in the component hotspot.