PRISMARK

• System, Semiconductor and Packaging Updates

• High Performance Packaging including Si Photonics
• Package Substrate Market: Shortages / Investments
• Flex Circuit / LCP and SiP Integration

Sep. 2012
 ELECTRONICS INDUSTRY: SUMMARY

• Electronics systems value growth ended 2020 in positiveterritory

– Full year growth after pandemic had negative impact to 1H demand and production

• Q4 of 2020 was best quarter across the supply chain by significant margin. Compared to
previous peak quarters revenues:
– OEM and ODM/EMS were 13-15% higher
– Semiconductor players were 22-25% higher
– OSAT were 30% higher
– Foundries were 40% higher

• 2021 continues to see very strong systems growth (~10%) and semiconductor growth
(~20%), which is driven from demand across all product sectors and supported by:
– Continued x-from-home trends, including changed consumer spending habits
– Supportive fiscal and monetary policy
– Economies reopening

• A large part of the electronics supply chain is capacity constrained

– Shortages, rising prices, and panic buying are feeding a bullwhip induced growth
– Even with slowing systems growth, the component supply chain outlook for the
remainder of 2021 is positive, with continued component growth to last until 2022
 SUPPLY CHAIN FORECAST AND 2022 OUTLOOK

2020/2019 2021F/2020
Revenue Revenue
Growth Growth Comments and 2022 Outlook
2021 growth in all sectors, with supply
OEM 2% 12% chain concerns curbing higher growth.
2022 expect return to ~5% growth

Limited impact from declining

ODM/EMS 6% 12% automotive/industrial/aerospace in 2020.
2022 5-7% growth
Strong growth from all sectors and
Semiconductor 7% 21% Increased semiconductor content.
2022 growth to continue at +8%
OSAT benefit from SiP, complex
OSAT 17% 21% packages, and fabless customer growth.
2022 growth of 6-8%
Growth buoyed by FCBGA demand and
Package Substrate 25% 27% price increases
2022 growth of 8%
 PC MARKET FORECAST

M Units $Bn
600 kc621.3 60bp-comp ship val
$600
550M 2020-2025
Units (M)
519M CAAGR 529M

500
495M Tablet 1.5% $500
Notebook 2.5%
190 Desktop -2.0%
Total 185
180
1.3%
172
400 $400
2020-2025
Value ($Bn)
$335Bn CAAGR
$318Bn $310Bn
Tablet 1.2% $300
300 $289Bn $66
2.4%
$63 Notebook
Desktop -2.2% $61
$57
Total 1.4%
250 259
200 229 270 $200
xFH driven growth in
$219 $205 2020/2021 tapers in 2022. $203
$181
2025 market outlook 25%
100 above early 2020 forecasts $100

94 90 89 85
$51 $50 $50 $45
0 $0
2020 2021E 2022F 2025F

© Prismark Partners LLC

MOBILE PHONE SHIPMENTS BY STANDARD
 WEARABLE MARKET FORECAST

$Bn
239M Units 408M Units 486M Units 575M Units 959M Units
$120
Clinical
Diagnostic/
Spending shift to durable goods $107Bn Treatment
2020-2025 CAAGR “High
including personal / wearable 9.2% Regulation”
$100
electronics remains through 2025 $12.4Bn,
4.9% CAAGR
Lifestyle/
$82Bn Occupational
$80 “High
18%
Specificity”
20/19
$69Bn $4.3Bn,
YoY Goggles/ 4.0% CAAGR
Action Cameras Glasses
$60 $58Bn (AR)

Wireless Earbuds
Personal
Electronics
“High Volume”
$40 $36Bn Smart Band $90.4Bn,
10.3% CAAGR

Smart Watches
$20

$0
2018 2019 2020 2021 2025
 CAPEX FROM CLOUD SERVICE PROVIDERS

$M Capex/Revenue
$25 N921.239rd-capex2
18%
$23.3
Capex/Revenue Ba idu
$22.3 $22.0 $22.1 $22.1
$2 1.2 Tencent 16%
$20 .4 $ 20.4 IBM
$19.8 Alibaba
$20 $19.3 14%
$18.4 $18.7
$17.8
$16.8 Am azon
12%
$15
Fac eboo k 10%

8%
$10
Microso ft
6%

$5 4%

Google 2%

$0 0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2018 2019 2020 2021
Server/storage and networking chip demand accelerates due to
increasing semiconductor content. Anticipate strong growth from 2H
2021with new server platforms from Intel, AMD, Nvidia and others
 OEM REVENUES (1 OF 2)

1H 2021/
($Bn) 2020 2020/2019 Q2 2021 1H 2020 12/12 Growth*
Apple $237.3 8% $63.9 49% 33%
Huawei $135.3 11% $26.0 -24% -10%
Samsung $114.7 -1% $30.3 34% 13%
Dell $69.9 -1% $19.4 14% 14%
Panasonic $62.1 -12% $16.4 17% 8%
HP $57.7 -2% $15.3 16% 11%
LG Electronics $53.9 1% $15.3 41% 27%
Lenovo $55.7 7% $16.9 36% 28%
Cisco $34.6 -10% $9.7 8% 6%
Canon $29.7 -10% $8.1 19% 14%
Xiaomi $32.2 20% $12.5 80% 54%
NEC $27.7 -1% $6.0 5% 4%
Ericsson $25.5 6% $6.5 14% 13%
Nokia $25.0 -4% $6.4 14% 10%
HP Enterprise $24.3 -3% $6.1 -1% -2%
BYD $22.8 23% $7.7 64% 45%
Ricoh $16.8 -9% $3.9 8% 10%
ZTE $14.7 12% $4.2 22% 16%
Asus $13.5 24% $4.6 69% 45%
TCL $11.2 108% $6.5 175% 153%
*Latest 12 months vs. previous 12 months
With few exceptions, OEM revenues experiencing
tremendousgrowth/recovery in past 12 months
 OEM REVENUES (2 OF 2)
1H 2021/
($Bn) 2020 2020/2019 Q2 2021 1H 2020 12/12 Growth*
Haier Smart Home $10.4 19% $2.6 -3% 2%
Acer $9.4 25% $2.9 41% 31%
Inspur $9.1 23% $2.6 3% 16%
Motorola Solutions $7.5 -4% $2.0 14% 7%
IBM $7.0 -8% $1.7 -4% -4%
Microsoft (PC) $6.7 15% $1.4 -6% -3%
Skyworth Group $5.8 9% $2.0 54% 39%
Oracle $3.4 -5% $0.9 -3% 0%
Siemens*** $61.7 0% $18.3 24% 16%
Lockheed Martin*** $54.9 10% $14.3 5% 5%
Denso*** $44.9 -7% $12.4 37% 21%
Mitsubishi Electric*** $39.0 -6% $9.7 13% 7%
Hyundai Mobis*** $31.2 -4% $9.2 36% 21%
Medtronic*** $27.9 -10% $8.0 29% 13%
Continental*** $25.5 -14% $6.8 32% 16%
Honeywell*** $24.7 -10% $6.6 8% 5%
Valeo*** $18.9 -14% $5.2 39% 21%
L3Harris*** $18.2 -1% $4.7 2% 1%
Aptiv*** $13.1 -9% $3.8 51% 28%
TOTAL $1,484 2% $400.6 23% 17%
Automotive Total $134 -9% $37.4 37% 21%
Total (excl Automotive) $1,351 3% $363.3 22% 16%
*** Total sales, electronics+other Overall 16% growth vs. previous 12 months
1H run rate of 13-15% above 1H 2018 and 1H2019
 SEMICONDUCTOR SUPPLIER REVENUES
2020/ Q2 2021/ Q3F 2021/ Q1-Q3 2021F/
$Bn 2020 2019 Q2 2021 Q1 2021 Q2 2021 Q1-Q3 2020
Intel $77.9 8% $19.6 0% -3% 1%
Samsung $61.9 11% $20.3 19% 8% 30%
SKHynix $27.1 16% $9.2 21% 9% 35%
Micron $22.1 7% $7.4 19% 10% 34%
Qualcomm $19.4 34% $6.5 3% 12% 55%
Broadcom $18.0 5% $5.0 4% 8% 17%
Nvidia (inclMellanox) $17.1 40% $6.5 15% 5% 57%
TI $14.5 1% $4.6 7% 3% 31%
Infineon $12.1 -9% $3.3 1% 7% 12%
MediaTek $11.0 38% $4.5 24% -2% 65%
Kioxia $10.9 25% $3.0 8% 15% 13%
STMicro $10.2 7% $3.0 -1% 7% 32%
AMD $9.8 45% $3.9 12% 6% 75%
Sony $9.5 0% $2.0 -9% 45% 2%
NXP $8.6 -3% $2.6 1% 10% 31%
WD Flash $7.5 14% $2.2 8% 2% 15%
Renesas $6.7 -1% $2.0 4% 11% 25%
Analog Devices $5.9 2% $1.8 6% 1% 21%
Microchip $5.4 4% $1.6 7% 5% 19%
ON Semiconductor $5.3 -5% $1.7 13% 2% 28%
Xilinx $3.1 -6% $0.9 3% 2% 17%
Maxim $2.4 8% $0.7 8% 3% 23%
Total $366.0 11% $112.1 9% 6% 26%
Memory $114.2 12% $37.8 19% 9% 31%
Total (excl memory) $251.8 10% $74.3 5% 5% 23%
HiSilicon and Apple excluded due to lack of data reporting After 11% growth in 2020, top players
Revenues include some system sales and some double counting (SiP, HBM, etc) expect >20% growth in 2021
 SEMICONDUCTOR REVENUES BY DEVICE SEGMENT

$Bn
$700 N82 1.267bp-se mirev

CAAGR $615
$600 3.7%
D RAM
$531
3.9%
21.0% N AN D/
$500
$469 N VM
-12.1% 6.5% $439
30.9%
$412 L ED/O pto/
$400 Sensor
-37.3%
9.3%
Discrete

Analog
$300

3.7%
5.6% 17.6% L ogic/A SIC
$200 1.4%

$100
MPU/MCU

$0
2018 2019 2020E 2021F 2025F
 SEMICONDUCTOR REVENUES BY END APPLICATION

$Bn
$700 kc821.267bp-bar

2020-2025 CAAGR
$615Bn
Automotive 14%
$600 Automotive
Industrial/Med/Mil/Aero 7%
21% $531Bn Consumer 8% Industrial/Med/
PC/Computing (incl. Crypto) 5% Mil/Aero
$500
7% Mobile Phone/Tablet 5% Consumer
$439Bn Server/Storage/Comm. Infra. 8%
$412Bn 29%
$400 Total 7% PC/Computing
-15% 13%
(incl. Crypto)
-13%
20%
$300 9% Substantial correction can
26% be expected by late 2022
11% Mobile Phone/
Some signs (inventory, Tablet
$200
22% pricing) indicate growth
14% slowing from Q4 2021
$100 Server/Storage/
Prismark 2022 forecast Comm. Infra.
12% 17%
remains +8%
$0
2019 2020 2021F 2025F
 OSAT REVENUE: STILL CLIMBING
2020/ Q2 2021/ Q3F 2021/ Q1-Q3 2021F/
$Bn 2020 2019 Q2 2021 Q1 2021 Q2 2021 Q1-Q3 2020
ASE $6.01 19% $1.83 3% 12% 32%
Amkor $5.05 25% $1.41 6% 21% 20%
JCET $3.85 13% $1.10 6% 9% 24%
SPIL $3.47 12% $0.92 6% 12% 8%
Powertech $2.59 20% $0.74 12% 8% 14%
TFME $1.57 31% $0.59 17% 1% 60%
Huatian $1.22 4% $0.47 17% 3% 60%
King Yuan $0.98 19% $0.27 0% 3% 11%
ChipBond $0.76 15% $0.25 9% 0% 34%
ChipMOS $0.78 18% $0.25 8% 5% 33%
Carsem $0.34 13% $0.12 2% 2% 46%
Unisem $0.31 1% $0.10 5% 3% 34%
OSE $0.25 -14% $0.08 4% 4% 26%
Total $27.17 17% $8.13 7% 10% 26%

Note: TSMC does not report back end data, which was up 25% in 2020 to $3.5Bn (includes wafer probe)
After 17% growth in 2020, expect >20% growth in 2021, with Q3 likely to be peak
 IC PACKAGE ASSEMBLY VALUE (EXCLUDES TEST)

YoY YoY CAAGR

$Bn 2019 2020 2021 2025 ‘20/'19 ‘21/’20 ‘20-‘25
Leadframe $10.2 $10.7 $12.5 $13.0 5% 17% 4%
Wire Bond
BGA/CSP $6.8 $7.1 $8.3 $8.2 4% 17% 3%

Stacked CSP $5.2 $5.8 $7.0 $7.4 13% 21% 5%

Wire Bond SiP $1.4 $1.4 $1.8 $1.8 4% 29% 5%
Flip Chip SiP $1.3 $1.7 $2.4 $3.6 36% 41% 16%
FCCSP $4.4 $5.4 $6.7 $7.9 23% 24% 8%
FCCSP/DRAM $1.1 $1.3 $1.7 $2.2 18% 31% 11%
FCBGA/LGA $5.5 $6.5 $7.8 $11.4 18% 20% 12%
WLCSP $3.2 $3.2 $3.7 $5.1 0% 16% 10%
FOWLP/PLP $0.8 $0.9 $1.1 $1.7 13% 22% 14%
HD-FO/2.5D* $0.7 $1.0 $1.5 $3.3 54% 50% 27%
COF/COG $1.6 $1.8 $2.2 $2.9 13% 22% 10%
TOTAL $42.0 $46.8 $56.7 $68.5 11% 21% 8%
*HD-FO and 2.5D also use Current levels of growth (>20%) are expected to be sustained beyond 2021
FCBGA substrate/assembly Long-term 8% CAAGR of package value concentrated on SiP, flip chip, and
related advanced packages
 FLIP CHIP IC PACKAGE UNIT GROWTH
CAAGR
2020/ 2021F/ 2020-
Bn Units 2019 2020 2021F 2025F 2019 2020 2025
Flip Chip QFN/MIS 3.9 4.4 5.0 7.0 13% 14% 10%

Flip Chip SiP on Laminate* 3.7 4.4 5.8 8.0 19% 32% 13%

Flip Chip CSP 4.5 5.2 6.5 8.5 16% 25% 10%

Flip Chip CSP for DRAM 4.4 5.7 7.5 11.2 30% 32% 14%

Flip Chip BGA/PGA/LGA 1.13 1.3 1.5 1.7 16% 15% 6%

WLCSP 30.4 33.5 40.0 51.0 10% 19% 9%

FO-WLP/PLP 0.90 0.95 1.20 2.1 6% 26% 17%

COF/COG 10.1 11.0 13.5 16.5 9% 23% 8%

Subtotal Flip Chip 59.0 66.5 81.0 106.0 13% 22% 10%

Subtotal Wire Bond 189.0 199.5 233.0 254.0 6% 17% 5%

IC TOTAL 248.0 266.0 314.0 360.0 7% 18% 6%

*RF PA, Connectivity, and Power

 WIRE BOND IC PACKAGE UNIT GROWTH

2020/- 2021F/ CAAGR

Bn Units 2019 2020 2021F 2025F 2019 2020 2020-2025
SO/TSOP/SOT/DIP 83.0 84.7 96.0 99.0 2% 13% 3%

QFP/LCC 14.5 14.6 17.0 17.0 1% 16% 3%

QFN 45.0 51.0 64.1 80.0 13% 26% 9%

Wire Bond CSP 11.0 12.0 14.0 14.5 9% 17% 4%

Stacked CSP* 8.7 9.7 11.5 12.9 11% 19% 6%

BOC for DRAM 7.0 6.4 6.0 3.3 -9% -6% -12%

Wire Bond BGA 0.7 0.8 0.9 0.9 14% 6% 2%

COB (Wire Bond) 15.0 15.7 18.0 20.0 5% 15% 5%

Wire Bond SiP on Laminate** 4.1 4.6 5.5 6.4 12% 20% 7%

Subtotal Wire Bond 189.0 199.5 233.0 254.0 6% 17% 5%

Subtotal Flip Chip 59.0 66.5 81.0 106.0 13% 22% 10%

IC Total 248.0 266.0 314.0 360.0 7% 18% 6%

*Stacked CSP now using flip chip control die with wire bond NAND
**RF PA, Connectivity, and Power
 WHEN WILL THE SEMICONDUCTOR
BOOM (SHORTAGE?) END
• Most electronics companies experiencing 10-50% growth compared to last year (and 2018/2019)
– OEM, ODM/EMS, PCB, Semiconductor, Foundry, OSAT, Materials, and Equipment

• The absolute growth (vs. 2019 baseline) is stronger across some segments
– PC, consumer, cryptomining up 20-400% YoY
– Other segments (industrial, automotive, medical) have recovered to previous levels or better

• This (somewhat unexpected growth) has led to shortages of many components

– Perhaps hardest hit is the automotive industry, which was slow to place orders, and has a
relatively long lead time from order to finished product shipment

• Companies are raising prices for materials (CCL/prepreg, leadframes, etc.), components
(semiconductors/memory, passives, substrates), wafers, etc.

• Leadtimes are extended from weeks to months for select equipment and components
– “Packaging-related equipment from 2 months to 6 months”
– Package substrate equipment (Lithography, laser drill) lead times reported 1-2 year lead times

• Concerns about double booking exist, however:

– The underlying demand is there, as shown by OEM and ODM/EMS consumption
– Overall economies are faring well (certainly not all), and people / companies have
changed spending habits (reduced travel / restaurants) etc.
 RECENT SEMI INDUSTRY ANECDOTES / DATA POINTS

• TSMC stated that chip shortages are starting to ease for their customers, but the shortage will remain
through 2022. TSMC has dramatically increased output to automotive customers throughout 2021

• UMC has raised wafer prices by 20%, and is planning further raises by the end of 2021 and into 2022

• Broadcom’s recent announcement showed latest 2 quarters up 20% YoY

– Expects this quarter to be up 12% YoY, and full calendar year up 9%
– This slower YoY growth is expected with most all semiconductor players in 2H 2021

• DRAM spot prices are up 35% compared to 4 months ago, but have recently started to fall as inventory
levels recover as peak build up season nears a close

• Inventories of certain components (memory module, PCB, passives) appear to be rising, causing a slow
down of the rapid growth and rising prices seen in 1H 2021

• Prismark expects electronics and semiconductor demand to remain strong beyond the end of 2021, but
YoY growth rates will begin to slow starting from Q4 2021
– This new level of electronics demand will be sustained, but systems and semiconductor growth will
slow from 2022
– Historically, semiconductor boom cycles last 18-24 months, and we are already halfway there
– Current component shortage will extend the growth cycle another 6 months as inventories get
replenished
– Equipment and materials are the tail end of bull-whip often see the latest and most dramatic impact
 FABS ARE BECOMING MORE REGIONALLY DISPERSED

Leading Producers Announced Significant Capex Expansion

Total Announcements Through September 2021
Date Amount $Bn Timing $Bn/Year Location Purpose
Direct Investments
New 5nm fab
TSMC Mar 2021 $100.0 3 years (2024) 33.0 Taiwan/AZ
Advanced packing capacity and R&D
TSMC May 2021 NA 2 years (2023) NA JP NA
Global Foundries March 2021 $6.3 2 Years (2022) $1.3 EU/NY/Singapore Fab Expansions
Intel Mar 2021 $20.0 4 years (2024) 5.0 AZ Two new fabs <7nm
3-4 years
Intel May 2021 $3.5 1.0 NM Fab upgradeadvanced packaging
(2025)
Intel July 2021 $12 2 years (2023) 6.0 EU Two new fabs
UMC May 2021 $3.5 2 years (2023) 1.75 Taiwan Foundry 14nm
Kioxia/Western NA JP
Feb 2021 $9.5 NA 3D Flash
Digital
Samsung May 2021 $151.0 9 years (2030) 16.7 KO/CN/US Foundry <3nm and advanced memory
10 years
SK Hynix May 2021 $203.0 20.3 KO/CN Advanced memory and capacityexpansion
(2030)
SMIC March 2020 $2.35 1 years (2022) 2.35 CN Foundry 28nm
SMIC Sept 2021 $8.9 3 years (2024) NA CN Foundry 28nm
Government investments
USA May 2021 $52.0 5 years (2026) 10.4 USA Semi capacity and R&D
EU Dec 2021 €30.0Bn 5 years (2025) €6.0Bn EU Semi capacity and R&D. ESG
Korea May 2021 $100.0 5 years (2025) 20.0 KO Semi manufacturing incentives
Japan 3 years
May 2021 $9.2 3.1 JP <20nm fab
(Sony/TSMC) (2023E)
Source: Prismark, VLSI, and company reports
 PACKAGE ASSEMBLY IN THE WEST?

• As of mid-2021, no confirmed plans in regards to adding packaging capabilities in the US

• While companies keep an eye out related to funding, a few key factors already in play
– TSMC building a $12Bn fab in Arizona. This is likely to prompt consideration for back-end
(bumping, test, packaging) support from either TSMC or other OSAT partners
– Intel and GlobalFoundries dramatically increasing fab investments inUS

• Intel announcement of $3.5Bn investment in Rio Rancho, NM

– 14/22nm active interposer fab + capability for EMIB/FOVEROS assembly
– Intel has already been shifting TCB assembly capability to Arizona (development site) and Oregon
(low volume relative to Vietnam and Malaysia)
– $20Bn Ocotillo, AZ investment, plus “$120Bn mega fab site” in discussion

• So far, only rumors about companies such as Amkor or TSMC adding packaging capability outside their
core sites in Asia
– These companies will take into account what makes sense for them and customers
– For certain packaging technologies, incorporating back-end close to fab does make sense
– Shipping wafers/chips across the Pacific multiple times may not make sense
– Ultimately, until significant funding is available, expect packaging to remain an Asia (including
China) business
– Exceptions will be related to certain high reliability segments and mid-end capability to align with
new fabs built in US
 ON-SHORING PACKAGE INITIATIVE

• Semiconductor packaging has had a long history with a regional focus in SEAsia
– Going back 30 years ago, a majority of semiconductor packaging was done in Japan, Malaysia,
Taiwan, Hong Kong, Singapore, Korea, and other parts of SE Asia
– At that time, both N. America and Europe maintained some significant operations, but with few
exceptions (ST, Skyworks), most have been relocated to Asia
– In addition, there is a clear trend toward China which now covers 1/3 of global semiconductor
packaging by value, and much higher by units shipped
– China already represents ~55% of PCB manufacturing and SMT assembly

• Due to current political factors (US-China trade war), supply chain issues (pandemic/shipping related),
and rising labor costs concerns, a number of companies (and governments) are reconsidering this “shift”
to Asia manufacturing

• The US has begun initiatives to enable continued leadership in semiconductor manufacturing

– Department of Defense (DoD) State-of-the-Art Heterogeneous Integration Prototype (SHIP)
program. In 2020, awarded second phase contract to Intel (who has only significant on-shore
advanced package capability)
– January, Congress enacted the CHIPS for America Act as part of the fiscal 2021 National Defense
Authorization Act (NDAA), which authorizes incentives for domestic semiconductor manufacturing
and investments in chip research. Funding remains unclear, but provides context for further
legislation
– US Senate passed the US Innovation and Competition Act (USICA), which would include $52Bn in
funding provisioned for semiconductor manufacturing, design, and research. Awaiting vote in
congress
 GEOGRAPHIC MIGRATION OF PACKAGE ASSEMBLY

$Bn
kc82 0.273bp-ge o migrationpack
$250
Value of Semiconductor Package Assembly Excluding Test

Move from Japan and Rest of Asia to Taiwan and China

slowing, but continue as focal points for growth
$77Bn
$200 Government incentives to have limited impact to big picture
in near term 35% China
$57Bn
$150
30%

22% Taiwan
$100 20%
$19Bn
5% 10% Korea
11% 11%
10%
$50
41% 25% 23% SEA/RoW

23% 9% 6% Japan
3% 3% 3% Europe
$0 7% 2% 2% Americas
2000 2019 2024
AUTOMOTIVE ELECTRONICS MARKET
 AUTOMOTIVE ELECTRONIC CONTENT PER VEHICLE

N421.016rd-bom
$ 4,000
2020 Veh icle Productio n: 69 3.9 2.5 0.8 0
Electronics Value per Vehicle: $2,400 $4,092 $4,626 $7,318 $8,785
$ 3,500 Most of the Most ofthe Niche
market is here growth is here
$3,0 76
Oth er
$3,000
Com pone nts
$2,690
Component Content per Vehicle

PCB
$ 2,500
Con necto rs/
Cables
(exc. Wire Harness)
$ 2,000
Passives
$1,6 58
$1,497 Adv anced
$ 1,500
Sen sors

$ 1,000
$815 Power Semi

$500
ICs and Other
Sem icond ucto rs
$0
Volume ICE Mass Market Luxury Segment Luxury Segment Luxury Segment
Segments EV L2+ Automation EV L2+ Automati on EV L3 Autom ation

© Prismark Partners LLC ½ 24

 AUTONOMOUS VEHICLE VOLUMES (LEVEL 1-5)

M Units
120 kc421.330rd-adasW

Sensor Integration
Level 3-5
100 +2 LR Radar Level 2+

Replace SR Radar Level 2

80 with SR Lidar?
The Great
+2 SR Radar Unknown
+1 to 2 LR Radar
60
Level 1

40

1 to 10 Camera Modules
0 to 2 SR Radar Modules
Level 0
0 to 12 Ultrasonic Sensors
20 (With ADAS)

Level 0
0 (No ADAS)
2019 2020 2021 2022 2023 2024 20 25 2026 2027 2028 2029 2030
 ADAS ELECTRONICS MARKET

$Bn
kc421.330rd-adas
$25
Off-Sensor Processing
LR Lidar
SR Lidar $21Bn
$20 LR Radar
SR Radar
Camera

$15
$13Bn
$12Bn 1M Units

$10 135M Units

69M
67M
$5
297M Units
189M 177M

$0
2019 2020 2021 2022 2023 2024 2025
ADVANCED PACKAGING
 FLIP CHIP PACKAGING – OVERVIEW

• Flip chip in package continues to be a fast growth solution; 10% CAAGR to 2025

• TCB has become an important solution for select high-end CPU andAP
– Only used at high end, as has been done for years by Intel and Qualcomm
– HiSilicon and MediaTek have adopted as well, but HiSilicon demand has evaporated

• As of 2021, LAB has one major champion with Amkor/Apple

– Expect other OSATs to expand slowly (SPIL, ASE, JCET)
– LAB could be used as lower cost alternative to TCB by companies such as Nvidia,
AMD, HiSilicon, Qualcomm, but some are skeptical
– LAB currently used for Apple A12X and M1 CPU, with die side-by-side with packaged
memory

• As companies move to sub-7nm nodes, bump pitch will continue to limit the viability of
mass reflow assembly processes
– Use of large and/or thin die and packages exaggerates the need for warpage control
– Use of Embedded Trace Substrates (ETS) also pushes companies to look at
improved assembly processes
– Only notable TCB equipment installation at Intel, Amkor, SPIL, and other OSATs, but
companies reluctant to expand without growing demand
 APPLE M1 PROCESSOR
A
• 360µm thick TSMC 5nm M1 processor die (A)
– Effective bump pitch 80-90µm (B) with Laser Assisted B
Bonding (LAB)
– 80µm standoff after assembly
– Underfill (C), TIM (D), heat spreader (E) F

• 23x27mm FCBGA Package Substrate (F)

– 3-2-3 ABF/SAP substrate, 40µm vias, ~15µm L/S E
– 200µm thick Si capacitors (G) embedded
– Discrete passives (H) on substrate
A
– Si Capacitor on bottom of substrate
– 0.5mm pitch ball array (I) to main PCB (K) B

G F
E
H
F I
I
K K
E
A D
B C
G G F
I
K
Photos source: Prismark/Binghamton University 0221.193mvc
© Prismark Partners LLC ½ 29
 TCB MARKET PERSPECTIVES

• TCB equipment sales from ASM to Intel have picked up in last few years
– Mainly due to Intel adding capacity to support growth and EMIB transition
– Intel installed quite a few TCB tools in Oregon, and may eventually be bigger than China, but still
<100 tools
– Vietnam is the main TCB site now, and Malaysia is significant as well
– Intel New Mexico site will be mostly mid-end, but actually still unknown. Photonic module
assembly already done at that site
– ASM makes the tool for chip to wafer for FOVEROS
– LAB is not a suggested path according to ASM, which worked along with many others and came to
the conclusion that solder joint integrity problems of LAB cannot be resolved

• ASM TCB base tool has 1400 UPH

– With up to 4 heads can do 5600 UPH
– ASM to offer new dual head version with smaller footprint, and will be capable of >3000 UPH
– ASM continues to use reduced force and higher temperature as preferred TCB process

• For TCB outside Intel, ASM has little business

– ASM competitors remain small, with Qualcomm and HiSilicon as main users for these
– TFME has a couple TCB tools for development with AMD
– Samsung continues to use “internal” tool, tough for anyone to compete with Korean equipment in

621.261bp
Korea
– ASM also working with TSMC on 70mm interposer using TCB bonding
© Prismark Partners LLC ½ 30
 AMD RYZEN 5800H PACKAGE

• 25 x 35mm FCBGA
– 4-2-4 Layer count using SAP/ABF
– 1.3mm mounted height
– Corner bond for warpage control

• 13.1 x 14.0mm die

– 370µm thick
– Capillary underfill

Photos source: Prismark/Binghamton University

 AMD RYZEN 5800H – FLIP CHIP BUMPS

• Copper Pillar bump with SnAg cap

– 75µm standoff height
– Measured 82µm diameter

• Effective bump pitch of 145µm at this

location
– Capillary Underfill

Photos source: Prismark/Binghamton University

 MEDIATEK DIMENSITY 1000+
• 7nm die • 50µm height Cu/SnAg bumps
– 70µm thick – 100µm pitch, capillary underfill

Photos source: Prismark/Binghamton University

 SAMSUNG EXYNOS 2100 – BUMPS AND SUBSTRATE

• Cu / SnAg Bumps (or SOP)

– Staggered bumps for outer 8 rows
– 100µm minimum pitch
– Capillary Underfill
– Overmolded package

• 4-layer ETS substrate

– 12-15µm L/S
– 120µm thick

Photos source: Prismark/Binghamton University

 INTEL PACKAGE TRENDS

• EMIB: To become workhorse package for Intel CPU platforms in 2022

– Used for range of FPGA products and ramping 2H 2021 for majority of new clients and server CPU
• Alder Lake Client Platform coming in Q4 2021
• Sapphire Rapids Server CPU with HBM. Sampling to customers now, with 1H 2022 ramp
– Volumes to grow from <20M packages 2021 to significant portion of new products from 2022-2025
– 55µm → 45µm (current products) → 40µm pitch using TCB

• FOVEROS: Will remain niche approach for highest performance devices

– Lakefield Mobile CPU shipped in 2020, now discontinued with 50µm pitch using TCB
– Ponte Vecchio: Data center GPU to ship in 2021
– Meteor Lake: High-end CPU/GPU to use FOVEROS in 2023 at 36µm pitch
Intel Lakefield CPU using FOVEROS at 50µm pitch

Photos source: Prismark/Binghamton University

 SUMMARY OF HIGH-DENSITY PACKAGES (1)

• Higher Density FO-POP

– Current Users and Products: Apple A14 Application Processor
– Potential Future Users: MediaTek (double-sided style) and Qualcomm (M-Series)
Application Processors
– Current Manufacturers and Trade Names: TSMC InFO_PoP
– Potential Manufacturers and Trade Names: ASE Double-Sided Fan-Out PoP
– 2020 Market Size: 250M Packages, all Apple/TSMC

• 2.5D / Si Interposer
– Current Users and Products: AMD GPU, Nvidia GPU, Xilinx (FPGA), Google (TPU),
Intel (Networking), Broadcom (Networking), HiSilicon (Networking / CPU), Fujitsu
(CPU / AI), NEC (CPU / AI), Enflame (CPU / AI), and Baidu (CPU / AI)
– Potential Future Users: Any leading-edge CPU / GPU / AI, but expect most growth
from above companies
– Current Manufacturers and Trade Names: TSMC CoWoS, Samsung I-Cube, but also
notable support from SPIL, ASE, JCET, and Amkor
– Potential Manufacturers and Trade Names: Most OSATs use 2.5D / Si Interposer
– 2020 Market Size: 5M Packages, but only a few customers (AMD, Nvidia,
Google/Broadcom) with >100K units per month
 SUMMARY OF HIGH-DENSITY PACKAGES (2)

• FO-MCM (Chip-First)
– Current Users and Products: MediaTek/Nephos and HiSilicon Networking components
– Potential Future Users: Any company using 2.5D today plus Apple
– Current Manufacturers and Trade Names: TSMC InFO_oS, ASE FOCoS/aFOCoS
– Potential Manufacturers and Trade Names: SPIL, JCET XDFOI
– 2020 Market Size: 3.5M Packages

• FO-MCM (Chip-First with Bridge Chip)

– Current Users and Products: None
– Potential Future Users: Apple
– Potential Manufacturers and Trade Names: TSMC InFO-L

• FO-MCM (Chip-Last)
– Current Users and Products: None
– Potential Future Users: Apple, AMD, Nvidia, Broadcom, MediaTek, and more
– Potential Manufacturers and Trade Names: Amkor SWIFT, JCET 2.5DFOI, TSMC
CoWoS-R, ASE FOCoS, SPIL
 SAMSUNG 2.5D RDL INTERPOSER PACKAGE

• Chip's last FO-MCM approach

• Shorter development cycle and lower cost vs. Si Interposer
• Functionally verified with logic and HBM2E
• Down to 2µm L/S using RDL, and sub-2µm in development with Cu damascene

Source: Samsung
 HYBRID BONDING

• Face-to-Face (F2F) or face-to back (F2B) bonding using Cu-Cu hybrid bonding has been
viewed as the next-generation flip chip for over a decade
– Advantages of pitch, bandwidth, and power consumption are clear

• Challenges remain and are not limited to:

– Infrastructure for materials and equipment
– Know-how related to process and design rules
– Consumption of expensive silicon area byTSV
– All above = higher cost

• Applications and Customers

– Image Sensors: Sony, Samsung, Omnivision, SK Hynix
– Other Sensors: ST, NXP, Bosch, etc.
– Memory: YMTC today, but eventually HBM and other memory stack from Samsung,
SK Hynix, Micron, Kioxia, and WD
– Logic: Development and manufacturing efforts led by Intel, TSMC, and Samsung
– Other notable players not limited to: GlobalFoundries, STMicro, Fujitsu, Marvell/IBM
 AMD AND TSMC –HYBRID BONDING

• AMD announced use of Cu-Cu hybrid bonding with TSV for next generation Ryzen CPU
– “Direct Copper-Copper Bond with L3 Cache stacked over L2 on die cache”
– "TSV for chip to chip communication" TSV to access back/top of logic die to the memory (F2B)
– First product will be "7nm Zen 3-based Ryzen processors…production end of 2021”

• AMD is working with TSMC with SoIC process

– Adapted 7nm CPU for niche applications: weather forecasting, fluid dynamics, AI, etc
– 15% performance improvement will cost 1.5-2X to end user
– Few million per year to start and any device over $10K is certainly a likely candidate for SoIC
– Eventually goes to more CPU/GPU products, but not anytime soon.

Source: AMD
 INTEL PACKAGE TRENDS

• FOVEROS Omni and FOVEROS Direct

– Future technology platforms enabling additional features for device tiling in 2023-2025
– FOVEROS Omni utilizes 25µm bump pitch for die to wafer bonding (likely using TCB)
– FOVEROS Direct to use ~10µm bump pitch and direct Cu-Cu bonding

Source: Intel
 HYBRID BONDING – EQUIPMENT AND PROCESSING

• Equipment Solutions
– EVG is already entrenched with Xperi DBI process used in volume for image sensors.
EVG provides equipment for die preparation and bonding
– EVG and ASMPT announced joint development to co-develop equipment and process
for next generation (e.g. logic and/or memory) hybrid bonding
– BESI and Applied Materials with recent partnership
– Suss and SET development partnerships

• Processing challenges to consider

– RDL and Bump
– Wafer / Die preparation: CMP, plasma, and other
– Bonding: Die-to-wafer, wafer-to-wafer
– Underfill / Encapsulation
– Other critical process steps: Metal/dielectric deposition, cleaning, etch, planarization,
metrology/inspection, annealing
 NEXT-GENERATION PACKAGE MARKET

Material / Process
Package Type Examples Leading Developers Opportunities
eWLB, M-series, RDL, Liquid or Granular
FO-Small Die PLP ASE/SPIL, Amkor, JCET, NEPES Compression Mold

RDL, Liquid Compression

FO-POP InFO_PoP TSMC, most OSAT Mold

Embedded Bridge EMIB, FO-EB, Intel, SPIL, TSMC RDL, Underfill, Substrates
InFO_LSI

InFO_OS, FOCoS,
FO-MCM SWIFT TSMC, ASE/SPIL,JCET, Amkor Microbump, RDL, Underfill

TSMC, Samsung, Amkor, Microbump, RDL,

2.5D CoWoS ASE/SPIL Underfill, TSV

Foveros, SoIC, Intel, TSMC, Samsung, Microbump, Hybrid Bonding,

3D Logic
X-Cube GlobalFoundries RDL, TSV

Samsung, SKHynix, Micron, Microbump, NCF

3D HBM / NAND Stack YMTC, Kioxia RDL, TSV

Image or other Hybrid Bonding,

3D Sensor Sony, Samsung, Bosch, ST RDL, TSV
 NEXT-GENERATION PACKAGE MARKET SUMMARY

M Packages
Package Leading Design Houses
Type Examples Applications 2020 2019 2020 2025 Comments
Qualcomm, MediaTek,
eWLB, M-series, Low end RDL
FO-Small Die PMIC, TrX, Codec Samsung, NXP, Infineon, 650 660 1,500
PLP needs
others
Dominated by
FO-POP InFO_PoP Mobile AP Apple 246 250 400
Apple/TSMC
CPU, GPU, FPGA, Intel EMIB
EMIB, FO-EB,
Bridge Chip Networking Intel, others? 2 2.5 200+ gaining
InFO_LSI
Processor/ASIC traction
Notable
Networking
FO-MCM FOCoS, InFO_oS HiSilicon, MTK/Nephos 4 3.5 15 interest,
Processor/ASIC
yield issue
Nvidia, Google, XilinX,
GPU, Networking, Best solution,
2.5D CoWoS Broadcom, AMD, Intel, 4 5 12
ASIC, AI, CPU high cost
HiSilicon, Fujitsu, NEC
CPU chiplet + I/O Intel, Samsung, and
3D Logic Foveros, SoIC 0 5 100++ Early stages
die others (AMD) with TSMC

Most current investment and interest is related to above

“next-generation” packages
This leaves reduced interest in embedded die, panel level packaging and
glass interposers each of which has had limited commercial success
 OPTICAL COMPONENT/MODULE SUPPLIERS

• Long list of optical components suppliers (~35 notable ones) despite:

– Continued acquisitions
– FAAMG (Facebook, Amazon, Apple, Microsoft, Google) buy 50% of all optical
components
– If you add in other cloud, server/storage, and telecom equipment companies, the top
twenty customers account for ~90% of optical component purchases

• Major players include (with rough share by value):

– II-VI / Finisar: 20%
– Lumentum: 15%
– 3-8% share for each of: Accelink, Sumitomo, Acacia, Fujitsu, Neophotonics, Intel,
Cisco, Caliopa/Huawei

• Other notable module and component players include:

– Applied Optoelectronics, ATOP, Broadcom, Ciena, Coadna, ColorChip, Delta,
Eoptolink, Fujikura, Furukawa, GigaLight, HG-Genuine, Hisense, Hitachi Cable,
Innolight, Juniper Kaiam, Luxtera, Methode, NEC, OE Solutions, Oplink, Samtec,
Source Photonics, Superxone, TE Connectivity
 OPTICAL COMPONENT MARKET

• 2020 market size

– 172M units total, 15M for 100-400G

• 5 year unit growth forecast

– 1-40 Gbps: 1%
– 100-400 Gbps: 26%
– Most Si Photonics opportunity is within 400Gbps+

M Units 2020 2025 CAAGR

1-40 Gbps 157 163 1%

100 Gbps 13.7 30 17%

200 Gbps 0.8 7 54%

400 Gbps+ 0.5 10 82%

Total 172 210 4%

Sources: LightCounting, Omdia, IHS, Company Reports, Prismark
 FACEBOOK AND MICROSOFT CO-PACKAGED OPTICS

421.428d
© Prismark Partners LLC ½ 47
 SILICON PHOTONICS ADOPTION

• Silicon Photonics has been discussed for decades, and in the past 2-3 years has become
a notable business
– 2019: 3M transceiver using SiPh (25% of the 100G+),
– 2020: 4M+ transceiver using SiPh with increasing number of players beyond Intel and
Cisco with competitive offerings
– 2025: >20 million transceiver units using SiPh (>50% of the 100G+)

• Known players offering SiPh (with attempt to put largest players first):
– Intel, Cisco/Luxtera, Cisco/Acacia, Inphi, Caliopa/Huawei, Juniper, Finisar/II-VI,
Rockley, Ciena, Broadcom, Mellanox/Nvidia, Skorpios, Infinera, Hisense Broadband,
ColorChip, Ranovus, Elenion (Molex, Jabil, Alibaba), Accelink Technology, Gigalight,
Broadex Technologies, and Zhongji Innolight

• Dozens of other players including consortia (Fraunhofer, AIM, IMEC, Shanghai Industrial
µTechnology Research Institute, etc.), chip suppliers (TSMC, ST, MACOM, Hamamatsu,
etc.), and EMS/OSAT working with the above
 SUBSTRATE
MARKET DEVELOPMENT
 PACKAGE SUBSTRATE MARKET
$Bn
N921.081bp-submkt
$18
FCCSP/FC-BOC Module $16.2Bn
$16 FCPGA/LGA/BGA WB PBGA/CSP
$2.45 Bn

$14
$13.0Bn
+27% $1.70 Bn $2.78 Bn
$12

$10.2Bn
$10 $2.62 Bn
+25% $1.26Bn
$8.64Bn $3.25 Bn
$0.96Bn
$8.14B n
$8 $7.55Bn $2.19Bn
$1.04Bn
$0.93Bn $2.63 Bn
$2.5Bn
$6 $1.98Bn
$2.05Bn $2.11Bn
$1.0Bn
$4 $1.80Bn
$1.67Bn $7.72Bn
$4.61Bn $6.05 Bn
$4.2Bn
$2 $2.90Bn $3.32Bn

$0
2011 2018 2019 2020 2021E 2025F
 SUBSTRATE MARKET: WHAT CHANGED?

• Several factors lead to strong growth in 2020, and will continue in 2021-2025
– Increased system unit demand
– Larger and more complex packages
– Higher selling prices (for the same product)

• Increased System Demand

– 2020 PC shipments reached 490M units, and 2021 outlook revised further upwards
– Strong GPU demand for enthusiast / gaming PCs as well as cryptomining
– Server/Accelerator Cards: Rapid transition to large / complex FCBGA since 2019

• Larger and More Complex Packages

– Example: excluding data center, Nvidia GPU devices have increased ~30% in X-Y
size during 2020
– Both Intel and AMD have seen a shift toward demand for the >70mm server CPU
socket platforms. These typically require 8-2-8 or higher layercount substrates
– At least a dozen other players now using large and high layercount FCBGA/LGA

• Selling prices for all substrates, but notably FCBGA have increased
– Prices paid for same substrate last year can be 20-30% higher
– Customers have been rumored to offer paying higher prices just to secure capacity
 2021 PACKAGE SUBSTRATE MARKET

• Package substrate market reached $10.2Bn in 2020, up 25% from 2019

– All package substrate types grew, but FCBGA had strongest growth at 40% by value
and ~35% in processed area

• 2021 market growth expected to continue at 25-30%

– FCBGA substrates to grow another 30-35% in value and 20-25% in processed area

Intel Xeon CPU with 18 Layer Substrate (8-2-8)

Photos source: Prismark/Binghamton University

 2021 SUBSTRATE MARKET: CONTINUED GROWTH

• Substrate market expected to grow another 25-30% in 2021

– Continued demand for advanced FCBGA substrates for server, high-performance
computing, high-speed networking, and AI applications
– New FCBGA supply capacities by Ibiden, Unimicron, Shinko, Nan Ya, and AT&S will
enable revenue growth as much as 35% in 2021 from these FCBGA focused suppliers

• “Supply Shortage” has been a frequently used term in semiconductors during 2021
– Starting from 2019, larger and more complex packages using chiplets have pushed
the limits or current substrate capabilities, resulting in low yields
– These low yield, high layer, large packages require significant capacity allocation
– Select advanced package substrate equipment such as steppers, laser drilling, and
advanced plating tools have had long lead times since Q2 2020
– FCBGA suppliers have raised prices and/or have turned down orders
– Lead times to major customers have been reported as long as 12 months in 1H 2021
– Semiconductor companies continue to look for alternative sources for FCBGA
substrates: Zhen Ding, Founder ACCESS, Daeduck, Korea Circuit, Chip AI, Shennan
plus at least two other PCB/substrate players eyeing the FCBGA market, often driven
by customer requests
 APPLICATION DRIVERS OF SUBSTRATE MARKET

• PCs and Servers

– Advanced packaging and large body-size FCBGA substrates for CPU, GPU, AI, and
storage devices.
– Thin and multilayer substrates for Flash memory and SSD
• Smartphone
– Antenna module (AiP) substrates for 5G mmWave smartphones
– FCCSP substrates for baseband, AP, and others
– Mobile DRAM substrates
• Wired and Wireless Infrastructure
– ASIC and FPGA devices require more advanced substrates with higher layercount
and larger body-size
• Consumer Electronics
– SiP and module substrates for wearable electronics, such as watches and wireless
headphones
– FCCSP substrates for microcontrollers and processors
• Automotive Electronics
– GPU and advanced processors of ADAS and infotainment require conventional and
advanced FCBGA substrates
– Embedded substrates for power devices or power modules
 SUBSTRATE PACKAGES AND CONSTRUCTIONS

Substrate Package Substrate Typical Typical

Name Size Interconnect Construction Layers L/S (2020)
FCBGA (Flip Chip
20 – 85mm Flip chip SAP w/ABF 6 – 24 8 – 12µm
BGA/PGA/LGA)
Build-up prepreg,
FCCSP (Flip Chip CSP/PoP) 5 – 19mm Flip chip 2–6 6 – 20µm
ETS/mSAP
PBGA 20 – 35mm Wire bond Subtractive 2– 6 25 – 40µm
Wire Bond CSP 5 – 19mm Wire bond Subtractive 2-4 25 – 40µm
BOC for DRAM 9 – 18mm Wire bond Subtractive 1–2 25 – 40µm
FCCSP for DRAM/GDDR 9 – 18mm Flip chip Subtractive/mSAP 2–4 20 – 30µm

Wire bond Thin core build-

RF Modules 3 – 10mm 2 – 16 25 – 50µm
and flip chip up/mSAP

Subtractive or
Digital Modules 8 – 30mm Wire bond 2–6 30 – 75µm
thin core build-up

Note: 2.5D, FO-MCM, and EMIB constructions will continue to use FCBGA substrates
 FCBGA SUBSTRATE MARKET

Substrate Application Major Users* Leading Suppliers

Intel, AMD, NVIDIA, Ibiden, Shinko, Unimicron,
Flip Chip MPU, GPU, Chipset,
IBM, various ASIC Nan Ya, SEMCO, Kyocera,
PGA/BGA/LGA ASIC
suppliers Toppan, AT&S
*Major users also include OSATs: ASE, Amkor, SPIL, STATS ChipPAC, and PowerTech

Substrate Package Substrate Typical Typical

Name Size Interconnect Construction Layers L/S (2020)
FCBGA (Flip Chip
20 – 85mm Flip chip SAP w/ABF 6 – 24 8 – 12µm
BGA/PGA/LGA)

2019-
Process Typical Layer 2021
Package Types Technology L/S (µm) Count 2019 2020 2021F CAAGR

FCBGA/LGA (MPU ,GPU) SAP 8-12 6-20+ $3.3 $4.6 $5.8 32%
 RYZEN 5800H – SUBSTRATE

• 4-2-4 ABF Substrate • 590µm thick

– 15µm L/S (min measurement) – 210µm thick core with 75µm LTH
– 55µm via diameter (measured)

Photos source: Prismark/Binghamton University

 FCBGA SUBSTRATE VOLUME BY DEVICE TYPE

M Units CAAGR
kc321.081bp-device type vol 2020-2025
2,000
5.2%
Leading Edge CPU FPGA Leading Edge CPU/
1,726M GPU/ASIC/AI 82.1%
(Embedded Bridge)
High-end ASIC/FPGA/AI/Auto (2.5D, FOMCM) 23%
17.1%
(35mm-50mm) Gaming GPU 5.2%
1,500 1,429M Server CPU (Std. and Adv.) (>50mm) -5%
1,338M (35mm-55mm, >65mm)

1,194M Desktop/Notebbok CPU 1.6%

1,000
Chipset, (PC, server and Gaming) 5.1%

GPU, Standard 4.7%

ASIC/FPGA/AI/Auto 6.6%
500

Networking/Gaming/Consumer
6.2%

0
 FCBGA SUBSTRATE VALUE BY DEVICE TYPE

$M CAAGR
9,000 k c321.081bp -device typ e 2020-2025

10.8%
8,000 $7,720M

7,000
Leading Edge C PU FPGA
(Embedd ed Bridge) 76.3%
6,000 $5,767M
Leading Edge CPU/GPU/ASIC/A I
(2.5D ,FOMCM) 25%
5,000 $4,616M
High-end ASIC/FPGA/AI/Auto
(35mm-50mm) 14.7%
4,000 Gaming GPU (>50mm) 7%
$3,318M Server CPU (Std. and Adv.) -9.5%
(35mm-55mm, >65mm)
3,000 Desktop/Notebbok CPU 0.5%

2,000 Chipset, (PC, server and Gaming) 3%

GPU, Standard 2.6%
1,000 ASIC/FPGA/AI/Auto 4.5%
Networking/Gaming/Consumer
4.2%
0
2019 2020 2021 2025
 ADVANCED FCBGA SUBSTRATES

• In 2020, FCBGA packages had strongest unit growth in a decade

– More critically, trend toward adoption of advanced larger and higher layercount
packages continued within this segment; several designs with 75-100mm body size
– Advanced FCBGA substrates are required for 2.5D, FO-MCM, and EMIB packaging.
– Over $6Bn capital investment to expand FCBGA capacities has been committed
• 2021 outlook remains positive
– All key substrate players see demand through at least 1H 2021
– FCBGA substrate suppliers had around 40% value growth in 2020 over 2019
• Advanced FCBGA substrates with embedded Si bridge or over 55mm body size is
expected to reach over 75M units by 2025, up from <10MM units in 2020
– Embedded EMIB substrate is expected to start volume production in 2021 and is
forecast to reach 60M units by 2025.
– Large FCBGA substrates of more than 55mm body size and 5-N-5 structure for 2.5D
and FO-MCM packages will exceed 15M units by 2025, up from <5M in 2020.
• Intel, AMD, and Nvidia remain dominant players
– Second-tier includes: Apple/TSMC, HiSilicon, Xilinx, and Broadcom
– Third-tier includes: Marvell, IBM, Google, Microsemi, Mellanox (now Nvidia), Centec,
Innovium, Amazon, and likely more
 LARGE BODY-SIZE SUBSTRATES: DRIVING DEMAND

• Large body-size substrates include BGA/LGA that are:

– 55 x 55mm package body size and larger
– 5-2-5 construction and above

• In 2020, this segment grew to $0.8Bn

– 17% of FCBGA substrate value
– <2% of market size in units
– In 2021, will represent >25% of value

• Large-body-size substrate suppliers by value:

– Ibiden: 35% share
– Shinko: 25% share
– Unimicron: 20% share
– Nan Ya: 10% Share
– Others: Kyocera, Toppan, Kinsus, AT&S, SEMCO, FICT:
3-5% each

• FCBGA substrate suppliers are upgrading/expanding AMD Server CPU Package

75.4 x 58.5mm
– $12Bn collective investment from 2019-2024 20 Layer Substrate (9-2-9)
– Average of$2Bn/year Eight 7nm Chiplet CPU + I/O Die
 FCBGA SUBSTRATES FOR ADVANCED PACKAGING
• AMD GPU in Xbox Series X

• TSMC N7 Enhanced
– ~22x16mm die
– 15.3Bn transistors

• 2963 ball FCBGA

– 52.5x52.5mm
– 12-layer substrate (5-2-5) Source: ASE
– 0.80mm min. pitch

• Baidu Kunlun

• 2.5D Package Solution

– 512GB/s memory
bandwidth
– 2 HBM Stacks

Source: MediaTek
Intel EMIB Package Connecting GPU to HBM using Embedded Silicon Bridge in Substrate
 FCCSP SUBSTRATE MARKET

Substrate Application Major Users* Leading Suppliers

Baseband/Apps Qualcomm, TI, Samsung, SEMCO, Kinsus,
Flip Chip
Processor, Apple, Intel, MediaTek, Unimicron, Kyocera,
CSP and PoP
PMIC, Transceiver HiSilicon Ibiden, LG Innotek
*Major users also include OSATs: ASE, Amkor, SPIL, STATS ChipPAC, and PowerTech

Substrate Package Substrate Typical Typical

Name Size Interconnect Construction Layers L/S (2020)
Build-up prepreg,
FCCSP (Flip Chip CSP/PoP) 5 – 19mm Flip chip 2–4 6 – 20µm
ETS/mSAP

2019-
Process Typical Layer 2021
Package Types Technology L/S (µm) Count 2019 2020 2021F CAAGR

FCCSP (AP) ETS/mSAP 6-20 2-6 $1.5 $1.7 $1.9 13%

 FCCSP SUBSTRATE MARKET

• FCCSP substrates are mostly used in mobile phones, tablets, and other portable electronics
for device packaging, such as:
– Mobile phone and tablet AP
– Mobile phone and tablet baseband
– PMIC and transceiver
– Processors forportable and wearable electronics
– Others
• For the past few years, FCCSP substrate volume demand has continued to increase, but
market value has declined since 2014, due to:
– Layercount reduction
– Body size shrinkage
– Emerging technologies, like WLCSP and FO-WLP, to replace FCCSP packages for AP,
PMIC, baseband, etc.
– Cryptocurrency mining ASIC helped to stabilize the FCCSP substrate market in 2018
• 5G smartphones introduced in 2019 improved demand for FCCSP substrates
– Future FCCSP substrate growth will be mostly driven by 5G smartphones, wearables,
and other smart consumer electronics
• Advanced 3D-TSV packaging can also use FCCSP substrates
• Modified semi-additive processing and embedded trace substrate (ETS) technologies are
widely used to achieve fine line and space in FCCSP substrates
 SAMSUNG EXYNOS 2100 – BUMPS AND SUBSTRATE

• Cu / SnAg Bumps (or SOP)

– Staggered bumps for outer 8 rows
– 100µm minimum pitch
– Underfill and overmolded package

• 4-layer ETS substrate

– 12-15µm L/S
– 120µm thick

Photos source: Prismark/Binghamton University


Substrate
Wire Bond PBGA Logic, MCU, DSP, etc.
Wire Bond CSP
(Incl. Stacked Die)
Wire Bond BOC or Flip
Chip CSP for DRAM
WIRE BOND SUBSTRATE
Application Major Users*
Intel, MediaTek, TI,
Samsung, NXP, Renesas,
STMicro, Broadcom
TI, Qualcomm, STMicro,
Baseband/Apps
Broadcom, NXP,
Processor, Flash
Samsung, Infineon
Samsung, SK Hynix,
DRAM
Micron,
Leading Suppliers
Nan Ya, Unimicron, ASEM,
SEMCO,
LG Innotek
SEMCO, Simmtech,
Daeduck, Unimicron,
Kinsus
ASEM, Nan Ya Unimicron,
Simmtech, Daeduck

Substrate Package Substrate Typical Typical

Name Size Interconnect Construction Layers L/S (2020)
PBGA 20 – 35mm Wire bond Subtractive 2– 4 25 – 40µm
Wire Bond CSP 5 – 19mm Wire bond Subtractive 2-4 25 – 40µm
BOC for DRAM 9 – 18mm Wire bond Subtractive 1–2 25 – 40µm
FCCSP for DRAM/GDDR 9 – 18mm Flip chip Subtractive/mSAP 2–4 20 – 30µm
2019-
Process Typical Layer 2021
Package Types Technology L/S (µm) Count 2019 2020 2021F CAAGR
WBBGA/WBCSP (Logic) Subtractive 25-35 2-6 $0.5 $0.6 $0.6 10%
WBCSP/BOC (Memory)
mSAP
GDDR/LPDDR/NAND, 15-35 1-4 $1.7 $2.0 $2.3 15%
Subtractive
Modules

© Prismark Partners LLC

 WIRE BOND PBGA SUBSTRATE MARKET

• Wire bonding is the oldest packaging technology but is still widely used, especially for
leadframe packages.
• In the past 10 years, wire bonding technology transitioned from Au wire bonding to Cu wire in
order to reduce packaging materials costs.
• Today, the usage of wire bond PBGA packaging technology is gradually being replaced by
other packaging technologies, such as WB CSP, FCBGA, FCCSP, or WLCSP package in
order to reduce cost, shrink the form factor, or to accommodate higher I/Os
• Some logic devices used in computer, consumer, automotive, or industrial applications
continue to use WB PBGA, but demand is declining
• Leading WB PBGA substrate suppliers include Unimicron, Nan Ya PCB, ASE Material,
TCI, LG Innotek, and others
• WB PBGA substrates are used by OSAT companies, such as ASE, SPIL, Amkor, JCET,
etc., and the semiconductor device suppliers include STMicro, Via, TI, Infineon, etc.
• MGC is the leading substrate material supplier
 NAND PLUS CONTROLLER – WIRE BOND

• NAND+controller from Kioxia

– From Huawei Mate20X
– 3 layer substrate

• 8 stacked NAND Die

– Gold wire bonds
– 35, 60 and 75µm die
thicknesses

• Control die below die

overhang
– 50-55µm wirebond pitch

Photos source: Prismark/Binghamton University

 RF AND DIGITAL MODULE SUBSTRATE MARKET

Substrate Application Major Users* Leading Suppliers

Qorvo, Skyworks, SEMCO, Unimicron,
RF Module PA, Connectivity, Other Broadcom, Murata, Kinsus, Simmtech,
Taiyo Yuden ACCESS

MEMS, Wearables, Apple, Knowle, Goertek, Kinsus, nan Ya, Shennan,

Digital Module/SiP Display controller AAC Suntak (Provision)

*Major users also include OSATs: ASE, Amkor, SPIL, STATS ChipPAC, and PowerTech

Substrate Package Substrate Typical Typical

Name Size Interconnect Construction Layers L/S (2020)
Wire bond Thin core build-
RF Modules 3 – 10mm 2–6 25 – 50µm
and flipchip up/mSAP
Subtractive or
Digital Modules 8 – 30mm Wire bond 2–6 30 – 75µm
thin core build-up

2019-
Process Typical Layer 2021
Package Types Technology L/S (µm) Count 2019 2020 2021F CAAGR
mSAP
FC, WB Modules (RF, SiP) 25-50 2-7 $1.0 $1.3 $1.5 21%
Subtractive
 SiP/MODULE FORECAST
2020 2025F
Product / Package Type (Bn Units) (Bn Units) Fabless/IDM OSAT/Module
PA-Centric RF SiP 5.3 6.0 Broadcom, Murata, Qorvo, Amkor, ASE, HEG, Inari,
Filter-Centric RF SiP 2.6 4.8 Skyworks, RF360 JCET/STATS, ShunSin,
AiP 0.08 0.8 Qualcomm, Apple ASE/SPIL, Amkor,JCET/STATS
Connectivity SiP Apple, Broadcom, MediaTek, Dialog, ALPS, AcSiP, ASE/USI, Murata,
1.5 2.1
(Bluetooth/WLAN) Qualcomm, TI, Samsung SEMCO, Taiyo Yuden

Infineon, Nexperia, Vishay, ON Semi, Amkor, ASE, UTAC,

Power SiP 5.5 8.3
Renesas, STMicro, TI, Toshiba Carsem, Unisem

Knowles, Goertek, AAC

MEMS Microphone 8.6 12.1 Knowles, Goertek, AAC Technologies Technologies

Analog, Bosch, Denso,

MEMS 8.0 11.0 TDK/InvenSense, Knowles, NXP, Amkor, ASE, UTAC, Unisem
STMicro
Cowell, Hon Hai, LG Innotek,
Sony, Samsung, Toshiba, ON Semi,
Camera Module 1.1 1.4 Lite-on, SEMCO, Sharp,
OmniVision
Sunny Optical, Toshiba
FPC, Qualcomm, Synaptics, Elan,
Amkor, ASE, Crucial Tech,
Fingerprint Sensor Module 0.3 1.1 Focaltech, Cypress, EGIS, Goodix,
O-Film, Truly
Silead
Controller and Other SiP 2.0 4.0 Apple ASE, Amkor, JCET
Total 35.0 51.6
618.1/050bp

Bold Italic: SiP assemblers Excludes LED, VCSEL, Laser Diode

 RF SIP PACKAGING TRENDS

Shield Wall using Wire Bonds

01005 SMT Passive and 9L HDI

FC GaAs PA

BGA to Allow Piggy Back

620.6/241mvc
TFP SAW Filter
Stacked IPD Die and 4L HDI

Photo source: Prismark/Binghamton University

© Prismark Partners LLC ½ 71

 SIDE-FACING 5G mmWAVE TRANSCEIVER/ANTENNA AIP

A. Transceiver/Antenna AiP Module F E G

B. Antenna Patch
C. Antenna Flex C D A C
D. Antenna Flex Connector E
E. Housing Sidewall
F. RF Transparent Slot in Sidewall
G. Flex Solder Contacts to Rear PCB
A

• Transceiver/Antenna AiP Module in Apple D

iPhone 12 Pro
– 16L any-layer substrate

c
v
m
0
3
4
/
2
5
1
.
0
2
0
1
Photos source: Prismark/Binghamton University D
1120.152/430mvc
 PACKAGE SUBSTRATE SUPPLY BASE
SAP Share
Ibiden 24%
2020
Unimicron 20%
Shinko 17%
Subtractive Nan Ya PCB 13%
$2.60 AT&S 6%
WB BGA/CSP SEMCO 5%
$1.80 FC BGA/
LGA/PGA Kyocera 5%
$4.60 Kinsus 5%
Toppan Printing 3%
Module
$0.80 mSAP/ETS Share
SAP
$4.60 Simmtech 18%
Module SEMCO 17%
$0.40 Unimicron 16%
LG Innotek 12%
GDDR/ Daeduck Group 10%
LPDDR/
NAND Kinsus 10%
$0.95 Others 17%
e
bas
pply
1bp-su
.08
221
MSAP/ETS FCCSP kc0 Subtractive Share
$3.00 $1.70 ASE Material, Nan Ya, 10-12%
Unimicron each
Shennan, SIMMTECH,
Daeduck, SEMCO 5-10%
each
TOTAL: $10.2Bn Korea Circuit, Kinsus
 PACKAGE SUBSTRATE SUPPLIER REVENUES
2020E /
(US$M) 2019 2019 / 2018 2020E 2019 Product Focus
Unimicron $1,340 15% $1,635 22% FCBGA, FCCSP, Wire Bond, Module
Ibiden $977 9% $1,240 27% FCBGA, FCCSP
SEMCO $889 31% $1,092 23% FCBGA, FCCSP, Wire Bond, Module
Nan Ya PCB $691 14% $945 37% FCBGA, FCCSP, Wire Bond, Module
Shinko $655 5% $876 34% FCBGA, FCCSP
Simmtech $617 -4% $728 18% FCCSP, Memory
Kinsus $525 -8% $669 27% FCBGA, FCCSP, Module
Daeduck $434 3% $450 4% Memory
LG Innotek $315 6% $382 21% FCCSP, Memory
AT&S $169 41% $300 77% FCBGA
ASE Material $253 -6% $282 11% Wire Bond
Kyocera $271 0% $281 3% FCBGA
Shennan Circuit $169 19% $211 25% Wire Bond, Module
Korea Circuits $113 -9% $178 58% Wire Bond
Toppan Printing $102 14% $136 33% FCBGA
Global Market $8,239 8% $10,188 25%
 PACKAGE SUBSTRATE REVENUES: TOP 15 SUPPLIERS
2020/ Q2 Q2 2021/ H1 2021/ Q2 2021/
2020
Company 2019 2021 Q1 2021 H1 2020 2020 Avg.
Unimicron $1,635 22% $513 12% 24% 26%
Ibiden $1,240 27% $427 10% 50% 38%
Nan Ya PCB $945 37% $339 21% 52% 43%
SEMCO $1,092 23% $275 12% 3% 1%
Shinko $876 34% $271 11% 27% 24%
Kinsus $669 27% $234 24% 36% 40%
Simmtech $720 17% $221 14% 18% 23%
Daeduck Group $449 3% $138 11% 23% 23%
LG Innotek $382 21% $120 0% 42% 26%
AT&S $315 86% $108 4% 82% 37%
ASE Material $282 11% $86 14% 22% 22%
Kyocera $281 3% $81 3% 25% 15%
Shennan Circuit $223 32% $65 16% 9% 17%
Young Poong Group $159 41% $54 22% 30% 36%
Zhen Ding $92 52% $43 27% 101% 87%
Total $9,360 25% $2,976 13% 31% 27%

Strong YoY growth in 2020 and 2021 for most every player
FCBGA driving a large portion for those in BOLD
 FCBGA SUBSTRATE EXPANSION
Company Production Location Investment Plan
$1.2Bn in Ogaki Central, started production in late 2020. $1.6Bn
Ibiden Ogaki Central, Ogaki, and Gama, Japan investment in Gama by 2023
Shanying, Yangmei, and Hsinfeng, >$1.5Bn in 4 years, Yangmei by end 2021, Shangying expansion in 2021.
Unimicron
Taiwan; and Suzhou, China Suzhou, Hsinfeng, and other factories to strengthen non-Intel products

Shinko Takaoka, Wakaho, and Arai, Japan Invested $500M and started FCBGA production at Takaoka in 1H 2021

Luchu and Shulin, Taiwan; and

Nan Ya PCB Investing $500M for FCBGA substrate and SLP products
Kunshan, China
Kyocera Ayabe and Sendai, Japan Ayabe No.3 factory to expand FCBGA substrate production

SEMCO Daejeon and Busan, Korea >$380M CAPEX to add 20 to 30% of FCCSP, FCBGA, and AiP

Tsinghua, Shihlei, and Hsinfeng, Taiwan;

Kinsus Investing $220M to expand FCCSP and FCBGA substrates
and Suzhou, China
Chongqing No.1/No.3, China, and
AT&S Additional $2.0Bn investmentin Malaysia
Malaysia
Toppan Printing Niigata, Japan $110M to expand FCBGA substrates for GPU and other

Fujitsu (FICT) Nagano, Japan Large size FCBGA substrates as expansion plan for FY2021

Korea Circuit Ansan, Korea Expand from 1,000 to 4,000m 2/month capacity in 2021

Daeduck Ansan, Korea $140M to expand FCBGA capacity to 5,000m 2/month

Access Zhuhai, Nantong, China Invest and expand FCBGA production in Nantong
$1.0Bn to establish FCBGA production capacity with 200M units annual
Shennan Circuit Kuangzhou, China capacity
Xin Ai Nanjing, China Total FCBGA substrate investment plan is $1.5Bn

Zhen Ding Technology Shenzhen No.2 and Qinhuangdao $1.5Bn to add FCCSP, FCBGA, and AiP substrate capacity,
FPC MARKET OVERVIEW
 FPC MARKET GROWTH
$M Growth Rate %
$16,000 kc521.039skc-fpctrend
40%

$15,000 2020-2025
CAAGR 4.2%
$14,000
30%
$13,000

$12,000

$11,000 20%
$10,000

$9,000
$8,000 10%

$7,000

$6,000
0%
$5,000
$4,000

$3,000 -10 %
$2,000

$1,000
0 -20 %
2003 2004 2005 2006 200 7 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021E 2025F
Strong growth from 2003 to 2004 due to cell phone and display applications
Substantial capacity expansion in 2004 and 2005 led to severe competition and ASP erosion
Continued growth of FPC, driven by computer, communication and display applications
Very strong growth in 2017 due to the adoption of high value-added rigid/flex for OLED displays
FPC demand weakening in 2018 and 2019 due to stagnant smartphone market
 FPC PCB MARKET APPLICATION
2019 2020 2025F
Industrial Industrial Military/Aerospace Industrial Medical Military/Aerospace
1.5% MedicalMilitary/Aerospace 1.4% Medical 2.7% 1.4% 2.5%
2.6% 1.4%
1.5% 1.4%
Automotive PCs Automotive PCs Automotive PCs
6.6% 18.8% 5.8% 21.0% 6.4% 19.6%
Server/ Server/
Consumer Data Consumer Server/ Consumer Data
15.0% Storage 14.5% Data 14.1% Storage
Wireless 4.1% Wireless Storage
4.1%
Infrastructure Infrastructure 4.2% Wireless
Oth er Infrastructure Other
0.6% 0.5% Oth er
Computer 0.5% Comput er
Wir ed 4.6% Wir ed Computer 4.0%
Infrastructure Infrastructure 4.6%

kt
cm
-fp
1.1% 1.1%

kc
Wired

4s
04
Infrastruc ture

1.
52
kc
1.0%
Mobile Phones Mobile Phones Mobile Phones
43.5% 42.8% 45.0%

TOTAL: $12.2Bn TOTAL: $12.5Bn TOTAL: $15.4Bn

($M) 2018 2019 2020 20/19 2025 20-25 CAAGR
Computer: PC $2,289 $2,297 $2,622 14.1% $3,015 2.8%
Server/Data Storage $497 $502 $528 5.2% $626 3.5%
Other Computer $593 $562 $568 1.1% $608 1.4%
Mobile Phones $5,566 $5,304 $5,346 0.8% $6,921 5.3%
Wired Infrastructure $125 $130 $132 1.5% $151 2.7%
Wireless Infrastructure $66 $69 $68 -1.4% $81 3.6%
Consumer $1,763 $1,833 $1,804 -1.6% $2,165 3.7%
Automotive $814 $804 $726 -9.7% $986 6.3%
Industrial $192 $187 $178 -4.8% $208 3.2%
Medical $180 $185 $179 -3.2% $216 3.8%
Military/Aerospace $310 $322 $332 3.0% $387 3.1%
Total $12,395 $12,195 $12,483 2.4% $15,364 4.2%
 FPC MARKET OF 2020 AND BEYOND

• In 2020, COVID-19 impacted various electronics market segments

• Smartphones remain the leading application for FPC products
– Unit shipments are expected to recover in 2021, and there is growing demand for flex
circuits for 5G antenna applications, such as AiP feedlines
– Growing demand for low-loss flex circuits (LCP, MPI) for 5G smartphones
– Since Apple changed the interconnect designs for its OLED displays and wireless
headphones, demand for rigid flex has been sharply reduced
– There is a rumor, however, that the new 2021 iPhones will use rigid-flex circuits for
OLED displays in the high-end models
– In 2020 and 2021, FPCs for tablets and NB PCs have been growing due to X-From-
Home
• Wearables Will be a Growth Driver for FPC in the future
– Many devices, such as watches, headphones, wristbands, and AR/VR, are using
more FPCs and rigid flex circuits.
– Some rigid flex designs have transitioned to SiP + FPC, but total FPC volume and
value are still growing
– LCP is also used in some wearable antenna circuits
• Automotive is a Long-term opportunity target for FPC: display, lighting, battery, etc.
 FPC MARKET AND TECHNOLOGY TRENDS

• Currently, the FPC market has a few important changes and developments:
1. Broader adoption of low-loss materials to fabricate multilayer FPC circuits, such as
LCP, modified PI, Fluoro Polymer film (FPF), PI (MPI)/FPF film, Pi film with Fluoro
Polymer Power (FPP)
2. Wider adoption of rigid flex circuits in various applications
3. Transparent PI film for OLED display and LED display
• LCP or other low-loss materials are used to fabricate FPC for the following applications:
– Antenna (Apple iPhones)
– Antenna feedline (mmWave antenna module or AiP)
– Antenna circuits for other electronics applications, such as tablets, wearables, etc.
– ADAS radar sensor rigid board
• FPC technology challenges:
– Higher routing throughput (pico laser?)
– Laser via and reliability
– ML FPCs using low-loss materials
• Photosensitive liquid soldermask is only used in selective areas, such as fine pitch
 GROWTH OF FPC MARKET BY TECHNOLOGY
(VALUE)

2020/ CAAGR
($M) 2015 2018 2019 2020 2019 2025F 2020E-2025F

PI Single-Sided $2,261 $2,141 $2,012 $1,969 -2.1% $2,164 1.9%

PI Double-Sided $5,778 $5,702 $5,462 $5,657 3.6% $6,640 3.3%

PI Multilayer Flex $1,893 $2,034 $2,026 $2,299 13.5% $3,269 7.3%

PI Rigid Flex $1,776 $2,426 $2,604 $2,466 -5.3% $3,185 5.2%

Other (PET/PEN) $90 $92 $92 $92 0.4% $106 2.9%

Total $11,798 $12,395 $12,195 $12,483 2.4% $15,364 4.2%

March 2021
 XIAOMI REDMI K30 ULTRA 5G - FLEX

2-5G MID Antenna (Top)

2-5G MID Antenna (Bottom) Flex Connects Main PCB to

Secondary PCB at Bottom

Sub-6GHZ only: No mmWave AiP module; only MID antenna at top and bottom of phone used
 APPLE IPHONE 12 PRO – FLEX
Front Camera/FaceID/
5G mmWave Antenna Speaker/Mic/Sensor
Flex (4) Lidar Flex
Flex

Flash/Mic Flex Antenna

UWB
Flex
Antenna
Flex

Antenna Feedline Main Camera

Flex Flex (2)

OLED Display
5G mmWave Battery Flex
Flex
Feedline Flex

Touch Flex Dock/Antenna/

SIM Flex
Sensor Flex

Wireless Charging/NFC/
Taptic Engine Flex
Button Flex
 APPLE iPHONE 11 PRO - ANTENNA FPC

Photo source: Prismark/BinghamtonUniversity

 APPLE IPHONE 12 PRO DOCK/ANTENNA/SENSOR FLEX

• Flex Assembly at Bottom of iPhone Conneccts Main PCB to:

– Lightning Dock (A), Antenna (B), Taptic Engine (C), Mic (D)

• Two Connectors to Main PCB

– 1 Connector (E) for power and data
• For dock, taptic engine, mic, and antenna control
– 1 connector (F) for RF signals
Power/Data
• Feedline for sub-6GHz antenna Connector

RF
Connector
F

Taptic Engine
Connector

B B B B A
A A
D D
© Prismark Partners LLC
 APPLE IPHONE 12 5G mmWAVE ANTENNA
• Three 5G mmWave Antenna
- 1 AiP antenna/transceiver module
- 2 passive antenna
• Rear-Facing Passive Antenna (A)
– 4x1 dual-polarized antenna
– 8L any-layer substrate
– Bare substrate: no components
– Mounted on back side of rear PCB
– Driven by 5G mmWave SiP on
rear PCB
Compared to competitors:
AiP module similar but smaller
Other antenna are unique designs
B
• Front-Facing Passive Antenna (B)
– 2x1 dual-polarized antenna
– Metal/plastic structure with low-
dK dielectric
– No components on antenna
– Located at top front, connects to
rear PCB with flex circuit PCB
– Driven by 5G mmWave SiP on
rear PCB
C
• Side-Facing AiP Antenna/Transceiver Module (C)
– 4x1 dual-polarized antenna
– 16L anylayer substrate
– Transceiver and power devices in AiP module
– Connects to rear PCB with low-loss flex circuit
 APPLE IPHONE 12 PRO 5G mmWAVE AIP FEEDLINE FLEX

• Connects side-facing 5G mmWave AiP module to main PCB

– 3L LCP, using bonding sheet to laminate ds LCP FCCL
and ss LCP FCCL together
– Laser-drilled via are copper plated

Photos source: Prismark/BinghamtonUniversity

 MICROSOFT SURFACE PRO X TABLET
Antenna Flex
MID Antenna

Camera Flex
Flash Flex
USB Port Flex
Main board to
display flex

Face ID Flex Mic Flex

Main board to
power portflex
Display/Touch
Speaker Flex Flex
SSD Slot
Flex
Battery Flex SIM Slot Flex
Button Flex

Display/Touch
PCB

Not all flex circuits are shown

 TESLA MODEL 3: BATTERY PACK FPC

Battery Monitor PCB

Battery Pack FPCs

Source: eBay

½ 90
 RIGID-FLEX CIRCUIT DEMAND

• Apple is one of the largest users of rigid-flex circuits. The company has used rigid flex for
OLED displays, touch panel interconnect, battery management, AirPods, iPad displays,
and other applications.
• At the peak, Apple alone procured over $1.0Bn of rigid-flex circuits.
• Apple, on the other hand, has dropped demand for rigid flex in multiple applications, such
as the OLED touch panel interconnect circuits.
• Recently, Apple is promoting SiP+FPC to replace rigid flex in multiple applications,
including:
– AirPods Pro in 2019
– iPhone OLED display in 2020
– iPhone battery management in 2021
• For the next 5 years, OLED displays for smartphones are likely to be the key driver of rigid-
flex circuits. Even though Apple has changed some designs to SiP + FPC, Samsung,
Huawei, and other Chinese smartphone OEMs are still interested in rigid- flex circuits for
OLED displays, especially for folding and flip displays.
• Rigid-flex circuit fabrication typically involves mechanical through hole or HDI technologies.
Due to higher interconnect density requirements, HDI build-up layer in the rigid portion has
become a common feature of rigid-flex circuits.
• Additionally, rigid flex circuits are also used in smartphone and tablet systems for improved
reliability.
• Rigid-flex circuits have also become a popular solution for camera modules used in
smartphones, tablets, and automotive applications.
 SAMSUNG GALAXY S9

Photos source: Prismark/Binghamton University

OLED Display Flex
 APPLE IPHONE 12 PRO DISPLAY/TOUCH FLEX
OLED Display Flex Touch PanelFlex
4L PI Flex 2L PI Flex

Connector to
Main PCB

SiP

CoF with
Display Driver 2 Flex Circuits
SiP – 1 for OLED display Connector to
Main PCB
– 1 for touch panel
– Each have 1 SiP and 1
connector to main PCB
– No other components
 APPLE IPHONE 12 PRO DISPLAY FLEX
• OLED Display Flex
– 4L PI flex
– SiP mounted onto flex
Driver PI Flex SiP

CoF

Photos source: Prismark/Binghamton University

 AIRPODS PRO SiP

• 5x10mm SiP (A) Contains Most Airpods Components A A

– Apple H1 Bluetooth/CPU SoC
– Audio amplifier/driver
– 2 MEMS accelerometers
– Actually consists of four SiP plus jumper PCB

• Main SiP (A) with 5x10mm, 3-2-3 HDI (B) A

– Several WLP (C) and passives (D)
– Mounted on top, overmolded (E), shielded (F)

• 3 SiP and Jumper PCB Mounted on Bottom of Main SiP

– H1 SiP (G) contains H1 die and memory die (H), plus crystal, passives (I)
• Die mounted on both sides of 6L any-layer HDI (K), overmolded (L), shielded (M) A
– 2 MEMS accelerometer (N) stacked with ASICs (O) in two separate SiP (P)
– 2L jumper PCB (Q) used to connect to flex circuit (R)

F E
C C
D
B
H
K Q
ML G I N
O P
Source: Prismark/Binghamton University
R
 SAMSUNG GALAXY BUDS

1. Bluetooth SoC (Broadcom BCM43014)

2. Optical Proximity Sensor 3
3. Microphone
8 9
4. Capacitive Touch Controller
5. SmartHIFI Audio IC 7 9
1
6. Voltage Regulator
7. Winbond Flash
8. Battery Contacts
9. Antenna/Touch contacts
10. Speaker/microphone/charging flex
connector 10

6 2
8

4
5

Photo source: Prismark/BinghamtonUniversity

XIAOMI EARBUDS

Photo source: Prismark/BinghamtonUniversity

 RIGID-FLEX MARKET AND APPLICATIONS

2020-2025
($M) 2018 2019 2020 2021F 2025F CAAGR

Smartphones OLED Display 747 669 608 638 994 10.3%

Camera Module 343 404 442 495 644 7.8%

Battery Management 405 411 374 320 190 -12.7%

Wireless Headphones 273 511 378 409 454 3.7%

Smartphones, Tablets 328 293 325 378 489 8.5%

Consumer, Medical Others 113 95 99 105 118 3.6%

Military/Aerospace 215 222 240 252 295 4.2%

Total 2,425 2,604 2,466 2,597 3,185 5.2%

 LEADING FPC PCB SUPPLIERS HISTORICAL SALES IN
(2012-2020)

CAAGR
(US$M) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2015-2020
Zhen Ding $1,073 $1,398 $1,730 $2,049 $1,991 $2,967 $3,234 $3,164 $3,490 11%
Nippon Mektron $2,770 $2,693 $3,154 $3,591 $3,212 $3,323 $2,856 $2,555 $2,594 -6%
Dongshan Precision $869 $710 $632 $637 $495 $946 $1,369 $1,739 $2,283 29%
Fujikura $218 $381 $563 $819 $824 $1,099 $1,154 $939 $1,023 5%
FLEXium $376 $459 $430 $570 $595 $853 $884 $840 $1,022 12%
Compeq $195 $254 $209 $476 $544 $731 $725 $853 $875 13%
Young Poong Group $687 $904 $885 $648 $668 $1,253 $729 $836 $872 6%
BH Co $201 $316 $280 $321 $322 $603 $694 $559 $617 14%
Sumitomo Electric
Industries (SEI) $1,184 $1,318 $1,279 $1,616 $1,099 $1,134 $945 $735 $568 -19%

Career Technology $485 $455 $531 $495 $434 $426 $513 $551 $547 2%
Nitto Denko $523 $526 $654 $497 $381 $383 $386 $370 $482 -1%
Si Flex $471 $366 $477 $611 $473 $463 $416 3%
SEMCO $176 $196 $274 $204 $196 $389 $422 $352 $412 15%
Kinwong $47 $60 $93 $147 $148 $195 $226 $326 $366 20%
Unimicron $269 $258 $244 $286 $224 $279 $365 $358 $352 4%
Total $9,073 $9,926 $11,429 $12,720 $11,610 $15,192 $14,976 $14,641 $15,918 5%
THANK YOU!