On January 12, 2023, the semiconductor etching high-end lead frame and VC construction project invested by ZJHF Electronic Alloy Material Technology Corporation was officially put into operation.
ZJHF is a leading high-tech enterprise in China that manufactures, develops, and sells high-precision etching lead frame materials for semiconductors.
Relying on the research and development platform of ZJHF Alloy Materials Research Institute in collaboration with Zhejiang University and Ningbo Institute of Materials, Chinese Academy of Sciences, we have introduced high-end etching production lines, produced and developed high-precision etching IC lead frames and materials such as VC: Vapor Chamber.
In 2021, the market size of high-precision etched IC lead frames increased to around 10.58 billion yuan, but currently, the production capacity gap of etched lead frames is still over 20%.
In 2021, China's production of lead frames reached 105.3 billion units, with a total domestic market demand of 1213.9 billion units during the same period. It is expected that the market will continue to grow.
With the development of electronic products towards miniaturization, intelligence, and low power consumption, in order to meet the high-density assembly requirements of the entire product, integrated circuit packaging has advanced towards high integration, high performance, multi lead, and narrow spacing. Packaging products such as QFN/DFN manufactured by etching method have excellent heat dissipation and conductivity, as well as advantages of light, thin, and small, and have gradually become the mainstream of high-performance and low-cost packaging applications.
As a key carrier of integrated circuit chips and a key structural component of electrical circuits, lead frames play a role in connecting and transmitting internal and external signals. The vast majority of semiconductor integrated blocks require the use of lead frames, which are very important basic materials in the electronic information industry.
In recent years, driven by artificial intelligence and 5G commercialization, global demand for semiconductor packaging has increased. In 2019, the global scale of semiconductor packaging materials was approximately 19.2 billion US dollars, with lead frames accounting for 22% of the total, with a scale of approximately 4.2 billion US dollars.
In 2019, the scale of semiconductor packaging materials in China was approximately 5.5 billion US dollars, of which the market size for lead frames was approximately 1.2 billion US dollars. It is expected that in the next few years, with the stable development of the semiconductor industry, the market size for lead frames in China will continue to grow, reaching 12 billion yuan by 2024, with a compound annual growth rate of 9%.