US Semiconductor Adhesives Market Size Likely to Surpass at a CAGR of 6.2% By 2033

As per the current market research conducted by the CMI Team, the US Semiconductor Adhesives Market size is expected to record a CAGR of 6.2% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 1.49 Billion. By 2033, the valuation is anticipated to reach USD 2.67 Billion.

US Semiconductor Adhesives Market: Growth Factors and Dynamics

• Strong demand for Semiconductors: The semiconductor adhesives market is growing significantly, driven by the rapid growth in the consumer electronics industry, mainly due to an increasing number of smartphones, laptops, and IoT devices. In electronic components, adhesives provide excellent bonding strength, heat resistance, and reliable performance. Moreover, the growth of 5G and smart home technologies escalates the demand for semiconductor solutions, and thus, the market experiences steady expansion.

• Advancements in Automotive Electronics: The move towards electric vehicles and adopting advanced driver-assistance systems have increased the demand for strong semiconductor adhesives. These adhesives provide efficient heat dissipation and reliable electrical connections, crucial for automotive electronic components such as sensors and control units and drive the market forward.

• Miniaturization of Devices: The trend toward smaller and more efficient electronic devices has led to the demand for advanced adhesives that support miniaturized components. Semiconductor adhesives enable precise and robust bonding while ensuring performance in compact designs. Their ability to enhance functionality in smaller form factors makes them indispensable in modern electronic manufacturing.

• Focus on Renewable Energy: Demand for semiconductor adhesives is fueled by the increasing focus on renewable energy systems, like solar panels and wind turbines. The semiconductor adhesives increase the lifespan and efficiency of renewable energy components with reliable bonding, heat resistance, and weather durability, leading to the expansion of the market.

• Technological Advancements: The innovation of new adhesive formulations, electrically and thermally conductive variants, improved the efficiency of adhesives in semiconductor applications. The latest developments overcome issues such as heat management, faster curing, and better environmental performance, which are gaining more adoption in the electronics industry.

• Regulatory Challenges: Adhesive component safety standards, such as volatile organic compounds, set environmental regulations. Most manufacturers face difficulties complying with such rules due to the increased complexities and costs of producing environment-friendly alternatives. Such increases can be costly to some of the smaller players.

• Supply Chain Constraints: Geopolitical issues and economic instability directly challenge the availability of raw materials, disrupting global supply chains and thereby affecting the production of adhesives. Increased costs and longer lead times result in delays and can harm the manufacturer and end-users.

US Semiconductor Adhesives Market: Partnership and Acquisitions

• In November 2023, Dow announced a strategic partnership with a leading semiconductor manufacturer to develop advanced adhesive solutions to improve chip packaging processes’ efficiency.

• In August 2024, H.B. Fuller acquired a smaller adhesive manufacturer specializing in electronic applications to enhance its capabilities in the semiconductor adhesives market.

Report Scope

US Semiconductor Adhesives Market: COVID-19 Analysis

The COVID-19 pandemic has significantly impacted the US Semiconductor Adhesives Market, with the industry experiencing positive and negative effects. Here are some of the key impacts:

• Positive impacts: The COVID-19 pandemic accelerated the growth of several industries that depend on semiconductors, and the semiconductor adhesives market benefited from it. As a result of increased demand for laptops, tablets, and gaming consoles due to remote working, online education, and home entertainment, opportunities were available for adhesive manufacturers. Also, during the pandemic, 5G technology adoption and cloud computing have fuelled the requirement for semiconductor adhesives used in advanced data centers and telecommunication equipment. Health care also assisted the growth of the market. For example, many ventilators, medical devices, and diagnostic tools made using semiconductor adhesives whose productions were in mass quantities due to health-related crises.

• Negative Effects: Despite opportunities, the pandemic affected the semiconductor adhesives market with many challenges. There were delays in raw material procurements because of disruptions in global supply chains. This resulted in slowdowns in production. Factory closures and reduced workforce availability further strangled manufacturing operations. In the initial months of the pandemic, the automotive sector, a significant end-user of semiconductor adhesives, had a sharp decline in production and sales, reducing demand. Additional logistical constraints like increased freight costs and shipping delays also affected the timely delivery of products, which influenced the general market performance.

• Current Market Situation: The semiconductor adhesives market in the US is rising gradually due to higher demand from the consumer electronics, automotive, telecommunications, and renewable energy sectors. The increasing numbers of electric and autonomous vehicles have also contributed to the rise as these vehicles require adhesives for heat management and smaller components. Although supply chains generally are recovering from the ravages of the pandemic, periodic issues, such as tensions in geopolitics and the continuous upward trend in material prices, create challenges. At the same time, new products related to technological innovation in adhesives, like electrically and thermally conductive ones, are driving growth within specific niches.
  Environmental regulations also drive the market and force companies to make adhesives friendlier to the environment so they don’t become obsolete. Consumer electronics will remain a big market driver, especially in the push for 5G, IoT, and smart wearables.

List of the prominent players in the US Semiconductor Adhesives Market:

• 3M
• B. Fuller Company
• Dow Inc.
• Henkel AG & Co. KGaA
• BASF SE
• Evonik Industries AG
• Momentive Performance Materials Inc.
• Avery Dennison Corporation
• Parker Hannifin Corporation
• Arkema Group
• Sika AG
• Master Bond Inc.
• Rogers Corporation
• Indium Corporation
• Panacol-Elosol GmbH
• Others

The US Semiconductor Adhesives Market is segmented as follows:

By Application

• Die Attach Adhesives
• Surface Mount Adhesives
• Wafer Bonding Adhesives
• Encapsulation and Potting Adhesives

By Product Type

• Electrically Conductive Adhesives
• Thermally Conductive Adhesives
• UV Curing Adhesives
• Epoxy-based Adhesives

By Technology

• Solvent-based Adhesives
• Hot Melt Adhesives
• Radiation-curable Adhesives

By End-use Industry

• Consumer Electronics
• Automotive Electronics
• Industrial Electronics
• Telecommunications

By Material Composition

• Epoxy
• Acrylic
• Silicone
• Polyurethane