Market and Technology Trends

Status of the Power Module Packaging Industry 2021

By Yole Intelligence — Nov 2021

EV/HEVs are transforming the power module packaging supply chain with the evolution of substrate, interconnection, and die-attach technologies. Lower cost is starting to win over higher performance.

What's new:

Update on key power module packaging trends
Focus on SiC and GaN power device packaging
Deep insight into power module substrates, technology trends, and supply chain
Focus on power module packaging requirements for various applications
Focus on China
Focus on 800V battery - impact on power module packaging

THE COST OF RAW MATERIALS FOR POWER MODULE PACKAGING WILL REPRESENT ABOUT 37% OF TOTAL POWER MODULE COST BY 2026

The power module is one of the key elements in power converters and inverters. The market for power modules will reach $9.5B by 2026, with a 2020-2026 compound annual growth rate (CAGR) of 10.5%. In 2020, motor drives represented the most significant power module market with a value of $1.6B. However, by 2026 electric and hybrid electric vehicles (EV/HEVs) will become the most significant power module market, representing a market value of almost $3.6B. In case of raw materials for power modules, in 2020, the power module packaging raw materials market was worth almost $1.7B. The cost of raw materials for power module
packaging represented about 33% of the total power module cost. By 2026, the power module packaging raw material market will represent around 37% of the total power module market. The market share of power module packaging raw materials is increasing as use of expensive power module packaging components such as silver sintering-based die-attach, silicon nitride active metal brazing (AMB) substrates are growing.

HOW WILL THE POWER MODULE PACKAGING MARKET REACH AN IMPRESSIVE $3.5 BILLION MARKET VALUE BY 2026?

The power module packaging raw materials market is growing and will reach an impressive $3.5B market value by 2026. This market’s promising outlook is beneficial for the power module packaging material business, which Yole Développement covers in this report.

This report looks closely at the substrate, baseplate, die-attach, substrate-attach, encapsulation, electrical interconnection, and thermal interface material (TIM) markets in terms of technology and market forecast. In 2020, the largest packaging material segment was for baseplates, followed by substrates. While other 28% of that market is represented by die-attach and substrate-attach materials. The major technological choices in these segments can rapidly impact the overall power module packaging market. For example, the market share for silicon nitride as a substrate is increasing, driven primarily by EV/HEVs. This technology is pricier than more conventional aluminum oxide substrates. The 2020-2026 CAGR for the substrate market is 15.6%, higher than for other market segments.

EV/HEV APPLICATIONS INCREASINGLY DRIVE TECHNOLOGY TRENDS IN POWER MODULE PACKAGING

In the past, power packaging technology needs were driven by industrial applications. Today EV/HEV applications increasingly drive technology trends in power module packaging. The requirements for power, frequency, efficiency, robustness, reliability, weight, volume and cost of automotive power modules are often more severe than industrial products due to high vehicle safety standards and a harsh environment. T herefore, high power density and highly reliable power module packages are needed. Today, silicon-based modules are the standard power modules for EV/HEV systems. However, silicon carbide (SiC) semiconductors provide higher efficiency compared to silicon-based die. Therefore, SiC-based power modules are also gaining popularity in the automotive market. The introduction of SiC technology pushes the development of new power packaging solutions as SiC devices can work at higher junction temperatures and higher switching frequencies with smaller die sizes.

Power module packaging solutions are moving towards high-performance materials and reducing the number of layers, size, and interfaces while conserving electrical, thermal, and mechanical characteristics.

In terms of substrate, currently, the most common substrate for power module packaging is Al2O3 DBC (direct bonding copper) metallized ceramic substrate. However, as shown in the report, the
industry moves toward materials with better mechanical stability and higher thermal conductivity such as Si3N4 AMB (Active Metal Braze). The trend of double-side cooling with two substrates is also growing. To make the power module package thermally more stable and take advantage of SiC’s properties, reliable and robust die-attach is required. Therefore, the use of silver sintering is growing. In addition, interconnection technology is a critical factor for the excellent performance of power modules. Even though aluminum wire bonding remains the mainstream, copper wire bonding will also be widespread. Wire-free modules using flexible interconnections or top lead frames will see considerable growth. Although the trend of doubleside cooling with two substrates/lead frames is growing, single-side cooled power modules with pinfins baseplate will also be preferred by many players The vast business opportunity in the power module packaging market attracts interest from different players in the power electronics supply chains.

However, power module packaging technology is more than just wire bonding, soldering, and encapsulation. The packaging technologies, especially for applications with strong demand for power density, performance and reliability are very complex and require specific know-how. Many newcomers in power module packaging have underestimated packaging complexity and are struggling to bring their packaging concepts to the commercial production. Initially they targeted performance and reliability. Nowadays, many players must refocus their development efforts on manufacturing processes and material choices to achieve acceptable manufacturing yield and manufacturing throughput and reduce manufacturing costs. Therefore, external partners with the required know-how are more than welcome to speed up development and bring products to market earlier.

Key features of the report:

Overview of the main applications for power devices, along with their drivers and future trends
Analysis of application trends’ impact on package design and packaging material demand
Detailed analysis of each packaging component, along with 2020-2026 market data
Insight regarding crucial technology trends
Analysis of the power module supply chain for devices and packaging components
Analysis of power module packaging requirements for various applications including EV/HEV, rail, motors, wind, PV and UPS
Analysis of impact of COVID-19 on the power electronic industry
Focus on China

Objectives of the report:

Provide an overview of the main applications for power devices, along with their drivers and future trends
Discuss the impact of application trends on package design and packaging materials
Furnish an analysis of each packaging component, along with forecasts
Identify the key technology trends that will shape the future power packaging market
Deliver an overview of the power module supply chain for devices and packaging components
Analyze the shifting of business models, synergies with other industries, and power device opportunities for newcomers

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