Microelectronics and Advanced Packaging, and How They Relate to the Current U.S. Semiconductor Economy

Over the past decade, the development of 5G has brought people closer than ever before. It enables remote working; corporate outsourcing and international trade have never been easier. At the same time, 5G and the new 6G have also brought the popularity of microelectronics and advanced packaging, especially an ancient technology, thick film hybrid.

5G (20-50GHz) and 6G (>100GHz) rely on high frequencies, requiring equipment that can withstand harsh environments and terrible heat. High reliability in harsh environments and excellent high-frequency performance make thick film hybrids perfect for automotive, mobile phones, and defense.

5G vs. 6G Comparison

For supply and security reasons, the US is increasingly interested in making more semiconductors (such as dice) and microchips (such as thick-film hybrids) than ever before. Therefore, the United States introduced the CHIP act:

"The CHIPS and Science Act appropriates $52.7 billion to fund semiconductor incentive programs. $39 billion will fund a "Financial Assistance Program" for the semiconductor industry. the fabrication, assembly, testing, advanced packaging, production, or research and development of semiconductors, materials used to manufacture semiconductors, or semiconductor manufacturing equipment."

The die represents approximately 10% of the package value. The Chip Act would benefit not only bare dice but the entire microelectronics and advanced packaging industries. Taking the belt furnace industry (a continuous heat treatment equipment for packaging) as an example, this year our company is experiencing the peak of inquiry in the past ten years.

From our data summary, we know our customers are interested in:

  • Enlarging production.
  • Generating a new product line.
  • Replacing old capital equipment.
  • R&D purpose.

Most belt furnace users are in the packaging industry. The tax intensity of the US CHIP act benefits them both in production and R&D, including traditional thick film and its variants, hermetic sealing, SMT, solar panels, and electronics brazing. We are seeing great demand from the number of recent inquiries. We are also seeing increasing demand for battery powder sintering in push kilns. Because both cars and cell phones need batteries to power them.

Also, by the gathered information from our customers and in-person visit, we expect higher demand for those machines next year. In the 1980s and 1990s, there was an upsurge in the purchase of microelectronic packaging (like screen printers and belt furnaces) and advanced packaging equipment (like wire bonders) in the United States. A great portion of those microelectronic packaging machines is still in use. Both productivity and yield are lower than current market expectations. Therefore, the demand for these machines will be higher next year.

Our HengliŽ Belt Furnace achieved 70 million sales last year, making it one of the biggest players in packaging and new energy. If you think it is more economical to replace your furnace with a new one due to cross-contamination and furnace failure and low yield rate. Our HengliŽ Belt Furnaces will save you more money with high yield and energy efficiency.

We also work with European brands. If you have thick film hybrid, LTCC, or advanced packaging manufacturing needs, like photo imaginable printers, automation, and more, please don't hesitate to contact us. We also have a partner who provides turnkey solutions as a bundle, to upgrade/improve your production line, increasing your productivity from 60% to 95%.

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If you want to learn more about our belt furnace, thick film product line, GTMS, LTCC and more, please click here.