Investment bank Gf Securities Co.,Ltd. has released a research report highlighting that spherical micro-silica powder is widely used in high-end copper clad laminates (CCL) and epoxy molding compounds (EMC) for large-scale integrated circuit packaging. The growth logic for spherical silica in CCL is driven by an increase in both total volume and per-unit usage, coupled with product upgrades that collectively boost value. On the demand side, AI computing power and advanced packaging have elevated spherical silica to the status of a critical material. On the supply side, long certification cycles and slow expansion of chemical production capacity have created a supply-demand gap in the high-end segment, suggesting a potential rise in both volume and price. Currently, emerging domestic players are progressively achieving import substitution.
Spherical silica: The cornerstone of AI and advanced packaging
Silica micropowder is an ultra-fine particulate material known for its heat resistance, insulation properties, low expansion, and good thermal conductivity. It is used in CCL, EMC, electrical insulation materials, adhesives, ceramics, and coatings. Due to its high filling capacity, excellent flowability, low coefficient of thermal expansion, and superior dielectric performance, spherical silica powder is extensively applied in high-end CCL and EMC for large-scale IC packaging. In 2025, semiconductor packaging and high-frequency, high-speed CCL are projected to account for 68% and 32% of downstream applications for spherical silica, respectively. It has become a key material for the M9+ CCL era, presenting a significant opportunity for simultaneous growth in volume and price.
The three-fold logic driving value growth in CCL
Spherical silica is primarily filled into the resin of CCL, and optimal performance is achieved when it constitutes 24-55% of the resin system by weight. Three value drivers are at play. First, AI servers, switches, and general-purpose servers require higher data processing and computing power, leading to an increase in PCB layer count and consequently higher spherical silica usage. Second, as CCL upgrades from M8 to M10 grades, low-dielectric resins increase the CTE; to ensure the reliability of high-layer boards, the filling rate of spherical silica per board increases. Third, high-speed signals demand lower Dk/Df, pushing product iteration towards higher purity, better sphericity, narrower particle size distribution, and surface modification, which significantly increases unit prices. Therefore, the logic for spherical silica in CCL is that both total volume and per-unit usage increase, with product upgrades driving value growth.
Low-α spherical silica: An essential stabilizer in advanced packaging
In semiconductor packaging, spherical silica is primarily used in EMC, underfill adhesives, and packaging substrates to regulate the coefficient of thermal expansion, enhance thermal conductivity, and improve mechanical strength. Its filling rate in EMC ranges from 60% to 90%. As HBM continues to evolve towards higher-generation products like HBM3 and HBM4, the number of stacked dies increases, I/O speeds rise, and package size and interconnection density grow. This drives up demand for spherical silica and imposes stricter performance requirements. Chemically produced Low-α spherical silica eliminates soft errors caused by α-particle interference from the source, making it the most suitable EMC filler for HBM. The adoption of CoWoS packaging is increasing demand for Low-α spherical silica. The photomask size is expected to grow from 3.3x today to 16x by 2029, while the number of HBM stacks will increase from 12 to 24. Advanced packaging materials will scale proportionally, potentially driving a substantial increase in demand for high-purity Low-α spherical silica.
Domestic substitution underway with high-end demand exceeding 25,000 tonnes by 2027
According to Prismark, the global market for spherical silica used in M6+ CCL will reach nearly USD 1 billion by 2030. PW Consulting estimates that the market for Low-α spherical silica in HBM advanced packaging will reach USD 1.35 billion by 2030. On the demand side, the report forecasts that high-end spherical silica demand for high-speed CCL will reach 16,400 tonnes, while demand for high-end spherical silica in high-performance advanced packaging EMC will total 8,800 tonnes by 2027. On the supply side, the high-end segment has long been dominated by Japanese companies. Denka, Tatsumori, and Nippon Steel together hold a 70% global share of spherical silica, while Admatechs monopolizes the market for silica below 1 micron. Novoray Corporation is the leading domestic player, mastering three key processes: flame fusion, high-temperature oxidation, and liquid-phase chemical preparation. The company is adding 3,600 tonnes per year of liquid-phase ultra-pure spherical silica capacity, with a 36-month construction period, focusing on HBM/Chiplet advanced packaging and M8-M10 CCL. Its Low-α micron and sub-micron spherical silica products have already been qualified for mass use in the memory packaging supply chain. Other players such as Jinyi New Materials and Lingwei Technology (which acquired Jiangsu Huimai) are also actively developing and ramping up production. In the long term, import substitution is expected to be achieved.
Risks to consider include cyclical industry fluctuations, intensifying market competition, and delays in technological innovation.