Guosen: Rapid iteration in copper clad laminates and semiconductor packaging leaves huge room for domestic substitution of silica micropowder fillers.

Guosen released a research report stating that silica micropowder, as an advanced inorganic non-metallic mineral functional filler with excellent performance, has a wide range of applications, mainly in copper clad laminates and chip packaging materials, with rapid market growth in both. According to Bezos Consulting data, China's silica micropowder market demand in 2024 was 418,000 tons, and it is expected to reach 473,000 tons in 2025, a year-on-year increase of 13.2%. Domestic silica micropowder enterprises are rapidly developing their technical capabilities and gradually entering the high-end spherical silica market, and the domestic market share of high-end spherical silica is expected to increase rapidly. Guosen's main points are as follows: Silica micropowder, as an advanced inorganic non-metallic mineral functional filler with excellent performance, has a wide range of applications Silica has excellent properties such as high heat resistance, high insulation, low linear expansion coefficient, good thermal conductivity, and low dielectric constant and dielectric loss. It can significantly improve the relevant physical properties of downstream products, such as improving heat dissipation, reducing linear expansion coefficient, and increasing mechanical strength. It is widely used in copper clad laminates, epoxy molding compounds, electrical insulating materials, adhesives, and other fields. Silica micropowder can be classified according to crystal form and shape The main component of silica micropowder is silica. According to crystal form, silica micropowder includes crystalline and amorphous types; according to morphology, silica micropowder can be divided into angular silica micropowder and spherical silica micropowder. The preparation technology of spherical silica micropowder is mainly divided into two major categories: physical methods and chemical methods. Among them, physical methods include flame fusion method, plasma method, etc., and chemical methods include sol method, microemulsion method, chemical precipitation method, spray method, and vapor phase method, etc. The preparation of silica micropowder mainly includes three key process steps: powder synthesis, micro-nano processing, and surface modification The powder synthesis process achieves breakthroughs in powder performance or raw material self-sufficiency from the raw material end; the micro-nano processing process precisely regulates physical characteristics such as powder morphology and particle size (such as spherical/angular, particle size, distribution) at the micron and nanometer scale through spheroidization, grinding, classification, and other treatments; the surface modification process is used to solve the interface bonding force and compatibility issues between inorganic powder and organic substrates. The preparation difficulty and application scenarios of angular silica micropowder, flame method silica micropowder, direct combustion method silica micropowder, and chemical method silica micropowder products increase progressively. In the actual application of silica micropowder, surface modification treatment is required to improve the surface characteristics of particles and enhance powder dispersion performance. Modification is also the core technical barrier for high-end silica micropowder. Silica micropowder is mainly used in copper clad laminates and chip packaging materials, with rapid market growth in both Inorganic functional powder fillers for copper clad laminates have become the fourth largest key raw material in copper clad laminates after copper foil, resin, and glass fiber cloth. According to Bezos Consulting data, China's silica micropowder market demand in 2024 was 418,000 tons, and it is expected to reach 473,000 tons in 2025, a year-on-year increase of 13.2%. Mordor Intelligence predicts that the global silica micropowder market size will reach 5.33 billion USD in 2027. In semiconductor packaging materials, epoxy molding compound (EMC) is the current mainstream encapsulation material, accounting for more than 90%. 70-90% of epoxy molding compound is inorganic filler, and silica micropowder is the main functional filler of epoxy molding compound. According to QYResearch survey data, the global market size of spherical silica micropowder for integrated circuit packaging in 2024 was approximately 181 million USD, and it is expected to reach 377 million USD in 2031. Domestic silica micropowder enterprises are rapidly developing their technical capabilities and gradually entering the high-end spherical silica market At present, the overall pattern of the international silica micropowder market presents a pyramid shape, that is, domestic manufacturers generally provide basic or relatively better quality products, with large output but limited application fields, resulting in lower product unit prices. Leading Japanese enterprises have long occupied the technical dominant position in the spherical silica micropowder market. In recent years, Japanese manufacturers have gradually adjusted their product focus. Domestic enterprises such as Novoray Corporation, Jinyi New Materials, Guangzhou Lingwe Technology, and Shandong Sinocera Functional Material have achieved rapid catch-up in the spherical silica field, and new production capacity has also been rapidly constructed. The domestic market share of high-end spherical silica is expected to increase rapidly. Investment advice: Recommend paying attention to domestic leading enterprises such as Novoray Corporation and Guangzhou Lingwe Technology, which have leading technology, sufficient production capacity, and smooth downstream channels. Risk warnings: 1. Downstream demand falling short of expectations; 2. Deteriorating competition; 3. Rising raw material prices; 4. Technology diffusion risk.