Guoxin Securities: Rapid iteration of copper-clad plates and semiconductor packaging; huge room for localization of silicon powder fillers

The Zhitong Finance App learned that Guoxin Securities released a research report saying that as an advanced inorganic non-metallic mineral functional filler with excellent performance, silicon powder is widely used. It is mainly used in copper-clad plates and chip packaging materials, and the market is growing rapidly. According to Bayesian consulting data, China's silicon powder market demand in 2024 is 418,000 tons. It is estimated that in 2025, China's demand for silicon powder will reach 473,000 tons, an increase of 13.2% over the previous year. The technical capabilities of domestic silicon powder companies are developing rapidly and are gradually entering the high-end spherical silicon market, and the domestic market share of high-end spherical silicon is expected to increase rapidly.

Guoxin Securities's main views are as follows:

As an advanced inorganic non-metallic mineral functional filler with excellent properties, silicon powder is widely used

Silicon dioxide has excellent characteristics such as high heat resistance, high insulation, low linear expansion coefficient, good thermal conductivity, low dielectric constant and low dielectric loss. It can significantly improve the relevant physical properties of downstream products, such as improving heat dissipation, reducing linear expansion coefficient, improving mechanical strength, etc., and is widely used in copper clad plates, epoxy encapsulants, electrical insulation materials, adhesives, etc. ht

Silicon powder can be classified according to crystal type and shape

The main component of silicon powder is silicon dioxide. According to the crystal type, silicon powder includes two types: crystalline and amorphous; according to morphology, silicon powder can be divided into square silicon powder and spherical silicon powder. Preparation techniques for spherical silicon powder are mainly divided into two categories: physical method and chemical method. Among them, physical methods include flame melting method, plasma method, etc., and chemical methods include sol method, microemulsion method, chemical precipitation method, spray method, and gas phase method.

The preparation of silicon powder mainly includes three key process steps: powder synthesis, micro-nano processing and surface modification

The powder synthesis process achieves a breakthrough in powder performance or material self-supply from the raw material side; the micro-nano processing process accurately controls the physical characteristics of powder morphology, particle size (such as spherical/square, particle size, distribution) at the micron and nanoscale levels through treatment such as spheroidization, grinding, and grading; the surface modification process is used to solve the interfacial bonding strength and compatibility problems between inorganic powders and organic substrates. The preparation difficulty and application scenarios of square silicon powder, flame silicon powder, direct combustion silicon powder, and chemical silicon powder products are gradually increasing. In the actual application process of silicon powder, it is necessary to perform surface modification treatment on silicon powder to improve the surface characteristics of particles and improve powder dispersion performance. Modification is also a core technical barrier for high-end silicon powder.

Silicon powder is mainly used in copper-clad plates and chip packaging materials, and the market is growing rapidly

Inorganic functional powder fillers for copper-clad sheets have become the fourth key raw material in copper-clad sheets other than copper foil, resin, and fiberglass cloth. According to Bayesian consulting data, China's silicon powder market demand in 2024 is 418,000 tons. It is estimated that in 2025, China's demand for silicon powder will reach 473,000 tons, an increase of 13.2% over the previous year. MordorIntelligence predicts that the global silicon powder market will reach US$5.33 billion in 2027. Among semiconductor packaging materials, epoxy encapsulants (EMC) are currently the mainstream packaging materials, accounting for more than 90%. 70-90% of epoxy encapsulants are inorganic fillers, and silicon powder is the main functional filler for epoxy encapsulants. According to QYResearch research data, the global market size of spherical silicon powder for integrated circuit packaging will be approximately US$181 million in 2024, and is expected to reach 377 million US dollars in 2031.

The technical capabilities of domestic silicon powder companies are developing rapidly and are gradually entering the high-end spherical silicon market

Currently, the overall pattern of the international silicon powder market shows a pyramid pattern, that is, domestic manufacturers generally provide basic or better quality products. Although production is large, there are limitations in application areas, so the unit price of the product is low. Leading Japanese companies have long occupied the technological dominance of the spherical silicon powder market, and in recent years, Japanese manufacturers have gradually adjusted their product focus. Domestic companies such as Lianrui New Materials, Jinyi New Materials, Ling Wei Technology, and Guocera Materials have quickly caught up in the field of spherical silicon, and new production capacity has also been rapidly invested. The domestic market share of high-end spherical silicon is expected to increase rapidly.

Investment advice: It is recommended to focus on leading domestic companies such as Lianrui New Materials and Ling Wei Technology with leading technology, sufficient production capacity, and smooth downstream channels.

Risk warning: 1. Downstream demand falls short of expectations; 2. Competition worsens; 3. Raw material prices rise; 4. Risk of technology proliferation