Increasing demand for semiconductor and integrated circuit (IC) packaging is a major factor driving growth of the global lead frame market. Lead frames are primarily used in semiconductor packages. Majority of integrated circuit packaging is produced by placing the silicon chip on a lead frame, then wire bonding the chip to metal leads of that lead frame, after which the chip is coated with plastic.
In addition, they provide excellent thermal performance through the exposed lead frame pad, which enables a direct thermal path for removing heat from a package. This thermal enhancing feature can be further taken advantage of when package lead frame pad is soldered to a board.
This technique is simple and enables low-cost packaging for many applications. Many types of packages are based on lead frames such as QFN, QFP, LQFP, TQFP, PLCC, SOIC, and TSOP. Quad-flat no-leads (QFN) serves as an alternative to costlier laminate-based chip scale packages, fine-pitch ball grid array (FBGA), flex ball grid array (FxBGA), and micro BGA in portable applications such as cellular handsets and personal digital assistants (PDAs).
The market in China is expected to account for highest share in terms of revenue in the global lead frame market, expanding at a CAGR over 3% from 2017 to 2026. Increasing adoption of miniature microchips in various end-use industries, primarily in electronic circuits of finished products, coupled with presence of prominent international lead frame manufacturers in the country are major factors driving growth of the China lead frame market.
The market in North America is expected to witness significant growth over the forecast period in the global lead frame market. This can be attributed to the increasing penetration of mobile phones and tablets especially among the younger generation, rising consumer base of consumer electronics, and significant growth of the LED industry especially in the US and Canada.
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Based on the region, the target market is segmented into North America, North America, Europe, China, Japan, Southeast Asia, and India. Revenue from the lead frame market in China is estimated to be valued at US$ 1,001.5 Mn in 2017.
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