Underfill Materials Market (2026-2036)
The global Underfill Materials Market was valued at USD 1.05 billion in 2025. This market is expected to reach USD 2.61 billion by 2036 from an estimated USD 1.20 billion in 2026, registering a CAGR of 8.1% during the forecast period (2026-2036).
- Published
- Oct 2026
- Pages
- 332
- Format
- PDF + Excel
- Report ID
- MR-2253
- Base year
- 2025
- 2025 · BASELINE
- $1.05B
- 2036
- $2.61B
- CAGR 2026–2036
- 8.1%
2025 baseline · 2026–2036 forecast at 8.1% CAGR · hover a bar for the value
Key highlights
The global Underfill Materials Market is projected to reach USD 2.61 billion by 2036, driven by AI advanced packaging, HBM stacking, and larger heterogeneous packages.
Asia-Pacific is expected to account for the largest market share in 2026, while North America is projected to register the fastest growth during the forecast period.
Advanced packaging capacity is expanding rapidly. TSMC stated that its CoWoS capacity would double year on year in both 2024 and 2025, that demand would still exceed supply, and that it planned to grow CoWoS capacity at a compound annual rate of more than 60% through 2026, to more than four times 2023 levels.
By product type, Capillary Underfill is expected to account for the largest market share, whereas Molded Underfill is projected to witness the fastest growth through 2036.
HBM depends on underfill. SK hynix has confirmed it will maintain its Advanced MR-MUF (mass reflow molded underfill) process through HBM4 and HBM4E 16-high products, and unveiled a 16-high HBM4 at CES 2026 using DRAM wafers thinned to 30 micrometers to meet JEDEC's 775-micrometer height limit, while Samsung and Micron use TC-NCF non-conductive film.
Hybrid bonding is the key long-term risk. SK hynix has said next-generation technologies will become unavoidable once HBM stacks exceed 20 layers, and TSMC planned to expand its SoIC hybrid-bonding capacity eight-fold from 2023 levels by the end of 2026.
Report summary
| Particulars | Details |
|---|---|
| Forecast Period | 2026-2036 |
| Base Year | 2025 |
| Estimated Year | 2026 |
| CAGR (Value) | 8.1% |
| Format | PDF, Excel & Cloud Portal · 332 pages |
| Market Size (Value) in 2026 | USD 1.20 Billion |
| Market Size (Value) in 2036 | USD 2.61 Billion |
| Segments Covered | By Product Type: Capillary Underfill, Molded Underfill (including Mass Reflow Molded Underfill), Non-Conductive Film, Non-Conductive Paste, No-Flow Underfill, Board-Level & Edge Bond Underfill. By Level: Package-Level, Board-Level. By Chemistry: Epoxy-Based, Silicone-Based, Hybrid & Other. By Package Application: 2.5D/3D Packages, HBM & Stacked Memory, Flip-Chip BGA/CSP, Fan-Out Wafer-Level Packages, System-in-Package, Board-Level Assemblies. By End Market: Data Center & AI, Smartphones & Consumer Electronics, Automotive, Telecommunications & Networking, Industrial & Medical, Aerospace & Defense. |
| Countries Covered | Asia-Pacific: Taiwan, South Korea, Japan, China, Malaysia, Vietnam, India, Rest of Asia-Pacific. North America: U.S., Canada. Europe: Germany, France, Italy, Netherlands, U.K., Rest of Europe. Latin America: Mexico, Brazil, Rest of Latin America. Middle East & Africa: Israel, Saudi Arabia, UAE, Turkey, South Africa, Egypt, Rest of Middle East & Africa. |
| Key Companies | Henkel AG & Co. KGaA, NAMICS Corporation, Resonac Holdings Corporation, Shin-Etsu Chemical Co., Ltd., Sumitomo Bakelite Co., Ltd., Nagase ChemteX Corporation, Panasonic Industry Co., Ltd., Won Chemical Co., Ltd., H.B. Fuller Company, Zymet, Inc., AIM Solder, Master Bond Inc., YINCAE Advanced Materials, LLC, and Darbond Technology Co., Ltd. |
Report overview
Segments covered: product type, level, chemistry, package application.
The growth of this market is mainly driven by the rapid expansion of advanced packaging capacity for AI, the stacking of high-bandwidth memory, and larger, more complex heterogeneous packages that require high-performance underfills. However, the structural displacement of underfill by hybrid bonding in the most advanced stacks, the technical demands of ever-thinner dies and warpage control, bottlenecks in advanced packaging capacity, and weakness in consumer and mature-node end markets restrain the growth of this market.
Furthermore, pre-applied films and pastes for thermo-compression bonding, advanced molded underfills for HBM, and new gap-fill materials for next-generation bonding are expected to offer growth opportunities for the stakeholders in this market. However, balancing flow, thermal performance, and reliability in a single formulation remains a major challenge impacting the growth of this market. Additionally, divergent HBM stacking processes, the evaluation of fluxless bonding as a bridge to hybrid bonding, and the rise of liquid molding and encapsulation for 2.5D packages are prominent trends in this market.
The Underfill Materials Market comprises the polymer materials, predominantly filled epoxy formulations, used to fill the gap between a semiconductor die and its substrate, between stacked dies, or between a package and a circuit board, in order to redistribute thermomechanical stress, protect solder or copper bump interconnects, and improve reliability. The market covers capillary underfill (CUF), dispensed after bonding and drawn into the gap by capillary action; molded underfill (MUF), including mass reflow molded underfill used in HBM stacks, which combines underfill and encapsulation in one step; pre-applied underfills such as non-conductive film (NCF) and non-conductive paste (NCP) used with thermo-compression bonding; no-flow underfill; and board-level underfills, corner bonds, and edge bonds used for BGA, CSP, and package-on-package assemblies. General encapsulants and die attach adhesives are excluded except where they serve as underfill. The market ecosystem extends from suppliers of epoxy resins, curing agents, and spherical silica fillers to underfill formulators, dispensing and molding equipment makers, outsourced assembly and test providers, memory makers, foundries, and electronics manufacturers.
AI is transforming demand. Advanced packages that combine GPUs or accelerators with HBM stacks on large interposers and substrates rely on high-performance underfills to manage stress across very large, thin dies. TSMC stated in October 2024 that its CoWoS capacity would double year on year in both 2024 and 2025 and that customer demand would still exceed supply, and it announced plans to expand CoWoS capacity at a compound annual rate of more than 60% through 2026, to more than four times 2023 levels. Henkel, a leading underfill supplier, offers pre-applied pastes and films, capillary materials, and liquid molded solutions for AI packages, and reports that its latest underfills fill gaps 30% faster than previous-generation products.
High-bandwidth memory has made underfill a strategic technology choice. SK hynix uses its Advanced MR-MUF process, in which multiple DRAM dies are bonded in a single reflow step and the gaps are then filled with a mold material, and states that it has improved heat dissipation by about 1.6 times over the original version. SK hynix has confirmed it will maintain the process through HBM4 and HBM4E 16-high products, and at CES 2026 unveiled a 16-high HBM4 using DRAM wafers thinned to 30 micrometers to meet JEDEC's 775-micrometer height limit. Samsung and Micron use thermo-compression with non-conductive film (TC-NCF), which applies a film-type underfill after each die is stacked.
Hybrid bonding is the principal long-term threat to the high end of the market. Hybrid bonding joins copper pads directly without bumps or underfill, and SK hynix has stated that once HBM stacks exceed 20 layers, adopting next-generation technologies will become unavoidable; in the fourth quarter of 2025 it evaluated fluxless bonding for HBM4 16-high as a transitional step toward hybrid bonding, but retained Advanced MR-MUF after the results did not meet expectations. TSMC planned to expand its SoIC hybrid-bonding capacity at a 100% compound annual rate through 2026, to eight times 2023 levels. Meanwhile, underfill demand in consumer and mature-node applications has been subdued, with Ibiden reporting lower-than-expected PC demand in fiscal 2025 and Entegris noting subdued fab activity outside AI logic and HBM in 2025.
Market dynamics
16 factors across 5 forcesRapid Expansion of Advanced Packaging Capacity for AI
The rapid expansion of advanced packaging capacity for AI is a major factor driving the Underfill Materials Market. TSMC stated in October 2024 that its CoWoS capacity would double year on year in both 2024 and 2025, with demand still exceeding supply, and that advanced packaging accounted for about 7% to 9% of its revenue and would outgrow the company average over the next five years; it also planned CoWoS capacity growth at a compound annual rate of more than 60% through 2026, reaching more than four times 2023 levels. Every CoWoS-type package requires underfill between the dies and interposer and between the interposer and substrate, so capacity growth translates directly into underfill demand.
Stacking of High-Bandwidth Memory
The stacking of high-bandwidth memory is significantly increasing demand for molded underfill and non-conductive film. SK hynix has confirmed it will maintain its Advanced MR-MUF process through HBM4 and HBM4E 16-high products, and its 16-high HBM4 shown at CES 2026 uses DRAM wafers thinned to 30 micrometers to meet the 775-micrometer JEDEC height limit, while Samsung and Micron use TC-NCF. Each additional die layer adds a bond line requiring underfill, and the move from 8-high to 12-high and 16-high stacks increases underfill consumption per HBM unit, while HBM demand grows with each generation of AI accelerators.
Larger, More Complex Heterogeneous Packages
Larger and more complex heterogeneous packages are raising the performance requirements and value of underfill materials. Ibiden plans to increase IC substrate output, measured by package area, by 150% by fiscal 2027 compared with fiscal 2024, reflecting the growth in package size driven by AI. SK hynix introduced a new molding material for its Advanced MR-MUF process that improved heat dissipation by about 1.6 times, and Henkel reports its latest underfills fill gaps 30% faster than previous-generation products. Larger dies, finer bump pitches, and more dies per package require underfills with lower viscosity, faster flow, higher thermal conductivity, and better control of warpage.
Table of contents
13 chapters · 156 sections · 332 pages · click to expandSegmental analysis
| Segment | Largest share (2026) | Fastest growth (2026–2036) |
|---|---|---|
| By Product Type | Capillary Underfill | Molded Underfill |
| By Level | Package-Level | — |
| By Chemistry | Epoxy-Based | — |
| By Package Application | Flip-Chip BGA/CSP | HBM & Stacked Memory |
By Product Type
- The Capillary Underfill segment is expected to account for the largest share of the market.
- The large share of this segment is mainly due to its widespread use in flip-chip packages for processors, AI accelerators, and mobile devices.
- However, the Molded Underfill segment is projected to register the highest CAGR during the forecast period.
- The rapid growth of this segment is attributed to the use of mass reflow molded underfill in HBM and molded underfill in large packages.
- The Smartphones & Consumer Electronics segment is expected to account for the largest market share by volume and value.
- However, the Data Center & AI segment is projected to register the highest CAGR during the forecast period.
By Level
- The Package-Level segment is expected to account for the larger market share, and it is also projected to register the higher CAGR during the forecast period, driven by advanced packaging and HBM.
By Chemistry
- The Epoxy-Based segment is expected to account for the largest market share, and it is also projected to register the highest CAGR during the forecast period.
By Package Application
- The Flip-Chip BGA/CSP segment is expected to account for the largest market share.
- However, the HBM & Stacked Memory segment is projected to register the highest CAGR during the forecast period.
Geographic analysis
Asia-Pacific
Largest shareIn 2026, Asia-Pacific is expected to account for the largest share of the global Underfill Materials Market, reflecting the concentration of semiconductor packaging and electronics assembly in the region. Taiwan hosts TSMC's CoWoS capacity, which TSMC planned to grow at more than 60% a year through 2026, to more than four times 2023 levels. South Korea is the center of HBM production, where SK hynix will maintain Advanced MR-MUF through HBM4E 16-high and Samsung uses TC-NCF. Japan is home to leading underfill and packaging material suppliers including NAMICS, Resonac, Shin-Etsu Chemical, Sumitomo Bakelite, and Nagase ChemteX, as well as Ibiden, which targets a 150% increase in substrate output by package area by fiscal 2027. China is the largest center of consumer electronics assembly, and Malaysia, where Intel is building a new advanced packaging facility, Vietnam, and India are expanding packaging and assembly. Asia-Pacific
North America
Fastest growthNorth America is projected to register the highest CAGR during the forecast period, from a smaller base, as the region builds domestic advanced packaging capacity. Intel's key advanced packaging facility in 2025 was in New Mexico, according to its annual report, and the U.S. finalized up to USD 75 million in CHIPS Act funding in December 2024 for Absolics' glass substrate plant in Covington, Georgia, which targets high-volume production in 2026. North American companies design most of the world's AI accelerators, and new advanced packaging and HBM assembly capacity in the U.S. is expected to create local demand for underfill materials. Canada contributes through packaging research and electronics manufacturing. Mexico announced in February 2025 the Kutsari National Semiconductor Design Center, with locations in Puebla, Jalisco, and Sonora, and aims to cover design, fabrication, and assembly by 2030. North America
Europe
Europe is expected to account for a significant share of the market, led by Germany-based Henkel, a leading supplier of underfill, encapsulation, and semiconductor packaging materials whose latest underfills fill gaps 30% faster than previous generations. European demand is concentrated in automotive, industrial, and power electronics, where board-level underfills and edge bonds protect components from vibration and thermal cycling. The European Chips Act, in force since September 2023, aims to mobilize more than EUR 43 billion in investment to strengthen Europe's semiconductor ecosystem, including packaging, supporting demand in Germany, France, Italy, the Netherlands, and other countries. Europe
Latin America
Latin America is expected to account for a smaller share of the market, with Mexico as the leading country due to its large electronics and automotive electronics assembly sector serving the U.S. market, where board-level underfills are used to improve the reliability of BGA and CSP components. Brazil hosts consumer electronics and automotive assembly, and nearshoring of electronics manufacturing is expected to support regional demand. Latin America
Middle East & Africa
The Middle East & Africa is expected to account for a smaller share of the market, led by Israel, where Intel's Fab 28 in Kiryat Gat produced Intel 7 chips in 2025 and Intel announced in December 2023 a USD 25 billion plan for Fab 38 supported by a USD 3.2 billion government grant, although construction timing has since been uncertain; Israel also hosts semiconductor design and defense electronics production that use high-reliability underfills. Gulf states including Saudi Arabia and the United Arab Emirates are investing in AI data centers, creating demand for AI hardware, while South Africa, Egypt, and Turkey host electronics assembly. Middle East & Africa
Competitive landscape
The global Underfill Materials Market is moderately consolidated, led by a small number of global and Japanese specialty materials suppliers in semiconductor-grade underfills, alongside regional suppliers in South Korea, China, and the U.S. focused on board-level and specialty applications. Market participants compete primarily on flow speed, thermal and mechanical performance, reliability, compatibility with bonding processes such as mass reflow and thermo-compression, qualification with leading memory makers, foundries, and assembly providers, and technical support.
Leading companies are developing faster-flowing and higher-thermal-conductivity underfills, molded underfills for HBM, pre-applied films and pastes for thermo-compression bonding, and materials compatible with fluxless and hybrid bonding, while expanding technical service near packaging hubs. Qualification in each new HBM and AI package generation remains the key factor shaping competition.
The report provides a comprehensive competitive assessment of the leading companies operating in the global Underfill Materials Market. The key players profiled in the report include Henkel AG & Co. KGaA (Germany), NAMICS Corporation (Japan), Resonac Holdings Corporation (Japan), Shin-Etsu Chemical Co., Ltd. (Japan), Sumitomo Bakelite Co., Ltd. (Japan), Nagase ChemteX Corporation (Japan), Panasonic Industry Co., Ltd. (Japan), Won Chemical Co., Ltd. (South Korea), H.B. Fuller Company (U.S.), Zymet, Inc. (U.S.), AIM Solder (Canada), Master Bond Inc. (U.S.), YINCAE Advanced Materials, LLC (U.S.), and Darbond Technology Co., Ltd. (China).
- Henkel AG & Co. KGaA
- NAMICS Corporation
- Resonac Holdings Corporation
- Shin-Etsu Chemical Co., Ltd.
- Sumitomo Bakelite Co., Ltd.
- Nagase ChemteX Corporation
- Panasonic Industry Co., Ltd.
- Won Chemical Co., Ltd.
- H.B. Fuller Company
- Zymet, Inc.
- AIM Solder
- Master Bond Inc.
- YINCAE Advanced Materials, LLC
- Darbond Technology Co., Ltd
Expert perspectives
The Underfill Materials Market is small in value but sits at a strategic junction in AI hardware. How HBM is stacked, whether by SK hynix's Advanced MR-MUF, Samsung and Micron's TC-NCF, or eventually hybrid bonding, determines which underfill technologies grow. SK hynix's commitment to MR-MUF through HBM4E 16-high, and TSMC's doubling of CoWoS capacity in successive years, support strong demand through the rest of this decade.
Three structural changes are expected to shape the market through 2036. First, value will shift from commodity capillary underfills toward high-performance molded underfills and pre-applied films for AI and HBM. Second, hybrid bonding will progressively remove underfill from the most advanced logic and memory stacks, with SK hynix indicating it becomes unavoidable beyond 20-layer HBM, capping growth at the very high end. Third, package growth measured by area will continue to expand demand in 2.5D, fan-out, and board-level applications that are not suited to hybrid bonding.
For companies planning entry or expansion, the most attractive positions over the forecast period are likely to be found in molded underfills and non-conductive films for HBM, high-thermal-conductivity underfills for large AI packages, and materials compatible with fluxless and hybrid bonding. The principal risks are displacement by hybrid bonding, qualification failure in a key product generation, and weakness in consumer electronics.
Customer perspectives
Insights gathered during primary interviews with packaging engineers, HBM process integration leaders, and electronics manufacturing managers operating in this market highlight where purchasing priorities are shifting. The following perspectives reflect recurring themes raised across these discussions.
“This reflects the rising technical requirements and strategic importance of underfill for large AI packages.”
“This indicates that underfill demand in HBM will continue for several generations while hybrid bonding is prepared for future stacks.”
“This points to steady board-level underfill demand in automotive, driven by reliability and local supply.”
Frequently asked questions
The global Underfill Materials Market is estimated at USD 1.20 billion in 2026.
Cite this report
Meticulous Research. (2026). Underfill Materials Market - Opportunity Analysis and Industry Forecast (2026-2036) (Report No. MR-2253). Meticulous Market Research Pvt. Ltd. https://www.meticulousresearch.com/product/underfill-materials-market-6936