The global underfill materials market was valued at USD 1.05 billion in 2025. It is estimated at USD 1.20 billion in 2026 and is projected to reach USD 2.61 billion by 2036, growing at a CAGR of 8.1% over the 2026-2036 forecast period. This report assesses the market in depth, covering the advanced packaging landscape, HBM stacking technologies, underfill formulation and filler technologies, raw materials, the value chain, pricing, regulation, investment and M&A activity, and competition.
The study covers polymer materials, mostly filled epoxy systems, placed in the space under a flip-chip die, inside a die stack, or beneath a package mounted on a circuit board. These materials spread thermomechanical stress, protect solder and copper bump joints, and extend the life of the assembly. The scope includes capillary underfill, which is dispensed after bonding and wicks into the gap; molded underfill, including the mass reflow molded underfill used in HBM, which underfills and encapsulates in one step; non-conductive film and paste that are applied before thermo-compression bonding; no-flow underfill; and the underfills, corner bonds, and edge bonds that secure BGA, CSP, and package-on-package parts on boards. Die attach adhesives and general-purpose encapsulants fall outside the scope unless they serve an underfill function.
Demand from AI hardware has made underfill a strategic material, and according to TSMC, its CoWoS capacity was set to double year on year in both 2024 and 2025 while demand still ran ahead of supply, and the company planned to expand that capacity at a compound annual rate above 60% through 2026, to over four times its 2023 level. Package area is rising as well: Ibiden reported that it aims to raise its IC substrate output 150% on a package-area basis between fiscal 2024 and fiscal 2027. In memory, SK hynix reported that the new molding material in its Advanced MR-MUF process improves heat dissipation by about 1.6 times over the first version, and the company has committed to the process through HBM4 and HBM4E 16-high products.
The main long-term restraint is hybrid bonding, which joins copper pads directly and needs no underfill in the bonded interface. SK hynix has said that next-generation bonding will become unavoidable once HBM stacks pass 20 layers, and TSMC planned to grow its SoIC hybrid-bonding capacity to eight times 2023 levels by the end of 2026. Thinner dies and larger packages raise qualification barriers, as a failed reliability test can lock a supplier out of a product generation. Tight advanced packaging capacity, including shortages of interposers, substrates, and T-glass cloth, caps the number of packages that can be built, and soft demand in PCs, smartphones, and mature-node chips weighs on conventional flip-chip and board-level underfills. Suppliers must also balance fast flow, high thermal conductivity, low thermal expansion, and long-term reliability in one formulation, manage dispensing and curing throughput, and secure specialty resins and spherical silica while meeting halogen-free and chemical regulations.
Opportunities are opening in pre-applied films and pastes for thermo-compression bonding, which Samsung and Micron use for HBM and which are spreading to chiplet and 3D logic assembly. Advanced molded underfills for HBM offer high value, as each new generation needs materials that fill gaps between 30-micrometer dies while removing more heat. New gap-fill and protective materials for fluxless and hybrid bonding flows give underfill suppliers a way to stay relevant as packaging architectures change. Key trends include the coexistence of MR-MUF and TC-NCF stacking routes for at least two more HBM generations, SK hynix's late-2025 trial of fluxless bonding as an interim step before hybrid bonding, and the growing use of liquid molding and encapsulation alongside underfill in 2.5D and fan-out packages.
By product type, the report covers six categories: capillary underfill; molded underfill, split into mass reflow molded and other molded underfill; non-conductive film; non-conductive paste; no-flow underfill; and board-level & edge bond underfill, split into board-level capillary underfill and corner and edge bond adhesives. Capillary underfill is expected to hold the largest share in 2026, as it is the standard material for flip-chip packages used in processors, AI accelerators, and mobile devices, and it fits established dispensing lines across the industry. Molded underfill is expected to grow at the highest CAGR during the forecast period, driven by SK hynix's mass reflow molded underfill in HBM stacks, its use in large packages where one-step underfill and encapsulation saves process time, and continuing gains in heat dissipation from new molding materials. Non-conductive film is also gaining ground as Samsung and Micron add film layers at every bond line in taller HBM stacks.
By level, the study examines package-level underfill and board-level underfill. Package-level underfill is expected to account for the larger share in 2026 and also to post the higher CAGR, as it is used inside flip-chip, 2.5D, and HBM packages, where AI demand is concentrated and where performance requirements and material value per package are highest. Board-level underfill remains important in automotive and industrial electronics, where it protects BGA and CSP components against vibration and temperature cycling.
By chemistry, the report covers epoxy-based, silicone-based, and hybrid & other chemistries. Epoxy-based materials are expected to hold the largest share in 2026 and are also expected to record the highest CAGR, since filled epoxy systems form the basis of nearly all capillary, molded, and pre-applied underfills and offer the adhesion, low thermal expansion, and mechanical strength needed to protect bump joints. Silicone-based and hybrid chemistries serve niche needs such as flexibility or reworkability in specific board-level and specialty applications.
The package application analysis covers flip-chip BGA/CSP, 2.5D/3D packages, HBM & stacked memory, fan-out wafer-level packages, system-in-package, and board-level assemblies. Flip-chip BGA/CSP is expected to represent the largest share in 2026, reflecting very high unit volumes across processors, mobile chips, and networking devices that rely on capillary underfill. HBM & stacked memory is expected to grow at the highest CAGR, as stack heights rise to 12 and 16 layers, every layer adds a bond line that needs molded underfill or film, and HBM demand expands with each new AI accelerator. 2.5D/3D packages are a further growth area, as larger interposers and more dies per package increase underfill content and performance needs.
By end market, the study examines smartphones & consumer electronics, data center & AI, automotive, telecommunications & networking, industrial & medical, and aerospace & defense. Smartphones & consumer electronics are expected to account for the largest share by both volume and value in 2026, owing to the very large number of flip-chip and board-level assemblies in phones, PCs, and wearables. Data center & AI is expected to grow at the highest CAGR, driven by CoWoS-type packaging, HBM stacking, and the high-performance underfills that large, hot AI packages require. Automotive is a steady source of demand, where underfill and edge bonding are needed for reliability under vibration and thermal cycling.
Asia-Pacific is expected to hold the largest share of the global market in 2026, as most semiconductor packaging and electronics assembly is located there. Taiwan is home to TSMC's CoWoS capacity, South Korea is the center of HBM production through SK hynix and Samsung, and Japan hosts leading underfill and packaging material makers such as Resonac, NAMICS, Sumitomo Bakelite, Shin-Etsu Chemical, and Nagase ChemteX, along with substrate maker Ibiden. China is the largest hub for consumer electronics assembly, while Vietnam, India, and Malaysia, where Intel has a new advanced packaging site under construction, are adding packaging and assembly capacity.
North America, starting from a smaller base, is expected to grow at the highest CAGR during the forecast period as new domestic advanced packaging capacity comes online. North American companies design most AI accelerators, Intel runs advanced packaging in New Mexico, and the U.S. Department of Commerce finalized up to USD 75 million in CHIPS Act support in December 2024 for Absolics' glass substrate plant in Georgia. Europe holds a significant share, supported by Germany-based Henkel and by automotive, industrial, and power electronics demand, with the European Commission's Chips Act aiming to mobilize more than EUR 43 billion in semiconductor investment. Latin America is led by Mexico's electronics and automotive assembly base serving the U.S., and the Middle East & Africa is led by Israel's chip production and design, with Saudi Arabia and the UAE investing in AI data centers.
The market is moderately consolidated, with a few global and Japanese specialty material suppliers leading in semiconductor-grade underfills, while regional players in South Korea, China, and the U.S. focus on board-level and specialty products. Competition rests on how fast a material flows, its thermal and mechanical properties, long-term reliability, fit with mass reflow and thermo-compression processes, qualification at leading memory makers, foundries, and OSATs, and local technical support. Leading suppliers are investing in quicker-flowing, more thermally conductive formulations, HBM-grade molded underfills, pre-applied film and paste products, and materials suited to fluxless and hybrid bonding. Henkel, for example, reported that its latest underfills fill gaps 30% faster than the prior generation and has introduced a new encapsulation material for 2.5D packaging.
Key companies 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).
The study covers polymer materials, mostly filled epoxy systems, placed in the space under a flip-chip die, inside a die stack, or beneath a package mounted on a circuit board. These materials spread thermomechanical stress, protect solder and copper bump joints, and extend the life of the assembly. The scope includes capillary underfill, which is dispensed after bonding and wicks into the gap; molded underfill, including the mass reflow molded underfill used in HBM, which underfills and encapsulates in one step; non-conductive film and paste that are applied before thermo-compression bonding; no-flow underfill; and the underfills, corner bonds, and edge bonds that secure BGA, CSP, and package-on-package parts on boards. Die attach adhesives and general-purpose encapsulants fall outside the scope unless they serve an underfill function.
Demand from AI hardware has made underfill a strategic material, and according to TSMC, its CoWoS capacity was set to double year on year in both 2024 and 2025 while demand still ran ahead of supply, and the company planned to expand that capacity at a compound annual rate above 60% through 2026, to over four times its 2023 level. Package area is rising as well: Ibiden reported that it aims to raise its IC substrate output 150% on a package-area basis between fiscal 2024 and fiscal 2027. In memory, SK hynix reported that the new molding material in its Advanced MR-MUF process improves heat dissipation by about 1.6 times over the first version, and the company has committed to the process through HBM4 and HBM4E 16-high products.
Market Dynamics
Demand is driven mainly by the fast build-out of advanced packaging for AI, since every CoWoS-type package needs underfill between the dies and the interposer and again between the interposer and the substrate. HBM stacking is a second major driver: each added DRAM layer creates another bond line to fill, so taller 12-layer and 16-layer stacks consume more underfill per HBM unit than earlier 8-layer designs, while demand for HBM grows with every generation of AI accelerators. Larger heterogeneous packages with bigger dies, finer bump pitches, and more dies per package also need materials that flow faster at lower viscosity, conduct more heat, and keep warpage in check, which raises the value of each kilogram sold.The main long-term restraint is hybrid bonding, which joins copper pads directly and needs no underfill in the bonded interface. SK hynix has said that next-generation bonding will become unavoidable once HBM stacks pass 20 layers, and TSMC planned to grow its SoIC hybrid-bonding capacity to eight times 2023 levels by the end of 2026. Thinner dies and larger packages raise qualification barriers, as a failed reliability test can lock a supplier out of a product generation. Tight advanced packaging capacity, including shortages of interposers, substrates, and T-glass cloth, caps the number of packages that can be built, and soft demand in PCs, smartphones, and mature-node chips weighs on conventional flip-chip and board-level underfills. Suppliers must also balance fast flow, high thermal conductivity, low thermal expansion, and long-term reliability in one formulation, manage dispensing and curing throughput, and secure specialty resins and spherical silica while meeting halogen-free and chemical regulations.
Opportunities are opening in pre-applied films and pastes for thermo-compression bonding, which Samsung and Micron use for HBM and which are spreading to chiplet and 3D logic assembly. Advanced molded underfills for HBM offer high value, as each new generation needs materials that fill gaps between 30-micrometer dies while removing more heat. New gap-fill and protective materials for fluxless and hybrid bonding flows give underfill suppliers a way to stay relevant as packaging architectures change. Key trends include the coexistence of MR-MUF and TC-NCF stacking routes for at least two more HBM generations, SK hynix's late-2025 trial of fluxless bonding as an interim step before hybrid bonding, and the growing use of liquid molding and encapsulation alongside underfill in 2.5D and fan-out packages.
Segment Analysis
The report analyzes the market by product type, level, chemistry, package application, end market, and geography, helping stakeholders identify where material value is moving as packaging architectures change.By product type, the report covers six categories: capillary underfill; molded underfill, split into mass reflow molded and other molded underfill; non-conductive film; non-conductive paste; no-flow underfill; and board-level & edge bond underfill, split into board-level capillary underfill and corner and edge bond adhesives. Capillary underfill is expected to hold the largest share in 2026, as it is the standard material for flip-chip packages used in processors, AI accelerators, and mobile devices, and it fits established dispensing lines across the industry. Molded underfill is expected to grow at the highest CAGR during the forecast period, driven by SK hynix's mass reflow molded underfill in HBM stacks, its use in large packages where one-step underfill and encapsulation saves process time, and continuing gains in heat dissipation from new molding materials. Non-conductive film is also gaining ground as Samsung and Micron add film layers at every bond line in taller HBM stacks.
By level, the study examines package-level underfill and board-level underfill. Package-level underfill is expected to account for the larger share in 2026 and also to post the higher CAGR, as it is used inside flip-chip, 2.5D, and HBM packages, where AI demand is concentrated and where performance requirements and material value per package are highest. Board-level underfill remains important in automotive and industrial electronics, where it protects BGA and CSP components against vibration and temperature cycling.
By chemistry, the report covers epoxy-based, silicone-based, and hybrid & other chemistries. Epoxy-based materials are expected to hold the largest share in 2026 and are also expected to record the highest CAGR, since filled epoxy systems form the basis of nearly all capillary, molded, and pre-applied underfills and offer the adhesion, low thermal expansion, and mechanical strength needed to protect bump joints. Silicone-based and hybrid chemistries serve niche needs such as flexibility or reworkability in specific board-level and specialty applications.
The package application analysis covers flip-chip BGA/CSP, 2.5D/3D packages, HBM & stacked memory, fan-out wafer-level packages, system-in-package, and board-level assemblies. Flip-chip BGA/CSP is expected to represent the largest share in 2026, reflecting very high unit volumes across processors, mobile chips, and networking devices that rely on capillary underfill. HBM & stacked memory is expected to grow at the highest CAGR, as stack heights rise to 12 and 16 layers, every layer adds a bond line that needs molded underfill or film, and HBM demand expands with each new AI accelerator. 2.5D/3D packages are a further growth area, as larger interposers and more dies per package increase underfill content and performance needs.
By end market, the study examines smartphones & consumer electronics, data center & AI, automotive, telecommunications & networking, industrial & medical, and aerospace & defense. Smartphones & consumer electronics are expected to account for the largest share by both volume and value in 2026, owing to the very large number of flip-chip and board-level assemblies in phones, PCs, and wearables. Data center & AI is expected to grow at the highest CAGR, driven by CoWoS-type packaging, HBM stacking, and the high-performance underfills that large, hot AI packages require. Automotive is a steady source of demand, where underfill and edge bonding are needed for reliability under vibration and thermal cycling.
Regional Analysis
The report covers Asia-Pacific, North America, Europe, Latin America, and the Middle East & Africa, with analysis of 22 countries and five rest-of-region groups. The analysis considers advanced packaging and memory capacity, electronics assembly, the presence of material suppliers, and government semiconductor programs in each market.Asia-Pacific is expected to hold the largest share of the global market in 2026, as most semiconductor packaging and electronics assembly is located there. Taiwan is home to TSMC's CoWoS capacity, South Korea is the center of HBM production through SK hynix and Samsung, and Japan hosts leading underfill and packaging material makers such as Resonac, NAMICS, Sumitomo Bakelite, Shin-Etsu Chemical, and Nagase ChemteX, along with substrate maker Ibiden. China is the largest hub for consumer electronics assembly, while Vietnam, India, and Malaysia, where Intel has a new advanced packaging site under construction, are adding packaging and assembly capacity.
North America, starting from a smaller base, is expected to grow at the highest CAGR during the forecast period as new domestic advanced packaging capacity comes online. North American companies design most AI accelerators, Intel runs advanced packaging in New Mexico, and the U.S. Department of Commerce finalized up to USD 75 million in CHIPS Act support in December 2024 for Absolics' glass substrate plant in Georgia. Europe holds a significant share, supported by Germany-based Henkel and by automotive, industrial, and power electronics demand, with the European Commission's Chips Act aiming to mobilize more than EUR 43 billion in semiconductor investment. Latin America is led by Mexico's electronics and automotive assembly base serving the U.S., and the Middle East & Africa is led by Israel's chip production and design, with Saudi Arabia and the UAE investing in AI data centers.
Competitive Landscape
The report reviews key growth strategies, competitive benchmarking, the competitive dashboard (industry leaders, market differentiators, vanguards, and emerging companies), and 2025 market share/rank analysis, with company profiles covering business overview, financial overview, product portfolio, strategic developments, and SWOT analysis.The market is moderately consolidated, with a few global and Japanese specialty material suppliers leading in semiconductor-grade underfills, while regional players in South Korea, China, and the U.S. focus on board-level and specialty products. Competition rests on how fast a material flows, its thermal and mechanical properties, long-term reliability, fit with mass reflow and thermo-compression processes, qualification at leading memory makers, foundries, and OSATs, and local technical support. Leading suppliers are investing in quicker-flowing, more thermally conductive formulations, HBM-grade molded underfills, pre-applied film and paste products, and materials suited to fluxless and hybrid bonding. Henkel, for example, reported that its latest underfills fill gaps 30% faster than the prior generation and has introduced a new encapsulation material for 2.5D packaging.
Key companies 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).
How This Report Helps
- Provides reliable market size estimates and long-term forecasts for the global underfill materials market through 2036.
- Explains how AI packaging, HBM stacking, and larger heterogeneous packages are changing underfill demand and requirements.
- Assesses the timing and impact of hybrid bonding and fluxless bonding on underfill use in advanced logic and memory.
- Identifies growth opportunities across product type, level, chemistry, package application, end market, and region.
- Reviews formulation, filler, raw material, and process trends that shape performance and supplier qualification.
- Benchmarks leading underfill suppliers on portfolios, technology, customer qualification, and market position.
- Supports product development, sourcing, and investment decisions for material suppliers, packaging houses, chipmakers, and investors.
Key Questions Answered
- How large is the global underfill materials market today, and how will it grow through 2036?
- How will CoWoS capacity growth and rising HBM stack heights affect underfill demand?
- What are the main drivers, restraints, opportunities, challenges, and trends shaping the market?
- How do MR-MUF and TC-NCF stacking routes differ in their material needs, and how long will each last?
- When could hybrid bonding begin to displace underfill, and which applications will remain unaffected?
- Which product type, level, chemistry, package application, and end market will grow the fastest?
- Which regions and countries offer the most attractive opportunities for underfill suppliers?
- Who are the leading companies in the market, and how do they compare?
- What product launches, qualifications, and investments are shaping competition?
Table of Contents
1. Introduction
2. Research Methodology
4. Market Overview
5. Underfill Materials Market, by Product Type
6. Underfill Materials Market, by Level
7. Underfill Materials Market, by Chemistry
8. Underfill Materials Market, by Package Application
9. Underfill Materials Market, by End Market
10. Underfill Materials Market, by Geography
11. Competitive Landscape
12. Company Profiles
13. Appendix
LIST OF TABLES
LIST OF FIGURES
Companies Mentioned
- 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.
