Achieving the regulatory, sustainability, and performance mandates in semiconductor design and manufacturing for telecommunications.
Telecommunication networks are the longstanding backbone of global communications and connections. Today, capacity and performance demands on telecommunication networks are intense, immense, and growing.
Semiconductors are the building blocks that power the telecommunications backbone. Thus, semiconductor designers and manufacturers face a new era of complex technological requirements, mandating innovation and reinvention.
Increasing smartphone adoption
users to reach 6.1 billion by 2029
Escalating ADAS and autonomous vehicles
growing at 16.5% and 32.3%, respectively
Growing IoT devices
projected to reach 41.1 billion devices by 2030
Increasing data usage and high-speed 5G broadband
(due to video traffic and IoT)
Widespread 5G adoption
estimated at over 50% globally in 2025
To better understand this new era, Henkel surveyed semiconductor manufacturers about the evolving landscape of telecommunication chips, the most pressing challenges, and how they are being addressed. Below is a high-level summary of the findings. A deeper analysis is available here.
The survey respondents cited three mandates impacting the design and manufacture of semiconductor packaging for telecommunications**:
72.4%
Meeting legislative and regulatory requirements
62.9%
Attaining sustainability goals
64.4%
Achieving next-level performance
There is an increasing demand
for packaging solutions for
high-frequency
telecommunications applications.
Survey respondent
When it comes to regulations, semiconductor manufacturers must comply with some of the most stringent requirements. Henkel survey respondents pinpointed their number one concern as achieving regulatory compliance.
Regulatory demands are driving the need for innovative and advanced solutions in semiconductor design and packaging. Achieving compliance presents a multifaceted challenge that includes strong quality management systems, verification of source authenticity, detailed documentation of component origins, and securing necessary export licenses. However, these requirements can also increase costs and reduce profitability, pressing semiconductor manufacturers to carefully balance regulatory obligations with performance and sustainability goals.
Survey respondents identified these top data center semiconductor performance requirements**:
Achieve higher reliability
| 77.1% |
Increase performance for faster network speeds
75.3%
Tackle manufacturing complexity
65.9%
Increase compute performance for edge AI adoption
62.9%
Enable SiC/GaN wide bandgap semiconductors
62.4%
Handle higher semiconductor integration and sophistication
62.4%
**Percentage of respondent ratings as "very important" or "extremely important"
Semiconductor reliability remains the top priority for ensuring stable, long-lasting telecom network performance, especially under harsh conditions. In addition, the rise of 5G and high-speed broadband drives the need for high-performing, power-efficient chips capable of handling greater data loads with low latency. To meet these demands, manufacturers are turning to advanced materials, innovative chip designs, and RF front-end integration. While integrating multiple RF components into a single chip boosts performance and reduces size, it also introduces thermal, signal isolation, and power management challenges that require precise assembly and specialized materials.
As semiconductor designs become increasingly compact and complex, managing manufacturing precision becomes increasingly critical—especially with RF front-end integration and support for multiple frequency bands. Edge AI adoption is further accelerating demand for semiconductors that enable real-time, decentralized processing in applications like IoT and autonomous vehicles. This shift requires highly integrated, power-efficient chip architectures combining CPUs, GPUs, and AI cores. At the same time, materials like SiC and GaN are gaining traction for their superior power and frequency performance, introducing new manufacturing requirements. Across the board, advanced materials play a central role in overcoming these technical hurdles, ensuring reliability, and maintaining manufacturing efficiency.
Survey respondent
Survey respondents voiced their need for highly engineered material solutions to enable semiconductor packaging and assembly in telecommunications networks**:
Gap fillers for large packaging gaps
65.3%
Solutions to fortify and stabilize the package
64.7%
Underfill solutions (and encapsulation materials)
62.9%
Wafer-level handling of large, thin dies
61.8%
Die-attach materials
60.0%
**Percentage of respondents rating as “very important” or “extremely important”
Survey respondents’ emphasis on highly engineered materials highlights the growing importance of these materials as semiconductor designs become more integrated and complex. Since performance increasingly depends on material capabilities, solutions like SiC and GaN wide bandgap semiconductors require advanced materials for package stability and precision handling of large, thin dies at the wafer level. Additionally, underfills and encapsulants provide essential protection, enhancing performance, reliability, and durability—especially in the demanding environments of telecommunications networks.
Advancing semiconductor performance for telecom networks is ever-evolving. As packaging designs evolve to boost reliability and efficiency, they increasingly rely on highly engineered materials to enhance manufacturing, durability, and regulatory compliance. These innovations are driving today’s 5G-enabled applications—from mobile and automotive to IoT—while laying the groundwork for 6G and beyond.
At Henkel, we collaborate with top semiconductor designers and manufacturers to help meet regulatory, performance, and sustainability goals in telecommunications. Contact us to explore solutions tailored to your needs.
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