Market Trend Report - The Silver Institute

Silver in Printed & Flexible ElectronicsAccording to the firm Global Market Research, the PowerDistribution Component Market, which includes cables, connectors,and electrical contacts, makes up the next market block at overUS 95 billion in revenue, growing 6.6% per annum over 2019. Abroad range of precious metals are used in this segment in a numberof different forms including silver, and silver‐oxide batteries.Power DistributionComponentsLED and OLED TVMEMS PackageAccording to Market Research Future, the LED and OLED Lightingand Display Markets are generating US 53 billion in revenue,growing 24% year over year. These markets have enjoyed a decadeof growth already and will continue to grow for several more years tocome. OLED technologies have now become the dominant televisionand display technology and have also now achieved majority share inthe mobile phone market.According to Yole Development, the MEMS (Micro‐Electro‐Mechanical Systems) Market is generating US 17.4 billion a year inrevenue in 2020, with an anticipated growth rate of 17.5% per year.MEMS technology is defined as the miniaturized mechanical andelectro‐mechanical elements, such as devices and structures, whichare manufactured and fabricated using the techniques ofmicrofabrication. The types of MEMS devices vary from relativelysimple structures with no moving elements, for some of theextremely complex electromechanical systems, with multiple movingelements under the control of integrated microelectronics. MEMSdevices and sensor will continue to grow as the Internet‐of‐Things(IoT) continues to flourish. Most electronics are accomplishing moredense and low power designs through much more complexpackaging.Precious Metals Used in the Electronic MarketsElectronics is one of the biggest combined industrial segments ofdemand for all precious metals. E‐waste recyclers have known thisfor years. The challenge is understanding what metals are used, andwhere they are used. Summarizing the extensive market researchthat we have accumulated to date, we arrived at the followingsummary of precious metals electronics demand as a percent of theoverall mineral supply.6

Silver in Printed & Flexible ElectronicsElectronics Demand as Percent Of m2.0%Platinum5.7%Chart 3: Electronics Precious Metals Demand % of Total 2020 SupplySource: Precious Metals Commodity Management LLCSilver Demand MozAccording to our analysis, a total of 32.5% of the global silver supplyends up in electronics. Given silvers overall abundance, you can seein Chart 4 below how dominating silver is in the electronics markets.Platinum group minor metals ruthenium and iridium use 48.7% and50.2% respectively. Gold sends 5.7% of its global supply intoelectronics. Platinum sends 2.0% and palladium 1.9% of theirrespective overall global supply into electronic. Rhodium and osmiumhave very small contributions to electronics.Precious Metals Volume IntoElectronic m100Chart 4: Electronics Precious Metals 2020 DemandSource: Precious Metals Commodity Management LLCChart 4 above, indicates the various metal’s loadings in the differentelectronics markets. Again, this is what sets the printed and flexibleelectronics market apart from the others with their higher loadings.7

Silver in Printed & Flexible .93%1.92%1.03%1.71%0.76%0.68%0.5%Printed & FlexibleElectronicsMEMSLED OLEDPower DistributionComponentsSolar PVSemiconductorAuto Electronics0.0%Consumer ElectronicsPrecious Metals Spend % RevenuePrecious Metals Spend as a % of Semgment Revenue4.5%Chart 5: Electronics Precious Metals Spendas % of 2020 Market RevenueSource: Precious Metals Commodity Management LLCWe have endeavored to study each of these electronics marketsseparately mapping their respective uses of all of the precious metals.The semiconductor industry, for example, spends approximately1.71% of its total market revenue, or over US 7 billion on preciousmetals products used in semiconductor front‐end manufacturing andback‐end packaging materials.Precious Metals ProductsHow much precious metal is used in the different electronicsmarkets, and in what form is it used?SilverSilver Die Attach MaterialSilver is a natural thermal and electrical conductor and is thereforeused in numerous electronics such as electrical switches,superconductors, batteries, televisions, etc. It resists corrosion andoxidation, though not as well as gold. Because silver is the bestthermal and electrical conductor of all the metals, silver is ideal forelectrical applications. Silver has excellent bonding and solderabilitycharacteristics, and is often used to conductively mount or bonddevices to printed circuit boards, or to packages that need to beconductively mounted to other devices or substrates. Most touchscreen device functionality is enabled by the use of silver.Silver is used extensively in the solar PV cells and modules as anelectrical connector or conduit of the energy collected from the sun.Silver Bonding Wire8

Silver in Printed & Flexible Electronics40%327Moz DemandDemand % of 73Demand %Silver Demand MozSilver Demand By Market Segment40042 290%Chart 6: 2020 Silver Demand by Market SegmentSource: Precious Metals Commodity Management LLCSilver Solder Wave ReflowSilver Products Used in Electronics include: Silver and silver/alloy pastes Silver alloys die attach materials and electrically conductiveadhesives Silver alloy conductive tapes and ribbons Silver and silver/alloy bonding wire Silver wet chemistries Silver solder materials Silver‐oxide battery materials Silver alloys in contact materials Silver inks and aerosol products Silver nanoparticles Silver and silver alloy coatings Silver physical vapor deposition sputter targetsGold:Gold Bonding WireOur research found that less than 5.7% of the supply of gold finds itsway into electronics, a surprisingly low percentage at first glance. Ofcourse, electronics scrap processors effectively target this high valuemetal. Gold currently is 60 to 70 times more expensive than silver, soof course it is targeted by recyclers. But in terms of troy ouncesconsumed in electronics, gold is indeed a vastly lower consumptionvolume product compared to silver.Gold is used in electronics for three primary reasons: It has highelectrical conductivity; it is malleable; and it’s resistant to tarnishing.Small amounts of gold can be found in several electronic devices,including cell phones, televisions and computers. Gold has a veryhigh density, and is therefore resistant to corrosion, making it idealGold Plated Wafer9

Silver in Printed & Flexible Electronicsfor bonding and conductively connecting components to one anotherand to substrates.PlatinumOften mixed with cobalt, platinum is used to get strong permanentmagnets. Electrodes inside of glass are usually sealed with platinumbecause its thermal coefficient of expansion is almost equal to that ofglass. Platinum can also be used in low voltage electrical contacts andelectrical resistance wires.Platinum PVD Sputter TargetPlatinum products used in electronics includes physical vapordeposition (PVD) sputter targets, atomic layer deposition (ALD) andchemical vapor deposition (CVD) materials, electrodes, wires, sparkplug tips, electrical contact materials, and wet chemistries.Platinum Resistance ThermocouplePalladiumPalladium was used extensively as a paste in multi‐layer ceramiccapacitors (MLCC’s) up until the year 2000 when a peak 2.1 Moz ofpalladium was consumed in this one single electronics product.These capacitors and their palladium continue to show up in e‐wasterecycle to this day.Palladium/Silver Conductive PastePalladium is frequently used in the electronics industry as a platingfor connectors and contacts. This is because of its low surface contactresistance. Often, a palladium‐nickel alloy is plated on a connectorsurface before adding a flash of gold, this combination provides a low‐cost, yet highly effective solution.Palladium‐Nickel Plated ConnectorFighting Food Waste With PrintedIntelligent Expiry Date LabelFighting Food Waste With PrintedIntelligent Expiry Date LabelThinfilm teams with Xerox so itcan print a billion chips a yearfor the Internet of ThingsThe Fundamentals of Printed & FlexibleElectronicsPrinted electronics enable the production of flexible and large‐areacomponents and complement silicon electronics. The substratesused are often thin, lightweight, and low‐cost to manufacture.Printed electronics technology also enables products that can bedirectly integrated into low‐cost reel‐to‐reel processes. This alsoenables production on larger area substrates including displays.Printed and flexible electronics rely on conductive or dielectric inksand a range of pastes using a range of coating, printing, dispensingand deposition of conductive materials. There are over a dozentechnologies used to deposit these materials depending on what theproducer needs. Some methods are higher resolution requiringtighter process control, while others are more geared for speed andthroughput.10

Silver in Printed & Flexible ElectronicsThere is no standard technique for producing printed electronics.Exactly which method is being used depends on the application, inkand substrate. The producer needs to consider whether a highresolution, throughput or homogeneity is the primary requirement.Nearly all types of industrial printing processes are being used,ranging from gravure and flexographic printing to screen and inkjetprinting. However, these techniques need to be modified to allow theprinting of electronics. Furthermore, it is possible to apply knownprocesses from the classical semiconductor manufacturing, such asvapor deposition. The combination of all these types of processtechnologies with the knowledge from other industry sectors, such asmaterial development and electrical engineering, has enabled themass production of printed electronics.Inkjet Printed ElectronicsAccording to our research, the printed and flexible electronics marketis approximately a US57 billion‐dollar total market revenue todayand will enjoy an 11.0% CAGR over the next 5 years. This year 48 Mozof silver will be consumed in this segment. By 2025, the printed andflexible electronics market should enjoy US 96 billion in revenue,consuming with an estimated silver consumption of 60 Moz. Abreakdown of the printed/flexible electronics market share isprovided in below. Printed displays dominate this mix, along withprinted organic photovoltaics.2020 Printed & Flexible Market ShareConductors 3.5% Other 1.4%Logic/Memory 8.7%Sensors 6.1%Photovoltaics20.3%OLED Display40.6%Battery 0.3%ElectroluminescentLCD 13.0%0.3%Electrochromic 1.5%OLED Lighting 4.3%Chart 7: 2020 Printed & Flexible Electronics Market ShareSource: Organic and Printed Electronics Association (oa‐e)Gravure Roll Printed ElectronicsA very informative comparison of market growth can be seen in themarket comparisons chart below that contrasts the historical growthof the mature semiconductor market with the flat panel and printedelectronics markets.11

Silver in Printed & Flexible ElectronicsMarket Comparisons 600Market Revenue Billions USD SemiconductorsFlat Panel DisplaysOrganic & Printed Electronics 500 400 300 200 100 019901995200020052010201520202025Chart 8: Electronics Market Trajectory ComparisonSources: WSTS, Display Search, IDTechEx, Smithers Pira, Displaybank,Konica Minolta, Yole Development, and forecasts from Precious MetalsCommodity Management LLCVisualizing the Future: Printed and FlexibleElectronics RoadmapDisplay growth will continue to penetrate everything from appliancesto automotive to residential and commercial lighting systems. Muchof this has to do with cost, where producers are looking to scale low‐cost and fast to produce roll‐to‐roll printing.Consider the number of connected devices in our world today, largelymade up of computers, tablets, and smartphones. As the worldcontinues its migration into 5G wireless (5th generation wirelessconnections), most analysts realize there will be an explosion in thenumber of connected IoT devices. Ericsson estimates that globallythere are 1.7 billion connected devices in 2020, and that will veryquickly grow to over 4 billion devices by 2024. This is a stunning rateof growth that will pull more precious metals demand along with it.The Organic and Printed Electronics Association has defined theirroadmap OE‐A Roadmap 8th Edition as follows:Future Auto Panel OLED LightingAutomotive: OLED lighting for exterior and interior style elements;curved displays; touch sensors; energy harvesting using organicphotovoltaics (OPV); 3D and flexible surface integrated sensorapplications for smart user interfaces.12

Silver in Printed & Flexible ElectronicsConsumer Electronics: Foldable and flexible displays for phones,tablets, or wearables; EPD (Electronic Paper Device is a technologythat uses an electrically charged surface replicating the look and feelof ink on paper) as second display; displays as decorativeapplications; OLED luminaires; sensing and signage for white goods;touch and functional surfaces; wearable technology.Foldable OLED ScreenPrinted Electronics ImprovePatient SafetyHealthcare: Displays for use in wearables, smart watches; biosensors; OLEDs for light therapy; biocompatibility of materials andsubstrates; monitoring and diagnostics, self‐monitoring forpreventive care, and for wellness purposes.Internet‐of‐Things: Integration and embedding of displays inInternet‐of‐Things and in everyday objects; OPV‐power sources forautonomous devices; smart labels, including temperature logging;printed / hybrid near field communication (NFC) and radio frequencyidentification (RFID).Printing and Packaging: Low‐cost and low‐power displays for pricelabels and enhanced packaging; smart labels and tickets; smartpackaging combining sensor systems, energy harvesting and storage,HMI input devices and displays; printed / hybrid NFC and RFID.Printed NCF Smart LabelsSmart Buildings: EPD for signage and decoration; electronics chartdisplay wallpaper and information labels; building integrated organicphotovoltaics everywhere (facades, windows, roof s); organicphotovoltaics for energy autonomous sensors; OLED lighting asdecorative, architectural, and/or functional lighting; sensor systemsfor use during and after construction, and for energy managementincluding smart windows.ConclusionsFlexible Wearable DisplaysThe printed & flexible electronics market is the most excitingelectronics market segment. Silver in particular serves this segmentextremely well due to its natural characteristics including excellentconductivity, solderability, flexibility, corrosion resistance, andmodest comparative costs. Printed and flexible electronics marketsroutinely spend over 5% of the total market’s revenue on conductivematerials, the heart of the technology. This is the highest ratio ofconductive materials and precious metals out of all of the variouselectronics segments. Given the massive growth in the number of IoTdevices, sensors, and displays, printed electronics will become acentral market to the overall electronics industry.Building Integrated OrganicPhotovoltaics13

Silver in Printed & Flexible Electronics1,000Silver Industrial Demand 2024F2025F2026F2027F2028F2029F2030FSilver Demand Moz60%52.3%Industrial Demand %750Other Industrial (EO)Consumer ElectronicsSolar PVPower distributionAutomotiveOther ElectronicSemiconductorBrazing AlloysIndustrial DemandChart 9: Silver Industrial Demand ForecastSource: Precious Metals Commodity ManagementNote that printed and flexible electronics is a portion of several ofthese other industrial demand categories including consumerelectronics, automotive, solar PV, and semiconductor as shown inChart 9.Silver is becoming increasingly an industrial and electronics‐basedmetal. Chart 9 above illustrates the industrial demand sources of thesilver market forecast out through 2030.The future of silver in printed and flexible electronics is bright,growing from 48 Moz of demand in 2021, to an estimated 74 Moz ofdemand by 2030.14

Silver in Printed & Flexible ElectronicsMatt Watson is the Founder and Principal of Precious MetalsCommodity Management LLC, based near California’s Silicon Valley.Specializing in precious metals markets and its supply chain, Mattassists clients ranging from Mining, Investors, Industrial PreciousMetals Users, Processors, and Recyclers and coaching industrialclients how to reduce costs, design thrift, and anticipate marketchanges. Matt has also worked with the Silver Institute in studyingthe ever‐increasing industrial demands in silver.Our ongoing mantra is that this will be the century of clean energyand mineral constraints. Silver’s use as a key conductive energycollecting vehicle for the Solar PV market is an example of one of thesepotentially constraining clean energy mineral limits.Disclaimer & Copyright, May 2021This report is published by and remains the joint copyright of the Silver Institute and Precious Metals CommodityManagement (PCMM). Although every effort has been made to undertake this work with care and diligence, theSilver Institute and PCMM cannot guarantee the accuracy of any forecasts or assumptions. Nothing contained inthis report constitutes an offer to buy or sell securities and nor does it constitute advice in relation to the buying orselling of investments. It is published only for informational purposes. The Silver Institute and PCMM do not acceptresponsibility for any losses or damages arising directly or indirectly from the use of this report.15

Silver in Printed & Flexible Electronics 4 Flexible and Printed Electronics MEMS (Micro Electro‐Mechanical Systems) Printed & Flexible Electronics To many, the word “electronics” denotes semiconductor markets, but there is so much