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Market Overview

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The Semiconductor Bonding Equipment Market is projected to witness substantial growth, with an estimated size of USD 527.0 million in 2023, anticipated to reach USD 918.8 million by 2028. This growth is expected to be at a Compound Annual Growth Rate (CAGR) of 11.76% during the forecast period from 2023 to 2028.

The process of wafer bonding involves adhering a thin substrate wafer to a support carrier disc, accomplished using various bonding techniques that require specific equipment or machinery. These equipment types include Permanent bonding, temporary bonding, and hybrid bonding.

In the previous year, the semiconductor bonding equipment market was valued at USD 492.82 million, and it is predicted to reach USD 918.79 million during the forecast period. The increasing demand for semiconductor chips with enhanced efficiency, processing power, and reduced footprints is driving the market’s growth.

The proliferation of digitalization in both personal and business domains has significantly impacted the semiconductor markets, prompting increased support for 5G deployment. The European Commission, for instance, established a public-private partnership to research and develop 5G technology.

The global semiconductor industry is poised for significant expansion, with chip demand expected to surge over the next decade. As a result, the industry is projected to become a trillion-dollar market by 2030, driven by substantial investments from companies and countries in semiconductor manufacturing, materials, and research to ensure a steady chip supply to support growth in data-centric industries.

Despite challenges posed by the global pandemic and economic downturn, the semiconductor industry remained resilient, experiencing revenue growth of 6.5% to reach USD 440 billion in 2020. This growth was primarily driven by increased demand for various types of chips, especially those developed at mature nodes.

Semiconductor components are extensively utilized in consumer electronics products, and China, being a significant consumer and producer of such products, plays a vital role in the global market. Additionally, China serves as a key supplier of input materials used in producing finished goods for numerous countries.

During the COVID-19-induced lockdown, the need for continuity in work and education led to a surge in demand for computing devices like laptops and PCs, subsequently increasing the demand for semiconductor bonding equipment.

When bonding two dies or wafers, multiple methods can be employed, with the chosen bonding process significantly impacting the cost of ownership. Some bonding processes may entail higher costs, potentially limiting market growth.

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Market Segmentation

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The market is segmented based on various factors, including type, application, and geography.

Segmentation by Application
Permanent Bonding Equipment
Temporary Bonding Equipment
Hybrid Bonding Equipment

Segmentation by Type
Advanced Packaging
Power IC and Power Discrete
Photonic Devices
MEMS Sensors and Actuators
Engineered Substrates
CMOS Image Sensors (CIS)

Segmentation by Geography
North America
Asia Pacific
Europe
Rest of the World

In 2022, the Permanent Bonding Equipment segment secured the largest market share of 68.92%, while the Hybrid Bonding Equipment segment is anticipated to witness the highest Compound Annual Growth Rate (CAGR) of 27.09% during the forecast period.

Similarly, the Power IC & Power Discrete segment dominated the market with a share of 43.24% in 2022. On the other hand, the Engineered Substrates segment is expected to experience the highest CAGR of 16.12% over the forecast period.

The market’s expansion can be attributed to several factors. Firstly, the increasing demand for high-energy and power-efficient devices has been a significant driving force. Additionally, the prevalence of wireless and portable electronic products and their growing usage in the automotive industry, fueled by the shift towards electrification, have contributed to the segment’s growth.

An important trend in power IC and discrete is efficient power management, where new system architectures enhance the efficiency of AC-DC power adapters while reducing their size and component count. Furthermore, advancements in Power-over-Ethernet (PoE) standards have allowed higher power transfer, opening up possibilities for new device classes, such as connected lighting.

Wearable devices play a crucial role in driving consumer adoption, and discrete semiconductor companies can gain a competitive edge by being aware of challenges and market trends during product design. The use of semiconductors with larger mobility and higher critical breakdown fields, such as SiC, has gained traction, particularly in power electronics devices like Schottky barrier diodes (SBDs), junction field-effect transistors (JFETs), and MOSFET transistors, to reduce power losses.

Moreover, with the dramatic increase in smartphone transmission speeds, battery modules need to support advanced processing, leading to the integration of discrete semiconductors in power adapters and a consequent rise in demand for battery-powered devices.

The growth of Internet of Things (IoT) applications is expected to drive sales of discrete semiconductors. The expansion of 5G networks is also projected to boost the wireless communications sector, with a likelihood of consumers upgrading their handsets and devices, further driving the adoption of discrete semiconductors globally.

The Asia-Pacific region commanded the largest market share of 82.69% in 2022 and is forecasted to experience the highest CAGR of 11.89% during the projected period. This region’s growth can be attributed to strategic investments by key domestic suppliers and a well-established semiconductor sector.

China, in particular, is anticipated to surpass the United States as a dominant player in the semiconductor industry, owing to its increasing domestic chip demand. China’s contribution is projected to account for over 60% of the expected doubling of the semiconductor market to more than USD 1 trillion by 2030, according to the Semiconductor Industry Association. Consequently, the exponential growth in China is likely to lead to a higher demand for semiconductor bonding equipment.

Moreover, in December 2022, China announced a substantial support program exceeding CNY 1 trillion (USD 143 billion) for its semiconductor industry. This move is aimed at bolstering chip self-sufficiency and counteracting efforts by other nations to hinder its technological development. The program’s focus on financing the purchases of local semiconductor equipment by Chinese enterprises is expected to further stimulate the regional market demand.

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Competitive Landscape

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The Semiconductor Bonding Equipment Market exhibits a high degree of fragmentation, with key industry players including EV Group, ASMPT Semiconductor Solutions, MRSI Systems (Myronic AB), WestBond Inc., and Panasonic Industry Co. Ltd. These prominent participants in the market are strategically employing diverse tactics, such as forming partnerships, fostering innovation, making strategic investments, and engaging in acquisitions, to enhance their product offerings and establish a sustainable competitive edge.

In August 2022, EV Group demonstrated its commitment to advancement by expanding its collaboration with the esteemed Industrial Technology Research Institute, based in Hsinchu, Taiwan. This partnership aims to jointly develop cutting-edge heterogeneous integration processes. As a member of the Hi-CHIP Alliance, EVG Group contributed several state-of-the-art wafer bonding and lithography systems, notably including the GEMINI FB hybrid bonding system and the EVG 850 DB automated debonding system.

Likewise, in July 2022, MRSI Systems (Mycronic Group) made a significant announcement regarding the launch of the MRSI-H-HPLD+ as the latest addition to its MRSI-H/HVM-series product line. Specifically designed for high-power laser die attachment applications, this new variant, MRSI-H-HPLD+, substantially improves throughput through parallel processing while simultaneously upholding exceptional accuracy and flexibility.

Key companies profiled in this report include EV Group, ASMPT Semiconductor Solutions, MRSI Systems (Mycronic AB), Westbond Inc., Panasonic Industry Co. Ltd, Palomar Technologies, Dr. Tresky AG, BE Semiconductor Industries NV, Fasford Technology Co. Ltd (Fuji Group), Kulicke and Soffa Industries Inc., Dias Automation (HK) Ltd, Shibaura Mechatronics Corporation, Suss Microtec SE, Tokyo Electron Limited.

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Recent Industry Developments

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In November 2022, SÜSS MicroTec SE unveiled a pioneering advancement in semiconductor bonding technology, known as Impulse Current Bonding. This cutting-edge technology was developed by a Swiss university spin-off, utilizing a significant scientific discovery. Referred to as Sy&Se technology, it promises to revolutionize the bonding process by offering enhanced robustness comparable to anodic bonding, while also incorporating the material versatility found in other intricate bonding methods. Notably, this groundbreaking innovation will be made available on both manual and automatic wafer bonder systems.

In October 2022, BE Semiconductor Industries NV disclosed its ambitious plans to establish a state-of-the-art semiconductor assembly and testing facility in Penang. The proposed facility, comprising two buildings designated as Plants 4 and 5, will encompass an impressive total built-up area of 982,000 square feet, strategically situated within the Bayan Lepas Free Industrial Zone. This extensive project, slated for completion by 2025, holds the potential to generate 2,700 employment opportunities in the local market, contributing significantly to economic growth and technological advancement.

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Key Questions Answered

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What is the study period of the Semiconductor Bonding Equipment Market?
The study period of the Semiconductor Bonding Equipment Market is from 2018 to 2028.

What is the growth rate of the Semiconductor Bonding Equipment Market?
The Semiconductor Bonding Equipment Market is experiencing a Compound Annual Growth Rate (CAGR) of 11.76% over the next 5 years.

What is the size of the Semiconductor Bonding Equipment Market?
The Semiconductor Bonding Equipment Market is projected to reach USD 527 million in 2023 and is expected to grow at a CAGR of 11.76% to reach USD 918.8 million by 2028.

Which region has the highest growth rate in the Semiconductor Bonding Equipment Market?
The Asia-Pacific region exhibits the highest CAGR over the period 2018-2028 in the Semiconductor Bonding Equipment Market.

Which region has the largest share in the Semiconductor Bonding Equipment Market?
As of 2022, Asia-Pacific holds the highest market share in the Semiconductor Bonding Equipment Market.

Who are the key players in the Semiconductor Bonding Equipment Market?
The major companies operating in the Semiconductor Bonding Equipment Market include EV Group, ASMPT Semiconductor Solutions, MRSI Systems (Myronic AB), WestBond Inc., and Panasonic Industry Co. Ltd.