Die Bonder Equipment Market Size 2024-2028

The die bonder equipment market size is projected to increase by USD 189.10 million at a CAGR of 4.07% between 2023 and 2028. The expansion of the semiconductor die bonder equipment market is influenced by several key factors. First, the intricacy of semiconductor integrated circuit (IC) designs continues to increase. Second, the global electronics manufacturing sector is experiencing growth. Third, there is a heightened demand for top-tier semiconductor ICs in the production of wireless devices and the Internet of Things (IoT). Die bonder equipment is a crucial component of semiconductor packaging and assembly processes. It involves the cutting of semiconductor silicon wafers into dies, followed by the separation of functional dies from defective ones, which have already been identified prior to this stage. Current market trends include the widespread adoption of fully automated systems and IoT integration to ensure greater precision. Key market drivers include the rising demand for optoelectronic devices, LEDs, automotive image sensors, and advancements in hybrid bonding technologies. These trends and drivers are shaping the future of the semiconductor die bonder equipment market.

What will be the Size of the Die Bonder Equipment Market During the Forecast Period?

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Die Bonder Equipment Market Segmentation

The die bonder equipment market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• End-user Outlook 
  • OSATs
  • IDMs
• Type Outlook 
  • Fully automatic
  • Semi-automatic 
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile 
    • Brazil
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

The die bonder equipment market is driven by the semiconductor industry's expansion and the increasing costs of advanced packaging technologies. Valuation in this market is influenced by sustainability and adaptability to emerging trends. Consumer electronics and Industry 4.0 are significant niche markets. Semiconductor chip shortages necessitate cost-effective solutions and energy efficiency.

By End User

The market share growth by the OSATs segment will be significant during the forecast period. OSATs are dedicated packaging, assembly, and testing players, and their growth is driven by two major factors such as the overall expansion in industries such as semiconductors and rising costs of packaging, assembly, and testing equipment.

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The OSATs segment was valued at USD 428.70 million in 2018. The semiconductor packaging and assembly industry has seen advancements in new technologies like FOWLP, 2.5D, 3D, and TSV, which have led to an increase in outsourcing of back-end processes. Although these technologies may result in high costs currently because they are not fully mature, there is ongoing research and development (R&D) to make them suitable for large-scale applications. A major OSAT has announced expansion plans through strategic collaborations to streamline semiconductor package verification. The adoption of these new technologies in advanced semiconductor packaging creates a demand for new die bonder equipment, driving die bonder equipment market expansion during the forecast period.

By Region

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APAC is estimated to contribute 80% to the growth of the global market during the forecast period. Technavio's analysts have provided extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period.

The APAC market, which includes gold-silicon solders and semiconductor components like GaAs chips, solder preforms, and eutectic gold-tin, is driven by the manufacturing sectors in China, India, Japan, and South Korea. RoHS and REACH legislation influence the market. Automation is adopted for discrete power devices and copper clips to address challenges in outdated technology and labor-intensive processes. The region faces challenges such as the slowdown of industrial production in China and the increasing use of LED, epoxy adhesive bonding, SFE, and silver-filled epoxies in industries like optoelectronics, healthcare, OEMs, and consumer electronics (smartphones, wearables, white goods, MEMS, MOEMS). Technologies like wedge bonding, flip chip bonding, and die bonder equipment from companies are utilized for bonding SiC, GaN, and other advanced semiconductors in various applications.

Die Bonder Equipment Market Dynamics 

The market is experiencing significant growth in the context of sustainability and Industry 4.0 technologies. Semiconductor devices play a crucial role in consumer electronics, and the demand for these devices is escalating due to the integration of advanced technologies such as data analytics, AI, and ML. However, semiconductor chip shortages pose a challenge to cost-effective solutions in this market. Energy efficiency is a key consideration in the market, as maintenance and operating costs are significant factors. Niche markets, including medical devices and aerospace, require customized solutions to meet specific requirements.

Market growth is driven by the increasing demand for HPC applications and the expansion of 5G networks in the telecommunications sector. Neuromorphic chips are an emerging trend in this market, offering the potential for improved performance and energy efficiency. In conclusion, the market is poised for continued growth in the context of sustainability, semiconductor devices, and Industry 4.0 technologies. Energy efficiency, cost-effective solutions, and customization are essential factors driving market performance. The historical growth and forecasted growth of this market are influenced by the increasing demand for HPC applications, 5G services, and emerging technologies such as neuromorphic chips.

Key Market Driver

The increasing complexity of semiconductor IC designs is driving market growth. The IoT (Internet of Things) revolution necessitates high-speed data processing, fueling the need for sophisticated electronic equipment. The automobile industry's transition to autonomous and electric vehicles further boosts demand. Emerging economies, such as India and China, witnessing record smartphone penetration due to low Internet charges, add to the market's sustainability. Adaptability to semiconductor chip shortages and cost-effective solutions, coupled with energy efficiency and maintenance considerations, are crucial factors in the market.

Furthermore, Niche markets, including medical devices, aerospace, and high-end logic applications, require customized solutions. Market performance is influenced by historical growth and forecasted expansion in HPC applications, AI, machine learning, neuromorphic chips, 5G networks, and telecommunications sector. Advanced packaging technologies, such as eutectic bonding, soft solder bonding, and flip-chip bonding, contribute to miniaturization, hybrid circuits, and TCB. 3D stacked memory, high-lead containing solders, and metal-filled conductive epoxies cater to the needs of various industries. Market growth is expected to continue, with trends like 3D packaging techniques, wireless technologies, automation, and quantum computing shaping die bonder equipment market growth.

Significant Market Trends

An increase in the number of OSAT companies is an emerging trend shaping market growth. The market in the APAC region, particularly in China, is experiencing significant growth due to the strong financial backing of OSATs. This valuation enables investments in Research and Development (R&D) and capacity expansion. Governmental support for the semiconductor industry in countries like South Korea, China, and Japan is also driving growth. The easy availability of capital is boosting development, ensuring sustainability and adaptability in the semiconductor devices and consumer electronics industries.

Furthermore, Industry 4.0 technologies, data analytics, and cost-effective solutions are essential in addressing semiconductor chip shortages. Energy efficiency, maintenance, and operating costs are crucial factors in the market's performance. Niche markets, such as medical devices, aerospace, and high-performance computing (HPC) applications, require customized solutions. Advanced packaging technologies, including the eutectic bonding method, soft solder bonding, and flip-chip bonding, are essential for miniaturization, hybrid circuits, and TCB. 3D NAND flash memory, high-end logic applications, and metal-filled conductive epoxies are vital for the development of neuromorphic chips, 5G networks, telecommunications sector, quantum computing, and 3D packaging techniques. Wireless technologies and automation are also key die bonder equipment market trends.

Major Market Challenge

High demand for polymer adhesive wafer bonding equipment is a significant challenge hindering market growth. The market is subjected to valuation challenges due to the cyclical nature of the semiconductor industry. Sustainability and adaptability are crucial for companies in this market, given the risks of overcapacity, low demand, and intense price competition. Semiconductor device manufacturers' capital expenditures significantly impact the market's performance. During periods of overcapacity, device manufacturers cut back on investments, leading to underutilization of company factories and customer order cancellations or delays.

Furthermore, Key trends shaping the market include advances in consumer electronics, Industry 4.0 technologies, data analytics, and semiconductor chip shortages. Cost-effective solutions, energy efficiency, and maintenance are essential considerations for companies. Niche markets, such as medical devices, aerospace, and high-performance computing (HPC), offer growth opportunities. Market performance is influenced by historical growth and forecasted expansion in sectors like artificial intelligence (AI), machine learning (ML), neuromorphic chips, 5G networks, telecommunications, quantum computing, 3D packaging techniques, wireless technologies, automation, and advanced packaging technologies. Technologies like eutectic bonding, soft solder bonding, and flip-chip bonding are essential in miniaturization, hybrid circuits, and TCB. Die bonder equipment market growth is further driven by the adoption of high-end logic applications, metal-filled conductive epoxies, and high lead-containing solders.

Customer Landscape

The die bonder equipment market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the die bonder equipment market research and growth report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market  growth and trends strategies.

Market Customer Landscape

Key Die Bonder Equipment Market Companies & Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

ASMPT Ltd. - The company offers die bonder equipment such as ad211 plus, ad280 plus, and ad50 lite.

Market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

The die bonder equipment market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about 20 market companies, including ASMPT Ltd., BE Semiconductor Industries NV, DIAS Automation HK Ltd., Dr. Tresky AG, ficonTEC Service GmbH, Finetech GmbH and Co. KG, Four Technos Co. Ltd., HYBOND Inc., Indubond, Kulicke and Soffa Industries Inc., MicroAssembly Technologies Ltd., Mycronic AB, Palomar Technologies Inc., Panasonic Holdings Corp., Paroteq GmbH, SHIBAURA MECHATRONICS CORP., SHIBUYA Corp., UniTemp GmbH, WestBond Inc., and Yamaha Motor Co. Ltd.

Market Analyst Overview

The semiconductor industry's growth relies on die bonder equipment for assembling and packaging integrated circuits. This technology facilitates the attachment of semiconductor dies to various substrates, enabling the creation of intricate electronic devices. The demand for die bonder equipment is substantial due to the escalating semiconductor production in the electronics sector. Factors fueling this market include the increasing need for miniaturization in electronic devices, the expanding adoption of advanced semiconductor technologies, and the growing demand for high-performance computing and telecommunications infrastructure. Furthermore, the semiconductor industry's ongoing quest for higher yields and productivity intensifies the demand for sophisticated die bonder equipment.

The die bonder equipment market is undergoing rapid advancements, with a focus on enhanced cleanliness and contamination control for superior bonding quality. The integration of Internet of Things (IoT) devices and C2W hybrid bonding is spurring innovation. Major players, such as ASM, are advancing die bonding technologies to cater to sectors like optoelectronics devices, LED, image sensors, and photodiodes. The preference for fully automatic die bonders is increasing due to their precision and efficiency in mass production. Wire bonding remains a crucial technology in semiconductor manufacturing, particularly in conjunction with advanced optoelectronic applications. With these advancements, the die bonder equipment market is poised for substantial growth as industries prioritize precision and automation.

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What are the Key Data Covered in this Die Bonder Equipment Market Research Report?

• CAGR of the market report forecast during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2024 and 2028
• Precise estimation of the size of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Market growth analysis across APAC, North America, Europe, South America, and Middle East and Africa
• Thorough market analysis and report of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of Industry companies

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