Global outlook for the semiconductor packaging equipment market

Technavio’s market research analysts have predicted that the global semiconductor packaging equipment market will grow steadily at a CAGR of more than 8% by 2020. This industry research report identifies the growth of wireless computing devices along with the advent of IoT to be one of the major factors that will have a positive impact on the growth of this market in the coming years. The recent years have seen a rapid increase in the demand for high-performance devices with reliable and highly portable computing platforms. IoT uses sensors and actuators to collect and transmit data from wireless computing devices to a centralized location in real-time. The increasing adoption of IoT in the consumer electronics and automotive sectors will drive the demand for wireless devices. These wireless computing devices require a high level of integration, as a result of which, semiconductor manufacturers have started developing new designs to support multiple applications on a single platform. Such developments will lead to the purchase of new IC packaging equipment that can match the changing technological environment.

This market research and analysis states that in terms of geography, APAC will dominate the market during the forecast period and will account for more than 72% of the total market shares by 2020. This is mainly due to the presence of several major foundries that invest heavily in revamping their production lines, subsequently creating the demand for production equipment. Owing to the presence of major consumer electronics manufacturers, this region is the largest consumer of semiconductor devices, which will also drive the demand for semiconductor packaging equipment.

Competitive landscape and key vendors

Characterized by the presence of several well-established, small scale, and regional vendors, the market appears to be highly fragmented. The market is currently migrating to 3D IC technology, which is increasing the competition between the IDMs and OSATs. IDMs are trying to expand into the assembly business, while the OSATs are concentrating on increasing their profit margins. Currently, OSATs account for a significant share of the market and the huge growth potential will induce IDMs to expand their business to the semiconductor packaging equipment market. As a result, the vendor competition in the market will intensify during the forecast period. To retain their market share and acquire new technologies, major vendors have started undertaking M&A practices and joint ventures with small and regional vendors. This trend will continue during the predicted period and will reduce the number of new and small vendors, resulting in market consolidation.

The leading vendors in the market are -

• Applied Materials
• ASM Pacific Technology
• Kulicke & Soffa Industries
• Tokyo Electron
• TOKYO SEIMITSU

The other prominent vendors in the market are ChipMos, Greatek, Huanhong, Jiangsu Changjiang Electronics Technology, Lingsen Precision, Nepes, Tianshui Huatian, Unisem, and Ultratech.

Segmentation by type and analysis of the semiconductor packaging equipment market

• Die-level packaging equipment
• Wafer-level packaging equipment

Accounting for more than 61% of the total market shares, the die-level packaging equipment segment dominated the market during 2015. This growth can be attributed to the increasing demand for application processors, basebands, and SoCs, which are integrated into mobile and consumer electronic devices. Though the market shares of this segment will decline due to the use of advanced technologies, this segment will continue to dominate the market throughout the forecast period.

Segmentation by end-user and analysis of the semiconductor packaging equipment market

• IDM (integrated device manufacturers)
• OSAT (outsourced semiconductor assembly and test companies)

According to this market study, the OSATs will account for more than 63% of the total market shares by 2020 and will also dominate the semiconductor packaging equipment market throughout the predicted period. The migration of a number of semiconductor manufacturers to the fabless model is identified to be the major factor for the growth of the market segment. Additionally, the development of new technologies such as FOWLP, 2.5D, and TSV has also increased the outsourcing of back-end processes, which will also fuel the growth of this market segment.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the global semiconductor packaging equipment market?
• What are the key market trends impacting the growth of the global semiconductor packaging equipment market?
• What are the challenges to market growth?
• Who are the key vendors in the global semiconductor packaging equipment market?
• What are the market opportunities and threats faced by the vendors in the global semiconductor packaging equipment market?
• Trending factors influencing the market shares of APAC, Europe, and North America.
• What are the key outcomes of the five forces analysis of the global semiconductor packaging equipment market?

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