Semiconductor Back-End Equipment Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 18.83 Billion |
| Market Size (2029) | USD 28.64 Billion |
| CAGR (2024 - 2029) | 8.75 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Semiconductor Back-End Equipment Market Analysis
The Semiconductor Back-End Equipment Market size is estimated at USD 18.83 billion in 2024, and is expected to reach USD 28.64 billion by 2029, growing at a CAGR of 8.75% during the forecast period (2024-2029).
- Incorporating technologies such as energy transition, electrification, and AI has been at the forefront of reshaping the demand for semiconductors in the global market. For instance, integrating artificial intelligence (AI) into the semiconductor industry signals a new era of innovation, efficiency, and opportunity. In the past, the industry primarily served as an enabler for other high-tech sectors.
- However, with AI, semiconductors are at the forefront of transforming technology development, reshaping the industry's economic landscape. For instance, AI-powered chips are used in self-driving cars. This enables them to make real-time decisions based on their surroundings. AI-powered chips are also used in the healthcare industry for real-time monitoring of patients and detecting health issues. These innovations can transform the way of living and working, making lives more accessible and efficient.
- Furthermore, the world is increasingly shifting toward renewable energy sources to reduce reliance on non-renewable fuels and combat climate change. Electrification is a key strategy for achieving this transition, and semiconductors are playing a central role in revolutionizing how energy is generated, stored, and consumed.
- Semiconductors, particularly analog and embedded processing products, are well positioned to enable electrification through smarter, more reliable, and accessible solar-energy storage and electric-vehicle charging systems. Thus, companies are playing a significant role in addressing the changing dynamics of semiconductors in various end-user markets by focusing on four critical areas, namely high-voltage power, current and voltage sensing, edge processing, and connectivity products, thus driving the role of back-end equipment for advanced semiconductor wafers, packaging, and assembly process.
- The semiconductor industry has been expanding rapidly, and the demand for semiconductor manufacturing equipment has also surged. However, the price of these machines has turned out to be a crucial factor in the industry. The equipment cost can have a noteworthy impact on the production cost of semiconductors, affecting the final product's price. This is expected to restrain the market's growth.
- Factors such as macroeconomic uncertainty, decreased consumer spending, and fluctuations in the global economy are expected to hamper chip demand. Consumer spending typically decreases during an economic downturn, reducing demand for consumer electronics like smartphones, tablets, and laptops, which rely heavily on semiconductors. Suppose the global economy continues to deteriorate and consumer demand weakens further. In that case, these factors are anticipated to have a detrimental effect on the semiconductor market in the upcoming years.
Semiconductor Back-End Equipment Market Trends
Assembly and Packaging Segment is Expected to Witness Significant Growth
- The segment's growth is expected to be driven by the increasing acceptance of cutting-edge packaging techniques such as fan-out wafer-level packaging (FOWLP), wafer-level packaging (WLP), and system-in-package (SiP). Furthermore, recent advancements have led to the emergence of packaging technologies like stacked WLCSPs, which enable the integration of multiple integrated circuits in a single package. These advancements encompass a combination of logic and memory chips, as well as stacked memory chips. As a result, the demand for advanced packaging is anticipated to surge, necessitating the acquisition of corresponding equipment.
- The surge in the utilization of semiconductor ICs in various sectors has led to a rise in the requirement for semiconductor packaging and assembly equipment. An example is the electronics industry's expanding necessity for such equipment, driven by the widespread use of electronic devices and their applications. This is anticipated to be a significant factor contributing to the increased demand. Likewise, the growing need for smaller, faster, and more efficient semiconductors is propelling the demand for advanced packaging technologies, fueling the demand for semiconductor packaging equipment.
- The increasing global need for semiconductors in different industries has led to an expansion in their production capacity, consequently fueling the growth of the semiconductor back-end equipment market. In August 2023, TSMC, a prominent semiconductor foundry, initiated new orders with multiple suppliers of state-of-the-art packaging equipment. Gudeng Precision Industrial, Apic Yamada, Disco, and Scientech are among the suppliers working closely with the company. TSMC's decision to engage with equipment suppliers reflects its ongoing commitment to enhancing its advanced packaging capabilities.
- The significant growth in the utilization and production of semiconductor chips is a key driver behind the expansion of the semiconductor packaging and assembly equipment sector. Moreover, a recent industry forecast by WSTS, supported by SIA, predicts a 9.4% decline in global sales for 2023, followed by a 13.1% increase in 2024. The forecast anticipates that global sales will amount to USD 520 billion in 2023, a decrease from the USD 574.1 billion recorded in 2022. By 2024, global sales are expected to rise to USD 588.4 billion. These positive industry trends will enable packaging equipment vendors to capitalize on market opportunities.
- The market is anticipated to be driven by the investments made by prominent vendors such as Micron, TSMC, and ASE in packaging technologies, along with other vendors capitalizing on the advantages offered by these technologies. Apple, Samsung, and Intel are among the companies that utilize advanced chip packaging (ACP) to enhance device performance and efficiency by consolidating multiple components onto a single substrate. Such adoption by the companies will enhance the growth of ATP equipment.
Asia-Pacific Expected to Witness Significant Growth in the Market
- China is pursuing an ambitious semiconductor agenda with the support of USD 150 billion in funding. The country aims to enhance its domestic IC industry and increase its chip production. The ongoing US-China trade war has intensified tensions in this crucial sector, where the most advanced process technology is concentrated, leading many Chinese companies to invest in semiconductor foundries. China has unveiled various initiatives to strengthen its semiconductor sector, such as a substantial expansion campaign in the foundry, gallium-nitride (GaN), and silicon carbide (SiC) markets.
- The growing semiconductor business and increasing chip production capabilities in the region are expected to drive the demand for back-end equipment. China's tech industry aims to ascend the global technology value chain by capitalizing on its strong presence in telecommunications, renewables, and electric vehicles (EVs).
- In addition to these sectors, the industry is now focusing on advanced semiconductors. This transition is primarily driven by advancements in advanced node manufacturing, the expansion of the memory market, active involvement in the silicon carbide (SiC) race, and strategic investments in advanced packaging and manufacturing equipment. The growing foundry business and investments in fabs throughout China are anticipated to stimulate the market.
- South Korea has seen notable growth in its semiconductor industry over the past few years, with a substantial increase in both production and shipments. This surge indicates a resurgence in technological advancement, which bodes well for the country's economy and the global tech sector. Leading South Korean semiconductor companies like Samsung and SK Hynix have established themselves as key players in the global semiconductor industry. The expanding chip production capabilities in the region will further boost the market for back-end equipment.
- The surge in chip demand across various markets in the region has brought attention to the back-end semiconductor business. Companies specializing in back-end processes are anticipated to persist in making aggressive investments and technological advancements in the upcoming years.
Semiconductor Back-End Equipment Industry Overview
The semiconductor back-end equipment market is semi-consolidated due to the presence of both global players and small and medium-sized enterprises. Some of the major players in the market are ASML Holding NV, Applied Materials Inc., LAM Research Corporation, Tokyo Electron Limited, and KLA Corporation. Players in the market are adopting strategies such as partnerships, expansions, and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
- December 2023: Applied Materials and CEA-Leti have expanded their collaboration with a joint lab focusing on materials engineering solutions for specialty semiconductor applications, catering to ICAPS markets (IoT, communications, automotive, power, and sensors). The lab aims to accelerate innovation for next-gen devices by addressing demands from IoT, electric vehicles, and smart grid infrastructure. Projects will tackle materials engineering challenges to enhance ICAPS device performance, reduce power consumption, and achieve faster time to market.
- November 2023: Samsung Electronics and ASML Holding have inked a preliminary agreement to invest 1 trillion WON (USD 760 million) in a joint research and development facility in South Korea. The collaboration, outlined in a memorandum of understanding signed at ASML's headquarters, focuses on advancing memory chips using ASML's cutting-edge extreme ultraviolet (EUV) equipment. As the exclusive EUV scanner manufacturer globally, ASML's technology is pivotal for intricate semiconductor patterning, streamlining manufacturing, and enhancing production yields. The R&D center, the first overseas facility jointly established by ASML, will concentrate on developing ultra-fine semiconductor manufacturing processes based on next-generation EUV technology.
Semiconductor Back-End Equipment Market Leaders
ASML Holding N.V
Applied Materials Inc.
LAM Research Corporation
Tokyo Electron Limited
KLA Corporation
*Disclaimer: Major Players sorted in no particular order
Semiconductor Back-End Equipment Market News
- December 2023: Tokyo Electron announced that it has developed an Extreme Laser Lift Off (XLO) technology that contributes to innovations in 3D integration of advanced semiconductor devices adopting permanent wafer bonding. This new technology for two permanently bonded silicon wafers uses a laser to separate the top silicon substrate from the bottom substrate with an integrated circuit layer.
- December 2023: Semiconductor test equipment provider Advantest Corporation has unveiled two products addressing the evolving needs of the artificial intelligence (AI) and high-performance computing (HPC) markets. The HA1200 die-level handler, part of the V93000 SoC test system, efficiently tests singulated, partially assembled die in 2.5D/3D advanced packaging technologies, minimizing yield loss and contributing to AI/HPC market growth. Additionally, the active thermal control (ATC) 2-kilowatt (kW) option for the M487x handler series enables final testing of AI/HPC IC packages, featuring advanced temperature sensing and force control technologies to ensure safe and stable contact with ICs. These innovations cater to the rising demand for high-performance ICs driven by applications in data centers, automotive, and defense.
Semiconductor Back-End Equipment Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Value Chain / Supply Chain Analysis
4.4 Impact of COVID-19, Macro Economic Trends, and Geopolitical Scenarios
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Demand for Semiconductors in Electric and Hybrid Vehicles
5.1.2 Demand for Setting Up New Foundries (International Chip Shortage)
5.2 Market Restraints
5.2.1 High Setup Costs
5.2.2 Constant Evolution of Products Influencing Demand
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Metrology and Inspection
6.1.2 Dicing
6.1.3 Bonding
6.1.4 Assembly and Packaging
6.2 By Geography
6.2.1 United States
6.2.2 Europe
6.2.3 China
6.2.4 South Korea
6.2.5 Taiwan
6.2.6 Japan
6.2.7 Rest of the Asia-Pacific
6.2.8 Rest of the World
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 ASML Holding N.V
7.1.2 Applied Materials Inc.
7.1.3 LAM Research Corporation
7.1.4 Tokyo Electron Limited
7.1.5 KLA Corporation
7.1.6 Advantest Corporation
7.1.7 Onto Innovation Inc.
7.1.8 Screen Holdings Co., Ltd.
7.1.9 Teradyne Inc.
7.1.10 Nordson Corporation
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Semiconductor Back-End Equipment Industry Segmentation
The study tracks the revenue accrued through the sale of semiconductor back-end equipment by various players in the global market. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimation and growth rates over the forecast period. The study further analyzes the overall impact of COVID-19 aftereffects and other macroeconomic factors on the market. The report’s scope encompasses market sizing and forecasts for the various market segments.
The semiconductor back-end equipment market is segmented by type (metrology and inspection, dicing, bonding, assembly, and packaging) and geography (United States, Europe, China, South Korea, Taiwan, Japan, the Rest of Asia-Pacific, and the Rest of the World). The report offers market forecasts and size in value (USD) for all the above segments.
| By Type | |
| Metrology and Inspection | |
| Dicing | |
| Bonding | |
| Assembly and Packaging |
| By Geography | |
| United States | |
| Europe | |
| China | |
| South Korea | |
| Taiwan | |
| Japan | |
| Rest of the Asia-Pacific | |
| Rest of the World |
Semiconductor Back-End Equipment Market Research FAQs
How big is the Semiconductor Back-End Equipment Market?
The Semiconductor Back-End Equipment Market size is expected to reach USD 18.83 billion in 2024 and grow at a CAGR of 8.75% to reach USD 28.64 billion by 2029.
What is the current Semiconductor Back-End Equipment Market size?
In 2024, the Semiconductor Back-End Equipment Market size is expected to reach USD 18.83 billion.
Who are the key players in Semiconductor Back-End Equipment Market?
ASML Holding N.V, Applied Materials Inc., LAM Research Corporation, Tokyo Electron Limited and KLA Corporation are the major companies operating in the Semiconductor Back-End Equipment Market.
Which is the fastest growing region in Semiconductor Back-End Equipment Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Semiconductor Back-End Equipment Market?
In 2024, the Asia Pacific accounts for the largest market share in Semiconductor Back-End Equipment Market.
What years does this Semiconductor Back-End Equipment Market cover, and what was the market size in 2023?
In 2023, the Semiconductor Back-End Equipment Market size was estimated at USD 17.18 billion. The report covers the Semiconductor Back-End Equipment Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Semiconductor Back-End Equipment Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Semiconductor Back-End Equipment Industry Report
Statistics for the 2024 Semiconductor Back-End Equipment market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Semiconductor Back-End Equipment analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
