Underfill Dispenser Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Size (2025) | USD 66.71 Billion |
| Market Size (2030) | USD 92.56 Billion |
| Growth Rate (2025 - 2030) | 6.77% CAGR |
| Fastest Growing Market | Middle East |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
Underfill Dispenser Market Analysis by Mordor Intelligence
The underfill dispenser market size reached USD 66.71 billion in 2025 and is forecast to expand to USD 92.56 billion by 2030, reflecting a 6.77% CAGR over the period. Demand stems from the industry-wide shift to 3D chip-stacking, chiplet architectures, and silicon photonics assemblies, all of which need void-free, high-speed, sub-nanoliter dispensing. Equipment suppliers are responding with piezoelectric jetting platforms that shorten cycle times through AI-optimized path planning, while OSATs and IDMs scale capacity for advanced packaging lines. Automotive power electronics and co-packaged optics add another layer of growth as they require thermally conductive or optically clear underfills, prompting material innovation and hybrid dispensing approaches. Regional incentives such as the U.S. CHIPS Act and sovereign semiconductor programs in the Middle East further accelerate capital spending on precision dispensing tools.
Key Report Takeaways
- By product type, capillary flow systems led with 33.41% revenue share in 2024; jet dispensing platforms are projected to advance at a 7.34% CAGR through 2030.
- By technology, pneumatic needle units accounted for 32.64% of the underfill dispenser market share in 2024, while piezoelectric jetting is set to grow at a 6.97% CAGR to 2030.
- By application, wafer-level packaging held 28.79% share of the underfill dispenser market size in 2024; photonics packaging is poised for a 6.86% CAGR over 2025-2030.
- By end-user, IDMs captured 26.43% of 2024 spending, whereas photonics device makers are on track for a 6.83% CAGR through 2030.
- By geography, North America commanded 23.57% revenue in 2024, while the Middle East is forecast to record the fastest 7.12% CAGR to 2030.
Global Underfill Dispenser Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| AI-optimised dispense path planning | +1.2% | Asia-Pacific, North America | Medium term (2-4 years) |
| High-density heterogeneous integration | +1.8% | Taiwan, South Korea | Long term (≥ 4 years) |
| 3D chip-stacking requires void-free fills | +1.5% | Asia-Pacific, spill-over to North America and Europe | Medium term (2-4 years) |
| Automotive-grade power semiconductor demand | +0.9% | Germany, Japan, China | Long term (≥ 4 years) |
| Silicon photonics and co-packaged optics | +0.7% | North America, Europe, expanding to Asia-Pacific | Long term (≥ 4 years) |
| Chiplet substrates with narrow gap spacing | +1.1% | Leading-edge foundries worldwide | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
AI-Optimised Dispense Path Planning Reduces Cycle Time
Dynamic routing software embedded in piezoelectric jetting heads cuts idle moves and automatically adapts to substrate geometry, lifting throughput for BGA and wafer-level jobs. GPD Global reports double-digit reductions in cycle time after implementing on-board vision alignment and real-time path correction. [1]Engineering Team, “GPD Global’s UltiPath Software Slashes Dispense Cycle Times,” GPD Global, gpd-global.com Remote connectivity also enables predictive maintenance and centralized recipe control, key benefits as contract manufacturers run mixed-product lots across multiple locations.
Adoption of High-Density Heterogeneous Integration Packages
Glass or advanced organic substrates host multiple functional dies with different thermal expansion rates, forcing equipment to jet multiple chemistries in one pass. Intel’s glass substrate roadmap highlights 10× interconnect density gains that hinge on ultra-precise, low-stress underfill placement. Multi-lane dispensing platforms with independent material paths now let IDMs combine capillary and jet modes without changeover delays.
Transition to 3D Chip-Stacking Demands Void-Free Underfill
TSV-based stacks intensify mechanical stress; any trapped air can trigger delamination during thermal cycling. Piezo-jet systems operating at multiple Z-heights dispense sub-nanoliter dots that wick uniformly through 50 µm gaps, while in-line vacuum assist removes residual bubbles. IEEE thermal-aging studies show a 25% life-cycle improvement when processors use optimized 3D underfill profiles. [2]IEEE Contributors, “Investigation of the Underfill with Negative-Thermal-Expansion Material to Suppress Mechanical Stress in 3D Integration System,” IEEE, ieeexplore.ieee.org
Increasing Demand for Automotive-Grade Power Semiconductors
SiC and GaN modules run at junction temperatures above 200 °C, requiring particle-loaded, high-viscosity fillers. Musashi and Nordson have introduced rotary positive-displacement pumps with ceramic wetted parts to handle abrasives without shear, maintaining ±2% volumetric accuracy across extended duty cycles. Meeting AEC-Q100 calls for end-to-end traceability, driving integration of barcode scanners and MES interfaces at the dispense cell.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| High capex of advanced jetting platforms | –0.8% | Global; smaller OSATs most affected | Short term (≤ 2 years) |
| Limited throughput for panel-level packaging | –0.6% | Asia-Pacific, Europe | Medium term (2-4 years) |
| Shrinking die gaps raise contamination risk | –0.4% | Worldwide advanced node lines | Long term (≥ 4 years) |
| Talent shortage in wafer-level engineering | –0.5% | North America, Europe | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
High Capex of Advanced Jetting Platforms
A fully-featured multi-head piezo unit surpasses USD 500,000, a hurdle for mid-tier OSATs. Leasing and pay-per-use models are emerging, yet the total cost of ownership remains high due to proprietary nozzles and calibration kits. [3]Technical Marketing, “Smart Valve Controller TS580R Enables Remote Monitoring,” Techcon, techcon.com Vendors now bundle in-line inspection and closed-loop control to justify ROI, but near-term adoption may lag in price-sensitive consumer electronics lines.
Limited Dispensing Throughput for Panel-Level Packaging
Panels measuring 650 mm×650 mm hold hundreds of dies, magnifying path length and curing bottlenecks. Today’s single-gantry systems struggle to exceed 50 panels per hour, short of the 80+ target for high-volume smartphone boards. Dual-bridge architectures and synchronous multi-camera alignment aim to close the gap, yet early adopters cite recipe-development complexity as an implementation barrier.
Segment Analysis
By Product Type: Jet Systems Gain Advanced Packaging Traction
Jet platforms captured strong momentum as the underfill dispenser market shifted toward heterogeneous and 3D devices. Although capillary flow tools retained a 33.41% share in 2024, jet units earned the fastest 7.34% CAGR outlook by solving narrow-gap challenges where needle access is impossible. This transition positions jet technology to lift its slice of the underfill dispenser market size as OSATs qualify co-packaged optics and chiplet modules. Cycle-time advantages compound when AI path planners shorten idle moves between islands, enabling single-pass coverage for large substrates. In parallel, hybrid stations that combine jet and needle heads let operators swap modes mid-lot, preserving legacy recipes while easing migration toward non-contact dispensing.
Demand concentration remains highest in Taiwan and South Korea, where foundries pursue TSV-backed memory stacks, but North American IDMs also accelerate jet adoption for glass substrate trials. Vendors differentiate through modular jet valves delivering 2 nl drops at 300 Hz, stainless flow paths for abrasive fillers, and closed-loop temperature control to stabilize viscosity at ±1 °C. As a result, the underfill dispenser market advances from commodity flow devices toward software-centric production cells that log every shot for traceability.
Note: Segment shares of all individual segments available upon report purchase
By Technology: Piezoelectric Jetting Tunes Precision
Pneumatic needle systems still command 32.64% of 2024 revenue thanks to rugged mechanics and low upkeep, yet piezoelectric jetting registers a 6.97% CAGR because it meets next-node accuracy mandates. Vendors such as Nordson integrate piezo stacks with linear encoders that achieve ±15 µm placement, fulfilling flip-chip bridge spacing below 50 µm. Rotary auger valves serve viscous pastes, while positive-displacement pumps handle particle-filled silicones without pulsation, safeguarding bondline integrity in power ICs.
Regulations tighten process documentation, prompting suppliers to embed OPC UA interfaces that stream dispense data directly to factory historian databases. Swappable cartridge nozzles speed chemistry changeovers and reduce solvent waste, cutting downtime by 20% against legacy metal needles. Overall, hybrid toolsets that pair piezo jets for perimeter passes with pneumatic needles for center-fill remain favored because they balance speed and material breadth. These cross-platform options are lifting the underfill dispenser market share of multi-technology equipment providers.
By Application: Photonics Packaging Drives Specialized Requirements
Wafer-level packaging maintained a 28.79% share in 2024, yet photonics-oriented lines exhibit the fastest 6.86% CAGR. Glass-based interposers for co-packaged optics necessitate optically clear, low-stress fillers, and any refractive-index mismatch can undermine link performance. Piezo jets eliminate mechanical contact that could scratch waveguides, while UV-curable chemistries allow in-line tack and inspection prior to final oven cure.
Flip-chip BGA continues to dominate consumer devices, supported by mature capillary flow profiles, whereas MEMS and sensor packages demand gap-control at micron levels to avoid stiction. Power modules for electric vehicles fuel orders for dual-head platforms that dispense conductive sinter paste and underfill within one setup, trimming takt time. This breadth of use cases sustains a diversified underfill dispenser market where suppliers must tailor valve, heater and vision options by application.
Note: Segment shares of all individual segments available upon report purchase
By End-User: IDMs Lead While Photonics Manufacturers Accelerate
IDMs held 26.43% of equipment outlays in 2024, driven by vertical integration that aligns new dispense cells with proprietary chiplet roadmaps. Foundries and OSATs collectively absorb the largest unit volumes for smartphones and notebooks, but their capex decisions prioritize proven uptime over bleeding-edge features. Meanwhile, photonics device makers, although smaller in absolute size, are expanding at a 6.83% CAGR, adding underfill dispenser market size in facilities that straddle semiconductor and optical assembly disciplines.
EMS providers adopt flexible robots to cover diverse board-level underfill tasks, favoring modular handlers that accept trays, JEDEC magazines, and 300 mm wafers without fixture changes. Research institutes partner with equipment brands on next-gen jet valve prototypes, accelerating feature leakage into commercial tools. Collectively, these dynamics keep the underfill dispenser industry in a moderate-concentration state with technology leadership rotating toward firms that serve both high-volume logic fabs and niche optical lines.
Geography Analysis
Asia-Pacific remains the production powerhouse where more than 70% of advanced packaging lines reside, ensuring sustained pull-through for the underfill dispenser market. TSMC’s plan to raise CoWoS output beyond 90,000 wafers per month by 2026 alone drives dozens of new dispense stations, each spec’d for ±2% CV across 300 mm substrates. South Korea follows closely as HBM memory volumes climb, while mainland China increases local tool buys as part of supply-chain localization policies.
North America commanded 23.57% value in 2024 on the back of CHIPS Act incentives that fund new IDMs and OSAT plants. Arizona and Ohio fabs favor tightly integrated dispense-and-cure modules that cut floor space, and U.S. Tier-1 automotive suppliers sign multi-year deals for power module lines requiring thermally conductive fillers. Europe centers on Germany’s auto ecosystem, emphasizing ISO 26262 compliance and lot-level traceability, features now standard on premium jetting platforms.
The Middle East records the fastest 7.12% CAGR as sovereign wealth funds underwrite greenfield fabs in the Gulf. Early projects import turnkey dispensing cells bundled with robotic material handling, creating a modest but fast-growing slice of the underfill dispenser market size. Latin America and Africa remain nascent, yet OEMs exploring low-cost assembly hubs signal the gradual dispersion of demand beyond historic clusters.
Competitive Landscape
First-tier suppliers such as Nordson and Musashi leverage decades-old service networks and multi-technology portfolios to retain anchor accounts, while Mycronic and ASMPT expand through acquisitions that add piezo jet patents and AI vision toolkits. Differentiation now centers on closed-loop dispense verification using inline infrared thermography or laser profilometry, capabilities that raise barriers for late entrants.
Platform thinking dominates: single frames host multiple valve types, UV-LED pins, and convection ovens, enabling users to sequence underfill, conformal coat, and dam-and-fill without secondary handling. Vendors also embed OPC UA and SECS/GEM for Industry 4.0 dashboards that report MTBF and nozzle health, a must-have for high-mix OSATs. Software subscriptions emerge as a new revenue stream, with path-planning upgrades delivered over-the-air.
White-space remains around panel-level packaging where current throughput lags; suppliers collaborating with European automotive IDMs test dual-gantry jets firing in parallel at 1,000 mm/s. Photonics packaging is another frontier: clear adhesives and nano-aligned optics favor non-contact micro-dosing, pushing companies to co-develop chemistries and machine settings. Overall, the underfill dispenser market exhibits moderate concentration but an intensifying technology race, rewarding firms that bundle hardware, software, and process know-how.
Underfill Dispenser Industry Leaders
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Nordson Corporation
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Musashi Engineering, Inc.
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Henkel AG & Co. KGaA
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Illinois Tool Works Inc. (Camalot Systems)
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Fisnar Inc.
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- February 2025: Intel detailed its glass-substrate roadmap, spotlighting ultra-fine pitch interconnects that demand specialized underfill chemistries and precision jet placement.
- January 2025: TSMC disclosed plans to quadruple CoWoS capacity to 65–75 K wafers/month by year-end 2025, spurring bulk orders for high-speed jetting cells.
- January 2025: LG Innotek earmarked KRW 600 billion (USD 450 million) for FC-BGA expansion, including new underfill lines for automotive semiconductors.
- December 2024: Applied Materials closed its acquisition of Besi’s dispensing assets, forming an integrated advanced-packaging equipment division.
Global Underfill Dispenser Market Report Scope
| Capillary Flow Underfill Dispensers |
| Jet Dispensing Systems |
| Combination / Hybrid Systems |
| Needle Dispensing Systems |
| Piezoelectric Jetting |
| Pneumatic Needle |
| Auger Screw |
| Positive Displacement Pump |
| Film Transfer Systems |
| Flip Chip Packaging |
| Ball Grid Array (BGA) Packaging |
| Wafer Level Packaging (WLP) |
| MEMS and Sensor Packaging |
| Photonics and Optoelectronic Packaging |
| Power Semiconductor Packaging |
| Outsourced Semiconductor Assembly and Test (OSAT) Companies |
| Integrated Device Manufacturers (IDMs) |
| Foundries |
| Electronics Manufacturing Services (EMS) Providers |
| Photonics Device Manufacturers |
| Research and Development Institutions / Labs |
| North America | United States | |
| Canada | ||
| Mexico | ||
| Europe | Germany | |
| United Kingdom | ||
| France | ||
| Russia | ||
| Rest of Europe | ||
| Asia-Pacific | China | |
| Japan | ||
| India | ||
| South Korea | ||
| Australia | ||
| Rest of Asia-Pacific | ||
| Middle East and Africa | Middle East | Saudi Arabia |
| United Arab Emirates | ||
| Rest of Middle East | ||
| Africa | South Africa | |
| Egypt | ||
| Rest of Africa | ||
| South America | Brazil | |
| Argentina | ||
| Rest of South America | ||
| By Product Type | Capillary Flow Underfill Dispensers | ||
| Jet Dispensing Systems | |||
| Combination / Hybrid Systems | |||
| Needle Dispensing Systems | |||
| By Technology | Piezoelectric Jetting | ||
| Pneumatic Needle | |||
| Auger Screw | |||
| Positive Displacement Pump | |||
| Film Transfer Systems | |||
| By Application | Flip Chip Packaging | ||
| Ball Grid Array (BGA) Packaging | |||
| Wafer Level Packaging (WLP) | |||
| MEMS and Sensor Packaging | |||
| Photonics and Optoelectronic Packaging | |||
| Power Semiconductor Packaging | |||
| By End-User | Outsourced Semiconductor Assembly and Test (OSAT) Companies | ||
| Integrated Device Manufacturers (IDMs) | |||
| Foundries | |||
| Electronics Manufacturing Services (EMS) Providers | |||
| Photonics Device Manufacturers | |||
| Research and Development Institutions / Labs | |||
| By Geography | North America | United States | |
| Canada | |||
| Mexico | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Russia | |||
| Rest of Europe | |||
| Asia-Pacific | China | ||
| Japan | |||
| India | |||
| South Korea | |||
| Australia | |||
| Rest of Asia-Pacific | |||
| Middle East and Africa | Middle East | Saudi Arabia | |
| United Arab Emirates | |||
| Rest of Middle East | |||
| Africa | South Africa | ||
| Egypt | |||
| Rest of Africa | |||
| South America | Brazil | ||
| Argentina | |||
| Rest of South America | |||
Key Questions Answered in the Report
What is the projected value of the underfill dispenser market in 2030?
It is forecast to reach USD 92.56 billion, reflecting a 6.77% CAGR from 2025.
Which dispensing technology is growing the fastest?
Piezoelectric jetting is expected to advance at a 6.97% CAGR because it meets fine-pitch accuracy requirements.
Which application segment will register the highest growth?
Photonics and optoelectronic packaging is projected to expand at a 6.86% CAGR due to co-packaged optics adoption.
Why are jet dispensing systems gaining traction over capillary flow tools?
Non-contact jetting handles narrow gaps and complex geometries, shortening cycle time and improving precision.
Which region shows the fastest demand growth?
The Middle East leads with a 7.12% CAGR as sovereign funds back new semiconductor fabs.
What is the main investment hurdle for smaller OSATs?
High capital expenditure on multi-head piezo jet platforms, often exceeding USD 500,000 per unit.
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