Dicing Equipment Market Analysis APAC, North America, Europe, South America, Middle East and Africa - Taiwan, South Korea, Japan, China, US - Size and Forecast 2024-2028

Dicing Equipment Market Size 2024-2028

The dicing equipment market size is forecast to increase by USD 234.7 million at a CAGR of 4.5% between 2023 and 2028.

• The market is experiencing significant growth due to several key factors. One of the primary drivers is the increasing investment in semiconductor fabrication facilities to meet the rising demand for advanced electronic devices. Another trend influencing the market is the growing preference for Internet of Things (IoT) connected devices, which necessitates the use of sophisticated dicing equipment to produce high-precision components. The complexity of patterns and functional defects in modern manufacturing processes also necessitates the adoption of advanced dicing solutions. These trends are expected to continue driving market growth in the coming years. Despite these opportunities, the market faces challenges such as high capital investment requirements and the need for continuous innovation to keep pace with evolving technology. Overall, the market is poised for strong growth, driven by increasing demand for advanced electronics and the need for high-precision manufacturing solutions.

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

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• The market is experiencing significant growth due to the increasing demand for advanced semiconductor devices in various industries, including smart cards, RFID technology, automotive power ICs, and consumer electronics. The market is driven by trends such as technology migration towards miniaturization, Micro-electro-mechanical systems (MEMS), 3D packaging, and IC packaging. Semiconductor device fabrication and electronic packaging industries are investing heavily in dicing equipment to address power dissipation challenges and improve production efficiency. Key applications include the production of semiconductor chips for electric and autonomous vehicles, which are experiencing rapid growth. Dicing equipment manufacturers are focusing on innovation to meet the demands of the industry, with a shift towards blade dicing and wafer dicing using diamond blades and advanced coolant supply systems.
• Moreover, the chip shortage has highlighted the importance of the electronics manufacturing cluster, with companies implementing the PLI scheme to boost domestic production. Overall, the market is expected to continue its growth trajectory, driven by the increasing demand for advanced semiconductor devices.

How is this Dicing Equipment Industry segmented and which is the largest segment?

The dicing equipment industry 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
  • Pureplay foundries
  • Integrated device manufacturers
• Geography
  • APAC
    • China
    • Japan
    • South Korea
  • North America
    • US
  • Europe
  • South America
  • Middle East and Africa

By End-user Insights

• The pureplay foundries segment is estimated to witness significant growth during the forecast period.

The pure-play semiconductor foundry industry is experiencing significant growth due to increasing demand for application processors and telecom equipment in 5G handsets. These technologies are essential for meeting the high demands of the semiconductor industry, particularly in sectors like electronic packaging, power dissipation, and automotive applications, including electric and autonomous vehicles. Foundries focus on automation, machine learning, and analytics to streamline production and enhance yield without compromising quality. The semiconductor foundry market is expected to expand, driven by these trends and the continuous advancement of semiconductor technology.

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The pureplay foundries segment was valued at USD 726.30 million in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

• APAC is estimated to contribute 86% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The semiconductor industry in APAC is experiencing significant growth due to government initiatives and the global trend towards local manufacturing. India's "Make in India" campaign and China's "Vision 2020" have attracted international attention, with corporations such as Apple responding by establishing local production units. The COVID-19 pandemic-induced semiconductor scarcity has further accelerated the need for increased manufacturing capacity. In the electronics sector, the demand for microelectronics continues to rise, particularly for devices such as MEMS, which require thin wafers. Consequently, the dicing equipment industry is gaining momentum to meet this demand.

Market Dynamics

Our dicing equipment market researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in adoption of Dicing Equipment Industry?

Growing investment in fabrication facilities is the key driver of the market.

• The semiconductor industry is witnessing significant advancements with the increasing adoption of smart cards, RFID technology, and miniaturization in various sectors such as automotive, consumer electronics, healthcare devices, enterprise storage, and portable electronic devices. This trend is driving the demand for IC packaging solutions, including blade dicing and wafer dicing equipment, to meet the high-precision requirements of semiconductor device fabrication. Manufacturers are investing in the latest technology migration, such as micro-electro-mechanical systems (MEMS) and 3D packaging, to reduce power dissipation and enhance the performance of semiconductor chips. The semiconductor package substrates market is expected to grow significantly due to the increasing demand for ultra-high-definition screens, high-performance computing (HPC), 5G technology, and autonomous driving.
• Moreover, the increasing adoption of automation, intelligent manufacturing, and hazard prevention measures in the semiconductor industry is further fueling the demand for advanced plating equipment, inspection equipment, wire bonding equipment, and die-bonding equipment. The chip shortage is also pushing manufacturers to adopt PLI schemes and invest in advanced wafer process solutions to increase their production capacities. In addition, the integration of AI, big data, and IoT in various industries is expected to create new opportunities for semiconductor manufacturers and equipment suppliers. The growing demand for memory devices, particularly in the consumer electronics sector, is also expected to drive the market for dicing equipment during the forecast period.

What are the market trends shaping the Dicing Equipment Industry?

Growing demand for IoT-connected devices is the upcoming trend in the market.

• The market is experiencing significant growth due to the increasing demand for advanced technologies such as Smart cards, RFID technology, and Automotive power ICs in various industries. The miniaturization of Consumer electronics, Technology migration to Micro-electro-mechanical systems (MEMS), 3D packaging, and IC packaging are key drivers for the market. Semiconductor device fabrication and Electronic packaging industries are also investing heavily in high-throughput dicing equipment to reduce power dissipation and increase edge strength in Semiconductor chips. The adoption of Electric vehicles, Autonomous vehicles, and Healthcare devices is also fueling the demand for Dicing Equipment. Blade dicing and Wafer dicing techniques using Diamond blades and Coolant supply systems are essential in the production of these advanced technologies.
• Furthermore, the chip shortage has led to the implementation of schemes like PLI to encourage semiconductor manufacturing in the US. Moreover, the integration of Chip-on-chip technology, Printed circuit boards, Plating equipment, Inspection equipment, and Die-bonding equipment in various industries is driving the need for advanced Dicing Equipment. The market is also witnessing the adoption of Automatic flip-chip bonder, Wafer process solutions, and Semiconductor package substrates in High-Performance Computing (HPC), Ultra-high-definition screens, 5G technology, Autonomous driving, Augmented reality, and Thin wafer processing. Furthermore, the increasing trend towards Intelligent manufacturing, Automation, and High-precision processes is expected to boost the demand for Dicing Equipment in various industries. The market is also witnessing the adoption of AI and Big data in various applications, which is expected to create new opportunities for the market players.

What challenges does Dicing Equipment Industry face during the growth?

Complexity of patterns and functional defects in manufacturing processes is a key challenge affecting the industry growth.

• The semiconductor industry faces unique challenges due to the increasing complexity of semiconductor devices and the demand for miniaturization. Tiny dust particles can disrupt the production process, necessitating a clean environment and precise equipment. Dicing equipment plays a crucial role in this process, ensuring accurate and efficient cutting of semiconductor chips from silicon wafers. Smart cards and RFID technology, consumer electronics, automotive power ICs, and healthcare devices are among the key applications driving the demand for advanced dicing solutions. Technology migration to micro-electro-mechanical systems (MEMS), 3D packaging, and IC packaging further complicates the dicing process. Semiconductor device fabrication, electronic packaging, and power dissipation management are critical aspects of the semiconductor industry that require high-precision dicing equipment.
• In addition, emerging technologies, such as electric and autonomous vehicles, 5G technology, high-performance computing (HPC), and artificial intelligence (AI), are fueling the growth of the semiconductor industry. Thin wafer processing, high-precision dicing, and intelligent manufacturing are essential to meet the demands of these advanced applications. Market dynamics, such as chip shortages, the PLI scheme, and technology advancements, are shaping the market. Corning dicing technology, microfabrication processes, and hazard prevention measures are among the key trends in this market. Plating equipment, inspection equipment, wire bonding equipment, and die-bonding equipment are essential complementary technologies. The market is expected to grow significantly due to the increasing demand for semiconductor devices in various industries, including consumer electronics, enterprise storage, and portable electronic devices.

Exclusive Customer Landscape

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

Customer Landscape

Key Companies & Market Insights

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

The dicing equipment industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Advanced Dicing Technologies
• ASM Pacific Technology
• DISCO Corp.
• Dynatex International
• EV Group
• Japan Pulse Motor Co. Ltd.
• KLA Corp.
• Neon Tech Co. Ltd.
• Panasonic Holdings Corp.
• Plasma Therm
• Suzhou Delphi Laser Co. Ltd.
• Tokyo Seimitsu Co. Ltd.

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 industry 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.

Research Analyst Overview

The market is a critical segment of the semiconductor industry, playing a pivotal role in the production process of various electronic devices. This market encompasses a range of technologies and equipment used in the division of semiconductor wafers into individual chips or dies. In this context, we explore the key trends and developments shaping the dicing equipment landscape. Miniaturization and technology migration are two significant factors driving the market. The ongoing push for smaller, more efficient components has led to the adoption of advanced technologies such as micro-electro-mechanical systems (MEMS) and 3D packaging.

In addition, these solutions enable the integration of multiple functions onto a single chip, reducing the overall size and power consumption of electronic devices. The semiconductor industry's shift towards miniaturization necessitates the development of more precise and efficient dicing techniques. Blade dicing and wafer dicing are the primary methods used to divide semiconductor wafers. Blade dicing involves the use of diamond blades to slice the wafer into smaller pieces, while wafer dicing employs a sawing process to create individual chips. Both techniques require high precision and accuracy to minimize kerf loss and ensure edge strength. Another crucial aspect of the market is the semiconductor chip shortage.

Furthermore, the increasing demand for advanced electronic devices, such as electric and autonomous vehicles, healthcare devices, enterprise storage, and portable electronic devices, has put pressure on semiconductor manufacturers to increase production capacity. To address this challenge, various solutions have emerged, including the implementation of high-throughput dicing systems and the adoption of advanced plating and inspection equipment. The semiconductor industry's evolution towards intelligent manufacturing and automation has led to the development of advanced dicing equipment. Automatic flip-chip bonders, wafer process solutions, and semiconductor package substrates have gained significant traction in recent years. These solutions enable higher precision, faster production, and improved yield, making them essential for the mass production of semiconductor devices.

Moreover, the integration of advanced technologies such as artificial intelligence (AI) and high-performance computing (HPC) into dicing equipment has led to significant improvements in efficiency and accuracy. These solutions enable real-time monitoring and analysis of the dicing process, allowing manufacturers to optimize their production lines and minimize waste. The market is also influenced by the growing adoption of 5G technology, autonomous driving, augmented reality, and ultra-high-definition screens. These applications require high-performance semiconductors, driving the demand for advanced dicing techniques and equipment. Therefore, the market is a dynamic and evolving landscape, shaped by various factors such as miniaturization, technology migration, semiconductor chip shortages, and the adoption of advanced technologies. As the semiconductor industry continues to innovate and push the boundaries of what is possible, the demand for more efficient and precise dicing equipment will only grow.

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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the Dicing Equipment industry during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the industry in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across APAC, North America, Europe, South America, and Middle East and Africa
• Thorough analysis 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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