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The die bonder equipment market size is estimated to grow at a CAGR of 4.15% between 2022 and 2027. The market size is forecast to increase by USD 186.52 million. The growth of the market depends on several factors including the increasing complexity of semiconductor IC designs, the rising electronics production across the world, and the rising demand for high-quality semiconductor ICs for wireless devices and IoT applications.
Die bonder equipment is a type of semiconductor packaging and assembly equipment in which wafers are cut into dies, and the functional dies are separated from the defective ones, which are already marked before this step.
This die bonder equipment market report extensively covers market segmentation by end-user (OSATs and IDMs), type (fully automatic die bonder equipment and semi-automatic die bonder equipment), and geography (APAC, North America, Europe, South America, and the Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing complexity of semiconductor IC designs is driving market growth. As consumer electronic devices become more advanced, there is a growing need for integrated circuits (ICs) that can perform multiple functions. To meet this demand, semiconductor manufacturers have developed complex IC architecture and designs.
However, the manufacturing process for these ICs is challenging, requiring more advanced packaging and assembly equipment such as die attach equipment. This complexity will moderately impact semiconductor device manufacturers, who must invest significantly in such equipment to ensure the performance of their ICs. The market for die bonder equipment, which helps produce these complicated IC designs, is expected to grow during the forecast period.
An increase in the number of OSAT vendors is an emerging trend shaping market growth. The quantity of OSATs in the APAC region, particularly in China, is rapidly increasing due to their strong financial backing and liquidity. This allows these companies to have sufficient funds for research and development and to expand their capacity.
Additionally, government support for the semiconductor industry's development from major APAC countries like South Korea, China, and Japan is fueling the growth of these facilities. The easy availability of capital is likely to enhance the development of these companies by acquiring more scale and technical competence. The rise in the number of OSATs indicates that most semiconductor market players are adopting the fabless model to increase orders for packaging from these OSATs, which must improve their production capacities. This is predicted to create a significant demand for die bonder equipment, driving the market's growth during the forecast period.
High demand for polymer adhesive wafer bonding equipment is a significant challenge hindering market growth. The use of semiconductor packaging and assembly equipment, such as polymer adhesive wafer bonding equipment, is increasing due to the growing popularity of advanced packaging applications, including TSV, 2.5D and 3D IC, stacked die packaging, and micro-electro-mechanical system (MEMS) packaging.
However, manufacturers are opting for polymer adhesive wafer bonding equipment for these packaging techniques as it allows for reliable thinning and backside processing of the stacked dies, while also reducing the cost of TSV integration. As a result, the demand for polymer adhesive wafer bonding equipment is expected to moderately affect the growth of the die bonder equipment market during the forecast period.
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 growth in the semiconductor industry and rising costs of packaging, assembly, and testing equipment.
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The OSATs segment was valued at USD 415.00 million in 2017 and continued to grow by 2021. 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. Amkor Technology, a major OSAT, has announced expansion plans through strategic collaborations to streamline semiconductor package verification. The adoption of these new technologies in the packaging sector of the semiconductor industry creates a demand for new die bonder equipment, driving market growth during the forecast period.
Fully-automated die bonder equipment is generally utilized in large-scale, mass-production industries. These bonder machines are highly precise devices that are computer-controlled and equipped with digital camera vision sensors. They are primarily used in optoelectronic and semiconductor packaging industries. The increasing use of automation in large-scale industries and the shortage of skilled labor are the primary factors driving the growth of the fully automatic die bonder equipment segment. Additionally, vendors are introducing new products to the market. For example, in September 2022, MRSI Systems (Mycronic Group) launched MRSI-HVM1 and MRSI-H1 die bonders, which boast a 1um machine accuracy. This launch is expected to further fuel the growth of the fully automatic die bonder equipment segment in the die bonder equipment market during the forecast period.
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APAC is estimated to contribute 79% 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. The market in APAC is experiencing growth due to government initiatives, the strong regional manufacturing sector, and increasing demand for locally manufactured automobiles. Despite challenges like a slowdown of industrial production in China, the market is expected to continue growing at a significant pace. Rising middle-class populations are spending more on consumer durables, leading to pressure on semiconductor manufacturers to improve capacity utilization and adopt advanced equipment like die bonders.
Moreover, the market will be dominated by countries like Japan, China, Taiwan, South Korea, Singapore, Thailand, Vietnam, and the Philippines. These countries are investing in processes that ensure efficiency in terms of cleanliness and environmental control. Additionally, a drop in the prices of consumer electronic products has increased sales, and heavy investments in the electronics and semiconductor industry are expected to foster growth in the global die bonder equipment market in APAC during the forecast period
The COVID-19 outbreak had a negative impact on various industries in APAC, including electronics, in 2020. The supply chain was disrupted, there was a shortage of workers, and economies weakened, all leading to a halt in electronic manufacturing. Unfortunately, this resulted in a negative effect on the growth of the die bonder equipment market in APAC during 2020. However, the good news is that the lockdown restrictions started to be lifted in the first half of 2021 due to the vaccination drives, which allowed end-user industries to resume operations. While the regional semiconductor industry experienced a downturn due to the pandemic in 2020, there are positive developments in the industry, such as the establishment of new fabs, which are expected to drive the growth of the die bonder equipment market in APAC during the forecast period.
The Die Bonder Equipment Market 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Die Bonder Equipment Market Customer Landscape
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.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
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 report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Die Bonder Equipment Market Scope |
|
Report Coverage |
Details |
Page number |
157 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.15% |
Market growth 2023-2027 |
USD 186.52 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.74 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 79% |
Key countries |
US, Canada, Taiwan, China, and South Korea |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
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, SHIBUYA Corp., UniTemp GmbH, WestBond Inc., Yamaha Motor Co. Ltd., and SHIBAURA MECHATRONICS CORP. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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