Wire Bonder Equipment Market Analysis APAC, North America, Europe, South America, Middle East and Africa - China, US, Japan, India, Germany - Size and Forecast 2024-2028

Wire Bonder Equipment Market Size 2024-2028

The wire bonder equipment market is forecast to increase by USD 227.5 million and is estimated to grow at a CAGR of 3.32% between 2023 and 2028. The wire bonder equipment market is experiencing significant growth due to the rising electronics production across the world. This trend is driven by the increasing demand for miniaturized and high-performance electronic devices in various industries, including automotive, telecommunications, and consumer electronics. Technological advancements in wire bonding, such as the adoption of laser and ultrasonic bonding techniques, are further fueling market growth. However, the market faces challenges, including the shortage of skilled and trained personnel, which may hinder market expansion. Additionally, the high cost of wire bonder equipment and the need for continuous process optimization are other significant challenges that manufacturers must address to remain competitive in the market. Overall, the wire bonder equipment market is expected to grow steadily in the coming years, driven by the increasing demand for advanced electronic devices and technological innovations in wire bonding.

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

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Market Dynamics and Customer Landscape

The Market caters to various industries requiring precise electrical joining techniques. Utilizing thin wire and solid-phase welding procedures, it facilitates chip packing and IC devices packaging. Forward bonding techniques ensure efficient connections, accommodating materials like aluminum and copper bonding wires. With applications in Microelectromechanical Systems (MEMs) and electronics devices such as mobiles and tablets, wire bonder equipment plays a vital role in the electronics industry. Additionally, the market offers solutions for bonding with materials like palladium, addressing diverse needs across industries.

Key Market Driver

The increase in the number of OSAT companies is the key factor driving the global market growth. The number of OSATs in APAC, especially China, is growing at a considerable pace due to their strong liquidity and financial backing. This allows OSATs to have ample capital to undertake R&D as well as capacity expansion. Semiconductor manufacturers also receive a significant amount of governmental support and backing for developing the industry. Major countries from APAC, such as South Korea, China, and Japan, undertake such investments propelling the growth of these facilities.

The easy availability of capital will boost the development of these companies while ensuring scale and technical competence through acquisitions. The increase in the number of OSATS signifies that most companies in the semiconductor market are resorting to the fabless model. This increases the orders received for packaging by these OSATs, who now must increase their production capacities. This is expected to generate significant demand during the forecast period.

Significant Market Trend

The increasing popularity of flip-chip bonding technology is the primary trend in the global market growth. The use of flip-chip technology for carrying out the packaging of semiconductor devices has been witnessing growth since the last decade.

This technology is an alternative to the legacy wire bonding technique and is expected to slowly take over the wire bonding's share in the market. Therefore, the rising trend in the adoption of flip-chip bonding technology is expected to negatively impact the market during the forecast period.

Major Market Challenge

Shortage of skilled and trained personnel is a major challenge to the global market growth. A major issue faced by the semiconductor manufacturing sector is the lack of skilled and trained personnel with respect to manufacturing and operating these complex machines. The major reasons for the widening of this gap are the retirement of the baby boomers and the growing global economic expansion. In addition, there has been a loss of embedded knowledge due to the retirement of the baby boomers, which has also created a gap in the number of experienced people available. In addition, the younger generation has an inclination toward the service industry.

Furthermore, there is a lack of basic skills and knowledge in the fields of engineering, mathematics, science, and technology nowadays due to the gradual decline in technical education programs in schools. This has impacted the manufacturing sector significantly and will likely hinder the growth of the semiconductor market to a certain extent, thereby affecting the sales of capital equipment, such as wire bonder equipment, during the forecast period.

Market Customer Landscape

The market research and growth 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 growth analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Market Customer Landscape

Who are the Major Market Players?

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.

ASM Pacific Technology Ltd. - The company offers wire bonder equipment such as eagle 60 wire bonder.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Accelonix Ltd.
• BE Semiconductor Industries NV
• Bergen Group
• Cirexx International
• Corintech Ltd.
• DIAS Automation HK Ltd.
• F & K DELVOTEC Bondtechnik GmbH
• F & S BONDTEC Semiconductor GmbH
• Hesse GmbH
• HYBOND Inc.
• Kulicke and Soffa Industries Inc.
• Micro Point Pro Ltd.
• Palomar Technologies Inc.
• Powertech Technology Inc.
• Toray Industries Inc.

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.

Market Segmentation

By Product

The market share growth by the ball bonders segment will be significant during the forecast period. Ball bonding is usually carried out using joining methods such as thermocompression and thermo-sonic bonding. The thermocompression method uses pressure and temperatures of 150C and above to generate an intermetallic bond. Thermo-sonic bonding uses a combination of heat and ultrasonic energy to form the intermetallic bond.

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The ball bonders segment was valued at USD 951.70 million in 2018. Ball bonder equipment can achieve faster speeds that are capable of bonding more than 5-12 wires per second. Gold, copper, and palladium-coated wires are usually used in this wire bonding process. This technology is ideal for carrying out bonding applications for fine-pitch applications in the range of 40 microns or less. The method is used for applications such as ball grid array (BGA), small outline package (SOP), quad flat package (QFP), and multi-chip modules (MCM) hybrids, as well as for wafer-level bumping. All these factors are expected to propel the demand for ball bonder equipment for ball bonding, leveraging the growth of the market in focus during the forecast period.

By Region

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APAC is estimated to contribute 85% 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. APAC dominates the market due to the presence of several major OSATs, such as ASE and STATS ChipPAC. These packaging and assembly companies are making significant investments to revamp their production lines with respect to the latest technological developments in packaging technology. This is expected to generate demand for new wire bonder equipment in the market. Taiwan and China are hubs for semiconductor device manufacturing, which further propels the demand for assembly and packaging equipment in the region during the forecast period.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments

• Product Outlook 
  • Ball bonders
  • Stud-bump bonders
  • Wedge bonders

• End-user Outlook 
  • OSAT
  • IDM

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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Market Analyst Overview

The Market is driven by the demand for precise electrical joining techniques in various industries, including electronics, semiconductors, and microelectronics. These techniques involve bonding thin wires to metallic elements on the pad surface of integrated circuits (ICs) using high-speed cutting-edge technology and solid-phase welding procedures. Integrated Device Manufacturers (IDMs), semiconductor packing, and MEMs packaging companies rely on wire bonder equipment for applications like Through-Silicon Via (TSV) packaging and 3D chip packaging. The process requires submicron accuracy and utilizes vision systems and high-precision motion for stacked die applications. Challenges such as wire bonding issues, loop clearance, and unsupported die edges are addressed through forward and reverse bonding techniques, ensuring optimal bonding force and connection integrity.

Further, the market landscape depends on Direct bonded copper, Thin film substrate packages, Flip chip packaging technology, Assembly cycle times, Chip shortage, Gold bonding wires, Palladium-coated copper (PCC), Stud Bonders, Bump Bonders, Peg Bonders, Optoelectronics System. Premium packaging solutions cater to chip manufacturers, OSAT firms, and small to medium chip makers in various industries, including consumer electronics, healthcare, telecommunications, and automotive. Wire bonder equipment accommodates various bonding wire materials, including aluminum, gold, and copper, offering options like ultrasonic bonding, thermocompression bonding, and thermosonic ball bonding. As demand for miniaturization and high-performance electronic devices grows, the market continues to innovate, providing advanced solutions for interconnecting ICs and addressing chip shortages in industries such as electrical vehicles and optoelectronics.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and changes in consumer behavior
• 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 market forecast analysis of factors that will challenge the growth of market companies

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