Semiconductor Bonding Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented, By Type (Die Bonder, Wafer Bonder, Flip Chip Bonder), By Process Type (Die To Die Bonding, Die To Wafer Bonding, Wafer To Wafer Bonding), By Bonding Technology (Die Bonding Technology, Wafer Bonding Technology), By Application (RF Devices, Mems and Sensors, CMOS Image Sensors, LED, 3D NAND) By Region, By Competition 2018-2028

Market Overview

Global Semiconductor Bonding Market was valued at USD 879 Million in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of  3.6% through 2028. The semiconductor bonding equipment market was valued at USD 492.82 million in the previous year and is expected to reach USD 918.79 million over the forecast period. Semiconductor bonding equipment is finding applications due to the rising demand for semiconductor chips with higher efficiency, processing power, and smaller footprints, driving the demand for the market during the forecast period. The impact of digitalization on lives and businesses has led to a boom in the semiconductor markets. This has resulted in government programs supporting the deployment of 5G. For instance, the European Commission established a public-private partnership to develop and research 5G technology. With chip demand set to surge over the coming decade, the global semiconductor industry is expected to become a trillion-dollar industry by 2030. This growth is largely favored by companies and countries investing heavily in semiconductor manufacturing, materials, and research to guarantee a steady supply of chips and know-how to support growth across data-centric industries. Despite the global pandemic and resulting economic downturn, the semiconductor industry remained resilient, with revenue growth of 6.5% to reach the USD 440 billion mark in 2020, driven by a spike in demand for all types of chips, especially those developed at mature nodes. Semiconductor components are widely deployed in most consumer electronics products. China is not only one of the largest consumers and producers of various consumer electronics products but also caters to a broad range of countries by exporting several input supplies that are essentially used to produce finished goods. The onset of the COVID-19-induced lockdown created a basic need for continuity of work and education, resulting in an increase in demand for computing devices such as laptops and PCs, and consequently, the semiconductor bonding equipment market experienced a surge in demand. When a product requires the bonding of two dies or wafers, several methods might be used, with the bonding process selected being the primary driver for the cost of ownership of bonding. The high cost of ownership associated with some bonding processes might restrict market growth.

Key Market Drivers

Growing Semiconductors Demand

The demand for Semiconductor Bonding  is also anticipated to increase as the semiconductor industry's miniaturization trend gains traction. This is because manufacturing advanced node ICs, heterogeneous integration, and 3D memory architectures requires more processing steps, which leads to a rise in the consumption of wafer fabrication and packaging materials. For instance, a firm located in the UK called Pragmatic Semiconductor Ltd. revealed in December 2022 that it had collected USD 35 million from investors to create a novel method for manufacturing chips. The business owns a chip fabrication plant (also known as a fab) where flexible processors are produced. In particular, silicon is not present in the CPUs. A flexible processor called PlasticArm that uses metal-oxide transistors integrated on a plastic substrate was also presented by Pragmatic and Arm Ltd. the previous year.

Additionally, STMicroelectronics and French Semiconductor Bonding supplier Soitec announced in December 2022 over the following 18 months, they had reached the next stage of their collaboration on Silicon Carbide (SiC) substrates, with STMicroelectronics planning to qualify the SiC substrate technology from Soitec. The goal of this collaboration was for STMicroelectronics to utilise Soitec's SmartSiC technology for their upcoming 200mm substrate manufacturing, supporting the company's business for manufacturing devices and modules. Scale manufacturing is anticipated soon. More and more chips that enhance the power management of electric cars are currently being produced using the material SiC. The market for Semiconductor Bonding in Europe is anticipated to increase rapidly over the course of the projected period because of rising investments in the latest technologies.

Additionally, the search for novel semiconductors that fit the requirements for photovoltaic devices has been prompted by the desire for low-cost, highly effective solar cells. Economic, ecological, chemical, and electrical qualities must be taken into consideration for large-scale applications. These include plentiful resources, ease of manufacture, particularly with thin-film technologies, long-term stability, and non-toxicity. All these criteria are satisfied by the transition metal dichalcogenides (TMDC) MoS2 and WS2, which have attracted a lot of interest recently. Moreover, the ongoing development of logic devices is currently driven by PPAC (Power Performance Area Cost) scaling and 3D integration issues, but significant advancements in the fabrication of wide bandgap materials are still required for the improvement of transport properties or for the improved thermal management of future power devices.

Rising Demand of Consumer Electronics

Consumer electronics represents one of the most significant end-user industries for the market. As such, the rising demand for consumer electronics, partly driven by the increasing adoption of the Internet of Things (IoT), unlocks new growth opportunities for the market. The internet of things (IoT) is a network of actual physical things and gadgets, such thermostats, refrigerators, and other things, that can be managed remotely. The use of the Internet of Things (IoT) is continuously increasing due to the expansion of high-speed connections, rising cloud usage, and growing applications of data processing and analytics. According to Ericsson Europe is a large IoT consumer. Although the region's IoT adoption is currently led by Germany, the United Kingdom, and the Netherlands, Eastern European nations. The Centre for the Promotion of Imports from Developing Countries (CBI) also estimates that European Internet of Things spending will reach USD 197.41 billion in 2021 and register double-digit growth through 2025. The increasing use of the Internet of Things is fueling demand for linked consumer electronics products. Since, people are adopting IoT in Consumer Electronics the demand of Semiconductor is increasing, due to which the requirement of Semiconductor Bonding is growing rapidly in the forecast period.

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Key Market Challenges

Environmental Regulations & Economic Volatility

The semiconductor industry is highly globalized and relies on complex supply chains. Any disruptions in the supply chain, such as natural disasters, geopolitical tensions, or the COVID-19 pandemic, can lead to material shortages, increased lead times, and higher costs. As semiconductor manufacturing processes become more advanced, the materials used must meet increasingly stringent requirements. Developing materials that can meet these technical demands can be challenging and require significant research and development. The semiconductor industry is cost-sensitive, and manufacturers are constantly looking for ways to reduce production costs. This can put pressure on material suppliers to provide high-quality materials at competitive prices. The semiconductor manufacturing process often involves the use of hazardous materials and chemicals. Stringent environmental regulations and the need to minimize the environmental impact of production can create challenges for both material suppliers and semiconductor manufacturers. The semiconductor market is subject to economic cycles that can impact demand. During economic downturns, demand for electronic devices can decrease, affecting the demand for Semiconductor Bonding.

Intellectual Property Protection

Developing new materials requires significant investment in research and development. Protecting intellectual property and preventing unauthorized copying or use of proprietary materials is an ongoing challenge. As semiconductor technology advances, there is a constant push for miniaturization and scaling. This requires materials that can maintain their performance and reliability at smaller scales, which can be technically challenging. The semiconductor industry evolves quickly, with new technologies and processes frequently emerging. Material suppliers must stay ahead of these changes to provide materials that are compatible with the latest manufacturing methods. The Semiconductor Bonding market is highly competitive, with numerous companies vying for market share. This competition can lead to pricing pressures and the need for constant innovation. Semiconductor manufacturing involves intricate processes with tight tolerances. Materials must be consistent in quality and performance to ensure the yield of high-quality semiconductor devices.

Key Market Trends

Environmental Regulations & Economic Volatility

The semiconductor industry is highly globalized and relies on complex supply chains. Any disruptions in the supply chain, such as natural disasters, geopolitical tensions, or the COVID-19 pandemic, can lead to material shortages, increased lead times, and higher costs. As semiconductor manufacturing processes become more advanced, the materials used must meet increasingly stringent requirements. Developing materials that can meet these technical demands can be challenging and require significant research and development. The semiconductor industry is cost-sensitive, and manufacturers are constantly looking for ways to reduce production costs. This can put pressure on material suppliers to provide high-quality materials at competitive prices. The semiconductor manufacturing process often involves the use of hazardous materials and chemicals. Stringent environmental regulations and the need to minimize the environmental impact of production can create challenges for both material suppliers and semiconductor manufacturers. The semiconductor market is subject to economic cycles that can impact demand. During economic downturns, demand for electronic devices can decrease, affecting the demand for Semiconductor Bonding.

Intellectual Property Protection

Developing new materials requires significant investment in research and development. Protecting intellectual property and preventing unauthorized copying or use of proprietary materials is an ongoing challenge. As semiconductor technology advances, there is a constant push for miniaturization and scaling. This requires materials that can maintain their performance and reliability at smaller scales, which can be technically challenging. The semiconductor industry evolves quickly, with new technologies and processes frequently emerging. Material suppliers must stay ahead of these changes to provide materials that are compatible with the latest manufacturing methods. The Semiconductor Bonding market is highly competitive, with numerous companies vying for market share. This competition can lead to pricing pressures and the need for constant innovation. Semiconductor manufacturing involves intricate processes with tight tolerances. Materials must be consistent in quality and performance to ensure the yield of high-quality semiconductor devices.

Segmental Insights

Type Insights

The wafer bonder segment dominated the market, in terms of revenue, in 2022, and is expected to follow the same trend during the forecast period. The wafer bonder segment accounted for the largest share of the market in 2021.The demand for wafer bonders is high due to the increasing need for stable joining and bonding of two substrates in industrial applications. Wafer bonding is one of the fastest solutions to fabricate multiple III–V lasers on Si material in a parallel system. The growing demand for consumer electronic devices such as smartphones, smart wearables, smart lighting, and other RF devices is one of the major factors generating new opportunities for market vendors for wafer semiconductor bonding applications. The market is segmented on the basis of type, application, and geography. Based on type, the semiconductor bonding market size is segmented into die bonder, wafer bonder, and flip chip bonder. Based on application, the semiconductor bonding market analysis is categorized into RF devices, MEMS and sensors, LED, CMOS image sensors, and 3D NAND. Based on geography, the semiconductor bonding market size is primarily segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America. In 2021, APAC held the largest semiconductor bonding market share and is expected to retain its dominance during the forecast period. The region is also expected to register the highest CAGR in the global semiconductor bonding market during the forecast period.

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Regional Insights

The Asia Pacific region is a significant player in the market and is expected to experience considerable growth over the forecast period, thanks to strategic investments by key domestic suppliers and the well-established semiconductor sector. According to SIA, the Asia-Pacific semiconductor market is set to be more than three times the size of the Americas market over the next four years as chip consumption continues to rise.

This growth is expected to be fueled by some of the largest semiconductor companies located in the region, as well as growing investments to support the semiconductor industry infrastructure across nations like China, India, and Vietnam. In addition, well-known domestic vendors and government agencies are making significant technological investments in offering next-generation semiconductor bonding solutions, such as hybrid bonding, which is expected to increase market demand.

For example, Adeia, the recently launched brand for the intellectual property (IP) licensing business of Xperi Holding Corporation, and LAPIS Technology Co., Ltd., a subsidiary of the ROHM Group, announced an agreement in May 2022 that includes a technology transfer of Adeia's DBI Ultra die-to-wafer hybrid bonding know-how to support the development and deployment of the technology into LAPIS's product line. The agreement also includes a license to Adeia's underlying hybrid bonding patent portfolio.

China is predicted to overtake the United States as the world's top powerhouse in the semiconductor industry based on its expanding domestic chip demand. According to the Semiconductor Industry Association, the semiconductor market will double in size to reach more than USD 1 trillion by 2030, with China contributing over 60% of that increase. This exponential growth is expected to increase demand for semiconductor bonding equipment.

Furthermore, in December 2022, China announced a support program worth more than CNY 1 trillion (USD 143 billion) for its semiconductor industry, significantly advancing chip self-sufficiency and retaliating against American efforts to obstruct its technological development. Most of the financial assistance would be used to finance the purchases of local semiconductor equipment by Chinese enterprises, which is expected to support regional market demand.

Recent Developments

In August 2022, EV Group expanded its collaboration with the Industrial Technology Research Institute, a significant applied technology research institute based in Hsinchu, Taiwan, to develop advanced heterogeneous integration processes. As a member of the Hi-CHIP Alliance, EVG Group provided several wafer bonding and lithography systems, including the GEMINI FB hybrid bonding system and the EVG 850 DB automated debonding system.

In July 2022, MRSI Systems (Mycronic Group) announced the launch of MRSI-H-HPLD+, the latest advancement in the MRSI-H/HVM-series product line. This new variant of MRSI-H-HPLD is tailored for high-power laser die attachment applications, significantly improving throughput using parallel processing while maintaining high accuracy and flexibility.

November 2022: SÜSS MicroTec SE developed a new low-temperature field-assisted bonding technology called Impulse Current Bonding. The Swiss university spin-off created the Sy&Se technology based on a significant scientific discovery. This new technology will be available on both manual and automatic wafer bonder systems, paving the way for a more robust bonding process that combines the robustness of anodic bonding with the material versatility of other, more complex bonding methods.

October 2022: BE Semiconductor Industries NV announced plans to build a new semiconductor assembly and testing facility in Penang. The new facility, consisting of two buildings (Plants 4 and 5), will have a total built-up area of 982,000 square feet in the Bayan Lepas Free Industrial Zone. The project is expected to be completed in 2025 and will create 2,700 job opportunities in the local market.

On November 2021, A method for developing a semiconductor nanowire-incorporated solar cell with ultra-high material efficiency was developed by a research team at the Norwegian University of Science and Technology (NTNU). The efficiency of solar cells was raised to about 40% by using this product in combination with an a-Si cell, so would be a twofold increase over currently available Si solar cells.

In March 2022, Navitas Semiconductor made the announcement that their GaNFast technology had been chosen to provide a market-leading fast-charging solution for the Realme GT Neo 3 smartphone series, which was introduced to the world at MWC 2022 in Barcelona in the same month. The GT Neo 3's new 150W charger is advertised as the most effective member of the new class of ultra-fast smartphone chargers made possible by GaNFast power ICs.

On November 2022, to speed up the ecosystem's reduction in greenhouse gas emissions, 60 companies from across the semiconductor value chain in Europe joined forces with SEMI, the industry association serving the global electronics manufacturing and design supply chain.

Merck and Mecaro Co. Ltd., a publicly traded Korean maker of heater blocks and precursors of chemicals for semiconductors, reached a binding deal in August 2022 for the acquisition of the company's chemical department. The strategic acquisition is a component of Merck's Level Up growth programme for its electronics business sector, aiming for investments of more than USD 3.22 billion in innovation and capabilities from 2021 to 2025 and emphasises four mutually reinforcing key priorities such as scale, technology, portfolio, and capabilities.

To establish a new semiconductor photomask company, Toppan Photomask Co., Ltd., the company signed a contract with Japanese private equity firm Integral Corporation in April 2022. The business aims to improve its competitiveness in the photomask market. Toppan is a well-known producer of photomasks, with facilities in Asaka, Japan, Corbeil, Germany, and Dresden, Germany. It also has a significant market share in the commercial photomask industry.

Key Market Players

• BASF SE.
• Indium Corporation.
• Intel Corporation.
• Hitachi Chemical Co. Ltd.
• KYOCERA Corporation
• Henkel AG & Company KGAA.
• Nichia Corporation
• Intel Corporation and UTAC Holdings Ltd
• International Quantum Epitaxy PLC

Report Scope:

In this report, the Global Semiconductor Bonding Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

·         Global Semiconductor Bonding Market, By Type:

o   Die Bonder

o   Wafer Bonder

o   Flip Chip Bonder

·         Global Semiconductor Bonding Market, By Process Type:

o   Die To Die Bonding

o   Die To Wafer Bonding

o   Wafer To Wafer Bonding

·         Global Semiconductor Bonding Market, By Bonding Technology:

o   Die Bonding Technology

o   Wafer Bonding Technology

·         Global Semiconductor Bonding Market, By Application:

o   RF Devices

o   Mems and Sensors

o   CMOS Image Sensors

o   LED

o   3D NAND

·         Global Semiconductor Bonding Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Asia-Pacific

§  China

§  India

§  Japan

§  South Korea

§  Indonesia

o   Europe

§  Germany

§  United Kingdom

§  France

§  Russia

§  Spain

o   South America

§  Brazil

§  Argentina

o   Middle East & Africa

§  Saudi Arabia

§  South Africa

§  Egypt

§  UAE

§  Israel

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Semiconductor Bonding Market.

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Global Semiconductor Bonding Market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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