According to Global Market Insights, the semiconductor bonding equipment market was valued at USD 530.4 million in 2023 and is expected to grow at a CAGR of more than 10% between 2024 and 2032. The semiconductor industry is experiencing strong growth, driven by the growing demand for chips in various sectors such as consumer electronics, automotive, telecommunications, and industrial applications. This growth is being driven by the proliferation of technologies such as 5G, artificial intelligence, IoT, and electric vehicles, all of which require advanced semiconductor components. This upward trend is expected to drive the semiconductor industry. For instance, in February 2024, the Semiconductor Industry Association predicted that the semiconductor market would reach $1 trillion by 2030.
With the acceleration of global digital transformation, the semiconductor bonding equipment market is ushering in rapid growth. According to a report by Mordor Intelligence, the semiconductor bonding equipment market size is expected to reach $542.38 million by 2024 and grow at a CAGR of 4.90% from 2024 to 2029, reaching $689.03 million by 2029. This growth trend is driven by growing demand for high-performance computing, artificial intelligence, mobile devices, and automotive electronics.
Figure: Semiconductor Bonding Equipment Market Analysis (Source: GMI)
With the growing demand for more powerful and efficient electronic devices, the semiconductor industry is increasingly turning to advanced packaging technologies. Traditional chip packaging methods are being replaced by advanced technologies such as 3D stacking, system-in-package (SiP), and fan-out wafer-level packaging (FOWLP). These advanced packaging methods enable higher performance, better thermal management, and smaller size, making them ideal for smartphone, data center, and automotive electronics applications. This shift is driven by the need to improve chip performance. Semiconductor manufacturers are investing heavily in advanced packaging technologies. For instance, in April 2024, SK hynix announced an investment of around USD 3.87 billion to build an advanced semiconductor packaging and research facility at the Purdue Research Campus in West Lafayette, Indiana.
In terms of technological development, with the continuous advancement of chip manufacturing processes, the requirements for bonding equipment are also increasing. For example, EV Group is the world's leading supplier of semiconductor bonding equipment, with products covering a wide range of fields, including wafer bonding, optical lithography, nanoimprint lithography, resist treatment, and measurement. In addition, companies such as ASMPT Semiconductor Solutions, MRSI Systems (Myronic AB), WestBond Inc., and Panasonic Holding Corporation also have a presence in the semiconductor bonding equipment market.
The Asia-Pacific region is expected to be the fastest-growing market, which is closely related to China's large-scale investment in the semiconductor industry. The Chinese government has invested more than $150 billion in semiconductors, aiming to boost the domestic semiconductor industry and reduce dependence on foreign suppliers. Chinese semiconductor companies, such as Huawei and SMIC, are actively developing advanced chip manufacturing technologies, including 3nm-level process technologies.
Moreover, the growing demand for high-performance computing with the development of technologies such as artificial intelligence and machine learning is further driving the demand for advanced semiconductor bonding equipment. According to Deloitte's forecast, the market opportunity for chips powered by generative AI will reach about $50 billion by 2024.
Overall, the growth of the semiconductor bonding equipment market is driven by a variety of factors, including technological advancements, increasing market demand, and government support for the semiconductor industry. With the deepening of the global digitalization process, this market is expected to continue to maintain good growth momentum.
