Semiconductor Bonding Market Size, Share | Global Trends 2028

The semiconductor bonding market was valued US$ 669.48 million in 2022, it is estimated to grow at a CAGR of 8.2% from 2022 to 2028.

The growing demand for semiconductor products, such as chips, from the automotive & industrial sectors, is expected to bolster the growth of the semiconductor bonding market. The automotive market registered a growth of 34.9% in 2021. Further, wireless communications, dominated by smartphones, had a growth of 24.6%. According to the Semiconductor Today data, the number of 5G handsets produced grew from 251 million units in 2020 to 556 million in 2021. Further, the rising demand for wearables, smartphones, and 5G services is anticipated to fuel the semiconductor bonding market growth over the forecast period.

According to the EU report, Europe aims to produce the next generation of leading-edge chips (2nm) by 2030. European semiconductor companies such as Infineon Technologies and ASML Holding are investing heavily in research and development to develop advanced semiconductor bonding solutions. Further, the growing number of European startups in semiconductor bonding is expected to provide new opportunities for digital technologies in the semiconductor industry. Moreover, the growing adoption of electric vehicles across European countries, with support from the government’s green initiatives, is expected to contribute to the semiconductor bonding market growth. For instance, the UK government has set an aim for all electric vehicles by 2030 to support environmental sustainability standards.

Semiconductor Bonding Market - Strategic Insights

Impact of COVID-19 Pandemic on Europe Semiconductor Bonding Market Growth

The Europe semiconductor bonding market was significantly hampered during the COVID-19 pandemic in the second quarter of 2020. The sales of semiconductors and motor vehicles fell during the second quarter of 2020; this shortfall in sales was more than offset by an increased need for computer and electronic equipment due to the shift to remote working and learning norms. Europe is home to various leading automakers such as Mercedes, Volkswagen, Skoda, BMW, and Audi. The automotive sector in Europe was severely affected due to delays in reopened assembly plants by original equipment manufacturers (OEMs), a shortage of semiconductors, and reduced vehicle sales. Thus, the shortage of semiconductor chips and shipping disruptions hampered the operations of automotive part suppliers and the delivery of semiconductor technology equipment.

The development and production of semiconductor bonding components in Europe mainly occur in Germany, France, Italy, the Netherlands, Belgium, Austria, and Ireland. European companies supply semiconductor products, including chips and wafer ICs, to the automotive, industrial automation, security, healthcare, aeronautics, energy production, and telecommunication sectors. For instance, the growing initiatives for the development of the 5G network across European countries are also expected to bolster the Europe semiconductor bonding market growth.

Lucrative Regions for Semiconductor Bonding Market

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Market Insights – Semiconductor Bonding Market

Rising Adoption of Stacked Die Technology in IoT Devices

The usage of stacked die significantly enhances the design processes of semiconductors. The stacked die technology is used to produce a small-sized final design. One of the main factors causing the stacked die technique to advance is handheld electronic devices. Also, live-tracking IoT gadgets are not available in large sizes. By reducing the amount of design effort and raising the likelihood of first-time success, time to market is reduced. Thus, the increasing adoption of stacked die technology in IoT devices is raising the demand for semiconductor bonding solutions in the market.

OEMs operating in the semiconductor sector are utilizing the benefits of IoT beyond connectivity. Sensors, RFID tags, smart beacons, smart meters, and distribution control systems are IoT devices and technologies that are increasingly being used in various applications, such as building and home automation, connected logistics, smart manufacturing, smart retail, smart mobility, and smart transportation. In IoT devices, semiconductor bonding techniques are utilized to compactly attach several stacked dies to substrates, which will lead to the growth of the semiconductor bonding market.

Type-Based Insights – Semiconductor Bonding Market

Based on type, the market is segmented into die bonder, wafer bonder, and flip chip bonder. 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.

Palomar Technologies; Panasonic Corporation; Toray Industries Inc; Kulicke & Soffa Industries, Inc.; HUTEM; DIAS Automation (HK) Ltd; ASMPT Ltd (formerly ASM Pacific Technology Ltd.); EV Group; Yamaha Motor Corporation (Yamaha Robotics Holdings); and WestBond, Inc. are a few key semiconductor bonding market players.

The semiconductor bonding market players focus on developing advanced and efficient systems. For instance:

• In April 2021, ASM Pacific Technology introduced three new production processes utilizing X-Micro Celeprint's Transfer Publishing and ASM AMICRA's good reproducibility die bonding technology to enable significant intensity diverse incorporation of ultra-thin dies up to 300 mm base wafer.
• In September 2021, Palomar Technologies launched a new Palomar 3880-II Die Bonder.