Semiconductor Back-End Equipment Market Size, Share, Opportunities, And Trends By Procedure (Wafer Testing, Bonding, Dicing, Metrology, Assembly Packaging), And By Geography - Forecasts From 2024 To 2029

The semiconductor back-end equipment market is expected to grow at a CAGR of 8.11%, reaching a market size of US$148.756 billion in 2029 from US$86.193 billion in 2022.

The market is expected to grow due to the increasing demand for small devices and functional advancements in electronic goods like laptops, digital cameras, smartphones, and others. Since integrated circuit (IC) designs are becoming more complex and more semiconductor products must be introduced to manufacture ICs, the demand for semiconductors is increasing steadily. Semiconductors are used in I.C. development because they lower costs, speed up mass production, and increase the operational value of the finished product.

Two processes are involved in producing semiconductors: front-end and back-end. Back-end processing is the step-in semiconductor production that comes after the circuit definition on the wafer. Several stages are included in the processes to guarantee the functionality, dependability, performance, and durability of the semiconductor chips. Each process needs a particular set of tools to conduct analysis and function at incredibly minute levels. Therefore, businesses provide the goods and services that semiconductor foundries and manufacturing facilities need to meet the demand for such equipment. The rising worldwide demand for semiconductors across the industrial sector has boosted their production scale, driving the semiconductor back-end equipment market.

Semiconductor Back-end Equipment Market Drivers

• High demand for semiconductors

The global demand for semiconductors is increasing owing to growing end-user applications. To satisfy the demands for product development and manufacturing, younger, emerging companies rely on Original Design Manufacturers (ODMs) and Outsourced Semiconductor Assembly and Test (OSAT) service providers. Governments worldwide are focusing on domestic semiconductor production to reduce their reliance on foreign vendors. They welcome direct investment programs from well-known manufacturers and provide favorable regulations.

For instance, in February 2022, India announced partnerships from companies like Vedanta with Foxconn, ISMC, and the Singapore-based IGSS venture totaling USD 20 billion. These businesses want to establish display fabs and semiconductor production facilities in the nation. In September 2022, a semiconductor park and related facilities will be built in Kerala according to plans developed collaboratively by Keltron, the Center for Development of Advanced Computing (C-DAC), the Electronic and Semiconductor Association (ESA), and the Vikram Sarabhai Space Center (VSSC) (ESA). As the semiconductor demand and industry setup increase it will boost the semiconductor back-end equipment market growth.

• Increasing use of water testing equipment

The wafer testing is carried out with the assistance of wafer probers, which are test tools. A wafer probe is an automatic test device that creates and produces semiconductors to test wafers electrically. To prevent reliability concerns later, the wafer is inspected for any irregularities or defects using optical and electron-beam inspection techniques. Following that is the wafer test and dicing, which checks the circuit's operation and signal responses before slicing the wafer into individual dice. The increasing development of new wafer testing systems by the market players will increase the demand for wafer testing and hence will boost the semiconductor back-end equipment market

• Rising need in the manufacturing industry

Semiconductor wafers, IC chips, memory chips, circuits, and other components are made with semiconductor manufacturing equipment. Silicon wafer manufacturing equipment is used early in the manufacturing process. Photolithography tools, etching machines, chemical vapor deposition machines, measurement machines, and process/quality control apparatus are examples of wafer processing equipment. The semiconductor manufacturing equipment market is anticipated to be driven by the growing need for discrete devices, power semiconductors, and high-power modules for diverse end users. Moreover, the trend of combining semiconductors onto a single chip is growing as customers' preferences for small-sized products grow. In this case, the main application of this equipment is the assembly of semiconductor parts into a single chip.

• Increasing demand for bonding equipment

The growing need for semiconductor chips with greater efficiency, processing power, and smaller footprints is driving demand for semiconductor bonding equipment, which will propel the market during the forecast period. The substantial advancements in front-end processes have also increased the need for semiconductor bonding equipment. Investments in other applications and state-of-the-art packaging technologies also fuel the need for bonding equipment solutions. For example, Intel Corp. invested EUR 80 billion in March 2022 throughout the European Union's semiconductor value chain, including state-of-the-art packaging technologies. In addition, producers are focusing on enhancing the semiconductors required to produce back-end machinery and semiconductor manufacturing equipment (SME). For example, it was disclosed that Qorvo, a major worldwide supplier of power and connectivity solutions, had licensed.

Semiconductor Back-end Equipment Market – Geographical Outlook

• Asia Pacific is witnessing exponential growth during the forecast period.

During the forecast period, the Asia-Pacific Semiconductor Back-End Equipment Market is anticipated to grow rapidly. Strategic investments from major domestic suppliers and the growth of the established semiconductor industry are expected to propel the market. As chip consumption rises, the Asia-Pacific semiconductor market is anticipated to more than triple in size from that of the Americas over the next four years.

Additionally, the introduction of 5G technology has increased demand for semiconductor chips in the region by boosting the market for equipment used in semiconductor manufacturing. It is predicted that 5G technology will significantly improve the digital infrastructure globally.

Semiconductor Back-end Equipment Market Key Launches

• In August 2023, Leading semiconductor foundry TSMC started placing new orders with various suppliers of cutting-edge packaging equipment. Suppliers, including Gudeng Precision Industrial, Apic Yamada, Disco, and Scientech, have been collaborating with the company. The company's choice to interact with equipment suppliers is indicative of its continuous endeavors to improve its advanced packaging capacities.
• In June 2022, the US wafer fabrication equipment manufacturer Lam Research introduced Coronus DX in June 2023. This device can deposit a proprietary protective film on both wafer edges in a single step, helping to prevent defects and damage that can arise during advanced semiconductor manufacturing. This innovation opens the door for the adoption of previously unfeasible advanced logic, packaging, and chip production processes. It is also expected that these developments will have an impact on the advancement of sophisticated back-end hardware.

Semiconductor Back-End Equipment Market Scope:

Report Metric	Details
Market Size Value in 2022	US$86.193 billion
Market Size Value in 2029	US$148.756 billion
Growth Rate	CAGR of 8.11% from 2022 to 2029
Study Period	2019 to 2029
Historical Data	2019 to 2022
Base Year	2023
Forecast Period	2024 – 2029
Forecast Unit (Value)	USD Billion
Segments Covered	Procedure Geography
Companies Covered	ASML Holding Applied Materials Lam Research S firm Applied Materials Inc (Tokyo Electron Limited) KLA Corporation And more
Regions Covered	North America, South America, Europe, Middle East and Africa, Asia Pacific
Customization Scope	Free report customization with purchase

 

The Semiconductor Back-end Equipment Market is segmented and analyzed as follows:

• By Procedure
  • Wafer Testing
  • Bonding
  • Dicing
  • Metrology
  • Assembly Packaging
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • UK
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Australia
    • Others

---

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base, and Forecast Years Timeline

1.8. Key Benefits to the Stakeholder

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Processes

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. Analyst View

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View

5. SEMICONDUCTOR BACK-END EQUIPMENT MARKET, BY PROCEDURE

5.1. Introduction

5.2. Wafer Testing

5.2.1. Market Trends and Opportunities

5.2.2. Growth Prospects

5.2.3. Geographic Lucrativeness

5.3. Bonding

5.3.1. Market Trends and Opportunities

5.3.2. Growth Prospects

5.3.3. Geographic Lucrativeness

5.4. Dicing

5.4.1. Market Trends and Opportunities

5.4.2. Growth Prospects

5.4.3. Geographic Lucrativeness

5.5. Metrology

5.5.1. Market Trends and Opportunities

5.5.2. Growth Prospects

5.5.3. Geographic Lucrativeness

5.6. Assembly Packing

5.6.1. Market Trends and Opportunities

5.6.2. Growth Prospects

5.6.3. Geographic Lucrativeness

6. SEMICONDUCTOR BACK-END EQUIPMENT MARKET, BY GEOGRAPHY

6.1. Introduction

6.2. North America

6.2.1. By Procedure

6.2.2. By Country

6.2.2.1. USA

6.2.2.1.1. Market Trends and Opportunities

6.2.2.1.2. Growth Prospects

6.2.2.2. Canada

6.2.2.2.1. Market Trends and Opportunities

6.2.2.2.2. Growth Prospects

6.2.2.3. Mexico

6.2.2.3.1. Market Trends and Opportunities

6.2.2.3.2. Growth Prospects

6.3. South America

6.3.1. By Procedure

6.3.2. By Country

6.3.2.1. Brazil

6.3.2.1.1. Market Trends and Opportunities

6.3.2.1.2. Growth Prospects

6.3.2.2. Argentina

6.3.2.2.1. Market Trends and Opportunities

6.3.2.2.2. Growth Prospects

6.3.2.3. Others

6.3.2.3.1. Market Trends and Opportunities

6.3.2.3.2. Growth Prospects

6.4. Europe

6.4.1. By Procedure

6.4.2. By Country

6.4.2.1. Germany

6.4.2.1.1. Market Trends and Opportunities

6.4.2.1.2. Growth Prospects

6.4.2.2. UK

6.4.2.2.1. Market Trends and Opportunities

6.4.2.2.2. Growth Prospects

6.4.2.3. France

6.4.2.3.1. Market Trends and Opportunities

6.4.2.3.2. Growth Prospects

6.4.2.4. Spain

6.4.2.4.1. Market Trends and Opportunities

6.4.2.4.2. Growth Prospects

6.4.2.5. Others

6.4.2.5.1. Market Trends and Opportunities

6.4.2.5.2. Growth Prospects

6.5. Middle East and Africa

6.5.1. By Procedure

6.5.2. By Country

6.5.2.1. Saudi Arabia

6.5.2.1.1. Market Trends and Opportunities

6.5.2.1.2. Growth Prospects

6.5.2.2. UAE

6.5.2.2.1. Market Trends and Opportunities

6.5.2.2.2. Growth Prospects

6.5.2.3. Others

6.5.2.3.1. Market Trends and Opportunities

6.5.2.3.2. Growth Prospects

6.6. Asia Pacific

6.6.1. By Procedure

6.6.2. By Country

6.6.2.1. China

6.6.2.1.1. Market Trends and Opportunities

6.6.2.1.2. Growth Prospects

6.6.2.2. Japan

6.6.2.2.1. Market Trends and Opportunities

6.6.2.2.2. Growth Prospects

6.6.2.3. South Korea

6.6.2.3.1. Market Trends and Opportunities

6.6.2.3.2. Growth Prospects

6.6.2.4. India

6.6.2.4.1. Market Trends and Opportunities

6.6.2.4.2. Growth Prospects

6.6.2.5. Australia

6.6.2.5.1. Market Trends and Opportunities

6.6.2.5.2. Growth Prospects

6.6.2.6. Others

6.6.2.6.1. Market Trends and Opportunities

6.6.2.6.2. Growth Prospects

7. COMPETITIVE ENVIRONMENT AND ANALYSIS

7.1. Major Players and Strategy Analysis

7.2. Market Share Analysis

7.3. Mergers, Acquisitions, Agreements, and Collaborations

7.4. Competitive Dashboard

8. COMPANY PROFILES

8.1. ASML Holding

8.2. Applied Materials

8.3. Lam Research

8.4. S firm Applied Materials Inc (Tokyo Electron Limited)

8.5. KLA Corporation

8.6. Onto Innovation Inc

8.7. SCREEN Holdings Co Ltd

8.8. Teradyne Inc

8.9. Japan Industrial Partners (Toshiba Corporation)

ASML Holding

Applied Materials

Lam Research

S firm Applied Materials Inc (Tokyo Electron Limited)

KLA Corporation

Onto Innovation Inc

SCREEN Holdings Co Ltd

Teradyne Inc

Japan Industrial Partners (Toshiba Corporation)