Technavio highlights the top six drivers for the global semiconductor packaging equipment market

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Semiconductor packaging equipment: Key market research findings

  • The market’s presence is strongest in the APAC region
  • OSATs account for a majority share of the market revenue
  • Key vendors – Applied Materials, ASM Pacific Technology, Kulicke & Soffa Industries, Tokyo Electron, and TOKYO SEIMITSU

Technavio’s market research analysts predict the global market for semiconductor packaging equipment to grow at a CAGR of around 8% between 2016 and 2020. The growth of the market is fueled by the high demand for polymer adhesive wafer bonding equipment. The growing adoption of advanced packaging techniques such as TSV, 2.5D and 3D IC, stacked die packaging, and MEMS packaging is driving the market for semiconductor packaging equipment such as polymer adhesive wafer bonding equipment. The ease of using polymer to bond two substrates has resulted in the large-scale adoption of polymer adhesive wafer bonding equipment by IDMs and OSATs. During 2015, the global semiconductor packaging equipment was dominated by the APAC with a market share of more than 71%. The market in this region is expected to showcase substantial growth during the forecast period owing to the presence of numerous major foundries such as Taiwan Semiconductor Manufacturing, United Microelectronics, Samsung, and Semiconductor Manufacturing International and major OSATs such as ASE and STATS ChipPAC in APAC counties.

The new market research report from Technavio presents a breakdown and analysis of the semiconductor packaging equipment segments based on the end-user.

“Foundries are using 3D packages to meet the demands of electronic product manufacturers, which are looking to reduce the space consumed by ICs in their devices. However, the reduction in the size of the ICs should not compromise the power-saving ability of the devices. 3D packaging involves the stacking of multiple chips into a single stack, thereby occupying less space in a device. The emergence of this new type of chip packaging will open up new business opportunities for semiconductor foundries,” says Sunil Kumar Singh, Lead Analyst, Hardware & Semiconductor, Technavio Research.

The OSAT segment accounted for around 55% of the overall market revenue to become the dominant shareholder in the global semiconductor packaging equipment market. Overall growth in the semiconductor industry and rising costs of packaging and testing equipment are the key factors that influence the demand for semiconductor packaging equipment in the OSAT segment. The extra costs for solder bumping equipment coupled with the development of new technologies such as FOWLP, 2.5D, and TSV will fuel the growth of this market segment over the next four years.

The key vendors in the global semiconductor packaging equipment market include Applied Materials, ASM Pacific Technology, Kulicke & Soffa Industries, Tokyo Electron, and TOKYO SEIMITSU. End-users are trying to adopt new packaging and assembling technologies. Big manufacturers such as Intel, Samsung, ASE and Amkor Technology are likely to spend a large amount to upgrade their technologies. The global semiconductor packaging equipment market is likely to flourish during the forecast period due to an increase in the demand for advanced semiconductor packaging equipment.

A more detailed analysis is available in the Technavio report, Global Semiconductor Packaging Equipment Market 2016-2020.

We can customize reports by other regions and specific segments upon request.

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