Back end of the line semiconductor equipment: Key market research findings
- Demand for flip chip and advanced packaging drives market growth
- Foundry segment accounts for a majority of the market’s revenue
- Key vendors – Applied Materials, ASML, KLA-Tencor, Lam Research, and Tokyo Electron Limited
Technavio’s market research analysts predict the global market for back end of the line semiconductor equipment to account for a revenue of over $13 billion by 2020. The rise in the demand for flip chip and advanced packaging technologies is driving the demand for back end of the line semiconductor equipment across the globe. Flip chip is a method to connect the die to a substrate or package carrier using conductive bumps. The increasing requirements for flip chip and other advanced packaging techniques in the semiconductor industry have led to the growing demand for lithography equipment. Lithography is one of the most important steps in flip chip packaging and is used to ensure successful wafer bumping. Currently, APAC dominates the global market by accounting for almost 73% of the overall market share. The presence of semiconductor foundries such as Samsung, TSMC, and SMIC in this region will drive further growth in the back end of the line semiconductor equipment market in APAC during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the back of the line semiconductor equipment market based on the end-user.
“Semiconductor companies are going fabless in order to minimize the overhead costs related to operations and maintenance of foundries. The majority of semiconductor companies are more intent on the design and development of their solutions, thereby outsourcing fabrication and other foundry-related activities to companies specializing in manufacturing, assembly, and testing of semiconductor ICs. The rising number of fabless manufacturers is expected to trigger an increase in the net aggregate demand for semiconductor ICs, thus generating demand for BEOL semiconductor equipment,” says Sunil Kumar Singh, Lead Analyst, Hardware & Semiconductor, Technavio Research.
Currently, the foundry segment leads the market with over a 62% share of the overall market revenue. The foundry segment will gain momentum during the forecast period due to the increasing number of fab construction across the globe. The increasing capital expenditure by foundries is fundamentally fueled by the demand for advanced mobile chips. Rising technological functionalities in mobile devices remain the primary driver for foundry spending on semiconductor production equipment market such as BEOL semiconductor equipment.
The key vendors in the global back end of the line semiconductor equipment market include Applied Materials, ASML, KLA-Tencor, Lam Research, and Tokyo Electron Limited. The semiconductor industry is witnessing a lot of technology transitions like the manufacturing process shift to smaller nodes, emerging multi-patterning technology, and growth of MEMS. MEMS technology needs the adoption of dielectrics, ceramic materials, and other new metals for the manufacturing process. The use of piezoelectric ceramic materials such as lead zirconate titanate in the new devices is being expected by the vendors. Therefore, this technology needs reliable manufacturing solutions. To address these requirements of the customers, some of the equipment manufacturers are planning to make changes in the fab equipment.
A more detailed analysis is available in the Technavio report, Global Back End of the Line Semiconductor Equipment Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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