Semiconductor Assembly and Packaging Equipment Market Report 2025

The semiconductor assembly and packaging equipment market size has grown rapidly in recent years. It will grow from $12.16 billion in 2024 to $13.48 billion in 2025 at a compound annual growth rate (CAGR) of 10.9%. The growth in the historic period can be attributed to growth in emerging markets, an increasing demand for semiconductor equipment, an increasing demand for consumer electronics and a rise in disposable income.

The semiconductor assembly and packaging equipment market size is expected to see strong growth in the next few years. It will grow to $19.39 billion in 2029 at a compound annual growth rate (CAGR) of 9.5%. The growth in the forecast period can be attributed to government initiatives to propel the semiconductor industry, an increasing demand for electric vehicles, an increasing demand from the medical industry, rising urbanization and an increasing demand for portable electronic devices. Major trends in the forecast period include focus on the launch of new semiconductor inspection machines using big data and ai (artificial intelligence), focus on innovating new products such as the introduction of a new automatic flip-chip bonder, focus on introducing compound semiconductor equipment to strengthen the wet process product line, focus on increasing investment and focus on undergoing partnerships to develop new products.

The increasing demand for consumer electronics is expected to drive the growth of the semiconductor assembly and packaging equipment market. Consumer electronics is a crucial segment that relies entirely on the semiconductor industry. For example, in January 2022, the Consumer Technology Association (CTA), a U.S.-based trade organization, projected smartphone shipments to reach 154.1 million units, generating $74.7 billion in revenue for 2022. This represents a 3% increase from 2021’s 149.6 million units. Additionally, automotive technology sales are anticipated to grow by 7% in 2022, reaching $16 billion, up from $14.9 billion, thanks to improved chip supply. Consequently, the expanding consumer electronics market is likely to heighten the demand for semiconductor assembly and packaging equipment.

The rising popularity of electric vehicles (EVs) is expected to drive growth in the semiconductor assembly and packaging equipment market in the future. EVs are powered by electricity, typically stored in rechargeable battery packs or energy storage systems, and their electric propulsion systems rely on advanced power electronics. These systems require specialized semiconductor components that must be precisely assembled and packaged. For example, in June 2024, data from The International Energy Agency (IEA), a France-based intergovernmental organization, revealed that global electric car sales exceeded 14 million in 2023, representing a 35% increase from 2022 and more than six times the volume sold in 2018. This growth indicates that electric vehicles accounted for about 18% of total car sales, up from 14% the previous year. As a result, the rising popularity of electric vehicles is significantly contributing to the growth of the semiconductor assembly and packaging equipment market.

Technological advancements emerge as a prominent trend driving innovation in the semiconductor assembly and packaging equipment market. Key players in the market are actively introducing new technologies to enhance packaging applications, with a focus on compound equipment. Shengmei Semiconductor Equipment (Shanghai) Co., Ltd., a China-based provider of wafer process solutions, exemplifies this trend. In January 2022, the company launched an integrated equipment series supporting compound semiconductor manufacturing. The compound semiconductor wet process product line includes various equipment such as gluing, development, photoresist de-gluing, wet etching, cleaning, and metal plating equipment. It is designed to be automatically compatible with flat-edged or notched wafers, showcasing advancements in semiconductor assembly and packaging technology.

Major companies in the semiconductor assembly and packaging equipment market are also investing in the development of new technologies such as semiconductor package substrates to expand their customer bases, increase sales, and boost revenue. A semiconductor package substrate is a critical component in assembling semiconductor devices, including integrated circuits (ICs) and microprocessors. LG Innotek Co. Ltd., a South Korea-based electronic components manufacturer, introduced the 2Metal Chip on Film (COF) in February 2023. COF is an advanced semiconductor package substrate designed for establishing connections between displays and flexible Printed Circuit Boards (PCBs). The product minimizes bezels in devices such as TVs, notebook PCs, monitors, and smartphones while contributing to a reduction in module size. The innovative design features micro-via holes on a thin film and integrates ultra-miniaturized circuits on both sides, facilitating faster signal transmission and enabling ultra-high-definition screens.

In November 2022, Lam Research Corp, a U.S.-based wafer fabrication equipment and service company, acquired SPEC (Semiconductor Process Equipment Corporation) and SEMSYSCO GmbH for undisclosed amounts. This acquisition is intended to enhance Lam Research's capabilities in advanced chip packaging, particularly for state-of-the-art logic chips and chiplet-based solutions. This strategic move aims to meet the increasing demand for high-performance computing (HPC), artificial intelligence (AI), and other data-intensive applications. SEMSYSCO GmbH is an Austria-based company specializing in semiconductor manufacturing machines and systems.

Major companies operating in the semiconductor assembly and packaging equipment market include Tokyo Electron Ltd, Applied Materials, Inc, Kulicke and Soffa Industries, Inc, ASML Holding N.V, BE Semiconductor Industries N.V, Tokyo Seimitsu, Amkor Technology, ASM Pacific Technology, Screen Holdings Co. Ltd, KLA-Tencor, Toshiba Corp, Renesas Electronics Corporation, Fujitsu Limited, Panasonic Corporation, Continental Device India Ltd (CDIL), MosChip Semiconductor Technologies, Advanced Semiconductor Engineering Inc, Zhixin Semiconductor, UNISOC, Yangtze Memory Technologies Co., Ltd (YTMC), GigaDevice, CR Micro, Silan, Infineon Technologies AG, UnitySC, Lam Research Corporation, Hitachi High Technologies Corporation, Advantest, Teradyne Inc, Smart Modular Technologies, Multilaser, Flextronics, STMicroelectronics, ROHM Semiconductor, Semiconductors and Technologies Limited Company.

Asia-Pacific was the largest region in the semiconductor assembly and packaging equipment market in 2024. Western Europe was the second-largest region in the global semiconductor assembly and packaging equipment market share. The regions covered in the semiconductor assembly and packaging equipment market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the semiconductor assembly and packaging equipment market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

Semiconductor assembly and packaging equipment consists of the tools and machinery utilized to assemble and package semiconductor devices, ensuring their functionality and protection. This process includes attaching semiconductor chips to substrates, connecting them with wires, and encasing them in protective materials for use in electronic devices.

The primary types of semiconductor assembly and packaging equipment include plating equipment, inspection and dicing equipment, wire bonding equipment, and die-bonding equipment. Wire bonding equipment specifically pertains to the process of connecting two pieces of equipment using a wire, a crucial step for hazard prevention. These equipment find diverse applications in consumer electronics, healthcare devices, automotive, enterprise storage, and various other sectors. The key end-users encompass OSATs (Outsourced Semiconductor Assembly and Test) and IDMs (Integrated Device Manufacturers).

The semiconductor assembly and packaging equipment market research report is one of a series of new reports that provides semiconductor assembly and packaging equipment market statistics, including semiconductor assembly and packaging equipment industry global market size, regional shares, competitors with a semiconductor assembly and packaging equipment market share, detailed semiconductor assembly and packaging equipment market segments, market trends and opportunities, and any further data you may need to thrive in the semiconductor assembly and packaging equipment industry. This semiconductor assembly and packaging equipment market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The semiconductor assembly and packaging equipment market consists of sales of precision ACCRETECH dicing blades, probing machines, polish grinders, high rigid grinder, CMP, edge shaping products, sliced wafer demounting and cleaning machine. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 3-5 business days.