DUBLIN--(BUSINESS WIRE)--The "Global Semiconductor Bonding Market by Type (Die Bonder, Wafer Bonder, Flip Chip Bonder), Application (RF Devices, MEMS & Sensors, LED, 3D NAND, CMOS Image Sensors), Process Type, Technology, and Region - Forecast to 2026" report has been added to ResearchAndMarkets.com's offering.
The global semiconductor bonding market was valued at USD 887 million in 2021 and is anticipated to reach USD 1,059 million by 2026, growing at a CAGR of 3.6% between 2021 to 2026. The growing demand for semiconductor bonding in applications such as electric and hybrid vehicles is driving the growth of semiconductor bonding market.
The semiconductor industry plays a vital role in electric and hybrid vehicles. The key components required in electric and hybrid vehicles include power semiconductor devices such as freewheeling diodes, ICs, MEMS, voltage boost DC-DC converters, fuel cell air compressors, motor drives, insulated gate bipolar transistors (IGBTs), and low-voltage power MOSFETs. Innovations in automobiles to build energy-efficient and environment-friendly vehicles have increased the demand for semiconductor devices such as ICs and sensors. Automobile companies also focus on using system on chip (SoC), which offers faster control and secure communication.
Growing adoption of IoT and AI in automotive sector
The advent of Industry 4.0 and technologies such as IoT and AI in the automotive sector would contribute significantly toward the growth of the semiconductor bonding market. The increasing demand for vehicle connectivity would encourage new developments in the industry. With ongoing trends such as touch-free human-machine interfaces revolutionizing the automotive sector, there is a growing significance of connected cars.
According to a report published by the GSM Association (GSMA) in 2019, the number of IoT connections is projected to reach 24.6 billion globally by 2025. Integration of IoT in automotive safety and communication technologies is one of the major reasons for the anticipated growth of IoT connections. The introduction of technologies such as advanced driver assistance systems (ADAS), adaptive cruise control, and intelligent parking assistance systems would further drive the market growth.
Cellular IoT connectivity and AI play a vital role in automotive and transportation sectors, with major use cases being shared mobility, autonomous vehicles, connected vehicles, telematics, smart public transportation, and C-V2sx vehicles. The development of smart infrastructures such as smart cities and intelligent transportation systems would accelerate the implementation of AI and IoT technologies in automotive and transportation. As per the analyst, the connected car market is expected to grow from USD 53.9 billion in 2019 to USD 166 billion by 2025; it is anticipated to register a CAGR of 25.2% during 2020-2025.
The implementation of IoT and AI technologies in automobiles is leading to the integration of a large number of intelligent sensors and actuators, as well as AI chips such as ADAS, LiDAR, and neuromorphic chips. These components do not use standard packaging, as different customers have different packaging designs. The manufacturing process of these components comprises high-precision dispensing and stamping of epoxy. Some use eutectic and ultraviolet (UV) processes. This necessitates the demand for flexible multi-die and multi-process die bonding machines with high speed and high accuracy.
Asia-Pacific is the fastest-growing region in the semiconductor bonding market
In 2020, APAC accounted for a 62.6% share of the global semiconductor bonding market. The growth of the semiconductor bonding in APAC is attributed to the presence of several OSAT players in China and Taiwan. The region also houses semiconductor fabrication facilities of a few of the major IDMs, such as Intel (US), Micron (US), NXP Semiconductors (Netherlands), SK Hynix (South Korea). Samsung (South Korea), Texas Instruments (US). ASM Pacific Technology Ltd. (Singapore), SHIBUYA CORPORATION (Japan), Kulicke & Soffa (Singapore), and Shinkawa Ltd. (Japan) are among the major players in this market that have their headquarters in APAC.
Market Dynamics
Drivers
- Growing Demand for Miniature Electronic Components
- Increasing Adoption of Stacked Die Technology in IoT Devices
- Rising Demand for Electric and Hybrid Vehicles
Restraints
- High Cost of Ownership
Opportunities
- Increasing Demand for 3D Semiconductor Assembly and Packaging
- Expanding IC Industry in China
- Growing Adoption of IoT and AI in Automotive Sector
Challenges
- Mechanical Unbalance of Moving Parts and Thin Wafers Being Volatile and Susceptible to Damage Caused by Pressure or Stress
- Increased Complexities Related to Miniaturized Structures of Circuits
Companies Mentioned
- Applied Microengineering Limited
- ASM Pacific Technology
- Ayumi Industries
- Besi
- BondTech
- Canon Anelva Corporation
- Dr. Tresky
- EV Group (EVG)
- Fasford Technology
- Finetech
- Intel
- Kulicke & Soffa Industries
- Mitsubishi Heavy Industries Machine Tools
- Mycronic Group
- Palomar Technologies
- Panasonic
- Samsung
- SET Corporation SA
- Shibaura Mechatronics
- Shinkawa Ltd.
- STMicroelectronics
- SUSS MicroTech SE
- Taiwan Semiconductor Manufacturing Company (TSMC)
- TDK Corporation
- Tokyo Electron Limited
- Tokyo Ohka Koygo
- Toray Engineering
- Xperi
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