Global Die Bonder Equipment Market 2017-2021
About Die Bonder Equipment
Die bonder equipment are a type of semiconductor packaging and assembly equipment in which wafers are cut into dies, and the functional dies are separated from the defective ones, which are already marked before this step. bonder equipment are a type of semiconductor packaging and assembly equipment in which wafers are cut into dies, and the functional dies are separated from the defective ones, which are already marked before this step.
Technavio’s analysts forecast the global die bonder equipment market to grow at a CAGR of 2.28% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global die bonder equipment market for 2017-2021. To calculate the market size, the report presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Die Bonder Equipment Market 2017-2021
Technavio recognizes the following companies as the key players in the global die bonder equipment market: ASM Pacific Technology (ASMPT), Kulicke & Soffa, and Palomar Technologies.
Other Prominent Vendors in the market are: Besi, DIAS Automation, Hesse, Hybond, SHINKAWA, Toray Engineering, and West-Bond.
Commenting on the report, an analyst from Technavio’s team said: “One trend in market is increase in number of OSAT vendors. The number of OSATs in APAC, especially China, is growing at a considerable pace since these companies have a strong liquidity and financial backing. This enables OSATs to have adequate funds for R&D and capacity expansion. Moreover, governmental support toward the development of the semiconductor industry from major APAC countries, such as South Korea, China, and Japan, is propelling the growth of these facilities. The easy availability of capital is likely to boost the development of these companies while ensuring scale and technical competence through acquisitions. The increase in the number of OSATS signifies that most companies in the semiconductor market are resorting to the fabless model. This is to increase the orders received for packaging by these OSATs who must increase their production capacities. This is expected to generate a significant demand for the die bonder equipment in the market during the forecast period.”
According to the report, one driver in market is incentives and discounts for long-term customers. The semiconductor capital equipment industry is defined by relationship-based sales. The selling price of such equipment is usually in the range of $100,000 to $1,000,000. Therefore, manufacturers develop long-standing relations with customers for buying their products. The main aim of such relations is to convince their customers to procure the necessary equipment from them by offering incentives and discounts for future purchases. Equipment manufacturers mostly target those customers who tend to procure equipment for a significant sum, thereby accounting for more than 5%-10% of their global sales. Semiconductor device manufacturers and packaging houses may consider repeated purchase in the future as they get attracted by the discounts and incentives. Thus, equipment vendors offer price discounts to have a sustaining customer base.
Further, the report states that one challenge in market is cyclical nature of semiconductor industry. The cyclical nature of the semiconductor equipment industry affects the operating results of the equipment vendors due to severe downturns. The equipment manufacturers face risks such as overcapacity, low demand, and high price competition. Changes in customer requirements due to new manufacturing capacity and advances in technology affect equipment manufacturers considerably. The capital expenditure of semiconductor device manufacturers affects the semiconductor manufacturing equipment vendors. During the period of overcapacity, device manufacturers reduce their capital expenditure and demand for semiconductor manufacturing equipment. This results in underutilization of vendor factories. During this cyclical period, customers reduce purchases, delay delivery of ordered products, or cancel orders. This results in reduced net sales and backlog, delays in revenue recognition, and excess inventory for the vendors, which act as a major challenge for the vendors. In addition, high price competition due to low demand in the market affects their gross margins.
ASM Pacific Technology (ASMPT), Kulicke & Soffa, Palomar Technologies, Besi, DIAS Automation, Hesse, Hybond, SHINKAWA, Toray Engineering, and West-Bond.