Global Semiconductor Packaging Equipment Market 2016-2020
About Semiconductor Packaging
Semiconductor packaging is carried out to provide extra protection to wafers or substrates. The package casing is made up of materials such as metal, plastic, glass, or ceramic and contains one or more semiconductor electronic components.
Semiconductor packaging offers the following benefits to wafers:
Technavio Announces the Publication of its Research Report – Global Semiconductor Packaging Equipment Market 2016-2020
Technavio recognizes the following companies as the key players in the global semiconductor packaging equipment market: Applied Materials, ASM Pacific Technology, Kulicke and Soffa Industries, Tokyo Electron Limited, and Tokyo Seimitsu.
Other Prominent Vendors in the market are: ChipMos, Greatek, Hua Hong, Jiangsu Changjiang Electronics Technology, Lingsen Precision, Nepes, Tianshui Huatian¸ Unisem, and Ultratech.
Commenting on the report, an analyst from Technavio’s team said: “One of the key trends for market growth will be growing number of mergers and acquisitions. The number of mergers and acquisitions is growing in the global semiconductor packaging and assembly equipment market. The existing vendors are focusing on M&A to increase their market share. For instance, in 2015, ASE agreed to buy a 24.99% stake in SPIL, a provider of advanced packaging solutions, for more than $919 million. Earlier in 2015, SPIL and Hon Hai Precision Industry announced a stock swap to strengthen their product offerings in SiP technology. New entrants in the market also prefer M&A in order to enter in the already highly competitive market.”
According to the report, growing number of fabs will be a key driver for market growth. The rising demand for semiconductor chips and memory devices from electronics end-user devices, sensor systems, IoT-connected devices, and medical devices is propelling the semiconductor industry on the high growth trajectory. However, the industry will slow down in 2016 mainly due to its cyclical nature, slow growth of the Chinese economy, falling ASPs of smartphones, and declining tablet and PC segments. The market is expected to gain ground in 2017 due to the evolution of the IoT, high demand for connected devices, and automation in automobiles. In order to meet this growing demand, semiconductor device manufacturers are increasing their capital spending by expanding their production facilities or constructing new fabs. The majority of the investment in new facilities will be toward the development of memory and logic ICs due to their high demand pattern.
Further, the report states that high investment market will be a challenge for the market. The increase in demand for compact ICs and the emergence of new 3D packaging solutions like TSV, stacked packaging, flip chip packaging, and MEMS packaging have led to a change in the manufacturing process of semiconductor ICs. Manufacturers are required to invest heavily in manufacturing equipment to produce compact ICs. Further, the manufacturing process is complex, requires more time, and has a high probability of defects, thereby increasing the cost of manufacturing. The rapid technological change in the semiconductor industry compels vendors to upgrade and maintain their equipment, which increases the cost of ownership of the equipment. Therefore, companies are going fabless, which is reducing the number of potential customers for semiconductor packaging equipment vendors.
Applied Materials, ASM Pacific Technology, Kulicke and Soffa Industries, Tokyo Electron Limited, Tokyo Seimitsu, ChipMos, Greatek, Hua Hong, Jiangsu Changjiang Electronics Technology, Lingsen Precision, Nepes, Tianshui Huatian¸ Unisem, Ultratech.