Semiconductor Bonding Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Type (Die Bonder, Wafer Bonder, and Flip Chip Bonder) and Technology (RF Devices, MEMS and Sensors, LED, CMOS Image Sensors, and 3D NAND)
The semiconductor bonding market size is expected to reach US$ 1,076.82 million by 2028; it is estimated to grow at a CAGR of 8.2% from 2022 to 2028.
The semiconductor industry's growth is attributed to the use of memories, graphics processing units, and 5G chipsets in hyperscale mobile phones, PCs, tablets, and 5G services. However, in 2020, the industrial & automotive electronics industries experienced a decline in the demand for semiconductors due to the onset of the COVID-19 pandemic. According to the Semiconductor Industry Association (SIA), the global sales of semiconductors increased from US$ 204.4 billion in 2000 to US$ 440.4 billion in 2020, which approximately doubled in the last two decades. Low prices of various chip types, such as memory chips; decreasing demand for smartphones, servers, and PCs; and a trade dispute between the US and China are hampering the market growth. Moreover, the US has imposed several restrictions on Chinese businesses because of national security concerns. For instance, the direct result of US sanctions against Huawei, the Chinese company, has adversely affected the company's semiconductor business. As a result, China’s share of the semiconductor industry dropped from 6.7% in 2020 to 6.5% in 2021, according to SIA.
Several semiconductor bonding players are adopting various organic and inorganic strategies to gain a competitive advantage. For instance, in April 2021, ASM Pacific Technology introduced three new manufacturing systems with X-Celeprint’s Micro Transfer Printing and ASM AMICRA’s high precision die bonding technology to allow high volume heterogeneous integration of ultra-thin dies.
Impact of COVID-19 Pandemic on North America Semiconductor Bonding Market Growth
Semiconductor companies in North America are adapting to increased costs, lead time, and a shortage of supplies while catering to consumer demand. According to the United States Department of Commerce, the US constitutes ~50% of the global market share of semiconductor production. The demand for major semiconductor components in North America witnessed a significant decline due to the emergence of the COVID-19 pandemic. For example, in 2020, the global semiconductor industry faced a decline of 5-15% compared to 2019. The COVID-19 pandemic has had a negative impact on semiconductor companies in the US. In addition, the US semiconductor industry relied heavily on outsourcing raw materials and labor from China before the onset of the pandemic. Further, In Mexico, growth is observed in telecom & automotive sectors which is also expected to offer lucrative opportunities for semiconductor bonding market players. The shutdown of China's border led to the shutdown of factories or limited production, an increase in shipping costs, and supplementary capacity constraints. As a result, domestic production increased, which increased overall costs while allowing the US to control the entire supply chain. Further, in August 2020, the US government banned the sale of semiconductor chips to Huawei, the Chinese multinational corporation. These initiatives are expected to boost the US semiconductor industry, which, in turn, is expected to boost the semiconductor bonding market size.
The North America region is segmented into the US, Canada, and Mexico. The US held the largest semiconductor bonding market share in 2021, whereas Canada is projected to grow at the highest CAGR. Government authorities have taken many initiatives to promote the semiconductor industry, which has increased the number of investments in the industry. North America has a huge demand for 3D semiconductor assembly and packaging solutions. An increasing number of companies, majorly in the automotive sector, are adopting advanced technologies such as IoT and artificial intelligence. Robert Bosch GmbH; Allegro MicroSystems, Inc.; Texas Instruments Incorporated; Qualcomm Technologies, Inc.; InvenSense; and Honeywell International Inc. are a few of the prominent semiconductor bonding market players. The rising demand for MEMS and sensors in the region has provided many opportunities for market leaders engaged in the manufacturing of die bonders, wafer bonders, and flip-chip bonders.
Semiconductor bonding is used in manufacturing consumer electronic devices, automotive, medical devices, and various other applications, which is significantly increasing its demand, thereby driving the semiconductor bonding market growth in the US. Further, high automotive sales in the US impacted the country's overall semiconductor bonding market analysis in 2021. Major automakers announced multibillion-dollar investments in EVs and AVs. GM announced an investment of US$ 35 billion by 2025. In addition, in September 2022, the US government announced that they would be investing US$ 50 billion in the establishment of the US semiconductor industry; they are also aiming to lower the dependency on China for semiconductors through this investment plan. Moreover, in August 2022, the Arizona government visited Taiwan, focusing on semiconductors for everyday electronic devices. Thus, the growing government investment in the semiconductor industry will fuel the demand for semiconductor bonding.
A rise in the population in Canada will increase the demand for housing units, from single-family homes to high-rise condominiums. As a result, the demand for household electronic goods is fueling the need for semiconductors in the country. In addition, The use of smartphones, tablets, television, personal computers, and other devices is increasing tremendously. The rising demand for consumer electronic devices in Canada is boosting the semiconductor bonding market growth. Also, the country has provided semiconductor chip manufacturers access to 15 free trade agreements with 51 countries with ~1.5 billion consumers and a combined GDP of US$ 49.3 trillion. Furthermore, the country is home to various semiconductor companies such as TSMC, Samsung Electronics, AMD, Qualcomm, and Intel. Thus, the rising demand for smart electronic devices and the initiative by the Canadian government are propelling the growth of the semiconductor bonding market in the country.
Palomar Technologies; Panasonic Corporation; Toray Industries Inc; Kulicke & Soffa Industries, Inc.; HUTEM; DIAS Automation (HK) Ltd; ASMPT Ltd (formerly ASM Pacific Technology Ltd.); EV Group; Yamaha Motor Corporation (Yamaha Robotics Holdings); and WestBond, Inc. are a few of the prominent players operating in the semiconductor bonding market.
The overall semiconductor bonding market has been derived using both primary and secondary sources. To begin the semiconductor bonding market analysis, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the semiconductor bonding market. The process also serves the purpose of obtaining an overview and market forecast of the market growth with respect to all market segments. Also, multiple primary interviews with industry participants and commentators have been conducted to validate the data and gain more analytical insights about the topic. Participants of this process include industry experts such as VPs, business development managers, market intelligence managers, national sales managers, and external consultants—such as valuation experts, research analysts, and key opinion leaders—specializing in the semiconductor bonding market.
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