Underfill Dispenser Market Size, Share, and Industry Analysis, By Flow Type (Capillary Flow, No Flow, and Molded), By Application (Flip Chip Packaging, Wafer Packaging, Ball Grid Array, PCB/Flex Circuit, and Others), and Regional Forecast till 2032

The global underfill dispensing market is witnessing significant growth driven by the flourishing demand for electronics and advancements in semiconductor packaging technologies. Underfill dispensers are critical in ensuring reinforced electrical components and improving reliability and connections between semiconductor packages and printed circuit boards (PCBs).

The globally growing integration of the Internet of Things (IoT) and Artificial Intelligence (AI) in home appliances and wearable devices, as well as the emergence of connected home appliances, is increasing the semiconductor and electronics market.

During the Pandemic, strict regulations and supply chain problems across the global trade market have restrained market growth in the short term. However, frequent investments and expansions during the Pandemic have supported steady growth in electronics and semiconductor manufacturing.

• For instance, in May 2020, major semiconductor manufacturer Taiwan Semiconductor Manufacturing Company (TSMC) invested around USD 12.0 billion to construct a new semiconductor fabrication plant in Phoenix, Arizona, U.S. Along with this, around USD 52.7 billion in funding for semiconductor research, development, and manufacturing applications.

Impact of Generative AI on the Underfill Dispenser Market

The growing adoption of Generative AI in semiconductor production lines has kept the industry innovation steady, re-creating possibilities for manufacturers to generate stable income growth in the long term. Automated dispensers are the newest integrated into the underfill segment, enabling the calculated fluid filling to the surface by machine learning and artificial intelligence (AI) for effective holding and joining of wafers, which has kept demand growing during the forecast period.

Underfill Dispenser Market Driver

Growth in Semiconductor Industry Drive Underfill Dispenser Market Growth 

As electronic devices become more compact, a small need for underfill solutions grows. These dispensers provide the accuracy needed for modern high-density wafer packaging solutions. Furthermore, during the forecast period, the semiconductor industry expansions, fueled by the proliferation of automotive electronics, consumer electronics, and industrial automation, drive underfill dispenser market growth.

• For instance, in May 2024, the Prime Minister of Malaysia announced an investment of USD 107 billion for the semiconductor industry. The investment will attract global giants such as Intel and Infineon and strengthen Malaysia's global position in testing and packaging.

Underfill Dispenser Market Restraint

High Initial Cost and Complexity Integration Are Growth Barriers

The integration of underfill dispensers into the existing production line can be a complex and resource-intensive measure. The complexity and integration risk could impact businesses negatively and restrain manufacturers from adopting new dispenser technology. Also, investing in industrial assets requires an ample cost and could impact the gross margins that directly impact the end user. Thus, investment and complexity appear to be a growth barrier for underfill dispensers in the short term.

Underfill Dispenser Market Opportunity

Increase of High-Performance Electronics and Emerging Markets to Create Lucrative Opportunities

Developing regions, particularly Asia, South Africa, and Latin America are experiencing semiconductor industrial growth and technological advancements. These ample growths set a base for high-performance electronics across end users that demand capabilities such as improved precision, speed, and integration of other automated technologies. These high-end innovation demands for modern dispensing technologies open new market segments and lucrative business opportunities for underfill dispenser manufacturers.

• For instance, in February 2024, the Government of India announced three semiconductor units under the initiative “Development of Semiconductor and Display Manufacturing Ecosystems in India.” The three units could direct 20,000 advanced technology jobs and 60,000 indirect jobs.

Segmentation

Key Insights

The report covers the following key insights:

• Micro Macro Economic Indicators


• Drivers, Restraints, Trends, and Opportunities


• Business Strategies Adopted by the Key Players


• Impact of Generative AI on the Global Underfill Dispenser Market


• Consolidated SWOT Analysis of Key Players

Analysis by Flow Type

By flow type, the market is segmented into capillary flow, no flow, and molded.

Capillary underfill dispensing is set to lead the flow type segment as the technology has primary adoption PCB and Ball Grid Array (BGA) underfill process. Also, the capillary flow system provides an enhanced automated dispensing that allows liquid to be transported by the momentum and interfacial force. No flow and molded underfill system demand is growing steadily with rising preferences for complex wafer packaging and enhanced molded wafers in semiconductor and electronics manufacturing.

Analysis by Application

By application, the market is segmented into flip chip packaging, wafer packaging, ball grid array, PCB/flex circuit, and others.

Across industrial applications, flip chip packaging is leading the segment owing to the mass production of semiconductor chips for consumer electronics, and the growing miniaturization of these devices will drive dispensers market growth in the long term. Prominent adoption of modern dispensing mechanisms across wafer packaging, ball grid array, PCB/flex circuit, and other applications has expanded the underfill dispenser market size progressively.

Regional Analysis

In terms of geography, the global market is segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

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The Asia Pacific region holds the largest share in the underfill dispensing industry, driven by its advancement in the semiconductor electronics industry and the progressive growth of the region, supported by developing economics. Also, the region dominates semiconductor manufacturing in countries such as China, Japan, India, Taiwan, and other parts of Asia Pacific. Furthermore, rapid industrialization, high production volumes, and technological advancements created a substantial demand for underfill dispensers during the forecast period.

• For instance, in July 2024, Henkel Adhesive Technologies India Pvt Ltd announced the phase 3 completion of manufacturing facilities in Kurkumbh, Pune. The new site is a strategic plan to support India's market growth and reduce import dependence.

North America is the second largest market for underfill dispensing technology, primarily driven by the heavy investment in research conducted to advance the semiconductor and electronics industry.

• For instance, in September 2022, Henkel announced its latest semiconductor-grade capillary underfill (CUF) commercial launch for advanced packaging solutions. The material Loctite Eccobond UF 9000 AG enables advanced flip chip node integration by robust interconnect.

Middle East & Africa and Latin America's budding semiconductor electronic market supportive government initiatives and investment in research to support the business ecosystem in the region will strengthen the dispenser market.

Key Players Covered

The global underfill dispenser is characterized by significant growth driven by the concentration of players in some regions, and high investments in research supported the business growth. Also, emphasis on developing more technologically advanced dispensing systems bolsters underfill dispenser demand across the electronics and semiconductor industry.

The report includes the profiles of the following key players:

• Henkel AG & Co. KGaA (Germany)


• MKS Instruments, Inc. (U.S.)


• Shenzhen STIHOM Machine Electronics Co., Ltd (China.)


• Zmation Inc. (U.S.)


• Nordson Corporation (U.S.)


• Illinois Tool Works (U.S.)


• Master Bond Inc. (U.S.)


• Essemtec AG (Switzerland)


• Sulzer Ltd. (Switzerland)

Key Industry Developments

• In April 2024, Henkel AG, a prominent underfill dispensing system manufacturer, announced the commercialization of its semiconductor capillary underfill encapsulant. The decision is to address the market demands for advanced packages in applications across AI and High-Performance Computing (HPC).


• In February 2024, Amtest, a prominent semiconductor equipment manufacturer, introduced a new underfill industrial oven, XPHU. The preheating oven lets the product preheat at the right process temperature before applying underfill.