Wafer Level Manufacturing Equipment Market Size, Share, and Industry Analysis, By Type (Wafer Fab Equipment, Wafer Level Packaging, and Assembly Equipment), By Application (Logic & Memory Devices, Micro-electromechanical Systems, Power Devices, LED Devices, and Radio Frequency (RF) Devices), By End User (Foundry, Integrated Device Manufacturers, and Outsourced Semiconductor Assembly Plant), and Regional Forecast, 2024-2032

The wafer level manufacturing equipment market refers to the market for tools and machinery used in the production of semiconductor wafers. Wafers are thin pieces of semiconductor material (usually silicon) that serve as the substrate for the fabrication of integrated circuits (ICs) and other micro-devices. Wafer level manufacturing equipment plays a crucial role in the semiconductor manufacturing process.

The wafer level manufacturing equipment is used for manufacturing semiconductor wafers that include processes such as lithography, etching, inspection, packaging, and stripping. The rising number of applications of semiconductor wafer across various applications drive the market growth. Increasing demand for wafers in various industries such as automotive, electronics, and data processing centers fuels the market growth. In addition, the growth and increasing sales of electric vehicles increases the demand for wafers used in the automotive industry, creating market opportunities for sellers of these products. For instance, according to EV volumes, the global sales of electric cars increased by 34% in 2022 compared to 2021.

Additionally, favorable government investment in research and development expenditure for the expansion of wafer production is projected to drive the market growth. For instance, in June 2023, according to Important Project of Common European Interest, the European government planned to invest around USD 8.5 billion in public funding and USD 14.4 billion in private investment. Such investment in wafer products drives the market growth.

The COVID-19 pandemic accelerated the digital transformation of many companies and this in turn dramatically increased the consumption of semiconductor content, benefiting the entire wafer and semiconductor sector. Even with the uncertainty of geopolitical trade tensions and general macroeconomic factors, the semiconductor market was strong in 2020 and well positioned for healthy growth during the post-pandemic period.

Pandemic shutdowns in 2020 led to a sharp drop in production due to rapidly cancelled orders and just-in-time operations. However, there was a rising demand for semiconductor wafer due to the adoption of work-from-home culture, as consumers increased their use of laptops, 5G phones, gaming systems, and other IT equipment. By the third quarter of year 2020, there was an increase in the demand and adoption of wafer for manufacturing mobile devices, computers, wireless communications, and automobiles sector. All such above factor helped drive the wafer manufacturing equipment market during the COVID-19 pandemic.

Key Insights

The report covers the following key insights:

• Micro Macro Economic Indicators


• Drivers, Restraints, Trends, and Opportunities


• Business Strategies Adopted by Major Players


• Impact of COVID-19 on the Wafer Level Manufacturing Equipment Market


• Consolidated SWOT Analysis of Key Players

Segmentation

Analysis by Type

Based on type, the market is classified into wafer fab equipment, wafer level equipment, and assembly equipment.

The wafer fab equipment market refers to the market for the various types of equipment used in semiconductor fabrication facilities, commonly known as wafer fabs. These facilities produce integrated circuits (ICs) and other semiconductor devices through a complex process that involves the use of specialized equipment at various stages. Moreover, the rising demand for wafer products from automotive, computer, and electronic devices drives the demand for wafer fabrication equipment market.

The wafer level equipment segment is projected to grow as these machines are used to test the electrical characteristics of individual integrated circuits on a wafer. Probers make contact with the circuits to perform functional and parametric tests before the wafer is diced into individual chips.

The assembly equipment segment is expected to grow considering the growing demand for consumer electronics. Customer expectations for better quality of new electronic devices have increased as the demand for electronic products has escalated. These factors drive the market growth.

Regional Analysis

The global wafer level manufacturing equipment market is divided into five regions: North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

The Asia Pacific is set to lead the wafer level manufacturing equipment market. The Asia Pacific region is anticipated to dominate the market as many vendors are setting up factories in the region in response to the high demand for smartphones and other consumer electronics in countries such as China, the Republic of Korea, and Singapore. The increasing demand from automotive and computer devices is set to drive the market growth.

The North America market is projected to grow due to the rising demand for advanced electronic devices, including smartphones, IoT devices, and high-performance computing systems, contributing to the demand for sophisticated wafer level manufacturing equipment. Moreover, technological advancements in the water level equipment by manufacturers are set to drive the market growth.

The Europe market is anticipated to grow during the forecast period. The region has a notable presence in the global semiconductor industry, with companies involved in various aspects of semiconductor manufacturing and technology development. This presence contributes to the demand for wafer level equipment.

The Middle East & Africa and South America markets are anticipated to grow with moderate growth, owing to the rising demand from electronics and computer sectors, which fuels the market growth.

By region, the distribution of the multi-tasking machine tools is as follows:

• North America – 17%


• Europe – 14%


• Asia Pacific – 62%


• Middle East & Africa – 4%


• South America - 3%

Key Players Covered

Major players in the market include Applied Materials Inc, ASML Holding N.V., Lam Research Corporation, Tokyo Electron Limited, KLA Corporation, Modutek Corporation, Nordson Corporation, Onto Innovation Inc, Screen Holding Co. Ltd, and Veeco Instruments Inc.

Key Industry Developments

• July 2023: Applied Materials Inc., launched a new Vistara platform for manufacturing chips with intelligence, sustainable, and flexible. This type of devices are used to manufacture wafer for automotive and related sectors.


• June 2023: Lam Research Corporation introduced a new Coronux DX platform for developing technological advanced wafer product for packaging and 3D packaging applications. Coronus solutions are used in the manufacturing of logic, memory, and special devices, including high-quality 3D devices. Coronus DX is now used in large-scale production at major customer factories across the globe.