Market Dynamics
Drivers: Rising Demand for Electronics Products
Consumers' rising desire for electronics devices increases the chip market, which is anticipated to indirectly increase demand for die attach machines over the forecasted period. The increase can be ascribed to the rising need for user-friendly electronics products and the expanding residential market, which fuels global demand for consumer electronics.
Optoelectronics, MEMS, and MOEMS are a few components used in the mass production of electronic goods in China and Taiwan, including smartphones, wearables, and white goods. A faster growth rate is also anticipated for Asia-Pacific as a result of increased investments in the growth of the semiconductor business in nations like China and India. Thus, it is expected that an increase in construction projects in various parts of the world will fuel the growth of the die attach machine market.
Drivers: Booming Semiconductor Packaging Industry
Semiconductor packing is one of the essential requirements in the global electronics sector. Due to the escalating demand for semiconductor packaging, die bonding materials are in high demand. The United States Army is working on a brand-new technique for integrating Silicon Carbide (SiC)-powered semiconductors into modern equipment and weapons. Given this growing demand for semiconductor packaging, the necessity for bonding materials is rising. Manufacturers in North America are becoming increasingly interested in jet wave machines. Jet wave machines can be utilized for sintering and soldering pastes, and they have the speed and accuracy needed to fuse components above the circuit.
Restraint: Fluctuations in Raw Material Prices
Die attach machines are made from raw materials such as metal, silicon, and plastic. For the past few years, the price of these raw materials has fluctuated, owing to various economic and speculative aspects. Government-led stringent laws, tariffs, and regulations against deforestation, metals, and other materials used in die attach machines have substantially declined revenues and manufacturers' profits. For example, in 2018, the US government increased tariffs on the import of metals (effective from February 2020) by 25% on steel and 10% on aluminum, which further escalated the costs of these metals in the US. Hence, fluctuation in the prices of metals and other materials is anticipated to restrict the growth of the die attach machine market during the forecast period.
Opportunities: Growing Usage of LED Circuits
The need for die attach machines is rising as the rate of LED penetration grows. To achieve the most outstanding results, LED wire bonding can be done through various techniques, including ball and wedge bonding, chain bonding, and ball bonding. Leading producers of die attach LEDs include China, Japan, and Europe. These regions have the most die attach LED manufacturing businesses. Technology-wise, Japanese companies are robust and have a lot of expertise with die attach LEDs. The YOLE group is expanding its research into the memory and hybrid chip industries, focusing on the mobile, automotive and transportation, healthcare, telecom, and defense & aerospace sectors. These nations will construct a variety of lighting, image, and display gadgets in the future, opening up prospects in the market for die attach LED tools.
With the growing need for smart homes, the market is anticipated to have new opportunities, which presents a significant growth opportunity for the die-attach machine market. International Data Corporation's (IDC) Worldwide Quarterly Smart Home Device Tracker estimates that global shipments of smart home devices reached 801.5 million units in 2020, a 4.5 percent increase over 2019. As a result, as domestic income and living standards rise in developing nations, there is a growing need for semiconductors and sensors, which increases the utility of die-attach machines and creates a market opportunity for the die-attach manufacturing industry.
Regional Analysis
Region-wise, the global die attach machine market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Dominance of Asia-Pacific in the Global Market
Asia-Pacific is the highest shareholder and is estimated to grow at a CAGR of 6.9% during the forecast period. Asia-Pacific has a sizable market share and will expand at a relatively rapid pace during the forecast period. The need for die bonder equipment in Asia-Pacific is anticipated to be driven by the high concentration of integrated circuit (IC) manufacturers in the region. Consumer electronics, industrial, telecommunications, data centers, and the automotive industries use integrated circuits (ICs) extensively. For instance, high-density storage devices like solid-state drives (SSDs) and automobiles use ICs for sensing and processing applications. The global expansion of chip fabrication facilities is expected to fuel the regional market.
Europe is the second-largest shareholder and is projected to reach USD 455 million by 2030, growing at a CAGR of 5.7%. This is attributed to the large-scale end-use industries in Europe. The communication industry in the region has also prospered due to increased regulatory backing for expansion. Such initiatives help the communication industry flourish, increasing the need for die bonding materials. In addition, for future growth, the European Commission is said to be considering a short-term strategy to boost the development of its semiconductor industry, and EU officials have been in discussion with companies such as TSMC, Samsung, and Intel to entice them to build plants in Europe with large subsidies. These efforts are expected to drive the growth of the die attach machine market during the forecast period.
North America is the third-largest region. The major semiconductor manufacturers focus on the North American market due to its high adoption of die bonder machines. Artificial intelligence, quantum computing, and enhanced wireless networks are opening up new frontiers in semiconductor demand, which American companies are well-positioned to take advantage of. The US-based company, Intel Corporation, is the leading manufacturer of hybrid chips, motherboards, and microprocessors for electronic devices such as laptops and computers. For instance, many x86 series microprocessor chips are manufactured by Intel Corporation, which is used in personal computers and accommodated by die attach machines. The North American market is estimated to exhibit dynamic growth driven by increased investment in R&D activities. In coming years, the US government is funding establishing 7–10 new semiconductor factories, which is expected to fuel the die attach machine market manufacturing.
Segmental Analysis
The global die attach machine market share is segmented by type, technique, application, and region.
Type-wise, the global market is categorized into Flip Chip Bonders and Die Bonders.
The Die Bonder segment is the highest contributor to the market and is estimated to grow at a CAGR of 6% during the forecast period. One of the key factors driving the growth of the die bonder market is the emerging demand for cutting-edge technologies like UHD TVs, hybrid laptops, and smartphones with integrated circuits. Numerous devices, including optoelectronics, MEMS, and MOEMS, are used in these goods, and die bonding equipment is necessary to assemble these components. Therefore, increased electronic device manufacturing is anticipated to expand the die bonder market.
The Flip-Chip Bonder is the fastest-growing segment. Flip-chip bonder is trending in the market as it is more suitable for high-frequency components than wire bonder. These bonders also serve new technologies such as 2.5D and 3D, used in gadgets such as laptops, desktops, CPU, and GPU with sensors and networking connections, thereby driving the flip-chip industry. Currently, microprocessors use flip-chip more than any other package due to their low cost and superior electrical and thermal performance. Looking at the advantages of flip-chip bonders, investors are optimistic about this segment, and new investments are expected in the future.
Technique-wise, the global market is fragmented into Epoxy, Soft Solder, Sintering, Eutectic, and Others.
The Epoxy technique is the highest contributor to the market and is estimated to grow at a CAGR of 6.9% during the forecast period. This technique is increasingly accepted for the most demanding microelectronic semiconductor packaging. They have excellent resistance to thermal cycling, mechanical shock, and vibrations, making them trending in the die attach market. With the rapid growth of the automatic packaging process, the epoxy technique is a dependable, consistent, and adaptable method of component attachment. Due to its dimensional stability, a high level of control, handling, and integration, digital and analog circuits can be fabricated using epoxy.
The Soft Solder technique offers excellent mechanical, thermal, and electrical properties, making it trending in the die attach market. Die attach utilizing soft solders, primarily high lead (Pb) solders for power semiconductor devices, are still widely used across the industry. They have the unique advantage of providing good heat dissipation of typically 35W/mK, are ductile, exhibit desirable thermal expansion properties, and avoid joint failure due to thermal stress. Moreover, most packages are subjected to extreme temperature variations during operations; soft solder can be used for power devices.
The Sintering technique is unique to solder and epoxies. Silver sintered paste goes through a process of solid diffusion; the silver particles in the paste diffuse throughout the bonding area to create a strong thermal and electrical connection. Sintering possesses high thermal conductivity, low temperature, and low cost, which are some of the critical criteria influencing the sales of sintering die attach materials across the globe. Silver sintering technologies also enable a fast, low-pressure die attach process in many applications, including power modules, power discrete, and high-power LEDs.
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Insights into Application
Application-wise, the global market is fragmented into RF & MEMS, Logic, Memory, Optoelectronics, CMOS Image Sensors, LED, and Others.
The Led segment is the highest contributor to the market and is estimated to grow at a CAGR of 6.7% during the forecast period. The continuous evolution of new technologies in LED chips has reduced the cost of manufacturing LED. This factor has significantly reduced the price of LEDs, which propels the demand for die attach machines used in LED applications. Furthermore, the growth of the die attach machine market depends on the growth of the LED chip industry. The rise in LED chip usage in fishing lighting, healthcare, marine, horticulture, and others offers lucrative growth opportunities for the manufacturer of die attach machines during the forecast period. The companies are continuously funding product innovation to expand the applications of LED chips for high-end applications.
The Optoelectronics segment is the fastest growing. Demand for photodiodes, solar cells, phototransistors, photomultipliers, optoisolators, and integrated optical circuit (IOC) elements drives the market. With the rising use of optoelectronic tools in consumer electronics products, including high-end cameras, flexible and flat television display panels, CD-DVD & Blu-ray storage technologies, cellphones, and xerox machines, the die attach machine market is expected to grow significantly.
The Logic segment is the second largest. Rapid technological development in communication, medicine, and material science led to a demand for the logic circuit, driving the market growth. In addition, the adoption of smart systems is expected to rise in electronic components such as LEDs, OLEDs, compact disks, and Blu-ray devices, which in turn offers lucrative growth opportunities for the manufacturer of die attach machines during the forecast period. The rapid development of communication products and systems such as mobile phones and digital transmission also fuels the growth of the die attach machine market.
Top Key Players
Anza Technology Inc
ASM Pacific Technology Limited
BE Semiconductor Industries N.V
Dr. Tresky AG
Fasford Technology Co. Limited
Inseto UK Limited
Kulicke and Soffa Industries Inc.
MicroAssembly Technologies Limited
Palomar Technologies
Shinkawa Limited
Others
