Semiconductor Back-End Equipment Global Market Report 2025

The semiconductor back-end equipment market size has grown strongly in recent years. It will grow from $19.88 billion in 2024 to $21.65 billion in 2025 at a compound annual growth rate (CAGR) of 8.9%. The growth during the historic period can be linked to the rising adoption of mobile devices, increasing production of automotive electronics, expansion of telecommunications infrastructure, growing demand for high-performance computing, and rising requirements for industrial automation.

The semiconductor back-end equipment market size is expected to see strong growth in the next few years. It will grow to $30.19 billion in 2029 at a compound annual growth rate (CAGR) of 8.7%. The growth in the forecast period is expected to result from the growing adoption of artificial intelligence applications, increased deployment of 5G networks, rising demand for electric vehicles, expansion of data center capacities, and broader use of Internet of Things (IoT) devices. Key trends in the forecast period include advancements in wafer-level packaging, development of automated optical inspection systems, investment in high-throughput assembly equipment, innovations in thermal management solutions, and progress in vacuum pick-and-place automation.

The growing focus on electric vehicles (EVs) is expected to drive the expansion of the semiconductor back-end equipment market in the coming years. EVs are powered by electricity stored in rechargeable batteries and use electric motors for propulsion instead of traditional fuel-based engines. The increasing emphasis on EVs is driven by rising environmental concerns, as they help reduce greenhouse gas emissions and dependency on fossil fuels, supporting global sustainability goals. Semiconductor back-end equipment plays a critical role in EV production by supporting the manufacturing of advanced power chips that enhance energy efficiency, optimize battery performance, and improve overall vehicle reliability. For example, in November 2024, the Joint Office of Energy and Transportation, a US-based government agency, reported that plug-in electric vehicle sales in the US grew from 6.8% of total vehicle sales in 2022 to 9.4% in 2023. As a result, the rising adoption of electric vehicles is driving the growth of the semiconductor back-end equipment market.

Leading companies in the semiconductor back-end equipment market are focusing on developing advanced technologies, such as hybrid bonding systems, to improve performance, power efficiency, and enable 3D integration. A hybrid bonding system allows for the direct bonding of dies or wafers using metal and dielectric interfaces without the need for solder bumps, providing ultra-fine pitch and superior electrical and thermal performance. For example, in May 2024, BE Semiconductor Industries N.V., a Netherlands-based semiconductor assembly equipment manufacturer, received an order for 26 Hybrid Bonding Systems from a leading semiconductor logic manufacturer. This product delivers high precision with 100 nm placement accuracy, surpassing conventional bonding systems. It supports advanced wafer-to-wafer and die-to-wafer bonding, making it suitable for high-volume manufacturing. This growing interest in hybrid bonding reflects the semiconductor industry's need for solutions to meet the increasing performance, density, and efficiency demands of next-generation devices.

In October 2023, Cohu Inc., a US-based provider of semiconductor test and inspection solutions, acquired Equiptest Engineering for an undisclosed amount. Through this acquisition, Cohu aims to expand its product portfolio of test contactors and consumables while strengthening its position in the global semiconductor back-end equipment market. Equiptest Engineering, a Singapore-based manufacturer, specializes in semiconductor back-end equipment.

Major players in the semiconductor back-end equipment market are ASE Group, Toray Engineering Co. Ltd., Yamaha Robotics Holdings Co. Ltd., Micron Technology Inc., Applied Materials Inc., Advantest Corp., ASM International, Teradyne Inc., Nordson Corporation, KLA Corp., Disco Corporation, Advanced Micro-Fabrication Equipment Inc., Onto Innovation Inc., FormFactor, Cohu Inc., SUSS MicroTec SE, TOWA Corp., EV Group Inc., Kulicke & Soffa Industries Inc., Screen Holdings Company Limited, Hanmi Semiconductor Company Limited, GL Tech Co. Ltd., Camtek Ltd., Synova LLC, Matsusada Precision Inc.

Asia-Pacific was the largest region in the semiconductor back-end equipment market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in semiconductor back-end equipment report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid rise in U.S. tariffs and the subsequent trade frictions in spring 2025 are having a major impact on the electrical and electronics sector, with semiconductors, display panels, and rare-earth metals (essential for batteries and motors) subject to steep duties. Consumer electronics brands face profit erosion, as competitive markets limit their ability to pass costs to buyers. Industrial electronics manufacturers, meanwhile, grapple with delayed projects due to shortages of tariff-impacted components like printed circuit boards. Companies are responding by relocating assembly to tariff-exempt countries, increasing inventory buffers, and redesigning products to reduce dependency on restricted materials.

The semiconductor back-end equipment market research report is one of a series of new reports that provides semiconductor back-end equipment market statistics, including semiconductor back-end equipment industry global market size, regional shares, competitors with a semiconductor back-end equipment market share, detailed semiconductor back-end equipment market segments, market trends and opportunities, and any further data you may need to thrive in the semiconductor back-end equipment industry. This semiconductor back-end equipment market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Semiconductor back-end equipment refers to the machinery and tools used in the later stages of semiconductor manufacturing, where fabricated wafers undergo assembly, packaging, and testing processes. This equipment is essential for transforming processed wafers into finished semiconductor devices by ensuring precision, reliability, and consistent performance.

The primary types of semiconductor back-end equipment include die bonding equipment, wire bonding equipment, packaging equipment, and testing equipment. Die bonding equipment consists of machines that attach semiconductor dies or chips onto substrates, packages, or carriers with high precision. These tools cover various process stages, such as wafer-level processing, chip-level processing, final testing and packaging, assembly, and more. They are applied across sectors including consumer electronics, automotive electronics, telecommunications, data processing, and industrial applications, and are used by end-users such as semiconductor manufacturers, original equipment manufacturers (OEMs), fabrication plants (fabs), research and development institutions, and others.

The countries covered in the semiconductor back-end equipment market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The semiconductor back-end equipment market consists of sales of molding equipment, metrology equipment, burn-in equipment, and final test handlers. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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