Advanced Packaging Fuels Growth in the Semiconductor Back-end Equipment Market
Shannon Davis
4 days ago
The semiconductor back-end equipment market is entering a new era. Once dominated by mature and cost-sensitive processes, it is now being reshaped by disruptive packaging technologies and the increasing complexity of semiconductor devices. Between 2025 and 2030, the back-end equipment market is expected to grow from $6.9 billion to $9.8 billion, achieving a significant CAGR of 7.1%.
This expansion is not just a function of volume growth but also of the profound technological shifts redefining the industry. With advanced packaging becoming essential for high-performance computing (HPC), artificial intelligence (AI), and automotive applications, the back-end is no longer an afterthought. Instead, it has become a critical enabler of semiconductor performance and system-level integration.
Market dynamics: transformation through complexity
Semiconductor manufacturing is evolving rapidly, and the back-end is at the heart of this transformation. A confluence of factors, from chiplet architectures to heterogeneous integration and the rise of HBM, is pushing demand for new classes of equipment.
As of 2025, core back-end equipment segments include die bonders, flip chip bonders, thermo compression bonders (TCB), hybrid bonding, wire bonding, wafer thinning, dicing, and metrology & inspection. While traditional solutions like wire bonding remain relevant, it is advanced technologies such as TCB and hybrid bonding that are driving the most significant changes.
 Back-end semiconductor equipment: segment growth outlook
Thermo Compression Bonding (TCB): TCB is rapidly gaining prominence, fueled by its central role in advanced packaging and particularly HBM integration. Revenues are forecast to rise to about $1.1 billion by 2030, representing a strong CAGR of 13.4%. Fluxless TCB, which reduces contamination and improves reliability, is a notable innovation. Vendors like Hanmi, ASMPT, Kulicke & Soffa (K&S), BESI and others are actively expanding this space, with BESI’s recent TCB Next orders underscoring market confidence.
Hybrid bonding: Hybrid bonding is the most disruptive back-end technology today. By enabling ultra-fine pitches below 5 µm without solder bumps, it supports ultra-dense vertical stacking, essential for AI, HPC, and chiplet-based designs. Though still a smaller segment, it is expected to reach roughly $477 million by 2030, with an exceptional CAGR of 24.6%. Industry leaders such as TSMC (SoIC), Intel (Foveros Direct), and Samsung (X-Cube) have pioneered adoption, while BESI and its strategic partnership with Applied Materials have positioned the company at the forefront of equipment innovation.
Die bonders and Flip Chip bonders: Traditional die bonders remain indispensable, evolving to deliver ±1 µm placement accuracy, enhanced vision systems, and superior thermal control. Revenues are projected to reach $912 million by 2030, driven by usage in automotive, consumer, and industrial electronics.
Flip chip bonders, crucial for both traditional and advanced high-density packaging, will grow to more than $662 million by 2030. Innovations such as fluxless processes and ultra-fine-pitch interconnects are enabling higher I/O density and improved electrical performance. Vendors like BESI, Hanmi, ASMPT, and Shibaura play pivotal roles in this space.
Wire bonding: Despite its maturity, wire bonding remains relevant, particularly for cost-sensitive and legacy applications. With advancements such as ultra-fine wire (<15 µm), copper bonding, and advanced loop control, wire bonding continues to evolve. Revenues are set to grow modestly to about $994 million in 2030 with K&S maintaining strong market leadership.
 Wafer thinning and dicing: As device form factors shrink and wafer-level packaging proliferates, thinning and dicing technologies are seeing robust demand.
Wafer thinning will grow to more than $890 million by 2030, driven by ultra-thin grinding (<50 µm), CMP, and plasma-assisted dry thinning. Vendors like DISCO and ACCRETECH (Tokyo Seimitsu) are innovating in uniformity and damage-free processing.
Dicing, projected to reach about $2 billion by 2030, is also evolving. While blade dicing dominates high-volume applications, laser and plasma dicing are gaining traction due to superior precision, reduced kerf width, and minimal debris generation. DISCO leads with advanced dual-spindle blade systems and femtosecond laser innovations.
Metrology and inspection: Metrology and inspection equipment ensures yield, reliability, and compliance with stringent quality standards, particularly in automotive and HPC. With revenues expected to grow to approximately $850 million by 2030, this segment benefits from advances in defect classification, high-resolution optics, and AI-driven analytics. KLA and Nova are amongst several vendors which are spearheading innovation here.
Key market players and investments
The growth of back-end equipment technologies is supported by strategic investments from both OSAT providers and IDMs.
• Leading OSATs such as ASE, Amkor, JCET, and SPIL are building capacity to meet demand for advanced packaging.
• Foundries and IDMs including TSMC, Intel, SK Hynix, Micron, and Samsung are investing heavily in HBM, chiplets, and hybrid bonding.
• Equipment vendors such as K&S, BESI, ASMPT, DISCO, and Hanmi continue to drive the pace of technological change, expanding portfolios and pushing innovations in accuracy, throughput, and process flexibility.
Technology innovations: enabling advanced packaging
Dicing and thinning: Blade, laser, and plasma dicing techniques enable manufacturers to achieve fine kerf widths and low-stress cutting, crucial for fragile devices. In wafer thinning, plasma-assisted techniques and ultra-thin grinding improve electrical and thermal performance, aligning with the industry’s demand for smaller, more efficient chips.
Bonding technologies: Die bonders are advancing with high-speed placement and precision alignment.
• Flip chip bonding innovations include fluxless interconnects and ultra-fine pitches.
• TCB is becoming indispensable for HBM and fine-pitch integration.
• Hybrid bonding represents the ultimate interconnection method, offering superior density and performance for next-generation devices.
 Metrology and inspection: Automated optical inspection, AI-driven defect detection, and predictive analytics are elevating quality assurance. These capabilities are crucial as advanced packaging pushes the limits of precision and reliability.
By 2030, the back-end equipment market will reach more than $9 billion, shaped by a CAGR of 7.1% and transformative shifts in packaging technologies. While mature processes such as wire bonding and die bonding remain essential, growth is being fueled by TCB, hybrid bonding, wafer thinning, and advanced dicing techniques.
This evolution reflects the industry’s broader pivot toward HPC, AI, automotive, and 5G applications, where performance, density, and reliability are paramount. OSATs, foundries, IDMs, and equipment vendors are aligning investments to meet these demands, ensuring that advanced packaging becomes a cornerstone of semiconductor innovation.
In the years ahead, TCB and hybrid bonding will emerge as critical growth areas, while wafer-level processes and inspection technologies will ensure yield and reliability. As back-end equipment takes center stage in semiconductor manufacturing, its role will be pivotal in delivering the performance and integration required for the next generation of electronic systems. |
