Advanced packaging fuels transformation in back-end equipment

Yole Group is proud to announce the release of the first edition of its Status of the Back-End Equipment Industry 2025 report. This new publication offers an unprecedented analysis of a segment undergoing structural change, driven by the rise of advanced packaging, AI acceleration, and heterogeneous integration.

As the complexity of chip manufacturing moves beyond front-end scaling, back-end equipment has emerged as a strategic focus for semiconductor innovation. The report covers the entire value chain, including die bonders, Flip Chip bonders, TCB, hybrid bonding, wire bonding, wafer thinning, dicing, and metrology & inspection.

Vishal Saroha, Technology & Market Analyst, Semiconductor Equipment at Yole Group, said: "This first edition marks a significant expansion of Yole Group’s coverage into the back-end equipment space. These technologies are now central to semiconductor performance scaling, especially for high-performance computing, AI, and next-generation memory."

Bonding equipment: Supporting role to market driver
TCB and hybrid bonding are the fastest-growing equipment segments, reflecting the packaging shift toward chiplets and HBM-based architectures:

• TCB will reach $936 million by 2030, fueled by integration in memory and AI platforms,
• Hybrid bonding will grow to $397 million, with fine-pitch, high-density interconnects essential for advanced 3D integration.

“Flip Chip bonders and die bonders remain at the core of high-volume and multi-market adoption, while wire bonding continues to serve cost-sensitive segments, growing steadily to support automotive, industrial, and legacy consumer applications,” explains Vishal Saroha, Yole Group.

Competitive landscape and strategic moves
The back-end equipment ecosystem includes leading OSATs such as ASE, Amkor, JCET, and SPIL, as well as foundries and IDMs like TSMC, Intel, Samsung, SK Hynix, and Micron, all accelerating investment in bonding and integration technologies.

On the equipment side:
* BESI, ASMPT, Hanmi, DISCO, and K&S remain at the forefront of technology development,
* Hanmi and Hanwha intensify competition in the TCB market, targeting memory IDM orders,
* BESI’s delivery of five TCB systems and Applied Materials’ 9% stake in BESI illustrate increasing strategic alignment between tool vendors and system integrators.

Strategy in a geopolitical era
The global back-end equipment supply chain continues to evolve under pressure from tariffs, export restrictions, and regional industrial policies. In response, leading vendors are pursuing:

• Geographic diversification of production to minimize regulatory and logistical risk,
• Strategic technology partnerships to maintain access to advanced packaging capabilities,
• Regional manufacturing localization to align with customer proximity and government incentives.

In China, domestic vendors currently satisfy less than 14% of internal back-end equipment demand, and while growth is expected, ecosystem maturity will take time, likely past 2030. IPOs, mergers, and supply chain realignments are already underway.

As packaging becomes a key performance enabler, back-end equipment is no longer an afterthought. “It is a battleground for innovation, capacity, and sovereignty,” state Yole Group’s Semiconductor Equipment analysts.

Key takeaways
2025-2030 period:
* The global back-end equipment market points to more than $9 billion by 2030 with almost 6% CAGR.
* TCB market segment will have an 11.6% CAGR, driven by HBM and chiplet packaging.
* Hybrid bonding equipment segment surges with a 21.1% CAGR, enabled by fine-pitch interconnects in advanced 3D architectures.
* Flip Chip and die bonders show steady growth with ~5% and ~3.6% CAGR, respectively, underpinned by demand in automotive, consumer, and industrial markets.
* The wire bonding domain remains essential in legacy, high-volume packaging, with revenue approaching $978 million by 2030.

Competitive landscape:
* Geopolitical tension and export controls are prompting major players to diversify supply chains and localize manufacturing.
* Leading OSATs, such as ASE, Amkor, JCET, and SPIL, alongside IDM and foundry leaders, including TSMC, Intel, SK Hynix, Micron, and Samsung, continue to make significant investments.
* Equipment vendors, including K&S, Besi, ASMPT, DISCO, and Hanmi, remain critical players, driving innovation and capacity expansion.
* Strategic moves, such as Applied Materials’ 9% acquisition of BESI, reflect deeper collaboration and supply chain integration in key bonding segments.