Dicing Equipment Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Dicing Equipment Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Dicing Equipment Market size is estimated at USD 0.71 billion in 2024, and is expected to reach USD 1.06 billion by 2029, at a CAGR of 6.75% during the forecast period (2024-2029).

Dicing equipment plays a pivotal role in ensuring precision during semiconductor manufacturing. The equipment is responsible for cutting individual dice from a wafer. Typically, a dicing saw slices through an unused section of the wafer, referred to as the 'street,' which is located between the dice. These streets generally measure three miles in width, and their narrowing heightens the significance of the dicing equipment.

Key Highlights

• Key drivers propelling the growth of the studied market encompass surging demands for smart cards, Radio Frequency Identification (RFID) technology, and automotive power ICs. Alongside a flourishing consumer electronics market, an increase in factory establishments, and a trend towards miniaturization and technology migration, these factors have urged market vendors to amplify their research and development investments. This emphasis on downsizing while boosting performance has catalyzed innovations such as micro-electro-mechanical systems (MEMS) and 3D packaging. The ongoing advancements in these domains underscore the market's dynamic nature and its agility in adapting to technological progress.
• As a result, industry players are developing semiconductors that sustain power levels even with size reductions. For instance, NXP Semiconductors achieved a remarkable 55% reduction in package size for its transistors, all while maintaining power performance. This milestone highlights the industry's dedication to pushing technical boundaries, ensuring that compact packages do not sacrifice performance.
• Furthermore, Diodes Incorporated unveiled two automotive-compliant metal-oxide-semiconductor field-effect transistors (MOSFET) housed in a DFN2020 package, occupying a mere 2 mm by 2 mm footprint. Such strides accentuate the upward trajectory of the miniaturized semiconductor and IC packaging markets, subsequently amplifying the demand for dicing equipment. These innovations are paramount, addressing the escalating need for compact and efficient components in contemporary electronic devices.
• These advancements have catalyzed the ascent of three-dimensional integrated circuits (3D ICs) technology. This technology is becoming increasingly popular in space-constrained applications, spanning portable consumer electronics, sensors, Micro-Electro-Mechanical Systems (MEMS), and industrial products. It significantly boosts overall product performance, emphasizing speed, durability, low power consumption, lightweight design, and enhanced memory capacity.
• Ultra-thin wafer handling and dicing equipment processes play a crucial role in various semiconductor applications, including MEMS, compound semiconductors, LEDs, fan-out WLP, CMOS image sensors (CIS), and the emerging 3D ICs utilizing TSV interconnects. These processes ensure the integrity and performance of the wafers, which are essential for the functionality and efficiency of the end products. Nevertheless, these processing technologies face specific challenges, such as maintaining wafer stability, preventing damage during handling, and ensuring compatibility with existing manufacturing systems.
• Chipping, characterized by the cracking or chipping of the corners and edges of chips, poses a significant challenge. This issue can lead to reduced yield and increased costs in the manufacturing process. Furthermore, during dicing, the kerf width and the street width (the latter corresponding to the width of the diced wafer) increase by 80 to 100 μm. Consequently, this results in a kerf loss, leading to wastage of the wafers. The increased kerf width and street width not only waste material but also impact the precision and efficiency of the dicing process.
• Despite the challenges posed by the pandemic, certain players are making strategic investments in wafers. For example, Okmetic Oy announced plans to invest tens of millions of euros in its Finland facility, focusing on its core competency: Silicon-On-Insulator (SOI) wafers. Post-pandemic, a prominent trend in the global dicing equipment market is the rising adoption of automation and advanced control technologies. This shift is anticipated to enhance efficiency and precision, subsequently driving the dicing equipment market growth.

Dicing Equipment Market Trends

Power Devices Application Segment is Expected to Hold Significant Market Share

• Power semiconductor devices, utilized as switches or rectifiers in power electronic circuits, are poised for substantial growth during the forecast period. This surge is primarily driven by the global appetite for cell phones and portable electronics, such as health trackers, where effective power management is crucial for extending battery life. Additionally, the demand for these power devices is bolstered by the push for alternative energy sources like solar power and the adoption of energy-efficient Light Emitting Diode (LED) lighting.
• As applications evolve, there's a growing demand for smaller form factors, faster-switching frequencies, and higher voltage capabilities. This evolution underscores the value of power devices as essential integrated circuits (ICs) for product manufacturers and processing equipment providers. Beyond consumer electronics, sectors like electric vehicles (EVs), data centers, and both industrial and consumer IoT applications are witnessing evolving power requirements for semiconductor devices.
• The automotive industry, particularly with the rise of electric vehicles, alongside sectors like renewable energy and consumer electronics, is driving a heightened demand for top-tier, efficient dicing equipment. Regulatory bodies are taking significant steps: The US Department of Transportation has established Corporate Average Fuel Economy (CAFE) vehicle standards. The UK aims for net-zero emissions by 2050 and plans to ban the sale of all polluting vehicles by 2035. Germany has set ambitious targets, seeking a 40% reduction in greenhouse gas emissions by the end of 2020, 55% by 2030, and up to 95% by 2050. Concurrently, US and European governments are tightening emission limits to combat the greenhouse effect. These concerted efforts, alongside a push for enhanced vehicle fuel economy, are amplifying the demand for electric vehicles and, in turn, power devices.
• Modern power devices are benefiting from innovations like laser dicing and advanced blade dicing techniques, which offer enhanced precision and efficiency. For example, ASMPT has introduced a solution for the power semiconductor market. Their patented multi-beam V-DOE technology is designed for dicing through thin Silicon Carbide (SiC) wafers (less than 150 µm). This modified beam configuration notably strengthens the die post-cutting.
• In a significant industry advancement, Infineon unveiled the world's first 300mm Gallium Nitride (GaN) wafer technology for power electronics in September 2024. This breakthrough promises enhanced efficiency, reduced size and weight, and a lower overall cost for chips.
• As technologies like 5G, AI, IoT, and edge computing propel the semiconductor market's expansion, the demand for sophisticated dicing equipment has surged. According to SWZD, 57 percent of organizations in North America and Europe have either implemented or plan to implement IoT trend in information technology.

China is Expected to Hold Significant Market Share

• China stands out as one of the fastest-growing semiconductor markets globally. The surging demand for smartphones and consumer electronics is prompting numerous vendors to establish production facilities in the nation. Further, the Chinese government's initiatives are attracting international players to set up local production units.
• The Semiconductor Industry Association forecasts that by 2024, China's semiconductor industry will generate an annual revenue of USD 116 billion, capturing over 17.4% of the global market share. This forecast depends on China maintaining its strong growth momentum, assuming other countries' growth rates remain stable. The anticipated growth underscores China's strategic investments and advancements in semiconductor technology, positioning it as a significant player in the global market.
• Further, Semiconductor Equipment and Materials International’s (SEMI) data indicates that while China's foundry industry comprises both multinational and domestic vendors, domestic companies are poised to dominate. Out of the USD 24 billion fab projects in China, domestic firms are expected to command a significant share.
• Wafer fabrication includes dicing, a critical process where individual semiconductor chips are separated from a silicon wafer. This involves precise cutting techniques such as mechanical sawing, laser cutting, and scribing. Thus, the development of new wafer fabrication facilities in the country is expected to generate demand for various dicing equipment used in wafer processing.
• For instance, in November 2024, Beijing, supported by state-owned enterprises and funds, plans to invest USD 4.6 billion in a 12-inch wafer fabrication facility. This initiative highlights China's ongoing efforts to strengthen its domestic semiconductor production. The new facility involves Beijing Yandong Microelectronics (YDME) and BOE Technology, China's leading display manufacturer.

Dicing Equipment Industry Overview

Competitive rivalry in the market refers to the competition among established players in the industry. This competition is influenced by factors such as brand identity, competitive strategies, transparency levels, and the concentration ratio of firms. The rise of smart devices, including smartphones and smartwatches, has spurred the demand for smart sensors, consequently boosting the market for advanced semiconductors.

Factors like the trend towards miniaturization, aiming for enhanced memory and performance in smaller sizes, have spurred demand for compact electronic packages. As a result, thin wafers have gained prominence in today's miniaturized electronics landscape, leading to a surge in thin wafer production and a corresponding demand for processing and dicing equipment.

The dicing equipment market is dominated by a handful of major players, including Disco Corporation and Panasonic Corporation, among others. Additionally, challenges in thin wafer manufacturing processes have slowed the entry of new players into the market.

Some of the major players in the market are Suzhou Delphi Laser Co. Ltd, SPTS Technologies Limited (KLA Tencor Corporation), ASM Laser Separation International (ALSI) BV, Tokyo Seimitsu Co. Ltd, and Neon Tech Co. Ltd.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support