PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1887190
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1887190
The global semiconductor assembly and packaging equipment market is witnessing accelerated expansion, driven by the surging need for advanced semiconductor packaging, ongoing digital transformation, and rapid advancements in electronics manufacturing. As per industry estimates, the market reached USD 9.02 billion in 2024, is projected to grow to USD 9.72 billion in 2025, and ultimately surge to USD 17.44 billion by 2032, advancing at a CAGR of 8.72% over the forecast period. In 2024, Asia Pacific dominated the global market with a 59.09% share, owing to strong manufacturing ecosystems in China, Taiwan, South Korea, and Japan.
Semiconductor packaging continues to evolve as industries such as automotive, telecommunications, consumer electronics, and cloud computing demand higher performance and miniaturization. Advanced packaging solutions like 2.5D/3D ICs, wafer-level packaging, and system-in-package (SiP) are transforming assembly processes, driving strong demand for high-precision equipment used in bonding, encapsulation, thinning, and testing.
Market Trends: AI and High-Performance Computing Reshape Packaging Needs
The global shift toward AI accelerators, high-performance computing (HPC), and data center processors is creating unprecedented demand for sophisticated packaging architectures. AI workloads require high bandwidth, low latency, and dense interconnect designs-capabilities uniquely provided by 2.5D/3D packaging, chiplet integration, and High-Bandwidth Memory (HBM). These advanced architectures rely heavily on precision die bonding, hybrid bonding, and fan-out packaging technologies. As a result, semiconductor manufacturers and OSATs are investing aggressively in leading-edge packaging equipment capable of supporting heterogeneous integration and ultra-fine pitch interconnects.
Market Drivers: EV Expansion and Semiconductor Demand Surge
The rapid acceleration of the Electric Vehicle (EV) industry is a major catalyst for semiconductor packaging innovation. EVs require powerful, energy-efficient chips for battery management, ADAS, infotainment, and powertrain control. This drives demand for SiC and GaN power devices, high-thermal-performance packaging, and robust module-level assembly. Technologies such as chip-on-wafer, flip-chip bonding, and power module packaging are essential in modern EV applications, boosting the demand for tailored assembly and packaging equipment.
Additionally, global investments in domestic semiconductor production-spurred by supply chain disruptions and national security considerations-are prompting new packaging facility developments. Programs like the U.S. CHIPS Act, European Chips Act, and China's Made in China 2025 are fueling massive expansions in assembly and testing capacity, directly supporting equipment demand.
Market Restraints: High Capital Requirements
Despite strong growth, the market faces challenges due to the high cost of advanced semiconductor packaging equipment. Transitioning to 2.5D/3D packaging, fan-out WLP, and hybrid bonding requires substantial investment in precision machinery, cleanroom infrastructure, and skilled labor. These capital-intensive requirements limit participation from small and mid-tier OSATs, contributing to industry consolidation and dependence on large IDMs and well-funded packaging providers.
Market Opportunities: Localization and Government Incentives
Localization of semiconductor manufacturing presents one of the most significant opportunities for the future. Governments across North America, Europe, and Asia are offering financial incentives to strengthen domestic semiconductor ecosystems. Countries such as India, Malaysia, and Vietnam are emerging as preferred hubs for new packaging facilities due to cost advantages and expanding technical talent pools. These developments are expected to boost global demand for next-generation die bonders, wire bonders, and wafer-level packaging equipment.
Regional Outlook: Asia Pacific Leads, North America and Europe Accelerate
Asia Pacific
Asia Pacific remains the largest and fastest-growing region, valued at USD 5.33 billion in 2024, supported by strong manufacturing clusters and government incentives. China is projected to reach USD 2.78 billion in 2025, while India and Japan are expected to reach USD 0.56 billion and USD 0.45 billion, respectively.
North America
Driven by CHIPS Act investments, North America is projected to reach USD 1.96 billion in 2025, with the U.S. accounting for USD 1.36 billion. Advanced packaging technologies-EMIB, 3D stacking, and chiplet architecture-are expanding rapidly.
Europe
Europe is forecast to hit USD 1.41 billion in 2025, led by Germany (USD 0.53 billion), France (USD 0.11 billion), and the U.K. (USD 0.24 billion). Investments align with EV demand and industrial automation.
Middle East & Africa
MEA is expected to reach USD 0.31 billion in 2025, benefiting from growing digital infrastructure and AI-driven regional projects.
Conclusion
With semiconductor demand surging across AI systems, EVs, 5G networks, and advanced electronics, the assembly and packaging equipment market is positioned for strong long-term growth. Rising from USD 9.72 billion in 2025 to USD 17.44 billion by 2032, the industry will continue evolving through automation, heterogeneous integration, and global manufacturing expansion-maintaining Asia Pacific's leadership while North America and Europe accelerate investment momentum.
Segmentation Type, Application, End-Use Industry and Region
Segmentation By Type
By Application
By End-Use Industry
By Region
Companies Profiled in the Report Kulicke and Soffa Industries, Inc., Besi, TOWA Corporation, SHINKAWA Electric Co., Ltd., Hana Micron, SUSS MicroTec SE, ASMPT (Singapore), ASM International (U.S.), Disco Corporation, Advantest Corporation