(MENAFN- Straits Research) Introduction

The growth of the global semiconductor bonding market is driven by the escalating demand for sophisticated packaging methods and the expanding necessity for miniaturised, high-performance, and energy-efficient electronic gadgets, propelled by the swift advancement of innovative technologies.

Market Dynamics Demand for AI and data center computing drives market growth

A significant catalyst for the high-value bonding sector is the surging need for artificial intelligence and data center computing. The demand for AI accelerators and memory stacks, such as HBM, necessitates multi-die integration and fine-pitch interconnects, facilitated by sophisticated bonding techniques.

• In February 2025, Technology Holding anticipated that its income from advanced packaging and testing would exceed USD 1.6 billion, more than double due to heightened demand for AI chips.
• Similarly, Besi's 2025 financial reports also underscored robust bookings for HBM4 and logic packaging solutions directly associated with the AI ecosystem.

The flow-through effect throughout the supply chain, as chip designs transition to heterogeneous integration, is a major catalyst for the bonding business.

Capital investments and strategic alliances in OSAT and IDM create tremendous opportunities

Major Outsourced Semiconductor Assembly and Test (OSAT) firms and Integrated Device Manufacturers (IDMs) are undertaking significant capital investments and establishing strategic alliances to enhance their sophisticated packaging capabilities. This directly stimulates the acquisition of bonding apparatus and the implementation of novel procedures.

• In April 2025, Amkor Technology formed a Strategic Partnership with Intel, centred on Embedded Multi-Die Interconnect Bridge (EMIB) assembly. This collaboration seeks to improve the accessibility of the EMIB technological ecosystem and substantially increase Advanced Packaging capacity in Korea, Portugal, and the United States.

Such initiatives, frequently bolstered by governmental incentives, necessitate a combination of traditional high-volume bonders and advanced hybrid bonders, thereby enhancing the whole market.

Regional Analysis

The Asia-Pacific region leads the semiconductor bonding market owing to its significant concentration of OSATs, foundries, and end-device production, in addition to possessing the biggest installed base of sophisticated packaging lines. This concentration generates substantial annual demand for a range of equipment, from wire bonders for older packages to capital-intensive hybrid bonders for AI stacks. Korea and Japan excel in memory and materials, whereas China is expanding its packaging capability to cater to a large consumer and telecommunications market. Western governments are subsidising local capacity, resulting in the biggest volume of bonded and sophisticated packaging.

Key Highlights

• The global semiconductor assembly and packaging equipment market size was estimated at USD 5.25 billion in 2025 and is anticipated to grow from USD 5.70 billion in 2026 to USD 11.22 billion by 2034, growing at a CAGR of 8.83% from 2026 to 2034.
• By Bonding Technology, Hybrid and fine-pitch bonding (wafer-to-wafer and die-to-wafer) dominate the market.
• By Materials, Solder pastes and preforms are the largest and most critical sub-segment due to their wide application across various packaging types, from traditional leadframes to flip-chip and BGA.
• By Packaging Type, 2.5D/3D packages and HBM stacks is the most dynamic sub-segment, driven by the limitations of traditional 2D scaling.
• By End Use Industry, Data centres and AI accelerators are the leading drivers of the high-value semiconductor bonding market.
• Based on region, the global market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. Asia Pacific dominates the global market.

Competitive Players

ASE

Amkor

JCET

Tongfu (TFME)

BE Semiconductor Industries (Besi)

Kulicke & Soffa (K&S)

ASM Pacific Technology (ASMPT)

Applied Materials

Tokyo Electron (TEL)

Applied Materials

GlobalFoundries

SK hynix

TSMC

Intel

Micron Technology

STMicroelectronics

Kaynes Technology

Tong Hsing

Powertech (PTI)

Recent Developments

• In September 2025, SK hynix reported completion of internal certification and ramp preparation for HBM4, a memory format that drives hybrid-bonder demand for stacked packages.
• In February 2025, ASE Technology said revenue from leading-edge advanced packaging and testing is expected to more than double to USD 1.6 billion in 2025, reflecting strong AI chip packaging demand.
• In January 2025, GlobalFoundries announced the establishment of an advanced packaging and photonics centre in New York. The project focuses on advanced packaging/test and photonics, backed by federal support, creating a local demand for bonders, bump/reflow, and metrology equipment.

Segmentation

By Bonding Technology

Wire bonding

Flip-chip bonding

Die-attach

Thermosonic / Ultrasonic bonding

Thermo-compression bonding (TCB) / hybrid bonding

Wafer-level bonding

By Materials

Bonding wires

Solder pastes and preforms

Conductive adhesives / silver epoxies

Fluxes, underfills, thermal interface materials

By Packaging Type

Traditional leadframe packages (QFN, SOIC)

Flip-chip BGA and CSP

Wafer-level packages (WLP, fan-in/fan-out)

5D/3D packages and HBM stacks (chiplets, interposers)

System-in-Package (SiP)

By End-Use Industry

Data center and AI accelerators

Consumer electronics and mobile

Automotive (power electronics, ADAS)

Telecommunications (5G/6G)

Industrial, Medical, Aerospace and Defense

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