IC Advanced Packaging Equipment Market Size, Share, Growth and Industry analysis, By Type (Cutting Equipment, Solid Crystal Devices, Welding Equipment, Testing Equipment), By Application (Automotive Electronics, Consumer Electronics) and Regional Forecast to 2034

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IC ADVANCED PACKAGING EQUIPMENT MARKET OVERVIEW

The global IC advanced packaging equipment market size was valued at USD 10.671 billion in 2025 and is expected to reach USD 33.73 billion by 2034, growing at a compound annual growth rate (CAGR) of about 13.64% from 2025 to 2034.

The United States IC Advanced Packaging Equipment Market size is projected at USD 3.45209 Billion in 2025, the Europe IC Advanced Packaging Equipment Market size is projected at USD 2.58027 Billion in 2025, and the China IC Advanced Packaging Equipment Market size is projected at USD 3.16077 Billion in 2025.

IC (Integrated Circuit) advanced packaging equipment refers to the machinery and tools used in the manufacturing and assembly processes of advanced packaging for integrated circuits. Advanced packaging refers to the techniques and technologies used to package and interconnect integrated circuits, enabling them to function properly and be integrated into various electronic devices.

Some common types of IC advanced packaging include flip-chip packaging, wafer-level packaging, 2.5D/3D packaging, and system-in-package (SiP) solutions. These advanced packaging techniques offer benefits such as increased performance, miniaturization, improved power efficiency, and enhanced functionality. IC advanced packaging equipment market is driven by the need for compactness, improved performance, increased functionality, cost-effectiveness, and the integration of advanced technologies in semiconductor packaging.

KEY FINDINGS

COVID-19 IMPACT

Pandemic Hampered the Demand for Market

The global IC advanced packaging equipment market heavily relies on complex supply chains that involve multiple countries. During the pandemic, many countries implemented lockdown measures and travel restrictions, leading to disruptions in the supply chain. Delays in the delivery of components and equipment could have affected the manufacturing and production processes of advanced packaging equipment. As the pandemic forced numerous businesses to suspend or reduce their operations, the production of advanced packaging equipment might have been affected. Manufacturing facilities faced challenges such as labor shortages, reduced capacity due to social distancing measures, and disrupted transportation, which could have resulted in delayed or reduced production. While the need for electronics and semiconductor devices remained strong, some sectors, such as automotive and consumer electronics, were adversely impacted by the economic downturn. The uncertain market conditions and reduced consumer spending might have influenced the demand for advanced packaging equipment.

LATEST TRENDS

Increasing Demand for Advanced Packaging to Fuel Market Growth

With the continuous advancement of semiconductor technology and the need for smaller, faster, and more efficient electronic devices, there has been a growing demand for advanced packaging solutions. Advanced packaging techniques such as 3D packaging, fan-out wafer-level packaging (FOWLP), and system-in-package (SiP) offer higher integration and improved performance, driving the demand for corresponding packaging equipment. Heterogeneous integration refers to the combination of different types of integrated circuits, such as logic, memory, and sensors, on a single chip or package. This trend is driven by the need to integrate diverse functionalities into smaller form factors. IC advanced packaging equipment plays a crucial role in enabling heterogeneous integration by providing the necessary assembly and interconnection capabilities.

• The SEMI + TechSearch database now covers 670 facilities (including 500 OSATs and 170 IDMs), highlighting expanding advanced-packaging capabilities such as WLP, fan-out and 2.5D/3D. 

• The update added 150+ facility additions, signaling fast growth in back-end capacity and advanced packaging offerings.

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IC ADVANCED PACKAGING EQUIPMENT MARKET SEGMENTATION

By Type Analysis

According to type, the market can be segmented into Cutting Equipment, Solid Crystal Devices, Welding Equipment, Testing Equipment, Other.

In terms of product, Cutting Equipment is the largest segment

By Application Analysis

Based on application, the market can be divided into Automotive Electronics, Consumer Electronics, Other.

In terms of application, the largest application is Consumer Electronics.

DRIVING FACTORS

Increasing Demand for Compact Electronic Devices to Stimulate Market Growth

The growing consumer preference for compact and portable electronic devices, such as smartphones, tablets, wearables, and IoT devices, drives the demand for advanced packaging techniques. IC advanced packaging enables manufacturers to design smaller and more powerful devices, thereby meeting consumer expectations and driving market growth. High-performance computing (HPC) applications, including artificial intelligence (AI), machine learning, data centers, and automotive electronics, require advanced packaging solutions to meet their specific requirements.

• U.S. government support examples include a $75 million Commerce Department grant for a 120,000-sq-ft advanced-packaging materials facility expected to create ~1,000 construction jobs and ~200 manufacturing/R&D jobs, underlining policy-driven on-shoring. 

• Industry trackers logged 100+ chip-industry facility/fab investments in 2024, driving demand for advanced-packaging tools and services.

Rise in Demand for Advanced Packing Techniques to Fuel Market Growth

 Advanced packaging techniques, such as 2.5D and 3D packaging, enable higher memory bandwidth, lower power consumption, and improved thermal management, making them crucial for HPC and AI applications. IC advanced packaging equipment offers cost-effective solutions by enabling the integration of multiple chips and functions into a single package. This integration reduces the overall system cost, simplifies manufacturing processes, and improves yield rates. As a result, industries such as consumer electronics, automotive, and healthcare are adopting advanced packaging techniques to achieve cost efficiencies, driving the IC advanced packaging equipment Market growth.

RESTRAINING FACTORS

High Cost and Technical Challenges to Restrict Market Growth

Advanced packaging equipment can be expensive, requiring significant investments for manufacturing and deployment. The high cost can limit the adoption of advanced packaging technologies, particularly for smaller or emerging companies with limited financial resources. Advanced packaging equipment must meet stringent technical requirements, such as high precision, reliability, and compatibility with various semiconductor materials and structures. Overcoming technical challenges, such as thermal management, interconnect density, and signal integrity, can be demanding and time-consuming, slowing down the pace of development and adoption.

• 100+ OSAT sites in Taiwan & China vs ~45 in the Americas — industry facility maps show 100+ OSAT sites in Taiwan, 110+ in China, but only ~45 OSAT/assembly sites in the Americas, indicating regional concentration and supply-chain risk.

• Only 325+ of tracked back-end sites report test capability, exposing bottlenecks where integrated packaging + test capacity is required.

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IC ADVANCED PACKAGING EQUIPMENT MARKET REGIONAL INSIGHTS

Developed Infrastructure in Asia-Pacific Anticipated to Drive Market Expansion

Asia-Pacific holds the leading position in IC advanced packaging equipment market share. The region is home to some of the world's largest semiconductor manufacturers and foundries. These companies have invested heavily in advanced packaging technologies to meet the growing demand for semiconductors across various industries, including consumer electronics, automotive, and telecommunications. Additionally, countries like Taiwan and South Korea have a strong presence in the IC packaging equipment market due to their expertise in semiconductor manufacturing and packaging. These countries have a well-established ecosystem that includes equipment manufacturers, materials suppliers, and packaging service providers, making them major players in the global market.

KEY INDUSTRY PLAYERS

Adoption Innovative Strategies by Key Players Influencing Market Growth

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio.

The top key players in the market are ASM Pacific, Applied Material, Advantest, Kulicke&Soffa, DISCO, Tokyo Seimitsu, BESI, Hitachi, Teradyne, Hanmi, Toray Engineering, Shinkawa, COHU Semiconductor, TOWA, SUSS Microtec. The strategies to develop new technologies, capital investment in R&D, improve product quality, acquisitions, mergers, and compete for the market competition help them to perpetuate their position and value in the market. Besides, collaboration with other companies & extensive possession over market shares by the key players stimulates market demand.

• DISCO — Founded 1937; 7,349 consolidated employees (as of end-June 2025).

• Applied Materials — ~35,700 regular full-time employees (as reported Oct 27, 2024); large installed base across front-end and advanced-packaging processes.

List of Top IC Advanced Packaging Equipment Companies

• DISCO
• Applied Material
• Kulicke&Soffa
• COHU Semiconductor
• Teradyne
• Shinkawa
• Advantest
• Toray Engineering
• TOWA
• Tokyo Seimitsu
• ASM Pacific
• Hitachi
• SUSS Microtec
• BESI
• Hanmi

REPORT COVERAGE

This report examines an understanding of the IC advanced packaging equipment market’s size, share, and growth rate, segmentation by type, application, key players, and previous and current market scenarios. The report also collects the market’s precise data and forecasts by market experts. Also, it describes the study of this industry’s financial performance, investments, growth, innovation marks, and new product launches by the top companies and offers deep insights into the current market structure, competitive analysis based on key players, key driving forces, and restraints that affect the demand for growth, opportunities, and risks.

Furthermore, the post-COVID-19 pandemic’s effects on international market restrictions and a deep understanding of how the industry will recover, and strategies are also stated in the report. The competitive landscape has also been examined in detail to provide clarification of the competitive landscape.

This report also discloses the research based on methodologies that define price trend analysis of target companies, collection of data, statistics, target competitors, import-export, information, and previous years’ records based on market sales. Moreover, all the significant factors which influence the market such as small or medium business industry, macro-economic indicators, value chain analysis, and demand-side dynamics, with all the major business players have been explained in detail. This analysis is subject to modification if the key players and feasible analysis of market dynamics change.