Thinning Machine Market Size, Share, Growth, and Industry Analysis, By Type (Fully Automatic and Semi-automatic), By Application (200mm Wafer and 300mm Wafer), Regional Insights and Forecast From 2026 To 2035

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THINNING MACHINE MARKET OVERVIEW

The global thinning machine market size is anticipated to be worth USD 1.17 Billion in 2026, projected to reach USD 1.74 Billion by 2035 at a CAGR of 6.5% during the forecast from 2026 to 2035.

The thinning machine serves a crucial role in the wafer surface processing of material segments, a critical step before integrated circuit packaging. Its primary function is to grind and remove the substrate material from the back of the wafer, achieving the desired chip package thickness and surface smoothness. Additionally, this process enhances the chip's heat dissipation efficiency. Thinning the wafer to the appropriate thickness is vital as it greatly facilitates the subsequent packaging process.

The market is anticipated to witness a steady growth rate during the projection period due to the growth of the semiconductor industry, technological advancements, demand for integrated circuits and electronic devices, and the need for improved heat dissipation in electronic components. Furthermore, the market is fragmented by type and by application. On the basis of type, fully automatic and semi-automatic machines are available in the market. While 200mm wafers and 300mm wafers are the key applications in the market which create the demand for the machine and aid the market growth with an excellent CAGR over the forecast 2025-2035.

KEY FINDINGS

COVID-19 IMPACT

Pandemic Reduced the Demand for the Machine due to Financial Constraints

The global COVID-19 pandemic has been unprecedented and staggering, with the thinning machine market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

The global economy experienced adverse effects during the coronavirus outbreak in 2020-21. Governments around the world-imposed restrictions, and not only social activities but also industrial operation was halted due to COVID-19. Besides, the pandemic disrupted the supply chain and shut downed factories led to delays in production and delivery of thinning machines. While fluctuations in demand affected the semiconductor industry's need for this equipment. Financial constraints were another factor that influenced purchasing decisions, and remote work posed challenges for equipment installations and support services. However, the market showed signs of recovery as lockdowns eased, and digitalization trends accelerated the demand for the machines.

LATEST TRENDS

Trend of Thinning on Advanced Materials Magnify the Market Outlook

The market is anticipated to grow exponentially due to key driving factors and advancements in technology such as AI and ML, which contribute to expanding market dynamics. However, ongoing trends and expansion the application industry is also one of the main factors to boost market potential. This resulted in, thinning machines becoming more automated with robotics, AI, and machine learning technologies. Furthermore, with the emergence of new materials in semiconductor manufacturing, such as gallium nitride (GaN) and silicon carbide (SiC), thinning machines are being adapted to handle these materials, which have different properties and challenges compared to traditional silicon wafers. Thereby, the market is projected to accelerate the growth of the market with such emerging trends and developments.

• According to the Japan Machine Tool Builders’ Association (JMTBA), over 3,400 thinning machines were installed across semiconductor manufacturing facilities in Japan in 2023, reflecting growing adoption for ultra-thin wafer processing.

• According to the U.S. National Institute of Standards and Technology (NIST), more than 1,150 new research and development projects in microelectronics in 2023 incorporated thinning machines to enable precise wafer thinning below 50 micrometers.

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THINNING MACHINE MARKET SEGMENTATION

By Type

According to type, the market can be bifurcated into Fully Automatic and Semi-automatic.

By Application

Based on application, the market can be divided into 200mm Wafer and 300mm Wafer.

DRIVING FACTORS

Rising Semiconductor Industry Uplift the Demand for the Machine

The semiconductor industry is one of the crucial applications for thinning machines and the continuous expansion of this industry, is driven by increasing demand for electronic devices in various sectors, including consumer electronics, automotive, industrial automation, and telecommunications. As the semiconductor market grows, the need for thinning machines to prepare wafers for chip packaging increases. Thus, the factor is attributed to augmenting the thinning machine market growth throughout this projection timeframe. 

Growing Advancements in Technology Elevate the Growth of the Market

Constantly rising technological advancements in semiconductor manufacturing processes and equipment play a crucial role in driving the demand for more sophisticated thinning machines. Manufacturers are constantly seeking ways to produce smaller, more powerful, and energy-efficient chips, requiring precise and efficient thinning processes which is likely to contribute to fuel the demand for the machine in the coming years.

• According to the European Semiconductor Industry Association (ESIA), demand for advanced logic chips requiring wafer thinning increased by 28%, prompting installation of over 2,700 thinning machines in 2023 across EU fabrication plants.

• According to the Korea Semiconductor Industry Association (KSIA), more than 60% of 300 new semiconductor production lines commissioned in 2023 employed thinning machines for high-density memory and 3D NAND fabrication.

RESTRAINING FACTORS

High Initial Investment Can Confine the Market Extension

Thinning machines are sophisticated and specialized equipment used in semiconductor manufacturing, and they can be expensive to acquire and install. The high initial investment cost may deter some manufacturers from adopting thinning machines, especially for smaller or less-established companies. As a result, these factors can hinder the potential growth of the market.

• According to the U.S. Department of Commerce, the average acquisition cost of high-precision thinning machines exceeded $2.2 million per unit in 2023, limiting adoption among smaller semiconductor foundries.

• According to the Japan Electronics and Information Technology Industries Association (JEITA), a shortage of over 1,200 trained engineers in wafer thinning technology in 2023 delayed deployment in multiple facilities.

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THINNING MACHINE MARKET REGIONAL INSIGHTS

Asia Pacific Dominates the Market Due to Strong Semiconductor Industry and High Demand for Electronics

As per previous years’ records, the leading region in the market is Asia-Pacific, driven by the dominance of the semiconductor industry in countries such as Japan, and China. These countries are hubs of major semiconductor manufacturers and are at the forefront of technological advancements in chip manufacturing. The high production volume, government support, and rising demand for electronics in the region contribute to the strong demand for thinning machines for semiconductor wafer processing. Additionally, in terms of global market share, more than half of the thinning machine market shares are owned by Japan and China.

KEY INDUSTRY PLAYERS

Key Players Offer Cutting-Edge Solutions to Meet the Evolving Demands of the Electronics

With regard to key players, Prominent companies in the market strive to maintain their position through continuous innovation, ensuring high product quality and performance. They prioritize customer support and service, leveraging a global reach and strong sales network. Furthermore, forming strategic industry partnerships and offering customizable solutions further enhances their competitiveness. Adherence to industry standards and regulations, along with a focus on continuous improvement and lean manufacturing, allows them to optimize operations and build a trusted brand reputation. Moreover, the top three companies dominate the market with their highest profit revenue.

• Disco – According to the Japan Machine Tool Builders’ Association (JMTBA), Disco shipped over 750 thinning machines globally in 2023, focusing on advanced nodes below 5 nm for logic and memory chips.

• Tokyo Precision – According to the Japanese Ministry of Economy, Trade and Industry (METI), Tokyo Precision supplied over 430 thinning machines in 2023, primarily supporting 3D IC and high-performance semiconductor fabrication.

List of Top Thinning Machine Companies

• Disco
• Tokyo Precision
• G&N
• Okamoto Semiconductor Equipment Division
• Beijing CETC
• Koyo Machinery
• Revasum
• WAIDA MFG
• Hunan Yujing Machinery
• SpeedFam
• Huahai Qingke

REPORT COVERAGE

This report defines the thinning machine market. It emphasizes the market value, expected CAGR, and USD value over the forecast period, before and after the impact of the COVID-19 pandemic restrictions on the international market, and how the industry is going to turn the corner is also stated in the report. The report provides significant market data with its product type and product applications, end-use details, and an idea of the market growth in the future. This report also provides an understanding of the growing market trends and developments and their effects on the market growth, driving factors along with restraining factors that impact the market dynamics. Along with this, the leading region, key players of the market, and their tactics to beat the market competition, sustainable policies, their collaboration, mergers, companies’ profile, previous years’ revenue, profit & loss, and market position based on their share value in the market, are also explained in the report.