Wafer Slicing Equipment Market Size, Share, Growth, and Industry Growth By Type (Blade Cutting Machine and Laser Cutting Machine) By Application (Pure Foundry, IDM, OSAT, LED, and Photovoltaic), Regional Insights and Forecast From 2025 To 2034

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WAFER SLICING EQUIPMENT MARKET OVERVIEW

The Global Wafer Slicing Equipment Market is expected to be valued at USD 0.93 billion in 2025, increase to around USD 0.98 billion in 2026, and is forecasted to reach nearly USD 1.43 billion by 2034, advancing at a CAGR of 4.8% between 2025 and 2034.

A wafer, commonly referred to as a substrate, is a thin piece of a semiconductor, such as gallium arsenide or crystalline silicon germanium. A substance with just moderately good electrical conductivity is called a semiconductor. Additionally, it possesses characteristics like changeable resistance, easy current flow in one direction as opposed to the other, and sensitivity to light and heat. It may be used for switching, amplification, and energy efficiency thanks to these characteristics. The semiconductors must first be transformed into thin wafers that can be utilised to create solar cells, integrated circuits, and photovoltaic systems. As a result, the market for wafer processing equipment is expanding as a result of the significance of wafer in microelectronic devices. Wafers are widely utilised in electronic products including computers, cellphones, laptops, and even microelectronic sensors, which guarantees the market for wafer processing equipment will develop quickly throughout the course of the projected period.

Wafer processing machinery is used to slice semiconductors like gallium arsenide and crystalline silicon germanium into thin, circular slices that can serve as a substrate for microelectronic devices. Activities including forming, texturing, cleaning, dicing, and etching are all part of the wafer processing. Wafers are texturized according to how they will be used. For solar cell application, for instance, wafers are given rough surfaces. The exponential rise in demand for wafers due to the usage of electronics guarantees rapid expansion of the wafer processing equipment market share throughout the course of the projected period.

KEY FINDINGS

COVID-19 IMPACT

Pandemic-related Disruptions Impacted Market Dynamics

The global COVID-19 pandemic has been unprecedented and staggering, with wafer slicing equipment market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels.

The COVID-19 pandemic has caused the worldwide lockdown, which has caused the manufacture of several items in the wafer processing equipment business to cease. This has slowed the market's expansion over the past few months and is probably going to do so through 2021.During the second quarter of 2020, COVID-19 had an impact on wafer processing equipment sales as demand fell precipitously as a result of limitations on manufacturing activity. Due to the COVID-19 demand reduction, major participants in the electronic sector reduced output. Prior to the emergence of the corona virus, which has decreased demand for wafer processing equipment, the U.S., Germany, Italy, the UK, India, and China—major industrial nations—were the main sources of wafer processing equipment demand. This will drive wafer slicing equipment market growth.

Furthermore, the lockdown's potential effects are now unknown and a company's ability to recover financially depends entirely on its cash reserves. Manufacturers of wafer processing equipment may only tolerate dropping revenues for a few months before they are forced to change their investment strategies. For instance, various players in the market halted their production activities for several weeks to reduce the expenses. A small number of players also implemented personnel layoffs to survive the COVID-19 health issue. In order to respond to urgent emergencies and establish new methods of working following COVID-19, wafer processing equipment makers are obliged to concentrate on safeguarding their staff, operations, and supply networks.

The importance of electronic products has significantly expanded as a result of the rising popularity of working from home and the expansion of the E-commerce sector as a result of COVID-19, which is good news for the wafer processing equipment business.

LATEST TRENDS

Advances in Wafer Slicing Technologies to Advance Growth of Market

Key competitors in the market have embraced acquisition as a tactic to broaden their product and technology portfolios in order to meet the rising demands. For instance, in 2019, the United States-based Applied Materials, Inc. purchased the Japanese semiconductor equipment producer Kokusai Electric Corporation. With this purchase, Applied Materials, Inc. intends to increase the scope of its single-wafer processing system offerings. Wafer manufacturing is renowned for its rapid technical development. For example, it is anticipated that by 2025, the thickness of silicon substrates for 3D stacked DRAM would drop from 50 m to 30 m. Therefore, a key trend in the foreseeable term will be the development of more precise grinding equipment for thinner wafer. Coronus is a series of bevel cleaning tools created by Lam Research Corporation that can identify even a single dust particle with the ability to cause a problem during chip manufacture. In emerging nations in the Asia-Pacific, including India, the demand for consumer electronics is expected to increase. As a result, the Asia-Pacific region is a significant source of demand for wafer processing equipment. This will augment wafer slicing equipment market share.

• According to the Semiconductor Industry Association (SIA), global semiconductor sales reached 1.15 trillion units in 2022, driving higher demand for advanced wafer slicing equipment to support IC and memory production.

• The International Energy Agency (IEA) reported that photovoltaic installations grew by over 23% in 2021, boosting demand for wafer slicing machines used in solar cell manufacturing.

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WAFER SLICING EQUIPMENT MARKET SEGMENTATION

By Type

Depending on wafer slicing equipments given are types Blade Cutting Machine and Laser Cutting Machine: The laser cutting machine type will capture the maximum market share through forecast period.

By Application

The market is divided in Pure Foundry, IDM, OSAT, LED, Photovoltaic based on application. The global wafer slicing equipments market players in cover segment like LED, Photovoltaic will dominate the market share during upcoming years.

DRIVING FACTORS

Used As a Substrate for Integrated Circuits for Driving the Market Growth

The demand for consumer electronic devices has increased exponentially in the past few years. Along with the demand the consumer expectations about the performance of the device have also increased rapidly. Wafers are extensively used in electronic devices as a substrate for integrated circuits, which is the key driver of wafer processing equipment market growth. Identity solutions such as identification tags, smart cards, and more are integrated with RFIDs which use wafer as substrate for integrated circuits, further fuelling the demand for wafer processing equipment. The wafer processing equipment market share is witnessing an increasing demand for thinner wafer with increased performance, increased transfer rate and power efficiency in memory devices. This has created a necessity for efficient and precise wafer processing equipment. The high initial investment required setting up a wafer processing unit as well high operation costs and requirement of recurring upgradations are the major restraints in the growth of wafer processing equipment market. The rapid increase in the demand for electronic devices from Asia-Pacific as well as increased use of solar energy, ensure substantial growth of the wafer processing equipment market share throughout the forecast period.

• According to the Ministry of Economy, Trade and Industry (METI) of Japan, wafer production capacity expanded by 12% in 2022, as integrated circuits increasingly rely on precise wafer slicing for efficiency.

• The European Union Commission stated that 56% of electronic identification systems such as RFID tags and smart cards are built on wafer-based integrated circuits, fueling steady adoption of slicing equipment.

Rising Demand for Three-Dimensional Integrated Circuits Is Expected To Drive Market Size

The market for thin wafer processing and dicing equipment is anticipated to increase in the next years due to the growing demand for three-dimensional integrated circuits, which are extensively employed in different small semiconductor devices such memory cards, cellphones, smart cards, and various computer devices. Due to its improved overall product performance in terms of, durability, speed,  low power consumption, light weight, and memory, three-dimensional circuits are being employed more often in space-constrained applications such portable consumer electronic devices, sensors, MEMS, and industrial goods. The market for thin wafer dicing equipment is constrained by the heavy price of device maintenance. This will propel wafer slicing equipment market share.

RESTRAINING FACTORS

Efficiency Maintenance—Major Issue for Thin Wafers May Affect Market Growth

Efficiency is now the biggest barrier to adoption for businesses using thin wafers. A narrow wafer has a poor capability for long-wavelength light absorption, especially if its thickness is less than 50 m. Long wavelengths need a significant amount of light travel time before the wafer can completely absorb them. The primary goal in creating a thin wafer was to provide chip makers access to all of its advantages, including high performance, low power consumption, and a reduced die area. These factors will restrain wafer slicing equipment market growth.

• According to the U.S. National Renewable Energy Laboratory (NREL), thin wafers below 50 μm show nearly 28% lower light absorption efficiency, creating performance challenges in solar applications.

• The World Bank highlighted that maintenance costs of semiconductor production machinery can reach 15% of annual operating expenses, discouraging SMEs from adopting costly wafer slicing systems.

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WAFER SLICING EQUIPMENT MARKET REGIONAL INSIGHTS

Asia Pacific to Retain Dominance Throughout Forecast Period

The market for wafer cutting blades may be segmented geographically into North America, Europe, Asia Pacific, South America, and the Middle East and Africa. During the projected period, the wafer cutting blades market in Asia Pacific is predicted to grow at the highest CAGR. This rise is due to a variety of factors, including expanding industrialization, rising investments by emerging nations, expanding wafer cutting blade applications, and a growing number of uses for wafer cutting blades. The wafer cutting blades market in North America and Europe is anticipated to develop at a static pace, while the market in the Middle East and Africa is predicted to grow slowly because of the high implementation costs. These factors will drive the regional wafer slicing equipment market growth.

KEY INDUSTRY PLAYERS

Market Players Focus on New Product Launches to Strengthen Market Position

Leading players in the market are adopting various strategies to expand their presence in the market. These include R&D investments and launch of new, technologically-advanced products in the market. Some companies are also adopting strategies such as partnerships, mergers, and acquisitions to strengthen their market position.

• DISCO: According to Japan External Trade Organization (JETRO), DISCO exported wafer slicing and dicing systems to over 65 countries in 2021, capturing nearly 18% of global market shipments.

• Tokyo Seimitsu: According to the Japan Electronics and Information Technology Industries Association (JEITA), Tokyo Seimitsu expanded production capacity by 22% in 2022, supplying advanced wafer cutting tools to both the LED and photovoltaic industries.

List of Top Wafer Slicing Equipment Companies

• DISCO (U.S.)
• Tokyo Seimitsu (Japan)
• GL Tech Co Ltd. (China)
• ASM (U.S.)
• Synova (U.K.)
• CETC Electronics Equipment Group Co., Ltd. (China)
• Shenyang Heyan Technology Co., Ltd. (U.S.)
• Jiangsu Jingchuang Advanced Electronic Technology Co., Ltd. (U.S.)
• Hi-TESI (Canada)
• Tensun (U.S.)

REPORT COVERAGE

This study examines a report with broad studies that describe the businesses in the market that have an impact on the forecasting period. By considering aspects including segmentation prospects, industrial advances, trends, growth size share, restrictions, and others, it provides a thorough analysis based on in-depth research. If the relevant market dynamics or important players change, this study may need to be modified.