Thin Wafer Processing & Dicing Equipment Market – By Equipment Type, By Wafer Size, By Application, By End-use Industry & Forecast, 2024 - 2032

Thin Wafer Processing & Dicing Equipment Market Size

The global thin wafer processing & dicing equipment market was valued at USD 710.3 million in 2023 and is estimated to grow at a CAGR of over 7% from 2024 to 2032.The market is driven by the increasing demand for miniaturized and high-performance electronic devices across industries such as consumer electronics, automotive, and telecommunications.
 

The rise of 5G, electric vehicles, and advanced materials like silicon carbide (SiC) and gallium nitride (GaN) has intensified the need for precision wafer processing to ensure efficient production of microchips and sensors. Innovations in laser-based dicing technologies, which offer higher speed, accuracy, and cost savings, further boost market growth by meeting the requirements for thinner and more durable semiconductor components. For instance, in March 2023, Lidrotec secured USD 1 million in follow-on funding and received the title of Company of the Year at the Luminate 2022 Finals. The company’s innovative laser technology for wafer dicing effectively responds to the increasing demands of the thin wafer processing and dicing equipment market.
 

Thin Wafer Processing & Dicing Equipment Market Trends

A notable trend in the thin wafer processing and dicing equipment market is the increasing adoption of automation and advanced control technologies to enhance efficiency and precision. As manufacturers seek to optimize production processes and reduce operational costs, the integration of automated systems and artificial intelligence is becoming prevalent. Additionally, the growing demand for electric vehicles and renewable energy solutions is driving the need for silicon carbide (SiC) wafers, which necessitates specialized processing equipment. Furthermore, manufacturers are focusing on sustainability, leading to innovations in energy-efficient machinery and reduced material waste, aligning with global decarbonization efforts.
 

For instance, in December 2022, DISCO Corporation introduced the DFG8541, an advanced fully automatic grinder capable of processing silicon and silicon carbide wafers up to 8 inches in diameter. This equipment, showcased at SEMICON Japan 2022, addresses the evolving semiconductor market's demands for enhanced cleanliness, productivity, and wafer protection, particularly in the growing SiC power semiconductor sector.
 

Thin Wafer Processing & Dicing Equipment Market Analysis

The thin wafer processing and dicing equipment market faces several challenges that hinder its growth potential. High initial capital investment and operational costs can discourage smaller manufacturers from upgrading their equipment, limiting market participation. Rapid technological advancements require continuous investment in research and development, which can strain some companies. Furthermore, stringent regulations on environmental standards and waste management present additional challenges, necessitating that manufacturers adapt their processes to comply with evolving legal requirements.
 

Based on equipment type, the thin wafer processing & dicing equipment market is divided into thinning equipment, and dicing equipment. The dicing equipment segment is expected to reach a value of over USD 800 million by 2032.
 

• Dicing equipment plays a crucial role in the post-processing stage of wafer fabrication, where wafers is separated into individual chips. The demand for advanced dicing solution is driven by the increasing miniaturization of electronic components, which necessitates precise and efficient dicing methods to enhance yield and performance.
   
• As semiconductor technology evolves, the dicing equipment segment is also adapting to meet the requirements of modern applications, such as 5G technology, IoT devices, and automotive electronics. Innovations in dicing equipment, including laser dicing and automated systems, are improving the accuracy and speed of the dicing process, thereby reducing waste and enhancing productivity.
   
• Moreover, the rising adoption of high-density packaging solutions further fuels the demand for sophisticated dicing technologies that can handle thin and fragile wafers with precision. As manufacturers strive to keep pace with technological advancements and consumer demands, the dicing equipment segment is poised for substantial growth in the coming years.

Based on application, the thin wafer processing & dicing equipment market is divided into CMOS image sensors, memory and logic (TSV), MEMS device, power device, RFID, and others. The MEMS device segment is the fastest growing segment with a CAGR of over 8% between 2024 and 2032.
 

• The increasing demand for MEMS devices across various applications, such as smartphones, automotive systems, and healthcare devices, is driving the need for advanced wafer processing technologies. As MEMS devices become integral to modern electronics due to their miniature size and versatility, manufacturers are investing in efficient processing equipment to ensure high yield and performance.
   
• The growing focus on automation and smart technologies in various industries, including consumer electronics and medical devices, further accelerates the demand for MEMS solutions. As industries continue to innovate and integrate MEMS devices into their product offerings, the segment is likely to sustain its rapid growth, positioning it as a vital component of the broader thin wafer processing market.

North America held the share of over 25% in the global thin wafer processing & dicing equipment market. The market is experiencing significant growth in the United States, driven by the rising demand for advanced semiconductor technologies across various sectors, including consumer electronics, automotive, and telecommunications. The push for miniaturization in electronic devices has heightened the need for thinner wafers, enabling higher performance and efficiency. Additionally, the U.S. government’s initiatives to bolster domestic semiconductor manufacturing, particularly in the wake of global supply chain challenges, are accelerating investments in wafer processing technologies. This growth is further fueled by the increasing adoption of innovative applications such as 5G, artificial intelligence, and electric vehicles, all of which require high-performance, compact chips that benefit from advanced thin wafer processing solutions.
 

The thin wafer processing & dicing equipment industry is rapidly growing in China, largely driven by the country's strategic emphasis on semiconductor self-sufficiency and technological advancement. As part of its initiatives to bolster domestic manufacturing capabilities, China is investing heavily in wafer fabrication facilities and cutting-edge processing technologies. The rising demand for consumer electronics, electric vehicles, and 5G applications is further propelling the need for thinner wafers that deliver improved performance and efficiency.
 

In South Korea, the thin wafer processing & dicing equipment market is flourishing due to the strong presence of leading semiconductor firms, such as Samsung Electronics and SK Hynix. The country is known for its cutting-edge technology and is a global leader in memory chip production. As these companies invest heavily in advanced semiconductor technologies, the demand for sophisticated wafer processing and dicing equipment continues to rise. Additionally, the increasing focus on developing next-generation chips, including 5G and AI applications, is driving further advancements in processing equipment, positioning South Korea as a key player in the global semiconductor landscape.
 

India's thin wafer processing and dicing equipment market is on the rise, fueled by the country's growing emphasis on becoming a global semiconductor hub. The Indian government has initiated several programs aimed at promoting semiconductor manufacturing, including significant investments in infrastructure and incentives for domestic production. As global companies seek to diversify their supply chains, many are establishing manufacturing facilities in India, leading to an increased demand for wafer processing equipment. The country's burgeoning electronics industry, driven by smartphone and IoT device manufacturing, is also contributing to the growth of this market, making India a critical player in the global semiconductor supply chain.
 

Japan's market is witnessing growth as the country remains a leader in semiconductor technology and precision manufacturing. The presence of established companies, such as Tokyo Electron and Advantest, supports the development of advanced processing equipment essential for modern semiconductor applications. With increasing investments in research and development, Japan is focusing on innovations in materials and processing techniques to meet the demands of emerging technologies like IoT, automotive, and AI.
 

Thin Wafer Processing & Dicing Equipment Market Share

ASMPT, DISCO Corporation, Tokyo Seimitsu (Accretech), Advanced Dicing Technologies, and SPTS Technologies collectively hold over 30% of the thin wafer processing & dicing equipment industry. Their significant market share can be attributed to their strong expertise in precision equipment and innovative solutions tailored for semiconductor processing. These companies are recognized for their cutting-edge technologies that enhance wafer thinning and dicing efficiency, meeting the growing demand for smaller and more powerful semiconductor devices in various applications, including consumer electronics, automotive, and telecommunications. Additionally, their commitment to research and development, along with strategic partnerships, enables them to maintain a competitive edge and drive advancements in the industry.
 

Thin Wafer Processing & Dicing Equipment Market Companies

In the thin wafer processing and dicing equipment market, competition is characterized by several key factors. Companies like DISCO Corporation and ASMPT primarily compete on product innovation and technological advancements, striving to offer cutting-edge solutions that enhance efficiency and precision in semiconductor manufacturing. Price remains a crucial competitive factor, as firms aim to provide cost-effective solutions without compromising quality. Additionally, differentiation plays a significant role, with companies focusing on unique features, superior performance, and specialized applications to stand out in a crowded market. Effective distribution channels and customer service further contribute to competitive advantage, as players seek to establish strong relationships with clients and ensure timely delivery of their products and services.
 

Major players operating in the thin wafer processing & dicing equipment industry are:

• Advanced Dicing Technologies
• ASMPT 
• AXUS TECHNOLOGY
• Citizen Chiba Precision Co., Ltd.
• DISCO Corporation
• Dynatex International
• EV Group (EVG)
• HANMI Semiconductor
• Han's Laser Technology Co., Ltd.
• KLA Corporation
• Lam Research Corporation
• Loadpoint Ltd.
• Modutek Corporation
• NeonTech Co.,Ltd.
• Panasonic Connect Co., Ltd.
• Plasma-Therm
• SPTS Technologies Ltd.
• Suzhou Delphi Laser Co., Ltd.
• Synova SA
• Tokyo Electron Limited
• TOKYO SEIMITSU CO., LTD (Accretech)
   

Thin Wafer Processing & Dicing Equipment Industry News

• In June 2024, MKS Instruments unveiled plans to establish its first Asian factory in Penang, Malaysia, dedicated to the production of thin wafer processing and dicing equipment. This facility, designated as a super center, will be constructed in three phases, significantly enhancing the company’s semiconductor manufacturing capabilities while creating high-value jobs in the region. Groundbreaking for the new facility is anticipated in early 2025, marking a strategic expansion for MKS Instruments in the Asian market.
   
• In May 2024 Lam Research announced its expansion in the semiconductor fabrication equipment supply chain in India, targeting the thin wafer processing & dicing equipment industry. The company aimed to source precision parts and gas delivery systems, expressing openness to government incentives to enhance its local operations.
   

This thin wafer processing & dicing equipment market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue from 2021 to 2032, for the following segments:

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Market, By Equipment Type

• Thinning equipment               
• Dicing equipment       
  • Blade dicing   
  • Laser dicing    
  • Stealth dicing 
  • Plasma dicing 

Market, By Wafer Size

• Less than 4 inch
• 5 inch and 6 inch
• 8 inch
• 12 inch

Market, By Application

• CMOS image sensors
• Memory and Logic (TSV)
• MEMS device
• Power device
• RFID
• Others

Market, By End-use Industry

• Consumer electronics
• Automotive
• Telecommunications
• Healthcare
• Aerospace & defense
• Industrial
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia 
• Latin America
  • Brazil
  • Mexico 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa