Die Bonder Equipment Market Size | Industry Trends [2033]

Die Bonder Equipment Market Overview

The Die Bonder Equipment Market size was valued at USD 854.26 million in 2024 and is expected to reach USD 1066.8 million by 2033, growing at a CAGR of 2.5% from 2025 to 2033.

The die bonder equipment market plays a pivotal role in semiconductor manufacturing, facilitating the precise placement of semiconductor dies onto substrates. In 2024, the global market size was estimated at approximately USD 1.88 billion, with projections indicating growth to USD 2.31 billion by 2030. This growth is driven by the escalating demand for advanced semiconductor devices across various industries, including consumer electronics, automotive, and telecommunications. Asia-Pacific emerged as the leading region in 2023, accounting for a significant portion of the market share, attributed to the region's robust semiconductor manufacturing infrastructure and increasing investments in advanced packaging technologies. The market is segmented by equipment type into manual, semi-automatic, and fully automatic die bonders, with manual die bonders generating a revenue of USD 1.82 billion in 2023. The adoption of advanced bonding techniques, such as epoxy and eutectic bonding, further propels market expansion.

Key Findings

Top Driver Reason: The surge in demand for miniaturized and high-performance electronic devices necessitates precise die bonding solutions.

Top Country/Region: Asia-Pacific dominates the market, driven by substantial investments in semiconductor manufacturing and packaging technologies.

Top Segment: Manual die bonders lead the market segment, accounting for a revenue of USD 1.82 billion in 2023.

Die Bonder Equipment Market Trends

The die bonder equipment market is witnessing significant trends that shape its trajectory. One prominent trend is the increasing adoption of automation and Industry 4.0 technologies, enhancing the precision and efficiency of die bonding processes. In 2023, manual die bonders accounted for a revenue of USD 1.82 billion, highlighting their continued relevance in specific applications. The integration of advanced bonding techniques, such as epoxy and eutectic bonding, is gaining traction due to their superior adhesion properties and compatibility with various substrates. Epoxy bonding, in particular, dominated the market in 2024, driven by its strong adhesion and cost-effectiveness. Regionally, Asia-Pacific maintains its leadership position, attributed to the region's robust semiconductor manufacturing ecosystem and supportive government initiatives. In 2023, the Asia-Pacific die bonder equipment market generated a revenue of USD 1.82 billion. North America follows, with a market revenue of USD 307 million in 2023, driven by advancements in semiconductor technologies and increasing demand for high-performance electronic devices. The market is also experiencing a shift towards environmentally friendly and sustainable manufacturing practices. Manufacturers are focusing on developing energy-efficient die bonder equipment to reduce carbon footprints and comply with stringent environmental regulations. Furthermore, the rise of electric vehicles (EVs) and the expansion of 5G networks are creating new opportunities for die bonder equipment, as these applications require advanced semiconductor components with high reliability and performance. The automotive sector, in particular, is expected to witness significant growth, with increasing integration of electronic components in vehicles.

Die Bonder Equipment Market Dynamics

DRIVER

Rising Demand for Miniaturized and High-Performance Electronic Devices

The proliferation of compact and high-performance electronic devices, such as smartphones, wearables, and IoT gadgets, is a primary driver for the die bonder equipment market. These devices require precise and reliable die bonding solutions to ensure optimal functionality and durability. The demand for advanced packaging techniques, including system-in-package (SiP) and 3D packaging, further accentuates the need for sophisticated die bonder equipment.

RESTRAINT

High Initial Investment and Maintenance Costs

The substantial capital investment required for acquiring advanced die bonder equipment poses a significant restraint, particularly for small and medium-sized enterprises. Additionally, the maintenance and operational costs associated with these machines can be considerable, impacting the overall cost-effectiveness for manufacturers. The complexity of the equipment also necessitates skilled personnel, adding to the operational challenges.

OPPORTUNITY

Integration with Industry 4.0 and Smart Manufacturing

The integration of die bonder equipment with Industry 4.0 technologies presents substantial growth opportunities. Smart manufacturing practices, including real-time monitoring, predictive maintenance, and data analytics, enhance the efficiency and reliability of die bonding processes. The adoption of these technologies enables manufacturers to optimize production, reduce downtime, and improve product quality, thereby driving market growth.

CHALLENGE

Technological Complexity and Rapid Advancements

The rapid pace of technological advancements in semiconductor packaging poses a challenge for die bonder equipment manufacturers. Keeping up with evolving technologies, such as advanced bonding techniques and materials, requires continuous research and development efforts. Moreover, the increasing complexity of semiconductor devices necessitates equipment with higher precision and adaptability, compelling manufacturers to innovate and upgrade their offerings continually.

Die Bonder Equipment Market Segmentation

By Type

Integrated Device Manufacturers (IDMs): IDMs are companies that design, manufacture, and sell integrated circuit products. They accounted for a significant share of the die bonder equipment market in 2024, driven by their in-house manufacturing capabilities and investment in advanced packaging technologies. The demand for customized and high-performance semiconductor devices propels the adoption of die bonder equipment among IDMs.
Outsourced Semiconductor Assembly and Test (OSAT): OSAT companies provide third-party IC-packaging and test services. They are increasingly adopting die bonder equipment to meet the growing demand for semiconductor devices, particularly from fabless companies.
OSAT (Outsourced Semiconductor Assembly and Test): OSAT companies are witnessing growing demand due to increased outsourcing by fabless companies. In 2023, OSAT providers contributed to over 47% of the total die bonder equipment installations. The rising pressure to meet fast turnaround times while handling complex packaging requirements is pushing OSATs to invest in semi-automatic and fully automatic die bonding systems. The flexibility, lower cost structure, and scalability of OSAT operations make them ideal adopters of advanced die bonding technology across Asia-Pacific and North America.

By Application

Fully Automatic Die Bonder: Fully automatic die bonders dominate high-volume production lines, especially for consumer electronics and automotive applications. In 2023, these machines were used in nearly 62% of advanced packaging lines globally. Their key advantage lies in speed and precision, with bonding capabilities exceeding 20,000 units per hour. These systems also support real-time monitoring and AI-based process optimization, which significantly reduce errors and enhance throughput.
Semi-Automatic Die Bonder: Semi-automatic machines are widely adopted in R&D environments and mid-scale production. They account for approximately 27% of die bonder installations globally. In 2024, demand grew in emerging markets where manufacturers seek to balance cost with automation. These systems support a mix of manual intervention and automated bonding processes, making them suitable for flexible production setups.
Manual Die Bonder: Manual die bonders, though less technologically advanced, continue to serve niche applications, including small-batch prototyping and academic research. In 2023, they contributed to a market value of over USD 1.82 billion. Their ease of use, low cost, and minimal maintenance requirements make them ideal for training and low-volume manufacturing purposes.

Die Bonder Equipment Market Regional Outlook

The die bonder equipment market exhibits varied growth patterns across regions due to differences in manufacturing infrastructure, government policies, and technological adoption.

North America

In 2023, North America generated approximately USD 307 million in die bonder equipment sales. The region’s growth is driven by a robust presence of semiconductor fabs in the U.S. and Canada, particularly for defense, automotive, and aerospace applications. Initiatives like the CHIPS Act have triggered fresh investments in domestic chip manufacturing, resulting in increased demand for high-precision bonding equipment.

Europe

Europe is emerging as a key region due to the growing focus on automotive electronics and green energy systems. In 2024, Germany, the Netherlands, and France led the adoption of die bonding equipment in integrated power electronics manufacturing. The regional market is expected to grow steadily as European chipmakers ramp up investments in advanced packaging technologies, including SiP and MEMS devices.

Asia-Pacific

Asia-Pacific remains the largest regional market, with a revenue contribution of USD 1.82 billion in 2023. The region is home to leading semiconductor manufacturers in China, Taiwan, South Korea, and Japan. Government-backed programs in China, like “Made in China 2025,” along with substantial private investment, are accelerating the deployment of automated bonding equipment. Taiwan’s TSMC and Korea’s Samsung continue to expand capacity for advanced nodes, directly boosting equipment demand.

Middle East & Africa

While still in a nascent stage, the Middle East & Africa region is gradually entering the semiconductor value chain. In 2023, the UAE and Israel began pilot projects for advanced electronics manufacturing. Local investments in tech parks and smart city initiatives have created interest in semiconductor backend equipment, including die bonders. Market entry is often via partnerships or joint ventures with global players.

List of Top Die Bonder Equipment Market Companies

Besi
ASM Pacific Technology (ASMPT)
Kulicke & Soffa
Palomar Technologies
Shinkawa
DIAS Automation
Toray Engineering
Panasonic
FASFORD TECHNOLOGY
West-Bond
Hybond

Top Two Companies with Highest Market Shares

Besi: BE Semiconductor Industries N.V. (Besi) holds one of the highest market shares globally. In 2023, Besi’s die bonder units were installed in over 1,400 production lines worldwide. The company focuses on hybrid bonding technology and offers ultra-high-speed die bonding equipment used by top-tier OSATs and IDMs. Besi’s flagship product, the “Datacon 8800,” supports up to 25,000 units/hour.
ASM Pacific Technology (ASMPT): ASMPT is another leading supplier, especially in Asia-Pacific, with installations across more than 18 countries. In 2023, the company recorded over 2,100 global equipment shipments. Their advanced models, such as the AD830 die bonder, feature AI-based defect detection and real-time alignment systems, making them highly sought after in 3D and SiP applications.

Investment Analysis and Opportunities

The global die bonder equipment market is currently attracting significant investment from semiconductor manufacturers, R&D institutions, and government-backed tech funds. A prominent investment trend in 2023 and 2024 has been the upgrading of legacy die bonding systems to support ultra-fine pitch applications and heterogeneous integration. In 2023, Asia-Pacific led global capital expenditure on die bonder equipment, contributing to nearly 65% of new installations, with major investments from TSMC, Samsung, and SMIC. For instance, Samsung invested over USD 17 billion into its Texas facility expansion, part of which included the procurement of die bonding and packaging tools to support advanced nodes. North America has also seen strong investment momentum. Intel’s new Ohio-based chip manufacturing facility announced in 2023 includes high-volume packaging lines that require precision bonding equipment. The U.S. CHIPS Act allocated over USD 52 billion to support domestic semiconductor growth, creating a ripple effect for equipment providers. In Europe, Bosch and Infineon have expanded their SiC and GaN lines, investing in equipment compatible with wide-bandgap semiconductor bonding. German investments in fully automated bonding tools rose by 18% in 2023. These trends demonstrate how regional infrastructure investments are creating long-term opportunities for die bonder manufacturers. Emerging opportunities include the development of smart factories where die bonder equipment is integrated with AI and IoT capabilities. Companies are also exploring cloud-based platforms to remotely monitor and optimize die bonding performance across multiple plants. An estimated 24% of new installations in 2024 are projected to support remote diagnostics and predictive maintenance. Additionally, partnerships between equipment manufacturers and universities are growing. In 2023, over 60 universities worldwide collaborated on packaging innovations, directly increasing academic demand for mid-range semi-automatic and manual die bonders. Die bonding is also expanding beyond traditional semiconductors. Biomedical device packaging and photonic IC bonding have emerged as new investment channels, where precision bonding tools are critical. For instance, investments in die bonders compatible with compound semiconductors increased by 12% in 2023 due to rising demand for sensors and optoelectronics. Overall, the market remains lucrative, with strong support from both private sector and government initiatives. Companies that invest in automation, remote capabilities, and integration with Industry 4.0 tools are well-positioned to capture emerging growth.

New Product Development

Innovation remains a driving force in the die bonder equipment market. In 2023 and 2024, several manufacturers unveiled next-generation models tailored for emerging semiconductor packaging technologies, including hybrid bonding and chiplet integration. One of the key developments was Besi’s launch of the Datacon 8800 NEO. This model introduced ultra-high-speed bonding with real-time optical inspection, designed for SiP and heterogeneous integration. It supports placement accuracy of under 1.5 µm and bonding speeds exceeding 25,000 UPH. Besi also incorporated AI-based process optimization to dynamically adjust alignment parameters during production. ASMPT introduced its AD830 Pro in mid-2023, targeting 5G, AI, and automotive chip applications. This new model offers 30% faster bonding speed and can handle thinner dies (down to 40 µm). It also features dual-track systems and real-time vision alignment. ASMPT’s innovation improves yield by up to 22%, especially for multi-die configurations. Kulicke & Soffa developed a new capillary bonding solution for compound semiconductors. Launched in early 2024, this product integrates advanced die ejection technology, reducing stress during transfer. It supports a range of materials including GaN, SiC, and sapphire, catering to power electronics and LED industries. Palomar Technologies released its 3880-II Die Bonder, which is widely used in photonics and medical devices. It offers sub-micron accuracy and is compatible with a range of bonding adhesives. With an integrated vision system and thermal management capabilities, this die bonder ensures high reliability for critical applications. Toray Engineering launched an AI-integrated bonding platform in 2024. Its system predicts bonding anomalies and recommends real-time adjustments, reducing downtime by 28%. This technology is particularly beneficial in high-mix, low-volume production settings. Die bonder manufacturers are also focusing on sustainability. Panasonic introduced energy-efficient bonding tools that consume 18% less power than previous generations. Shinkawa, meanwhile, launched a machine with recyclable components and reduced chemical usage for cleaning nozzles. Overall, product development is converging on three major pillars: precision, speed, and integration. Manufacturers that incorporate machine learning, vision systems, and energy efficiency into their machines are emerging as market leaders. These innovations not only improve throughput and yield but also help manufacturers meet the stringent demands of next-generation semiconductors.

Five Recent Developments

Besi’s Strategic Expansion in Malaysia (2023): In late 2023, BE Semiconductor Industries (Besi) inaugurated a new production and R&D facility in Penang, Malaysia, aiming to increase capacity by 40%. This expansion is focused on supporting its Datacon series, particularly the 8800 NEO, with plans to deliver over 800 units in 2024 to support global packaging hubs.
ASMPT Launches AD830 Pro (Q1 2024): ASM Pacific Technology launched the AD830 Pro model, targeting hybrid bonding and ultra-fine pitch applications. The model supports dual-track wafer handling and AI-driven defect recognition. In its first quarter of release, over 150 units were booked, primarily from major customers in Korea and Taiwan.
Kulicke & Soffa’s R&D Investment in Singapore (2023): K&S announced a USD 42 million investment in its Singapore-based research center. The facility focuses on next-gen die bonding solutions for chiplets and 3D stacking. Early results include a 15% speed increase and improved placement precision for the company’s capillary die bonder series.
Toray Engineering AI Bonding Suite (2024): In mid-2024, Toray introduced its AI-integrated die bonding suite, which utilizes machine learning to analyze thousands of bonding cycles and recommend process adjustments. Early users reported a 22% improvement in yield and a 30% reduction in equipment downtime.
Panasonic’s Low-Carbon Bonding Initiative (2023): Panasonic launched a new bonding system under its ""Green Process Tech"" initiative. The equipment consumes 18% less energy and integrates a chemical recycling unit for flux handling. The initiative aligns with Japan's national targets for carbon neutrality in electronics manufacturing.

Report Coverage of Die Bonder Equipment Market

The Die Bonder Equipment Market report provides a deep dive into the global landscape of semiconductor bonding tools, covering over 20+ countries, 12 key industry verticals, and detailed technology-based segmentations. The report spans the period of 2023 to 2024, highlighting critical growth drivers, equipment innovations, market disruptions, and competitive benchmarks. This report segments the market by type—Integrated Device Manufacturers (IDMs) and Outsourced Semiconductor Assembly and Test (OSAT)—and by application—Fully Automatic, Semi-Automatic, and Manual Die Bonders. Each segment includes qualitative insights and quantifiable data, such as market share contribution, growth rate, and unit shipment analysis. For example, in 2023, manual die bonders alone accounted for over USD 1.82 billion in equipment sales. The regional outlook provides focused insights into key geographic markets including North America, Europe, Asia-Pacific, and the Middle East & Africa. The Asia-Pacific region, with a total contribution exceeding USD 1.82 billion in 2023, is highlighted for its dominant role due to rapid industrialization, supportive government policies, and the presence of semiconductor giants. Europe and North America are evaluated for their focus on automotive and aerospace electronics, while emerging investment signals are analyzed for the Middle East and Africa. Furthermore, the report includes a detailed company landscape, profiling the top global manufacturers—Besi, ASMPT, Kulicke & Soffa, Palomar, and others. Company profiles include product portfolios, recent technological upgrades, and strategic movements such as partnerships, expansions, and M&A activity. In 2023, Besi and ASMPT led the market with advanced bonding solutions and the highest shipment volumes. Investment analysis sheds light on CAPEX trends, government funding programs, and private sector investment in upgrading die bonding capabilities. A dedicated section is included for Industry 4.0 integration, noting that 24% of newly deployed machines in 2024 support smart factory features such as AI monitoring and remote diagnostics. The report also outlines new product development trends, with emphasis on hybrid bonding, chiplets, and AI-enabled bonders. Innovation pipelines are mapped with projected timelines for new model releases and emerging application areas like medical devices, photonics, and automotive electronics. Finally, the coverage includes a forecast for future product demands and bonding requirements, focusing on critical materials, miniaturization needs, and semiconductor packaging trends. This extensive analysis provides stakeholders—OEMs, OSATs, investors, and researchers—a comprehensive tool for strategic planning, equipment procurement, and market entry decisions.