Global Semiconductor Assembly And Packaging Equipment Market Size 2025 - 2035

Semiconductor Assembly & Packaging Equipment Market Summary

The Global Semiconductor Assembly And Packaging Equipment Market Size Was Estimated at USD 4387.5 Million in 2024 and is Projected to Reach USD 10967.3 Million by 2035, Growing at a CAGR of 8.69% from 2025 to 2035. The market for semiconductor assembly and packaging equipment is expanding due to factors such as the growing need for sophisticated packaging solutions, the development of AI and high-performance computing, the rise of electric vehicles, and the building of semiconductor fabrication facilities.

Key Regional and Segment-Wise Insights

• In 2024, the Asia Pacific semiconductor assembly & packaging equipment market accounted for the largest revenue share of 65.8%.
• In 2024, the Wafer Level Packaging (WLP) equipment segment held the largest revenue share by packaging type, accounting for 29.6%.
• In 2024, the integrated device manufacturers (IDMs) category accounted for the greatest market share by end use, accounting for 54.7%.

Global Market Forecast and Revenue Outlook

• 2024 Market Size: USD 4387.5 Million
• 2033 Projected Market Size: USD 10967.3 Million
• CAGR (2025-2033): 8.69%
• Asia Pacific: Largest market in 2024

The Semiconductor Assembly and Packaging Equipment Market comprises specialised machinery that executes the final manufacturing steps for semiconductor wafers, including individual chip separation and protection through packaging. This equipment plays a vital role in enhancing the mechanical and thermal, and electrical integrity of semiconductor devices. The industry advances because consumer electronics require compact yet powerful devices, and 5G and AI and IoT technologies increase their market penetration, and chip designs become more complex. The rapid expansion of smart devices and electric cars drives the need for high-density packing solutions, which fuels market demand. The market growth stems from increasing requirements for compact devices that deliver enhanced functionality with power efficiency and chip reliability.

Packaging innovations, including System-in-package (SiP) and fan-out wafer-level packaging together with 2.5D/3D integration, lead to transformative changes in the industry through enhanced chip processing and smaller footprints. Advanced packaging solutions need highly intricate assembly equipment because they manage detailed pitches alongside multiple interconnect layers while solving heat dissipation challenges. The development of the sector depends heavily on government funding programs. The EU Chips Act, together with the U.S. CHIPS and Science Act and China's semiconductor development plans, implement tax incentives and financial support for domestic semiconductor manufacturing facilities. The new regulations aim to fortify supply chain strength while stimulating technological advancement and minimising foreign dependency, which will generate sizeable business opportunities for equipment suppliers.

Packaging Type Insights

The Wafer Level Packaging (WLP) equipment segment held the largest revenue share of 29.6% in the semiconductor assembly and packaging equipment market because of its widespread implementation in wearables and smartphones, and small consumer electronics. WLP provides a method to package chips directly on the wafer, which leads to both size reduction and enhanced electrical performance.  The technology is ideal for situations which need minimal space and substantial production quantities. Market demand has surged because of its low-cost nature combined with its ability to handle slim devices and lightweight components. The manufacturing process for mobile devices and IoT products, along with edge computing, relies on WLP equipment as it remains vital for high-throughput, low-latency packaging solutions. The production of next-generation devices experiences increased dominance through ongoing advancements in fan-in and fan-out wafer-level processes.

The 3D/2.5D packaging equipment segment is expected to grow at the fastest CAGR during the forecast period because of the rising demand for data centre applications, together with AI and high-performance computing. 3D/2.5D packaging technology enables vertical chip stacking, which delivers greater processing power and enhanced energy efficiency alongside lower latency for these technologies. The packing type's enhanced bandwidth and shortened signal delay are crucial for handling complex workloads. 3D/2.5D integration stands as a promising direction for performance improvement when chipmakers surpass Moore's Law. The future will bring a substantial requirement for sophisticated 3D/2.5D packaging equipment because of rising investments in heterogeneous integration and chiplet architectures, particularly for servers and automotive systems and AI accelerators.

End-use Insights

The semiconductor assembly and packaging equipment market experienced dominance from the integrated device manufacturers (IDMs) segment with 54.7% revenue share in 2024. The high-end proprietary equipment maintains a stable demand because IDMs handle the whole semiconductor production process from the design stage to final assembly and packaging inside their organisation. Texas Instruments, together with Samsung and Intel, dedicate substantial funds toward advanced packaging technology development to maintain their leading performance position while safeguarding intellectual property. The market demand for specialised, reliable semiconductor packages intensifies because various industrial electronics and automotive and computer sectors need them. The vertical integration of IDMs enables them to control yield and quality, and innovation, which leads them to be key players in global investment for advanced packaging and assembly equipment development.

The outsourced semiconductor assembly and test (OSAT) segment is expected to grow at the fastest CAGR during the forecasted period because of the increasing popularity of fabless design combined with production cost optimisation in semiconductor manufacturing. The back-end services provided by OSAT suppliers deliver adaptable and expandable assembly and testing solutions to clients operating across various industries. OSAT providers expand their capacity to respond to market requirements for advanced packaging features, including SiP alongside 3D integration and fan-out. The growth of OSAT is driven by the rising trend of fabless companies outsourcing their operations alongside IDMs that want to optimise their business processes. OSATs receive investment incentives for advanced equipment from the growing demand of new market sectors and the applications of artificial intelligence and 5G technology. The market position of OSATs improves through their enhanced technological capabilities.

Regional Insights

The North American semiconductor assembly and packaging equipment industry is growing significantly because of homegrown chip manufacturing expansion and modern electronic device production resurgence. Through its CHIPS and Science Act implementation, the United States provides over $50 billion to develop the semiconductor ecosystem, which motivates domestic and international companies to expand their assembly and packaging operations across the region. The rising demand for AI technology and automotive systems, alongside 5G applications, together with the increasing number of IDMs and OSATs, drives the need for superior packaging solutions. The need to protect supply chains and reduce Asian market dependence has resulted in major equipment development alongside research funding and infrastructure construction throughout North America.

Europe Semiconductor Assembly and Packaging Equipment Market Trends

The European semiconductor assembly and packaging equipment industry shows continuous growth because of government initiatives to develop domestic chip manufacturing and reduce foreign supplier reliance. The EU Chips Act represents a vital investment of €43 billion to strengthen European semiconductor production facilities, including packaging operations. The strong automotive industry and industrial and aerospace sectors in the region create growing needs for advanced high-reliability semiconductor packaging solutions. The need for high-performance semiconductor packaging solutions continues to grow in electric vehicles and renewable energy systems because of the increasing focus on green technology and electrification. The growth of semiconductor equipment manufacturing in Europe results from combined government-private partnerships and research investments, as well as funding for local fabrication and packaging operations.

Asia Pacific Semiconductor Assembly and Packaging Equipment Market Trends

The Asia Pacific region held the largest revenue share of 65.8% in the semiconductor assembly and packaging equipment market during 2024. The region maintains its dominant position because of its strong semiconductor manufacturing ecosystem, which includes important IDMs and OSAT providers located in China, Taiwan, South Korea and Japan. The rapid industrialisation, combined with consumer electronics growth and government support, has accelerated the development of chip assembly and packaging infrastructure. Sophisticated packaging technology requirements continue to increase because of 5G developments, as well as electric vehicles and artificial intelligence and Internet of Things applications. Asia Pacific continues to dominate as the worldwide semiconductor packaging equipment hub because of strategic national programs like South Korea's semiconductor expansion plan and China's "Made in China 2025" initiative.

Key Semiconductor Assembly And Packaging Equipment Companies:

The following are the leading companies in the semiconductor assembly and packaging equipment market. These companies collectively hold the largest market share and dictate industry trends.

• Applied Materials
• SCREEN Semiconductor Solutions Co., Ltd.
• ASM Pacific Technology
• Rudolph Technologies, Inc.
• Disco Corporation
• Veeco Instruments Inc.
• Teradyne, Inc.
• Besi
• Tokyo Electron Limited (TEL)
• Nikon Corporation
• Plasma-Therm
• Kulicke & Soffa Industries, Inc. (K&S)
• Ultratech, Inc.
• Others

Recent Developments

• In May 2025, Veeco revealed that both IDMs and OSATs had placed orders totalling more than USD 35 million for their AP300 advanced packaging lithography systems. These systems will serve growing production demands associated with the markets for high-performance computing and artificial intelligence. The AP300 is best suited for fan-out wafer-level packing, flip chip, and copper pillar bumping applications. It is anticipated that this order increase will greatly bolster Veeco's advanced packaging equipment business in 2025.

• In August 2024, an Indian opto-semiconductor company, Polymatech, acquired the American Nisene Technology Group to increase its footprint in IC testing and packaging. With this, Polymatech advances its objective of creating a complete semiconductor ecosystem. Plans to expand operations in the United States through significant investment are also included. Through this acquisition, the company's capabilities are enhanced throughout the value chain of chipmaking.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the semiconductor assembly & packaging equipment market based on the below-mentioned segments: 

Global Semiconductor Assembly & Packaging Equipment Market, By Packaging Type

• Flip Chip Packaging Equipment
• Wafer Level Packaging (WLP) Equipment
• Fan-Out Packaging Equipment
• System-in-Package (SiP) Equipment
• 3D/2.5D Packaging Equipment
• Others

Global Semiconductor Assembly & Packaging Equipment Market, By End Use

• IDMs (Integrated Device Manufacturers)
• OSAT (Outsourced Semiconductor Assembly and Test)

Global Semiconductor Assembly & Packaging Equipment Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa