Product Code: 59311
The semiconductor wafer polishing and grinding equipment market was valued at USD 355.54 million in 2019, and it is expected to reach 452.57 million by 2025, registering a CAGR of 4.1% during the forecast period (2020 - 2025).
- Traditional polishing and grinding equipment are becoming obsolete, and vendors are anticipating one-stop solutions that could slice, probe, and polish in a single assembly line, instead of using multiple machines that occupy a lot of land space and require high budget installation and heavy maintenance. Although such solutions are less prevalent in the market currently, they are expected to be the next generation of wafer polishing and grinding equipment, over the forecast period.
- Companies are increasingly preferring to outsource polishing and grinding operations, rather than procuring high priced semiconductor wafer polishing and grinding equipment and setting up highly complicated manufacturing establishments for their operations. This scenario is creating a demand for semiconductor wafer polishing and grinding equipment immensely from the third-party manufacturers, who aim to benefit from the outsourcing activities of the key companies.
- An increasing need for semiconductor miniaturization is expected to provide growth opportunities to the company.
Scope of the Report
Grinding and polishing are major components of the semiconductor wafer fabrication process and are often dependent on the end-user customization and packaging requirements. Grinding is generally performed for wafer thinning, while polishing ensures a smooth and damage-free surface. However, in most of the latest equipment, the grinding and polishing tasks are integrated into a single device, to overcome the drawbacks of performing these operations separately. Any kind of grinding method causes certain damage to the wafer.
Key Market Trends
North America to Hold Significant Share
- The region is likely to remain one of the major revenue contributors to the market studied, over the forecast period, as fabless companies (indirect), integrated device manufacturers, and foundries are increasing several activities for semiconductor wafer manufacturers.
- For instance, five leading firms formed the U.S based consortium to pursue the transition to 450 mm wafers. The consortium includes some major firms such as Intel, IBM, Taiwan Semiconductor Manufacturing Company, SAMSUNG, and Global Foundries. This consortium focuses on developing and manufacturing the required equipment to process 450 mm wafers. The increase in wafer sizes will be one of the key trends which will gain traction in the semiconductor wafer polishing and grinding equipment market over the forecast period.
- The technological advancements in consumer electronic devices, such as smartphones and tablets, and the development of smart home devices and wearables in the region are driving the need for small integrated circuits. This, in turn, is fueling the demand for wafer polishing and grinding equipment.
Asia-Pacific to Witness Highest Growth
- Asia-Pacific offers a wide range of opportunities to the market's growth, compared to other parts of the world. The market in the region witnessed high demand from Outsourced Semiconductor Assembly and Test (OSAT), owing to increasing consolidation in the fab market.
- Many market players are consolidating to withstand the ongoing wave of vertical integration. In countries like China, the government policies that boost the semiconductor industry are increasingly creating opportunities for expansion for the semiconductor materials industry, which is, in turn, boosting the growth of the market.
- For instance, the policy framework released by the State Council of the People's Republic of China aimed to make advanced semiconductor manufacturing solutions, a technology-priority across the semiconductor industry.
The semiconductor wafer polishing and grinding equipment market is moderately competitive and consists of several major players. The market has gained a competitive edge over the past two decades. In terms of market share, few of the major players currently dominate the market. Many of the companies in the market are increasing their market presence by securing new contracts by tapping new markets.
- December 2018 - Disco Corporation developed DFG8640, a fully automatic grinder compatible with 8-inch wafers, which is able to grind a wide variety of materials, including Si (silicon), LiTaO3 (LT/lithium tantalate), LiNbO3 (LN/lithium niobate), and SiC (silicon carbide).
- November 2018 - Applied Ventures, LLC, the venture capital arm of Applied Materials, Inc., announced a new co-investment initiative with Empire State Development (ESD), New York State's economic development organization, aimed at accelerating innovation in Upstate New York. The goal of the initiative is to invest in promising Upstate New York startups across a broad range of established and emerging industries including semiconductors, artificial intelligence, advanced optics, autonomous vehicles, life sciences, clean energy and more.
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Table of Contents
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Introduction to Market Drivers and Restraints
- 4.3 Market Drivers
- 4.3.1 Growing Consumption of Consumer Electronics
- 4.3.2 Increasing Need for Miniaturization of Semiconductors
- 4.4 Market Restraints
- 4.4.1 Complexity Regarding Manufacturing
- 4.5 Industry Value Chain Analysis
- 4.6 Industry Attractiveness - Porter's Five Force Analysis
- 4.6.1 Threat of New Entrants
- 4.6.2 Bargaining Power of Buyers/Consumers
- 4.6.3 Bargaining Power of Suppliers
- 4.6.4 Threat of Substitute Products
- 4.6.5 Intensity of Competitive Rivalry
- 4.7 Technology Snapshot
5. MARKET SEGMENTATION
- 5.1 Geography
- 5.1.1 North America
- 5.1.2 Europe
- 5.1.3 Asia Pacific
- 5.1.4 Rest of World
6. COMPETITIVE LANDSCAPE
- 6.1 Company Profiles
- 6.1.1 Applied Materials Inc.
- 6.1.2 Ebara Corporation
- 6.1.3 Lapmaster Wolters GmbH
- 6.1.4 Logitech Ltd.
- 6.1.5 Entrepix Inc.
- 6.1.6 Revasum Inc.
- 6.1.7 Tokyo Seimitsu Co. Ltd. (Accretech Create Corp.)
- 6.1.8 Logomatic GmbH
- 6.1.9 Disco Corporation
- 6.1.10 Komatsu NTC Ltd.
- 6.1.11 Okamoto Corporation
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS