Thin Wafer Processing & Dicing Equipment Market

6 min readFeb 20, 2023

Thin Wafer Processing & Dicing Equipment Market Overview

The Thin Wafer Processing & Dicing Equipment Market size is estimated to reach US$890.2 million by 2028, growing at a CAGR of 7.1% from 2023 to 2028. Growing demand for consumer electronics and the trend towards miniaturization of electronic devices are primarily driving the Thin Wafer Processing & Dicing Equipment industry during the forecast period. Additionally, the rising demand for three-dimensional integrated circuits, as they are being rapidly used in Micro Electro Mechanical Systems (MEMS) and other semiconductor devices, is also creating growth opportunities for the market. Dicing Technology is also evolving due to the rising demand for thinner wafers and more substantial die which increases the Thin Wafer Processing & Dicing Equipment Market size. Furthermore, rising applications of Logic and Memory, Power Devices, Radio Frequency Identification (RFID) and CMOS Image Sensors across industry verticals are also boosting the demand for dicing technologies such as blade dicing, laser dicing, plasma dicing and others. These aforementioned factors would positively influence the Thin Wafer Processing & Dicing Equipment industry outlook during the forecast period.

Thin Wafer Processing & Dicing Equipment Market Report Coverage

The report: “Thin Wafer Processing & Dicing Equipment Industry Outlook — Forecast (2023–2028)” by IndustryARC, covers an in-depth analysis of the following segments in the Thin Wafer Processing & Dicing Equipment industry.

By Dicing Technology: Blade Dicing, Laser Dicing, Plasma Dicing and Stealth Dicing.

By Wafer Thickness: 750 micrometres, 120 micrometres and 50 micrometres.

By Wafer Size: Less than 4 inches, 5 inches, 6 inches, 8 inches and 12 inches.

By Application: Logic and Memory, Micro Electro Mechanical Systems (MEMS), Power Devices, Radio Frequency Identification (RFID), CMOS Image Sensor and Others.

By Geography: North America (the US, Canada and Mexico), South America (Brazil, Argentina and Others), Europe (the UK, Germany, France, Italy, Spain and Others), APAC (China, Japan, South Korea, India, Australia and Others) and RoW (the Middle East and Africa).

Key Takeaways

In the Thin Wafer Processing & Dicing Equipment Market report, the 12-inch wafer size segment is expected to grow at a significant CAGR of 7.8% due to factors such as growing demand for miniaturized electronic devices and advancements in dicing technology.
The Micro Electro Mechanical Systems (MEMS) application segment is expected to grow significantly, with a CAGR of 8.1% due to the growing demand for smart consumer electronics and the incorporation of IoT.
APAC dominated the Thin Wafer Processing & Dicing Equipment Market with a 39% market share. This is due to the growing usage of consumer electronics and the rapidly growing semiconductor industry.

Thin Wafer Processing & Dicing Equipment Market Value Share, by Region, 2022 (%)

For More Details on This Report — Request for Sample

Thin Wafer Processing & Dicing Equipment Market Segment Analysis — by Wafer Size

Based on Wafer size, the 12 inches wafer segment in the Thin Wafer Processing & Dicing Equipment Market report is analyzed to grow at the highest CAGR of 7.8% during the forecast period 2023–2028. Increasing utilization of these wafers for producing energy-efficient and compact devices, rising adoption of microprocessors across industry verticals and advancements in dicing technology such as blade dicing, laser dicing and plasma dicing are driving the demand for this 12-inch wafer segment and thereby boosting the Thin Wafer Processing & Dicing Equipment Market growth. In April 2022, China Great Wall launched fully automated 12-inch thin film laser grooving equipment, capable of ultra-thin wafer dicing. Such factors are expected to accelerate the growth of this segment within the Thin Wafer Processing and Dicing Equipment industry during the forecast period.

Thin Wafer Processing & Dicing Equipment Market Segment Analysis — by Application

Based on Application, the microelectromechanical systems (MEMS) in the Thin Wafer Processing & Dicing Equipment Market report is analysed to grow at the highest CAGR of 8.1% during the forecast period 2023–2028. The rising popularity of IoT in semiconductors and the growing requirement for smart consumer electronics and wearable devices are some of the major factors influencing the growth of the MEMS segment in the Thin Wafer Processing & Dicing Equipment Market. With the growing trend of miniaturization in semiconductors and electronics, there is a need for high precision in wafer fabrication, which tends to open up opportunities for market growth. In January 2022, TDK Corporation announced the T5828 SoundWire MEMS microphone as part of the SmartSound performance products for mobile, IoT, TWS and other consumer devices. These developments boost the MEMS segment and increase the Thin Wafer Processing & Dicing Equipment Market size.

Thin Wafer Processing & Dicing Equipment Market Segment Analysis — by Geography

APAC dominated the global market for Thin Wafer Processing & Dicing Equipment with a market share of 39% in 2022. The region is also analyzed to have significant growth over the forecasting period. Increasing wafer grinding machinery automation, increasing smartphone, tablet and other consumers electronic device penetration, booming semiconductor industry and continuous R&D investments by major manufacturers are driving the market growth in this region. In May 2022, SML Group established a Technology Innovation Development Centre in Hong Kong for Radio Frequency Identification (RFID) inlay production. These factors are set to transform the Thin Wafer Processing and Dicing Equipment industry outlook within the APAC markets.

Thin Wafer Processing & Dicing Equipment Market Drivers

Technological advancements in semiconductors and growing demand for high-performance integrated circuits:

The semiconductor industry is expected to grow significantly over the forecast period. Semiconductors are primary components in the formation of any electronic device. These materials help manufacture high-performance integrated circuits that provide better speed and reliability and use less power. Due to technological advancements and integration of these high-performance integrated circuits in power devices, CMOS image sensors, MEMS, logic and memory devices, the rapidly growing semiconductor industry is creating ample opportunities for the Thin Wafer Processing & Dicing Equipment industry to grow. In December 2021, the Indian Government approved a US$10 billion incentive plan to boost the semiconductor industry after the crippling effects of the coronavirus on the industry. These factors would drive the demand for Thin Wafer Processing & Dicing Equipment.

Growing adoption of Radio Frequency Identification (RFID) tags:

The growing use of radio frequency identification (RFID) tags in various industries is propelling the Thin Wafer Processing & Dicing Equipment Market forward. In manufacturing facilities, radio frequency identification tags are used to manage and maintain the quality and output of manufacturing processes. They are attached to moving assets in industries such as manufacturing equipment and process components, engines and other automobile parts in order to track them throughout the process. Thin Wafer Processing & Dicing Equipment is a crucial part of manufacturing such RFID tags. In August 2022, BE Switchcraft introduced radio frequency identification (RFID) tags to streamline manufacturing and assist factory workers in scanning barcodes to record the status of the work. Such developments would positively influence the Thin Wafer Processing & Dicing Equipment industry outlook.

Thin Wafer Processing & Dicing Equipment Market Challenges

High costs of manufacturing, maintenance and fabrication processes:

High maintenance costs are restricting the growth of the Thin Wafer Processing & Dicing Equipment Market. The development of such equipment requires high precision and such core technological capabilities are held by dominant firms resulting in their limited production. Implementation and maintenance costs of such equipment are extremely expensive for SMEs, resulting in their limited adoption. According to Alibaba, the cost of wafer processing equipment ranges between US$2700 and US$7000 and wafer dicing equipment costs between US$1500 and US$2500. Such factors are impeding the growth of the Thin Wafer Processing and Dicing Equipment industry.

Key Market Players

Product launches, collaborations and R&D activities are key strategies adopted by players in the Thin Wafer Processing & Dicing Equipment Market. The top 10 companies in the Thin Wafer Processing & Dicing Equipment Market are:

Suzhou Delphi Laser Co. Ltd.
Synova
Plasma-Therm LLC
UTAC Holding, Ltd.
IBM
Disco Corporation
Tokyo Seimitsu Co, Ltd.
Neon Tech Co. Ltd.
Advanced Dicing Technologies Ltd.
DB HiTek

Recent Developments

In May 2022, Synova launched LMJ systems, semiconductor dicing & grinding systems capable of cutting & scribing brittle thin wafers to create new chip shapes.
In March 2022, DB HiTek announced that the company is planning to replace the old 8-inch wafer equipment with new ones with a significant investment of US$847.9 million. Such developments would increase the demand for Thin Wafer Processing & Dicing Equipment.
In May 2021, IBM announced a breakthrough with the invention of the first chip using 2 nanometers (nm) nanosheet technology which is expected to deliver 45% better performance and 75% lower energy consumption. This is poised to increase the company’s share in Thin Wafer Processing & Dicing Equipment Market.