Dicing Equipment Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Dicing Equipment Market Analysis

The Dicing Equipment Market size is estimated at USD 0.71 billion in 2024, and is expected to reach USD 1.06 billion by 2029, at a CAGR of 6.75% during the forecast period (2024-2029).

Dicing equipment plays a pivotal role in ensuring precision during semiconductor manufacturing. The equipment is responsible for cutting individual dice from a wafer. Typically, a dicing saw slices through an unused section of the wafer, referred to as the 'street,' which is located between the dice. These streets generally measure three miles in width, and their narrowing heightens the significance of the dicing equipment.

• Key drivers propelling the growth of the studied market encompass surging demands for smart cards, Radio Frequency Identification (RFID) technology, and automotive power ICs. Alongside a flourishing consumer electronics market, an increase in factory establishments, and a trend towards miniaturization and technology migration, these factors have urged market vendors to amplify their research and development investments. This emphasis on downsizing while boosting performance has catalyzed innovations such as micro-electro-mechanical systems (MEMS) and 3D packaging. The ongoing advancements in these domains underscore the market's dynamic nature and its agility in adapting to technological progress.
• As a result, industry players are developing semiconductors that sustain power levels even with size reductions. For instance, NXP Semiconductors achieved a remarkable 55% reduction in package size for its transistors, all while maintaining power performance. This milestone highlights the industry's dedication to pushing technical boundaries, ensuring that compact packages do not sacrifice performance.
• Furthermore, Diodes Incorporated unveiled two automotive-compliant metal-oxide-semiconductor field-effect transistors (MOSFET) housed in a DFN2020 package, occupying a mere 2 mm by 2 mm footprint. Such strides accentuate the upward trajectory of the miniaturized semiconductor and IC packaging markets, subsequently amplifying the demand for dicing equipment. These innovations are paramount, addressing the escalating need for compact and efficient components in contemporary electronic devices.
• These advancements have catalyzed the ascent of three-dimensional integrated circuits (3D ICs) technology. This technology is becoming increasingly popular in space-constrained applications, spanning portable consumer electronics, sensors, Micro-Electro-Mechanical Systems (MEMS), and industrial products. It significantly boosts overall product performance, emphasizing speed, durability, low power consumption, lightweight design, and enhanced memory capacity.
• Ultra-thin wafer handling and dicing equipment processes play a crucial role in various semiconductor applications, including MEMS, compound semiconductors, LEDs, fan-out WLP, CMOS image sensors (CIS), and the emerging 3D ICs utilizing TSV interconnects. These processes ensure the integrity and performance of the wafers, which are essential for the functionality and efficiency of the end products. Nevertheless, these processing technologies face specific challenges, such as maintaining wafer stability, preventing damage during handling, and ensuring compatibility with existing manufacturing systems.
• Chipping, characterized by the cracking or chipping of the corners and edges of chips, poses a significant challenge. This issue can lead to reduced yield and increased costs in the manufacturing process. Furthermore, during dicing, the kerf width and the street width (the latter corresponding to the width of the diced wafer) increase by 80 to 100 μm. Consequently, this results in a kerf loss, leading to wastage of the wafers. The increased kerf width and street width not only waste material but also impact the precision and efficiency of the dicing process.
• Despite the challenges posed by the pandemic, certain players are making strategic investments in wafers. For example, Okmetic Oy announced plans to invest tens of millions of euros in its Finland facility, focusing on its core competency: Silicon-On-Insulator (SOI) wafers. Post-pandemic, a prominent trend in the global dicing equipment market is the rising adoption of automation and advanced control technologies. This shift is anticipated to enhance efficiency and precision, subsequently driving the dicing equipment market growth.

Dicing Equipment Market Trends

Power Devices Application Segment is Expected to Hold Significant Market Share

Dicing Equipment Industry Segmentation

The Dicing Equipment Market is segmented by dicing technology, application, and geography. The study tracks key macroeconomic factors, underlying growth influencers, and significant industry vendors, supporting the market estimates and growth rates throughout the anticipated period. 

The Dicing Equipment Market is segmented by dicing technology (blade dicing, laser ablation, stealth dicing, and plasma dicing), by application (logic & memory, MEMS devices, power devices, CMOS image sensors, and RFID), and by geography (China, Taiwan, South Korea, North America, Europe, and Rest of the World). The report offers market forecasts and size in value (USD) for all the above segments.