LYON, France – Back-end equipment spending has always been in the range of 1% of the total semiconductor industry revenue, confirms Yole Group. Hence, the back-end segment is expected to grow in line with semiconductor growth.
The semiconductor market recovery in mainstream segments like automotive, industrial, and consumer has been slower than expected in Q2 and will continue so in Q3 2024. Excess inventories and muted demand are prolonging the downturn in these sectors, with utilization rates still below optimal levels, particularly in traditional wire bonding. As an example, ASE reports utilization of just 60% in some of its conventional back-end equipment segments, while ASMPT confirms softness in China’s high-end smartphone and industrial markets. However, these sectors are expected to improve in late 2024 or early 2025, with recovery expected in 2025.
This is reflected in the back-end equipment market, where the quarterly revenue dipped from $1.4 billion in Q1-24 to $1.29 billion in Q2 2024, a -8.1% decrease quarter to quarter; the market is expected to dip further in Q3. However, Yole Group’s analysts expect a rebound in Q4 2024, with quarterly revenue reaching $1.31 billion, which is expected to grow further to $1.74 billion in Q1 2025. Indeed, at the beginning of 2025, the market is showing a strong recovery in demand, coupled with increased adoption of advanced packaging.
Vishal Saroha, Technology & Market Analyst, Semiconductor Equipment at Yole Group, explains:“The back-end equipment market, integral to semiconductor assembly and packaging, is positioned for strong growth over the next few quarters, though near-term challenges persist. Insights from major OSATs, leading back-end equipment vendors, and standard industry outlooks suggest several key trends and opportunities shaping the sector”…
To read the full story, please click: Back-end semiconductor equipment: advanced packaging drives revenues in 2025
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