Back-end semi equipment market is poised for a +32% rebound in Q1 2025

Yole said back-end semiconductor equipment market faces short-term decline but anticipates recovery with adoption of advanced packaging techniques, where it outlines below points: The back-end equipment market will reach $5.3 billion by the end of 2024. Despite a flat H2 2024, the back-end equipment market is poised for a +32% rebound in Q1 2025. Disco is the leader in back-end equipment. Besi, ASMPT, and K&S are competing within the top five for podium places, with Semes completing the top five. The level of investment is a clear indicator that the major players are preparing for a more dynamic market heading into 2025. 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, th...