Back-End Equipment: From Volume Assembly to a Strategic Advanced Packaging Ecosystem

By  Vishal Saroha,  Technology & Market Analyst, Semiconductor Equipment at YOLE GROUP

The semiconductor back-end equipment market enters 2026 in a stronger position. According to Yole Group’s Status of the Back-End Equipment Industry 2026 report, equipment revenue will grow from $8.1 billion in 2025 to $9.5 billion in 2026 and $10.6 billion in 2027, then pause for a short digestion phase in 2028 before resuming growth toward $11.7 billion in 2031. DISCO, ASMPT and Besi led the market in 2025.

The nature of the industry is changing as well. AI infrastructure, HBM, chiplets and high-performance logic are shifting back-end equipment from volume assembly to a strategic advanced packaging ecosystem. Thermocompression bonding is critical for HBM scaling, with customers widening their supplier options, and hybrid bonding depends on a qualified process flow across cleaning, activation, metrology, placement and bonding rather than a standalone tool.

Regionalization and geopolitics are reshaping sourcing, with export controls creating a dual-market dynamic in China. By 2031, Yole says, leadership will depend on process integration, installed-base support, regional flexibility and strategic partnerships as much as tool performance.

Click here to read the full article in the SEMICON West Show Daily.

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