|Market Size in 2022||Market Forecast in 2030||CAGR (in %)||Base Year|
|USD 880 Million||USD 1,248 Million||4.46%||2022|
Semiconductor Chip Handler Market
The global semiconductor chip handler market size was worth around USD 880 million in 2022 and is predicted to grow to around USD 1,248 million by 2030 with a compound annual growth rate (CAGR) of roughly 4.46% between 2023 and 2030.
The report analyzes the global semiconductor chip handler market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the semiconductor chip handler industry.
The semiconductor chip handlers are employed at semiconductor manufacturing facilities for various applications such as sorting, testing, and others. Semiconductor testing is essential for ensuring compliance with industry quality requirements and specifications. The manufacturing phase of a semiconductor can be divided into two steps, including, wafer fabrication and assembly. After assembly, final tests are performed. Since semiconductor manufacturing techniques cannot produce products with a yield of 100%, testing of the chips is essential and directly affects the final chip price because tiny defects might lead to a product's failure. Thereby, the testing of semiconductor chips is done with the use of automated test equipment (ATE), a test system, and a test handler. The package test, often known as the final test, is performed after each chip has been individually sealed in a packing. The test handler automatically moves each chip to the automated test equipment (ATE) terminal to examine, if any product was damaged during the packaging process.
Increasing production & investment in the semiconductor industry to drive market growth during the forecast period.
The global semiconductor chip handler market is projected to grow owing to the rising production & investment in the semiconductor industry, across the globe. According to the Semiconductor Industry Association, the semiconductor industry has been working continually to speed up the pace of innovation and ramp up production in 2022, as the importance of semiconductors to the global economy continues to expand. Meanwhile, as per the World Semiconductor Trade Statistics (WSTS), the global semiconductor market reached USD 574,084 million in 2022, witnessing a growth rate of around 3.3% compared to the previous year. Further, the global semiconductor market revenue is likely to reach USD 575,997 million by 2024, up by 11.8% year-on-year (Y-o-Y).
In February 2022, the European Commission started consideration of the European Union (EU) Chips Act, which comprises up to USD 43 billion for supporting the regional semiconductor industry. Further, in the U.S., in July 2022, the government passed the CHIPS Act of 2022 to strengthen the country’s semiconductor manufacturing, design, and research. All such factors are likely to support the demand for the semiconductor chip handler industry.
Semiconductor supply chain disruption & trade sanctions to restrict market expansion
Semiconductors are critical components used in modern electronics. The semiconductor industry's supply chain is complex and highly globalized, with a few key firms dominating several stages of production. The demand for semiconductor chip handlers is expected to be low in a country with a poor supply chain scenario. About 39% of the value of the worldwide semiconductor supply chain is contributed by the U.S. semiconductor sector. Moreover, Japan, Europe, Taiwan, and South Korea collectively contribute another 53%. These nations benefit from a combined competitive edge in almost every supply chain segment. China, which makes up only 6% of the global economy, is rapidly increasing its capabilities across a wide range of sectors, and it may try to reorganize supply chains in its favor. The production of the most advanced semiconductors is situated in Taiwan (around 92% of worldwide manufacturing) and South Korea (8% of worldwide manufacturing).
According to the National Bureau of Statistics), China’s integrated circuit (IC) output declined by 17% to 44.3 billion units in the first 2 months of 2023, as the nation's semiconductor sector battled economic challenges and escalating US trade sanctions. Such factors are likely to hinder the growth of the semiconductor chip handler industry.
Increasing R&D in the semiconductor equipment industry to provide growth opportunities
Global semiconductor equipment manufacturing firms are investing significantly in R&D for the development of products such as semiconductor chip handlers, etc., with advanced and updated functionalities. Moreover, these firms are collaborating with universities or research institutions for the development of semiconductor chip handler quality. ADVANTEST CORPORATION invested more than JPY 48 billion for R&D in FY2022. The company has R&D facilities for semiconductor equipment development in Gunma, Saitama, and Fukuoka in Japan. The company is expected to enhance its R&D for semiconductor equipment. Such factors are likely to act as opportunities for the semiconductor chip handler market.
High cost of adoption to challenge market cap growth
Semiconductor chip handlers such as MEMS handlers, thermal handlers, etc. are expensive. Chip handler equipment comprises advanced technology costs, manufacturing costs, and others. The manufacturing process for the equipment is complex in nature, as various precision factors need to be taken care of. Fully automated semiconductor chip handlers are the costliest. However, the challenge from the cost factor can be mitigated, considering its favorable automation environment offering for the semiconductor industry.
The global semiconductor chip handler market is segmented based on type, function, application, end-user industry, and region.
Based on type, the global market segments are pick-&-place, MEMS handler, thermal, gravity handler, turret-based test handler, and other types. Currently, the global market is dominated by pick-&-place, considering its wide applicability in almost every semiconductor facility. All types of integrated circuits (ICs) can be tested at the system level and in the final test using the pick-&-place IC handler.
Based on the function, the semiconductor chip handler industry is segmented into fully automatic and semi-automatic. The fully automatic segment dominated the market share in 2022. Automation in the semiconductor industry is one of the key factors of consideration, which can be significantly fulfilled by using a fully automatic chip handler at the manufacturing facility.
Based on the application, the semiconductor chip handler industry is segmented into IC & discrete, advanced packaging, CMOS image sensor, LED/photonics, and other applications. The IC & discrete segment dominated the market share in 2022. Semiconductor chip handler is majorly used at the inspection, test & packing stage of IC & discrete product manufacturing.
Based on the end-user industry, the global market segments are transportation, computing & network, consumer, industrial & medical, IoT/IoV & optoelectronics, and other end-user industries. Currently, the semiconductor chip handler industry is dominated by the transportation segment. In the automotive industry, semiconductor chip handlers are used for ADAS processors with active thermal control, telematics, sensors, and semiconductor-based devices supporting the electrification of the drivetrain.
For instance, according to the International Organization of Motor Vehicle Manufacturers (OICA), in 2022, around 85,016,728 units of vehicles were produced, across the globe, witnessing a growth rate of around 6% compared to the previous year. The rising production trends in the automotive sector are supporting the demand for the semiconductor chip handler industry.
|Report Attributes||Report Details|
|Report Name||Semiconductor Chip Handler Market Report|
|Market Size in 2022||USD 880 Million|
|Market Forecast in 2030||USD 1248 Million|
|Growth Rate||CAGR of 4.46%|
|Number of Pages||232|
|Key Companies Covered||ADVANTEST CORPORATION, ASMPT, Boston Semi Equipment, Chroma ATE Inc., Cohu Inc, Exatron, KES Systems Inc., PowerTECH, Seiko Epson Corp., SemiTek International, Shibasoku Co. Ltd., SPEA S.p.A., TESEC Inc., X. J. S. Electronic Private Limited, and Xeltek Inc..|
|Segments Covered||By Type, By Function, By Application, By End-user Industry, and By Region|
|Regions Covered||North America, Europe, Asia Pacific (APAC), Latin America, Middle East, and Africa (MEA)|
|Historical Year||2017 to 2021|
|Forecast Year||2023 - 2030|
|Customization Scope||Avail customized purchase options to meet your exact research needs. Request For Customization|
Asia Pacific to lead the market during the forecast period
The global semiconductor chip handler market growth is expected to be driven by Asia Pacific, during the forecast period. According to the World Semiconductor Trade Statistics (WSTS), the semiconductor market in Asia Pacific reached USD 330,937 million in 2022, registering a decline rate of around 3.5% compared to the previous year. Further, the semiconductor market revenue in Asia Pacific is likely to reach USD 280,881 million by 2023, down by 15.1% year-on-year (Y-o-Y). Further, In July 2023, India and Japan announced a collaboration in the semiconductor sector to develop a semiconductor manufacturing supply chain, with an aim of USD 35.9 billion Japanese investment in India by 2027. Such investment is expected to enhance the demand for semiconductor chip handlers and other equipment for setting up manufacturing plants in the country.
Various end-user industries such as automotive, electronics, aerospace, and telecommunication, among others, are the key consumers of semiconductor chips, thereby, acting as one of the key markets for semiconductor chip handlers from its domestic manufacturing industry.
The global semiconductor chip handler market is dominated by players like:
By End-user Industry
The semiconductor chip handlers are employed at semiconductor manufacturing facilities for various applications such as sorting, testing, and others. Semiconductor testing is essential for ensuring compliance with industry quality requirements and specifications.
The global semiconductor chip handler market cap may grow owing to the rising production & investment in the semiconductor industry. Significant growth opportunities can be expected due to increasing R&D in the semiconductor equipment industry.
According to study, the global semiconductor chip handler market size was worth around USD 880 million in 2022 and is predicted to grow to around USD 1,248 million by 2030.
The CAGR value of the semiconductor chip handler market is expected to be around 4.46% during 2023-2030.
The global semiconductor chip handler market growth is expected to be driven by Asia Pacific. It is currently the world’s highest revenue-generating market owing to the presence of a huge footprint in the semiconductor sector for various end-use industries such as automotive, etc.
The global semiconductor chip handler market is led by players like ADVANTEST CORPORATION, ASMPT, Boston Semi Equipment, Chroma ATE Inc., Cohu, Inc, Exatron, KES Systems, Inc., PowerTECH, Seiko Epson Corp., SemiTek International, Shibasoku Co., Ltd., SPEA S.p.A., TESEC, Inc., X. J. S. Electronic Private Limited, and Xeltek Inc.