Gartner Dataquest Says Worldwide Semiconductor Packaging/Assembly Equipment Market Grew 81 Percent in 2000.

Business Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--April 25, 2001

Driven by increased assembly demand in the Asia/Pacific region, the worldwide semiconductor packaging and assembly equipment market reached $4.6 billion in 2000, an 81 percent increase over 1999 revenue, according to Dataquest Inc., a unit of Gartner, Inc. (NYSE: IT and ITB). Asia/Pacific consumed more than 60 percent of all equipment. Japan had 22 percent of all packaging equipment. North America accounted for less than 10 percent, and European shipments represented slightly less than seven percent.

"Driven by increased assembly demand and a general economic recovery, Asia/Pacific continues to be the world's leading region," said Jim Walker, principal analyst for Gartner Dataquest's worldwide semiconductor group. "North America has been impacted by the continued trend toward outsourcing in Asia/Pacific. European shipments have been driven by the flip-chip and advanced packaging equipment sectors."

The top five vendors remained the same as last year, with Kulicke & Soffa in the No. 1 position with market share of 13.2 percent. Dai-Ichi Seiko dropped from No. 6 to No. 9, while Electroglas entered the top 10 for the first time (see Table 1).

Table 1
Top 10 Worldwide Semiconductor Packaging/Assembly
Vendors by Revenue

(Millions of U.S. Dollars)
1999 2000   Company     1999    2000     2000 Market     1999-2000
Rank Rank             Revenue Revenue  Share (Percent) Growth (Percent)
 1    1  Kulicke & Soffa  315     610      13.2          93.46
 2    2  Tokyo Seimitsu   236     450       9.7          90.71
 3    3  ASM Pacific      228     426       9.2          86.60
 4    4  ESEC             217     357       7.7          64.43
 5    5  Shinkawa         179     357       7.7          99.89
 8    6  Tokyo Electron   135     264       5.7          95.27
 7    7  TOWA             152     256       5.5          68.71
 9    8  Disco            115     220       4.7          90.46
 6    9  Dai-Ichi Seiko   160     210       4.5          31.25
 11  10  Electroglas       95     191       4.1         102.43
         Others           722   1,287      27.8          78.25
         Total Market   2,554   4,627     100.0          81.14

Source: Gartner Dataquest (April 2001)

Array-oriented packaging technologies and incremental capacity additions helped make 2000 a huge growth year for flip-chip bonders, solder ball placement and wafer bumping equipment. Wire bonders continued to be the largest equipment segment for semiconductor packaging, accounting for almost one-third of the market with a 32.4 percent market share.

While there was substantial growth for semiconductor packaging and assembly equipment in 2000, Gartner Dataquest analysts said the market will face increased challenges in 2001. A growth rate of 81 percent would be unsustainable for any long period of time.

"We believe that growth levels will slow in the first half of 2001 and return to more reasonable levels by the first half of 2002," Walker said. "However, as array packaging becomes more dominant, changes will be evident in 2001 as the demand for more flip-chip bonders, wafer bumping equipment and solder ball deposition increases. We also expect industry consolidation to continue in terms of acquisition activity, concentration of market share and the continued convergence of functional/processing overlapping with PC board assembly equipment."

Additional information on this market is available in the Gartner Dataquest Research Brief "Array Packaging Helps Drive 2000 Packaging/Assembly Equipment Market to 81 Percent Growth." This document provides a breakout of the major equipment segments and market leaders for 2000.

This document is produced by Gartner Dataquest's Semiconductors Worldwide program. This program combines memory, microcomponents, logic, ASIC, analog, discrete device, RF and optical segments into a complete industry picture. Products, suppliers, start-ups, technologies, regional consumption, applications and emerging technologies are all covered in this broad program. To purchase the document or subscribe to this program, please call 800/419-DATA, or 408/468-8009.

Gartner Dataquest is the recognized leader in providing the high-technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software and services sectors of the global information technology industry.

Gartner, Inc. is a research and advisory firm that helps more than 10,000 clients understand technology and drive business growth. Gartner's divisions consist of Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in 1979, Gartner, Inc. is headquartered in Stamford, Connecticut and consists of 4,600 associates, including 1,400 research analysts and consultants, in more than 80 locations worldwide. The company achieved fiscal 2000 revenues of $859 million. For more information, visit www.gartner.com.