Glossary and definition 2

Report objectives 6

Report scope 7

Three-page summary 16

Executive summary 20

Context 63

• More than Moore devices
• More than-Moore equipment
• Players
• Market movements
• Geopolitical factors

Lithography equipment 117

• Lithography adoption in MtM devices
• Lithography equipment benchmark
• Maskless lithography
• Mems and sensors lithography
• Power device lithography
• RF device lithography
• CMOS image sensor lithography
• Advanced packaging lithography
• Lithography equipment market forecast

Permanent bonding equipment 270

• Scope of this report
• Wafer-to-wafer vs die-to-wafer
• Permanent bonding technologies
• Permanent bonding adoption in MtM devices
• Permanent bonding equipment benchmark
• Emerging permanent bonding technologies
• Permanent bonding equipment market forecasts
• MEMS and sensors permanent bonding
• 3D stacking and integration permanent bonding
• CIS permanent bonding
• SOI and engineered substrate permanent bonding
• Permanent bonding equipment market forecast

Temporary bonding equipment 360

• Temporary bonding adoption in MtM devices
• Temporary bonding technology and equipment
• Emerging temporary bonding technologies
• Temporary bonding equipment market forecast
• Temporary bonding carrier and adhesive

Yole Group related reports 409

Appendix 412

Yole Corporate Presentation 422

CHIP SHORTAGES ACROSS END-MARKETS DRIVE THE CAPITAL INVESTMENT IN FOUNDRIES AND OSATS

2020 was a difficult year for device manufacturers. Chip demand soared mainly in the consumer market due to lockdowns and working from home. Despite the cash injection, manufacturers could not keep up with increased demand. Production was held up worldwide due to the COVID-19 pandemic, lockdowns and climate and accident-related issues. All these aspects generated chip shortages across all markets. Governments and the public realised the semiconductor industry’s importance in everyday life and national sovereignty. As such, private and public manufacturing giants rushed to increase production volume, announcing fab expansion or new locations, while governments increased industry incentives worldwide. Manufacturers’ cash injection resulted in soaring fab equipment orders. Thus, 2020 was the best year ever for many High Volume Manufacturing (HVM) equipment providers. But they could not keep up with equipment production either. Assembly and delivery time increased from several months to a year. As such, equipment orders have spilled over into 2021 and 2022. This should sustain equipment vendors’ revenue in following years.

MORE THAN MOORE ACCELERATES, AND MANUFACTURING EQUIPMENT IS THE KEY

The favourable geopolitical situation for equipment sales is reinforced by manufacturing technology development for More than Moore (MtM) devices: MEMS, CMOS Image Sensors (CIS), power and RF as well as Advanced Packaging (AP). Lithography tools are the backbone for technology change, with bonding tool improvement driving AP. For lithography equipment sales, we see a continuous transition from traditionally used mask aligners towards projection lithography steppers or scanners and accelerating adoption of maskless lithography. Such a change is driven by MtM device miniaturisation, MtM device integration in a chip or a system with other MtM units or mainstream devices and patterning process yield increase. For permanent bonding equipment sales, we see hybrid bonding acceptance for Backside Illuminated (BSI) CIS. Hybrid bonding is also undisputedly being adopted for 3D integration and stacking, mostly for memory and logic devices. Surface Activated Bonding (SAB) is now used for silicon-on-insulator and engineered substrates dedicated to power and RF applications. Temporary bonding equipment sales are driven by substrate thinning and handling, in particular for AP. Finally, device integration trends, such as 3D stacking and reconstructed wafers, need lithography tool modifications to account for bonding process deficiencies in AP. These could
include substrate warpage, misalignment and thickness non-uniformities.

IN 2020, THE LITHOGRAPHY AND BONDING EQUIPMENT MARKET GREW BEYOND EXPECTATIONS, WITH HIGHLY FRAGMENTED MARKET SHARE

The lithography and bonding equipment market dedicated to MtM device manufacturing totalled $1.38B in 2020. It is highly fragmented. Some players specialize in tools for given applications, like fan-out panel level packaging or steppers dedicated to small compound semiconductor wafers. Some make their tools more flexible, such as in maskless lithography or hybrid bonding tools dedicated to wafer-to-wafer and die-to-wafer processes. Photolithography tool sales were $1B in 2020. They are driven by CIS applications at 30% of the market, followed by AP, power, RF and MEMS. Projection lithography tools account for 87% of the market, while traditional mask aligners still account for 12% of the market. Currently, Canon is the MtM photolithography instrument sales leader with 34% market share, offering a wide variety of tools. However, ASML is closing in on Canon, with 21% share, and looks attentivelly at MtM manufacturing trends. AP photolithography tool sales are driven by SMEE, present in the domestic Chinese market. Finally, SÜSS MicroTec remains the leader of mask aligner sales. The permanent bonding market was worth $259M in 2020 with EVG being an undisputable leader, owning 75% of the market and selling mostly hybrid, fusion as well as SAB tools. The temporary bonding equipment market was worth $106M in 2020 and is driven by AP. This market is fragmented between EVG, TAZMO, SÜSS MicroTec and TEL. After a very good 2020 for HVM equipment vendors, a positive outlook is likely in coming years. The MtM lithography, permanent and temporary bonding equipment markets are expected to grow further. Their Compound Annual Growth Rates from 2020 to 2025 are 9%, 13% and 7% respectively. Together, these markets can be worth $2.4B in 2026.

3M, Alpha Tools, Applied Microengineering (AML), Advanced System Technology (ast),Adtec Engineering, A mkor, A SE G roup, A SML, A SM P acific T echnologies, A dvanced S ystem Technology ( ast), A yumi I ndustry, A pplied M aterials, B roadcom/Avago, B ondTech, B rewer Science, Canon, Cello Technology, Circuit Fabology Microelectronics Equipmnet (CFMEE), Deca, Delphi Laser, Dynatech, EO Technics, ERS electronic, Eshylon Scientific, EV Group, Hakuto, Heidelberg Instruments, Intel, Kingyoup Optronics, KLA Tencor/Orbotech, Kulicke & Soffa (Liteq), Japan Science Engineering, Micron, Mitsubishi Heavy Industries, Nepes, Nidec, Nikon, Onto Innovation, Orbotech, ORC Manufacturing, Patrow Technologies, Samsung, Semiconductor Solutions Co., Ltd. (SCREEN), SK Hynix, Silicon Light Machines, ST Microelectronics, SÜSS MicroTec , Shanghai Micro Electronics Equipment Co (SMEE), SY&SE, Takatori, TAZMO, Tecnisco, Tokyo Electron Limited (TEL), Tokyo Ohka Kogyo (TOK), TSMC, Ushio, Veeco, Via Mechanics and many more.