Bonding Wires Market - Size, Share, Industry Trends, and Forecasts (2023 - 2030)

By Type :

Based on the type, the market is segregated into ball bonders, wedge bonders, stud/bump bonders, and peg bonders. The wedge bonding segment accounted for the largest revenue in the year 2022 of the global bonding wires market share. The ability of wedge bonders to offer high mechanical strength and reliability in interconnecting electronics components is driving the market. Wedge bonding involves the usage of a wedge-shaped tool to bond the wire to the bonding pad. Moreover, wedge bonders enable bonding with a large variety of wire and ribbon materials, including gold, aluminum, and silver. Consequently, the application of wedge bonders in power electronics and automotive electronics is propelling the bonding wires market trends.

The stud/bump bonders segment is anticipated to emerge as the fastest-growing segment during the forecast period. Stud bonding is a technique used for three-dimensional integrated circuits and flip-chip applications. Stud bonders require metal studs made up of gold or copper for attachment to the bonding pads of semiconductor devices. For instance, in November 2022, SET Corporation SA launched an advanced R&D flip-chip bonder called FC150 Platinum for telecom, automotive, and defense applications. Thus, stud bonders allow for high-density interconnects enabling the integration of multiple chips and components in a compact space, raising the bonding wires market demand.

By Bonding Process Type :

Based on the bonding process type, the market is trifurcated into thermo-compression bonding, thermosonic bonding, and ultrasonic bonding. Thermo-compression bonding segment accounted for the largest revenue share in the year 2022 of the bonding wires market share. Thermo-compression bonding is a technique that deploys heat and pressure to create a bond between the wire and the bonding pad. As a result, the thermo-compression bonding technique is well-suited for advanced packaging and microelectronics applications. For instance, in October 2022, Kulicke & Soffa Industries, Inc. shipped its first Fluxless Thermo-Compression Bonder (TCB) ensuring interconnect integrity through integrated fluxless delivery module to facilitate transistor-dense packaging in semiconductors to produce high levels of performance. Consequently, the application of thermos-compression techniques for Heterogeneous Integration (HI) and System-in-Package (SiP) in semiconductor devices is accelerating the market.

The ultrasonic technique is anticipated to witness the fastest CAGR during the forecast period. The ultrasonic bonding technique utilizes high-frequency mechanical vibrations to create a bond between the wire and the bonding pad. As a result, ultrasonic energy produces frictional heat that softens the wire and bonding pad, thereby fusing them. Therefore, the application of ultrasonic techniques in MEMS devices and medical applications is propelling the bonding wires market trends.

By Wire Thickness :

Based on the wire thickness, the market is segmented into 0μm-75μm, 75μm-150μm, 150μm-300μm, and 300μm-500μm. 0μm-75μm segment accounted for the largest revenue share in the year 2022. Wires of thickness 0μm-75μm provide high-density interconnects allowing for a large number of wires to be packed within a compact space. Moreover, fine wires are made up of a wide variety of materials including gold, aluminum, and copper. Thus, the application of fine wires in consumer electronics devices and other miniaturized devices is propelling the market.

The 300μm-500μm segment is expected to register the fastest CAGR during the forecast period. The wires are referred to as thick wires providing high mechanical strength and reliable connections in high-power semiconductor devices. The large diameter of 300μm-500μm wires allows for increased current-carrying capacity in comparison to fine wires. Moreover, the ability of 300μm-500μm wires to offer high thermal conductivity is accelerating the bonding wires market.

By Material :

Based on the material, the market is divided into copper, aluminum, gold, silver, and Palladium-Coated Copper (PCC). The copper segment accounted for the largest revenue share in the year 2022. The high electrical conductivity and cost-effectiveness of copper wires are driving the growth of the market. The high conductivity of wires allows for efficient transmission of current and helps minimize resistance in wire interconnects. For instance, in August 2021, QP Technologies installed two new Hesse Mechatronics ultrasonic wire bonders made up of aluminum and copper to provide advanced wedge bonding capabilities for axis recognition and pattern recognition in multichip modules (MCM), high-frequency components, chip-on-board (COB), hybrids, optical and automotive electronics. Moreover, the high availability of copper as a semiconductor material is contributing to the growth of the market.

The Palladium-Coated Copper (PCC) is anticipated to register the fastest CAGR during the forecast period. The palladium coating on copper wires provides a protective layer, thereby eliminating oxidation concerns associated with bare copper wires. Moreover, palladium-coated copper wires are compatible with aluminum bond pads. Subsequently, the cost-effectiveness and high compatibility of Palladium-Coated Copper (PCC) is expected to drive the market during the forecast period.

By Application :

Based on the application, the market is segregated into MEMS, memory, sensors, optoelectronics systems, and others. The MEMS systems accounted for the largest revenue of 34.5% in the year 2022. Bonding wires play a crucial role in providing electrical connectivity between different components of MEMS devices such as MEMS chips, package leads, and circuit boards. Micro-electromechanical systems (MEMS) is a process technology used to create tiny integrated devices or systems that combine mechanical and electrical components. The components are fabricated using integrated circuit (IC) batch processing techniques. Thus, these wires play a crucial role in MEMS systems, resulting in the growth of the market.

The sensor segment is expected to witness a high CAGR during the forecast period. The deployment of advanced sensors in consumer electronics and automotive industry is driving the market. Sensors play a crucial role in transmitting information between different components in semiconductor devices. As a result, wire bonders are utilized in the packaging of sensors to establish electrical connections between the sensor chip and the package leads. Thus, the growing miniaturization of consumer electronics and IoT-enabled is driving the demand for efficient wires, boosting the market.

By End-User :

Based on the end-user, the market is divided into automotive, aerospace & defense, consumer electronics, telecommunications, healthcare, and others. The consumer electronics segment accounted for the largest revenue in the year 2022. These wires are essential in IC packaging wherein semiconductor chips are enclosed within protective packages. Moreover, they play a crucial role in consumer electronics display technologies such as LCD, OLED, and AMOLED screens. Furthermore, the growing adoption of smart wearables among consumers is propelling the market.

The automotive industry is expected to witness the fastest CAGR during the forecast period. They are widely used in the assembly of ECUs to establish electrical connections between semiconductor chips, sensors, and other electronic components. Moreover, they are widely used in ADAS applications for the efficient transmission of vital information between different devices. Furthermore, the application of automotive lighting systems is accelerating the market.

By Region :

The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

North America accounted for a revenue share of USD 5,270.33 million in 2022 and is expected to reach USD 6,669.98 million in 2030, registering a CAGR of 3.1% during the forecast period. Additionally, in the region, the U.S. accounted for the largest revenue share of 59.80% in the year 2022. As per the bonding wires market analysis, the widespread adoption of consumer electronics devices such as smartphones, laptops, and tablets is driving the growth of the market. They are essential in establishing reliable electrical connections between different semiconductor devices. For instance, in July 2021, Amkor Technology announced to offer of wire bonds and flip-chip packaging to provide reliable and cost-effective wire bonds for devices manufactured on 0.13-micron and low-k processes. Moreover, the application of these wires in medical devices is accelerating the market. They are used in the assembly of monitoring and diagnostic devices including ECG machines and ultrasound devices.

The Asia-Pacific region is anticipated to register the fastest CAGR of 3.4% during the forecast period. The bonding wires market analysis shows that the large manufacturing industries in countries such as India, China, and Japan are driving the demand for efficient and reliable wires for the manufacturing of consumer electronics and automotive parts. The growing automotive industry in the Asia-Pacific region is propelling the regional market. They are extensively used in ADAS applications for the efficient functioning of a wide variety of sensors. Therefore, the growing adoption of wire bonding techniques in the aforementioned industries is accelerating the bonding wires market expansion.