Underfill Dispensers Market Analysis

Global Underfill Dispensers Market Overview

Underfill Dispensers Market Size was valued at USD 48.9 Billion in 2022. The Underfill Dispensers market industry is projected to grow from USD 53.3 Billion in 2023 to USD 107.9 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 9.20% during the forecast period (2024 - 2032). Increased demand for miniaturization, higher packaging density in electronic devices, and growing use of flip-chip technology in semiconductor packaging are the key market drivers enhancing the market growth.

Underfill Dispensers Market Trends

• 
  

  Growing demand for miniaturization and higher packaging density in electronic devices is driving the market growth.

  
  

Market CAGR for underfill dispensers is being driven by the rising demand for miniaturization and higher packaging density in electronic devices. As electronic devices become smaller and more compact, there is a need to optimize the utilization of available space within the device. Traditional methods of packaging electronic components often leave gaps or empty spaces between the semiconductor chip and the package substrate. Underfill dispensers help fill these gaps, ensuring that all available space is used efficiently. This is particularly important in applications like smartphones, wearables, and IoT devices, where every millimeter of space counts.

Miniaturization often leads to increased thermal and mechanical stress on semiconductor components. Underfill dispensers are used to create a strong and reliable bond between the chip and the substrate. This not only enhances the overall structural integrity of the package but also improves resistance to factors like temperature variations, vibrations, and mechanical shocks. In industries like automotive electronics and aerospace, where reliability is critical, underfill dispensers are essential. Smaller electronic devices frequently require higher packaging density to accommodate more features and functionality. This higher packaging density can result in shorter electrical interconnects between components. Underfill materials can help reduce the electrical impedance and parasitic capacitance between the chip and the substrate, improving the electrical performance of the package. This is crucial in applications like high-speed data communication and processing, where signal integrity is paramount.

Underfill dispensers are essential for various advanced packaging techniques, such as flip-chip packaging and system-in-package (SiP). These techniques enable multiple components to be integrated closely together, leading to higher packaging density. The underfill material ensures that the connections remain secure and reliable, even in densely packed configurations. With the proliferation of portable devices like smartphones, tablets, and wearables, there is a tremendous market demand for miniaturized yet high-performing electronic products. Underfill dispensers are a critical enabling technology in the production of such devices, as they support the development of compact, lightweight, and robust electronics. Advancements in underfill dispenser technology, including improved materials and more precise application methods, have made it easier and more cost-effective to implement underfill in electronic packaging. These innovations have further fueled the adoption of underfill dispensers in the industry. Thus driving the Underfill Dispensers market revenue.

Underfill Dispensers Market Segment Insights

Underfill Dispensers Product Type Insights

The Underfill Dispensers Market segmentation, based on product type, includes Capillary Flow Underfill, No Flow Underfill, and Molded Underfill. The capillary flow underfill segment dominates the market, accounting for the largest market revenue due to its simplicity and cost-effectiveness. It relies on the natural capillary action to evenly distribute the underfill material under the semiconductor package, which minimizes voids and enhances the overall reliability of the assembly. This method is especially well-suited for mass production, as it requires less complex equipment and is less prone to dispensing errors. As a result, capillary flow underfill dispensers are favored in industries where cost efficiency, high production throughput, and consistent product quality are essential, such as consumer electronics and automotive electronics.

Figure 1: Underfill Dispensers Market, by Product Type, 2022 & 2032 (USD Billion)

Underfill Dispensers End-Use Insights

The Underfill Dispensers Market segmentation, based on end users, includes Ball Grid Array and Chip Scale Packaging. The ball grid array category dominates the market due to the specific requirements of BGA packages. BGAs are commonly used in high-density and high-performance electronic devices, such as microprocessors and GPUs. These packages often require underfill dispensing to enhance the mechanical and thermal reliability of the solder joints, which is crucial for devices operating under extreme conditions or with high power densities. The demand for precise and consistent underfill application in BGAs necessitates advanced underfill dispensing technology to meet the intricate needs of these applications. This drives research, development, and innovation in underfill dispensing systems to cater to the unique demands of BGA end users, ultimately leading to a market dominated by their requirements and specifications.

Underfill Dispensers Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Underfill Dispensers market area dominates this market due to its robust ecosystem of semiconductor manufacturing and packaging companies, with key industry players and research institutions located in the region. Additionally, North America benefits from significant investments in research and development, which drive innovation and technological advancements in underfill dispensing equipment and techniques.

Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: UNDERFILL DISPENSERS MARKET SHARE BY REGION 2022 (USD Billion)

Europe's Underfill Dispensers market accounts for the second-largest market share due to the region's strong presence in the automotive and aerospace industries. Further, the German Underfill Dispensers market held the largest market share, and the UK Underfill Dispensers market was the fastest-growing market in the European region.

The Asia-Pacific Underfill Dispensers Market is expected to grow at the fastest CAGR from 2024 to 2032. This is due to the region's thriving consumer electronics industry, high demand for compact and lightweight electronic devices, and the presence of a rapidly growing semiconductor manufacturing sector. Moreover, China’s Underfill Dispensers market held the largest market share, and the Indian Underfill Dispensers market was the fastest-growing market in the Asia-Pacific region.

Underfill Dispensers Key Market Players & Competitive Insights

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Underfill Dispensers industry to benefit clients and increase the market sector. In recent years, the Underfill Dispensers industry has offered some of the most significant advantages to the packaging industry. Major players in the Underfill Dispensers market, including Henkel, MKS Instruments, Shenzhen STIHOM Machine Electronics, Zmation, Nordson Corporation, Illinois Tool Works, Master Bond, Zymet, Essemtec, and others, are attempting to increase market demand by investing in research and development operations.

Mycronic is a Swedish company specializing in high-precision production equipment for the electronics and photomask manufacturing industries. The company provides solutions for the electronics industry, including pick-and-place machines for surface mount technology (SMT), dispensing systems, and conformal coating equipment, which are used in the production of printed circuit boards and other electronic components. In the photomask manufacturing sector, Mycronic offers mask writers used in semiconductor lithography. In July 2023, Mycronic and EV Group announced a partnership to develop and commercialize next-generation underfill dispensers for the advanced packaging market. This partnership will combine the expertise of both companies in underfill dispensing and advanced packaging to develop new dispensers that are capable of meeting the demanding requirements of the latest advanced packaging technologies.

Key Companies in the Underfill Dispensers market include

• Henkel


• MKS Instruments


• Shenzhen STIHOM Machine Electronics


• Zmation


• Nordson Corporation


• Illinois Tool Works


• Master Bond


• Zymet


• Essemtec

Underfill Dispensers Industry Developments

August 2023: ASM Assembly Systems and SCREEN Holdings Co., Ltd. announced a partnership to develop and commercialize next-generation underfill dispensers. This partnership will combine the expertise of both companies in underfill dispensing and semiconductor manufacturing to develop new dispensers that are more efficient, accurate, and reliable.

August 2023: Mycronic AB acquired Silex Insight, a Dutch manufacturer of underfill dispensing equipment. The acquisition is expected to expand Mycronic AB's product portfolio and customer base.

May 2023: Viscom AG announced that it has acquired the underfill dispensing business of PVA TePla AG. This acquisition will allow Viscom to expand its product offerings in the underfill dispenser market and provide customers with a more comprehensive range of solutions.

Underfill Dispensers Market Segmentation

Underfill Dispensers Product Type Outlook

• Capillary Flow Underfill


• No Flow Underfill


• Molded Underfill

Underfill Dispensers End Use Outlook

• Ball Grid Array


• Chip Scale Packaging

Underfill Dispensers Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America