Polaris Market Research today announced findings from its latest report, projecting the U.S. semiconductor assembly and packaging equipment market to grow from USD 439.24 million in 2024 to USD 825.84 million by 2034, at a CAGR of 6.53%. The report profiles 10 leading companies across three key market segments, covering product, packaging type, and end use. Semiconductor assembly and packaging equipment refers to the machinery and tools used to assemble and encapsulate semiconductor devices, ensuring their functionality, durability, and connectivity as chip architectures grow more compact and intricate.

Analyst Commentary on U.S. Semiconductor Assembly and Packaging Equipment Market Growth

"Chip performance gains today come less from shrinking transistors and more from how those transistors are packaged together, and that is exactly where U.S. equipment makers are investing," said a senior analyst at Polaris Market Research. "The clearest opportunity for buyers and investors is in advanced packaging tools for 2.5D/3D integration and hybrid bonding, categories that are scaling quickly as AI and high-performance computing demand denser, faster chip architectures."

U.S. Semiconductor Assembly and Packaging Equipment Market Statistics at a Glance

• 2024 Market Size: USD 439.24 Million
• 2025 Market Size: USD 467.25 Million
• 2034 Projected Size: USD 825.84 Million
• CAGR (2025–2034): 6.53%
• Largest Segment (2024): Bonding Equipment, by Product

Key Growth Drivers, Major Companies and Segments Covered

Growth Drivers: Surging demand for advanced packaging technologies such as 2.5D/3D integration, system-in-package, and fan-out wafer-level packaging, alongside government initiatives and localization efforts, are the primary forces behind the market's expansion, together with growing demand for chiplet-based designs and 3D packaging. The rising adoption of AI, IoT, and 5G-enabled devices is reshaping semiconductor demand patterns across the U.S., requiring chips with higher performance, smaller form factors, and more complex package architectures, which increases the need for advanced assembly and packaging solutions across autonomous vehicles, smart infrastructure, and edge devices. In April 2025, Applied Materials completed its acquisition of Besi to jointly create the industry's first fully integrated hybrid bonding solution, a copper-to-copper interconnect technology that improves chip performance and lowers packaging costs.

Browse Insights:

https://www.polarismarketresearch.com/industry-analysis/us-semiconductor-assembly-and-packaging-equipment-market

Major Companies Covered: Aehr Test Systems, Applied Materials, Brewer Science, Cohu Inc., KLA Corporation, Kulicke & Soffa Industries (K&S), Onto Innovation, Plasma-Therm, Rudolph Technologies Inc., and Veeco Instruments Inc.

Segments Covered: By Product (Dicing Equipment, Bonding Equipment, Packaging Equipment, Others), By Packaging Type (Flip Chip, Wafer Level Packaging, Fan-Out Packaging, System-in-Package, 3D/2.5D Packaging, Others), and By End Use (IDMs, OSAT).

Recent Developments in the U.S. Semiconductor Assembly and Packaging Equipment Market

• May 2025: Veeco Instruments received more than USD 35 million in orders for its AP300 lithography systems from IDMs and OSATs, supporting AI/HPC demand and advanced packaging formats including 2.5D/3D and FOWLP.
• May 2025: Marvell Technology launched an advanced multi-die packaging platform for AI accelerators, enabling designs 2.8 times larger than single-die solutions while reducing power use and cost.
• February 2025: RRP Electronics collaborated with Deca Technologies to acquire advanced wafer-level packaging technology, including M-Series and Adaptive Patterning tools.

U.S. Market Snapshot: OSAT Providers Set to Outpace IDMs

Bonding equipment led product revenue in 2024, reflecting its pivotal role in the miniaturization and performance optimization of semiconductor devices through wire bonding, flip-chip bonding, and die-attach systems, while wafer level packaging equipment dominated by packaging type as manufacturers pursue compactness and cost efficiency for mobile devices, wearables, and IoT products. By end use, the OSAT (outsourced semiconductor assembly and test) segment is expected to post the fastest growth through 2034 as leading U.S. chipmakers increasingly shift toward fabless design models, entrusting assembly and testing of complex products to specialized providers. In November 2024, the U.S. Department of Commerce outlined plans to invest USD 300 million in advanced packaging research and development, reinforcing federal support for domestic capability building under the CHIPS Act.

Why It Matters for Buyers Evaluating Market Entry

For stakeholders researching the top U.S. semiconductor packaging equipment companies and market forecast through 2034, the underlying report benchmarks market share, company positioning, and segment-level forecasts across product, packaging type, and end use to support sourcing, partnership, and investment decisions. With bonding and wafer-level packaging equipment commanding the largest current revenue and OSAT providers set to grow fastest as fabless design models spread, buyers gain a clear view of where near-term capital is concentrated and where outsourced capacity investment is likely to accelerate through the forecast period, particularly as hybrid bonding and chiplet-based architectures reshape equipment requirements industry-wide.

About Polaris Market Research

Polaris Market Research is a B2B syndicated market research and consulting firm offering 5,000+ published reports across 20+ industry verticals, delivering data-backed insights to help businesses make informed decisions.

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