Back End of the Line Semiconductor Equipment Market - Asia Pacific is the largest market accounting to more than 50% of the market share

Back End of Line Semi-Conductor Equipment is the second part of semiconductor devices where single devices such as capacitors, transistors and resistors, among others are interconnected by wires on wafer which are made by pure silicon and metal layers to form required electrical circuits. Common metal that forms layers are aluminum interconnect and copper interconnect. Back end of the line in semiconductor equipments is started when the wafer gets deposited by the first layer of metal. Back end of line consists of metal levels, insulating layers (dielectrics), and bonding sites for chip to package connections. In back end of the line the formation of interconnect wires, contacts (pads), and dielectric structures takes place. Ten metal layers or more are added in back end of the line stage in semiconductor electronics.

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Steps of back end of line includes silicidation of the polysilicon region, drain regions and source, addition of dielectric and its processing, making holes in PMD in order to make contacts in them, adding the first metal layer, addition of second dielectric, connection of lower metal with higher metal by making vias through dielectric and passivation layer addition in order to protect the micro chip. Back end of the line semiconductor equipment market can be segmented by product type into CVD, coater developer, CMP, metal etching, PVD, wet station and stepper. The stepper market dominated the overall back end of the line semiconductor equipment market with more than 40% of the total market share in 2015. In terms of end-user, the global back end of the line semiconductor equipment market is segregated into memory, foundry and integrated device manufacturers (IDM). Foundry held the largest market share in 2015 and accounted close to 60% of the market share.

Major drivers driving the global back end of the line semi conductor equipments includes increasing demand for advanced packaging technologies and flip chips. With rising use of smart packaging technologies use of the same has also increased among consumers. In addition, increasing technological functionalities in mobile devices is a major driver driving the global back end of the line semi conductor equipments market. Increase in the number of advanced consumer electronic equipments is also a major driver driving the global market. Major restraints faced by the global back end of line semi conductor equipment market includes availability of few vendors in the global market which makes availability of the equipments a challenge and also increases cost. In addition, high investment by the end user is a major restraint towards market growth for companies in their initial stages. Proliferation of advanced semiconductor devices is acting as a big opportunity to the global back end of the line semi conductor equipment market. In addition, increased use of semiconductor memory devices also acts as a good opportunity of the global market. Growing application of IoT is also a major opportunity of the global back end of the line semiconductor equipment market.

In terms of geography, the back end of the line semiconductor equipments global market is segregated into North America, Europe, Asia Pacific, Middle East and Africa and Latin America. Asia Pacific is the largest market accounting to more than 50% of the market share of the back end of the line semiconductor equipment global market. With the presence of large number of manufacturers in China, Japan, South Korea and Taiwan is the major region of dominance of this region in the global back end of the line semiconductor equipment market.

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Major players of the global back end of the line semiconductor equipments include Applied Materials (California, U.S), ASML (Veldhoven, Netherlands), KLA-Tencor (California, U.S), Lam Research (California, U.S), Dainippon Screen Mfg. Co., Ltd. (Kyoto, Japan), Hitachi Global (Tokyo, Japan), Nikon Corporation (Tokyo, Japan) and Tokyo Electron Limited (TEL) (Tokyo, Japan) among others.

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