Chicago, Dec. 11, 2025 (GLOBE NEWSWIRE) -- The global wafer dicing services market was valued at US$ 617.5 million in 2025 and is projected to exceed valuation of US$ 932.9 million by 2035 at a CAGR of 4.21% during the forecast period 2026–2035.
The immediate catalyst for the surging wafer dicing services market is the exponential production of High Bandwidth Memory (HBM). AI accelerators require massive memory bandwidth, leading to aggressive capacity scaling. Global HBM wafer starts are projected to hit 540,000 wafers per month (wpm) by the end of 2025. SK Hynix, a dominant player, already elevated its production capacity from 120,000 wpm in early 2024 to 130,000 wpm. Their aggressive roadmap targets a total HBM capacity of 170,000 wpm by the close of 2025. Such volumes directly correlate to dicing service revenue, as every wafer requires precision singulation.
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Furthermore, the complexity of dicing increases with the introduction of next-generation architectures. The upcoming M15X fab in Cheongju is scheduled to launch in Q4 2025 to support this output in the wafer dicing services market. SK Hynix’s new M10F line adds a specific incremental capacity of 10,000 wpm exclusively for HBM packaging. HBM3E bit supply was driven to nearly triple in 2024 compared to previous levels. Looking forward, standard HBM4 stacks for 2025/2026 are defined with a strict height limit of 775 microns. These units will feature 16 stacked layers, effectively doubling the dicing passes required per finished unit compared to legacy 8-hi stacks. The market must adapt rapidly to these high-volume, high-precision mandates.
Key Findings in Wafer Dicing Services Market
| Market Forecast (2035) | US$ 932.9 Million |
| CAGR | 4.21% |
| Largest Region (2025) | North America (35%) |
| By Material | Silicon Carbide (37.50%) |
| By Size | 300 nm (54.30%) |
| By Dicing Technology | Laser Dicing (42%) |
| Top Drivers |
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| Top Trends |
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| Top Challenges |
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CoWoS Bottlenecks Ignite Dicing Demand Boom
Chip-on-Wafer-on-Substrate (CoWoS) packaging is the current choke point for AI hardware, creating urgent opportunities for the Wafer dicing services market. TSMC’s monthly CoWoS capacity stood at approximately 35,000 to 40,000 wafers in 2024. To alleviate shortages, this capacity is confirmed to rise to 75,000 wafers per month by the end of 2025. The trajectory continues upward, with projections reaching 135,000 wafers per month by 2026. NVIDIA has already secured approximately 70% of TSMC’s available CoWoS-L capacity for 2025, underscoring the intense competition for advanced packaging slots.
The sheer volume of units requiring singulation is staggering in the wafer dicing services market. Annual shipment volumes of CoWoS-packaged units are estimated to exceed 2 million units in 2025. Consequently, advanced packaging revenue is projected to exceed 10% of TSMC’s total revenue in 2025. To support this, TSMC is expanding 8 new CoWoS facilities across various sites. Specifically, the expansion includes 2 facilities at ChiaYi Science Park Phase 1. TSMC estimates that 60% of its expanded CoWoS capacity in 2025 will be consumed by NVIDIA alone. These figures highlight a robust, guaranteed workflow for dicing providers integrated into the TSMC ecosystem.
SiC 200mm Shift Supercharges Hard Dicing Value
The electric vehicle sector is driving a massive pivot from 150mm to 200mm Silicon Carbide (SiC) wafers, significantly boosting the value of the Wafer dicing services market. Wolfspeed’s Mohawk Valley Fab, the world's largest 200mm SiC facility, reached 20% wafer start utilization in June 2024. Full wafer delivery from their Siler City material factory to Mohawk Valley is targeted for Summer 2025. Similarly, Infineon’s Kulim 3 fab in Malaysia completed its first phase in 2024, with mass production of 200mm SiC wafers starting in 2025.
Transitioning to 200mm wafers is calculated to reduce the cost per chip by 20-35%, incentivizing rapid adoption. Infineon aims for revenue of EUR 1 billion in SiC during fiscal year 2025 alone. Mitsubishi Electric’s new 200mm SiC factory in Kumamoto is scheduled to commence operations in November 2025. Meanwhile, United Nova Technology completed engineering batches for its 200mm SiC line, with volume production set for 2025. Wolfspeed’s Siler City plant installed initial furnaces less than one year after construction began. China is currently constructing over 14 new SiC wafer lines. Infineon targets a 30% global market share in SiC by 2030. Currently, Wolfspeed’s 200mm production is the only fully vertically integrated operation at this scale globally.
Laser Dicing Crushes Blade, Grabs Premium Share
Technological benchmarks confirm that laser processes are superior, pushing the Wafer dicing services market toward ablation techniques. Laser ablation dicing has demonstrated a throughput of 3 to 5 minutes per wafer. In sharp contrast, traditional blade dicing requires approximately 25 minutes per wafer. This equates to a productivity multiplier of 6.3x in favor of laser systems. Such efficiency is mandatory for fabs scaling to meet the 2025 demand curves for AI and power chips.
Beyond speed, precision is the major differentiator. Laser dicing achieves a kerf width of 15.4 microns, significantly narrower than mechanical blade dicing which results in a wider kerf of 27 microns. Furthermore, top-side chipping for laser dicing is reduced to just 2.3 microns on average. Mechanical blades average 6.2 microns of top-side chipping, which poses a severe risk to active circuitry. These physical metrics prove that mechanical sawing is obsolete for cutting-edge nodes. Service providers adopting laser fleets will capture the premium segment of the market.
DISCO's Capex Blitz Signals Dicing Order Surge
DISCO Corporation’s financial maneuvers provide a clear signal of the bullish sentiment within the Wafer dicing services market. The company recorded net shipments of 76.6 billion Yen in Q4 FY2024. To sustain innovation, R&D expenses for FY2024 were approximately 32 billion Yen. Capital Expenditure (CAPEX) for the same period stood at 16 billion Yen, reflecting heavy investment in future capabilities. These numbers demonstrate a commitment to maintaining a technological edge.
Physical expansion is equally aggressive to accommodate future orders. DISCO will commence construction of a new 22,300 square meter building at its Haneda R&D Center in April 2025. This facility will feature 8 stories and seismic isolation structures to ensure continuity. Furthermore, DISCO acquired the Kure City Sports Center for 2.5 billion Yen to expand production capacity. The planned Kure Plant expansion will add 133,570 square meters of total floor space. Such massive footprint growth confirms that the industry leader anticipates sustained, high-volume demand through 2025 and beyond.
OSAT Billions Pour into Dicing Capacity Ramp
Outsourced Semiconductor Assembly and Test (OSAT) providers are funneling billions into the Wafer dicing services market ecosystem. ASE Technology Holding projects its total 2025 Capex to exceed USD 6 billion. In Q1 2025 alone, ASE allocated USD 892 million to capital expenditures. ASE's Malaysia facility has been expanded to 3.4 million square feet to support advanced packaging workflows. Consequently, revenue from ASE's Malaysia advanced packaging operations is projected to jump to USD 1.6 billion in 2025.
Amkor Technology is mirroring this aggressive spending to secure its position. Amkor is investing USD 2 billion in the first phase of its new Arizona packaging and test campus. This facility will feature 750,000 square feet of cleanroom space upon completion. The project is supported by a USD 400 million grant from the U.S. Department of Commerce. Production at Amkor’s Arizona plant is scheduled to begin in early 2028, necessitating current equipment pre-orders. These investments ensure that OSATs possess the necessary dicing capacity to handle the influx of AI and automotive wafers.
Stealth Tech Breakthroughs Unlock Thin-Wafer Volumes in the Wafer Dicing Services Market
The physical limitations of silicon are being challenged, necessitating advanced dicing solutions. Stealth dicing (laser) has shown a 3.5x throughput increase for 300mm wafers compared to standard methods. Laser-optimized dicing has achieved a die strength of 877 MPa, far surpassing non-optimized processes which yield a die strength of only 290 MPa. The Wafer dicing services market is relying on these techniques to process HBM and 3D NAND stacks without breakage.
Precision metrics are tightening alongside throughput gains. The street width for stealth dicing on 300mm wafers has been successfully reduced to 20 microns. Wafer thickness for HBM applications is now routinely processed below 50 microns. HBM4 designs require bump pitches of less than 10 microns, demanding near-zero vibration dicing to prevent delamination. Additionally, HBM4 IO counts have doubled to 2,048. HBM3E is expected to account for 35% of advanced process wafer input by late 2024. HBM revenue share within the total DRAM market surged to 20% in 2024.
Geopolitics Sparks Global Dicing Hub Expansion
Supply chain resilience is decentralizing the Wafer dicing services market, creating new hotspots in the US and Southeast Asia. GlobalWafers was awarded USD 406 million by the U.S. CHIPS Act in Dec 2024 to expand domestic wafer production. This grant supports a total investment of USD 4 billion by GlobalWafers in Texas and Missouri. These facilities will require localized dicing support, opening new regional revenue streams.
Employment figures indicate the scale of these new operations. Amkor's new Arizona facility is expected to create 3,000 jobs, many of which will be technical roles in packaging and dicing lines. Similarly, Infineon's Kulim 3 expansion will create 900 high-value jobs in its first phase. These workforce expansions validate the projection that dicing volume will not be confined to traditional hubs in Taiwan and China. The market is becoming truly global, with significant capacity coming online in Western and Southeast Asian regions.
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Green KPIs Lock in Dicing's Next-Gen Contracts
Environmental responsibility is now a tangible metric for the Wafer dicing services market. DISCO Corporation recycled 579,011 cubic meters of water at its domestic facilities in FY2023/24. Their consumption of renewable energy reached 230,781 MWh in FY2024. Solar power generation consumed internally by DISCO rose to 4,419 MWh in FY2024. Furthermore, DISCO's domestic Scope 1 and 2 greenhouse gas emissions were reduced to 10,010 t-CO2 in FY2024.
Foundries are also enforcing strict green standards on their packaging lines. Wolfspeed’s Mohawk Valley fab was designed to recycle 60,000 gallons of water per day. The same facility achieves 5,000+ MWh of annual energy savings through efficiency designs. Wolfspeed’s Mohawk Valley fab achieved LEED Silver certification in 2024. Service providers who can match these sustainability benchmarks will be preferred partners for major semiconductor firms. The future of wafer dicing services market is set to become not just faster and thinner, but cleaner and more energy-efficient.
Key Companies:
- AAC Technologies
- China Wafer Level CSP Co.LTD
- Corning Inc.
- EV Group
- Himax Technologies, Inc.
- Largan Precision Co., Ltd.
- Tianshui Huatian Technology Co., Ltd.
- Zhuhai MultiscaleOptoelectronics Technology Co., Ltd.
- Other Prominent Players
Key Market Segmentation:
By Type:
- Micro-Lens Array
- Shack-Hartmann Lens Array
- Uniform Compound Eye Lens
- Laser Collimator
- Infrared Sensor
- Others
By Application:
- Automotive Front-Lights
- Light Carpets
- Optical Diffusers
- Medical Imaging
- Consumer Electronics
- Optical Fiber Communication Camera
- Industrial Laser Shaping
- Others
By Region:
- North America
- Europe
- Asia Pacific
- Middle East & Africa (MEA)
- South America
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