Diamond dicing blades are profound cutting tools that find their applications in semiconductor back-end packaging and assembly processes. To fully appreciate the benefits of the dicing blade technique for precision machining, a deeper understanding is required. This paper systematically reviews the contribution of dicing blades in machining, followed by the context of dicing blades: production, characterization, methodology, and optimization. The readers are enlightened about the potential prospects that can be exploited for precision spectra as a result of current research and engineering developments.