Global Semiconductor Manufacturing Equipment Market

Global Semiconductor Manufacturing Equipment Market expected to grow at a CAGR of 8.96% from 2023 to 2031 to reach USD 187.33 billion by 2031.

The semiconductor manufacturing equipment market is growing significantly due to the improved adoption of semiconductor equipment in connected devices and automobile engineering. As the designs of Integrated Circuit (I.C.) are making it more complex so, more semiconductor products are being embedded in the creation of I.C. The semiconductor has brought an integral to the electronic design process, as it supports cut the cost of I.C. development, increase end-product value, accelerate time-to-market and lessen time-to-volume. It allows companies to fill the design gap of I.C.

The worldwide COVID-19 pandemic has been unprecedented and staggering, with semiconductor manufacturing equipment facing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Semiconductor manufacturing equipment has many uses like the manufacture semiconductor wafers, IC chips, memory chips, circuits, and others. Silicon wafer manufacturing equipment is used in the early stages of the manufacturing process.

Wafer processing equipment comprises photolithography tools, etching machines, chemical vapor deposition machines, measurement machines, and process/ quality control apparatus. An upsurge in the demand for semiconductors for numerous industries such as electronics, automotive, and data processing sectors is likely to augment the demand for these products, which fuels the growth of the market.

Furthermore, the rise in the sales of electric vehicles and the increasing semiconductor demand for automotive applications generate opportunities for the vendors of these products. The increasing demand for discrete devices, power semiconductors, and high-power modules for various end users is expected to grow the semiconductor manufacturing equipment market.

Additionally increasing trend of incorporating semiconductors on a single chip owing to an upsurge in the preference of consumers for compact-size products. In such a situation, this equipment is largely used for assembling semiconductor components into a single chip. Additionally, artificial intelligence (AI) is also boosting the development of the marketplace due to the adoption of semiconductors in data center applications.

These data centers are assembled with IC chips, which helps in dropping operational costs and increasing efficiency.

Market Dynamics

Growing product demand for wireless technology and the manufacturing sector to fuel marketplace growth the industry has noted a growing adoption of semiconductor components, IC chips, and logic circuits for autonomous, connected, consumer electronics, home appliances, and electric vehicles. Furthermore, increasing automation in the automotive sector surged the demand for lithographic systems and semiconductor chips, which is projected to propel the demand for machine manufacturing semiconductor components.

Also, there has been a growing trend of adoption of SIC wafer (semi-insulating carbide wafer) in the telecommunication industry to build 5G network connectivity across several economies like as India, the U.S., and others. This factor is anticipated to boost the demand for manufacturing machines. Additionally, the rise in demand for smart cities and smart homes, which upsurges the demand for IC chips, and components, fuels the marketplace growth.

High capital investment to hamper product demand semiconductor manufacturing equipment is extremely costly and requires huge capital investment. The fluctuating prices of machines are predictable to hamper the marketplace growth. This is due to the fact that key players are facing certain difficulties while procuring the raw materials. Besides, owing to the covid-19 pandemic, the trade between China-US., coupled with disruption in the supply chain, is impacting the import and export of components which directly affects the manufacturing cost of these machines. Such factors are anticipated to restrain the market growth. The complexity of design patterns restrains marketplace growth the semiconductor manufacturing process needs a clean system and neat room for the fabrication process.

The dust particles can hamper the overall manufacturing plant, which delivers substantial loss to the company. The interruption in supply chains, owing to flaw occurred while manufacturing semiconductors causes loss for the vendors or manufacturers. The complexity of design patterns owing to the presence of multiple design patterns on a chip at a very small space demands high accuracy for transferring precision data on the chip. Moreover, increasing demand for sic wafers in various sizes cuts the wavelength of lithography equipment. These factors are anticipated to restrain the development of the marketplace.

Equipment Type Insights

Increasing demand for logic circuits and discrete devices to portray strong growth for front-end equipment segment by equipment type, the marketplace is separated into back-end equipment and front-end equipment. The front-end equipment segment will exhibit the highest CAGR during the predicted period. The front-end equipment segment is a main contributor in the market due to the presence of key players which are proposing these types of systems.

Additionally, rising demand for IC chips and logic circuits for various end-users increases the adoption of these systems, which, in turn, fuels the marketplace growth of this segment. The back-end equipment segment is likely to witness a significant growth rate with the introduction of inventive packaging solutions for the automotive and consumer electronics industries. All such factors drive the marketplace growth.  

Dimension Insights

3D segment to depict higher CAGR in the years to come due to need for high efficiency on the basis of dimension. The dimension is categorized into 2D, 2.5D, and 3D. The 3d segment is anticipated to witness strong growth and dominates the market. This is on account of various features such as increasing development in high bandwidth memory (HBM) products, higher performance, and higher efficiency. These categories of devices are largely used in digital cameras, cell phones, and personal digital assistants. The 2D and 2.5D segments are set to observe substantial growth.This is due to features such as higher bandwidth, high chip functionalities, wider bandwidth, and dropping the time and cost of wires. Such factors fuel the marketplace growth.

Application Insights

Semiconductor fabrication plant/foundry segment to observe substantial growth during the forecast period. Owing to growing demand for circuits from the manufacturing sector by application, the marketplace is classified into semiconductor electronics manufacturing, semiconductor fabrication plant/foundry, and test home. The semiconductor fabrication plant/foundry segment is expected to dominate the marketplace due to the rising need for semiconductors from end-users such as medical devices, electronics, and automotive. The semiconductor electronics manufacturing segment is likely to grow exponentially, owing to rise in awareness about the testing of semiconductors and its components. Besides, stringent government policies regarding the testing of devices are projected to drive the growth of this segment.

Regional Insights

The scope of the marketplace includes five regions, North America, Asia Pacific, Europe, the Middle East & Africa, and South America. Asia Pacific is in the best position to lead the market, owing to strong supply chains of semiconductor devices such as circuits, discrete devices, and logic circuits across countries such as Taiwan, Japan, and China.

The development in automotive and consumer electronics sectors is anticipated to boost the demand for SIC wafer and IC chips for these industrial sectors. In addition, there are vital numbers of suppliers in India and South Korea, which are positively expected to contribute to the growth of the market in Asia Pacific. China to witness fastest growth attributed to adoption of technological advancements in these products’ china is one of the manufacturing hubs for semiconductors related equipment. key players, such as Sizone Technology, JW Insights, and others, have the highest geographical presence in China. In addition, well-known infrastructure sector and rising growth of the automotive industry are expected to fuel the demand for these machines.

Also, these machines are used to manufacture IC chips, logic circuits, SIC wafer, and others. This is poised to increase the demand for semiconductor manufacturing equipment, boosting the market growth. North America is anticipated to grow exponentially during the predicted period, owing to the presence of manufacturers such as Applied Materials Inc, Kla Corporation, LAM Research Laboratories, and others. Subsequently, key providers based in the region are aiming on establishing up plants in places where substantial subsidies are available.

Europe is anticipated to record substantial growth over the forthcoming years. This is on account of good trade relations with other countries and government initiatives toward investing in new semiconductor manufacturing plants. For example, according to Euractiv Germany Reports, the German government planned to invest USD 3.39 billion in the semiconductor manufacturing plant.

Key Companies & Market Share Insights

Key players emphasize on strategies to improve overall marketplace presence semiconductor manufacturing equipment players have implemented strategies such as product launches, acquisitions, and business expansion to improve the product portfolio of semiconductor manufacturing machines and improve the geographical location of manufacturers globally. Furthermore, key semiconductor manufacturing equipment companies are more focused on adopting advancements in such products. In addition, there has been a rise in government initiatives for investing in semiconductor fabrication units. For example, in October 2021, Japanese government planned to provide a subsidy of USD 7.12 billion to companies such as SONY and TSMC for a semiconductor manufacturing equipment facility in western japan. The new facility will be able to manufacture sic wafer in sizes of 22nm and 28nm (nanometer). Such instances boost the growth of the market. LIST OF KEY COMPANIES PROFILED: Applied Materials Inc (U.S.) Tokyo Electron Limited (Japan) Lam Research Corporation (U.S.) ASML (Netherlands) Dainippon Screen Group (Japan) KLA Corporation (Netherlands), Ferrotec holdings CORPORATION, Hitachi high technologies Co, ASM International Canon Machinery Inc (Japan).

Global Semiconductor Manufacturing Equipment Market Key Segments:

Equipment Type Outlook

• Front-end Equipment
• Silicon Wafer Manufacturing
• Wafer Processing Equipment
• Back-end Equipment
• Testing Equipment
• Assembling & Packaging Equipment

Dimension Type Outlook

• 2D
• 5D
• 3D

Application Outlook

• Semiconductor Fabrication Plant/Foundry
• Semiconductor Electronics Manufacturing
• Test Home

Regional Outlook

By Region:

• North America
  • US.
  • Canada
• Europe
  • UK.
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East & Africa
  • South Africa
  • UAE
  • Saudi Arabia

Key Questions                      

• At what growth rate will the market be projected to grow by forecast 2030?

Semiconductor manufacturing equipment market to grow at a CAGR 9.5% by forecast 2030.

• Which region holds the largest share in the market?

Asia-Pacific region holds the largest share in the market.

• Who are the major players operating in the market?

Major players operating in the semiconductor manufacturing equipment market are Applied Materials Inc (U.S.), Tokyo Electron Limited (Japan), Lam Research Corporation (U.S.), ASML (Netherlands), Dainippon Screen Group (Japan), KLA Corporation (Netherlands), Ferrotec holdings CORPORATION, Hitachi high technologies Co, ASM International Canon Machinery Inc (Japan)