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Global Semiconductor Manufacturing Equipment Market By Equipment Type- Silicon Wafer Manufacturing, Wafer Processing Equipment, Testing Equipment, Assembling & Packaging Equipment By Dimension Type -2D, 2.5D, 3D By Application - Semiconductor Fabrication Plant/Foundry, Semiconductor Electronics Manufacturing, Test Home Regional Outlook- North America, Europe, Asia Pacific, Latin America, Middle East & Africa Forecast - 2031

Type: PDF

Status: Published

Categories: Semiconductor And Electronics

Report Code : SE23

No. of Pages : 350

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.