Semiconductor Manufacturing Equipment Market Size, Share & Industry Analysis, By Equipment Type (Front-end Equipment and Back-end Equipment), By Dimension (2D, 2.5D, and 3D), By Application (Semiconductor Fabrication Plant/Foundry, Semiconductor Electronics Manufacturing, and Test Home), and Regional Forecast, 2024-2032

The global semiconductor manufacturing equipment market size was valued at USD 110.91 billion in 2023 and is projected to grow from USD 121.17 billion in 2024 to USD 270.38 billion by 2032, exhibiting a CAGR of 10.6% during the forecast period. The Asia Pacific dominated the semiconductor manufacturing equipment market with a share of 67.89% in 2023.

Semiconductor manufacturing equipment is used to 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 includes photolithography tools, etching machines, and chemical vapor deposition machines, measurement machines, and process/ quality control apparatus.

Halted manufacturing related activities, manufacturing facilities, and disruptions in supply chain negatively impacted the growth of the market for the first and second quarters of 2020 (January 2020 - June 2020). The key players witnessed a substantial increase in the revenue generated after the third quarter of 2020, owing to the re-opening of manufacturing facilities at full pace.

Rise in the demand for semiconductor for various industries such as electronics, automotive, and data processing sectors is expected to augment the demand for these products, which fuels the growth of the market. In addition, rise in the sales of electric vehicles and the increasing semiconductor demand for automotive applications generates opportunities for the vendors of these products. The global electric vehicle sales increased by 109% in 2021 as compared to 2020.

The increasing demand for discrete devices, power semiconductors, and high power module for various end users is expected to drive the semiconductor manufacturing equipment market growth. In addition, rising trend of incorporating semiconductors on a single chip owing to increase in preference of consumers for compact size products. In such a situation, this equipment is largely used for assembling semiconductor components into a single chip. Furthermore, artificial intelligence (AI) is also boosting the growth of the market due to adoption of semiconductor in data center applications. These data centers are assembled with IC chips, which helps in reducing operational costs and increasing efficiency.

Semiconductor Manufacturing Equipment Market Trends

Technological Advancements to Positively Boost the Market Growth

Prominent players in the market are directing their efforts toward introducing cutting-edge technologies such as nano-imprinting and state-of-the-art lithography, aiming to achieve the fastest manufacturing speeds. For instance, in September 2021, Riber, headquartered in the U.S., unveiled its latest MBE 6000 machine tailored for semiconductor manufacturing in Asia. This equipment finds application in the production of electronics and optoelectronic devices, crucial components in telecommunications including 4G, 5G, and fiber optic networks. Notable features of these machines include high production capacity and precision. Incorporating advancements such as Artificial Intelligence (AI) and Industry 4.0 in recent years has further enhanced production capacity, accuracy, minimized wastage, and bolstered profit margins for key industry players, fostering market growth.

Moreover, the increasing demand for smaller, faster, and more energy-efficient electronic components is propelling research and development efforts in the semiconductor manufacturing sector. This drive toward miniaturization and enhanced performance is expected to stimulate the adoption of advanced manufacturing technologies and contribute to the expansion of the market. Additionally, the evolution of smart manufacturing concepts and the integration of IoT (Internet of Things) capabilities are anticipated to revolutionize semiconductor production processes, offering new opportunities for growth and innovation within the industry.

Semiconductor Manufacturing Equipment Market Growth Factors

Increasing Product Demand for Wireless Technology and Manufacturing Sector to Fuel Market Growth

The semiconductor industry is witnessing a notable uptick in the utilization of semiconductor components, IC chips, and logic circuits across various sectors including autonomous vehicles, connected devices, consumer electronics, home appliances, and electric vehicles. This surge is particularly driven by the escalating automation in the automotive sector, which has propelled the demand for lithographic systems and semiconductor chips, consequently spurring the need for machinery manufacturing semiconductor components.

Additionally, a discernible trend is emerging with the adoption of SIC wafer (semi-insulating carbide wafer) in the telecommunication industry to bolster 5G network connectivity across economies such as India, the U.S., and others. This trend is poised to augment the demand for manufacturing machinery. Moreover, the increasing demand for smart cities and smart homes is amplifying the need for IC chips and components, further fueling market growth.

Furthermore, the proliferation of IoT (Internet of Things) devices and the advent of emerging technologies such as artificial intelligence (AI) and machine learning (ML) are anticipated to drive further demand for semiconductor components, leading to the continued expansion of the market. As industries continue to embrace digital transformation and connectivity, the semiconductor manufacturing sector is expected to witness sustained growth and innovation in the coming years.

RESTRAINING FACTORS

High Capital Investment to Hamper Product Demand

Semiconductor manufacturing equipment is extremely costly and requires huge capital investment. The fluctuating prices of machines are projected to hamper the market growth. This is due to the fact that major players are facing certain difficulties while procuring the raw materials. Moreover, owing to COVID-19 pandemic, the trade between China-U.S., coupled with disruption in supply chain, is impacting the import and export of components which directly affect the manufacturing cost of these machines. For instance, these system costs range from USD 15 to USD 20 billion. Such factors are anticipated to restrain market growth.

Complexity of Design Pattern to Restrain Market Growth

The semiconductor manufacturing process requires a clean system and neat room for the fabrication process. The dust particles can hamper the overall manufacturing plant, which provides substantial loss to the company. The delay in supply chains, owing to defect occurred while manufacturing semiconductors causes loss for the vendors, or manufacturers. The complexity of design patterns owing to presence of multiple design patterns on a chip at very small space demands high accuracy for transferring precision data on chip. In addition, rising demand for SIC wafers in various sizes decreases the wavelength of lithography equipment. All such factors are anticipated to restrain the growth of the market. 

Semiconductor Manufacturing Equipment Market Segmentation Analysis

By Equipment Type Analysis

Rising Demand for Logic Circuits and Discrete Devices to Portray Strong Growth for Front-end Equipment Segment

By equipment type, the market is divided into back-end equipment and front-end equipment.

The front-end equipment segment will exhibit the highest CAGR during the forecast period. The front-end equipment segment is a major contributor in the market due to the presence of key players which are proposing these types of systems. In addition, rising demand for IC chips and logic circuits for various end-users increases the adoption of these systems, which, in turn, fuels the market growth of this segment.

The back-end equipment segment is expected to witness a substantial growth rate with the introduction of inventive packaging solutions for the automotive and consumer electronics industries. All such factors drive the market growth.  

By Dimension Analysis

3D Segment to Depict Higher CAGR Due to Need for High Efficiency

On the basis of dimension, the market 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 types 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 reducing the time and cost of wires. Such factors fuel the market growth.  

By Application Analysis

Semiconductor Fabrication Plant/Foundry Segment to Observe Significant Growth Owing to Rising Demand for Circuits from the Manufacturing Sector

By application, the market is classified into semiconductor electronics manufacturing, semiconductor fabrication plant/foundry, and test home.

The semiconductor fabrication plant/foundry segment is expected to dominate the market due to the growing need for semiconductors from end-users such as medical devices, electronics, and automotive.    

The semiconductor electronics manufacturing segment is projected to grow exponentially, owing to rise in awareness about the testing of semiconductors and its components. Moreover, stringent government policies regarding the testing of devices are expected to impel the growth of this segment.

REGIONAL INSIGHTS

The scope of the market 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 growth 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. Major players, such as Sizone Technology, JW Insights, and others, have the highest geographical presence in China. In addition, well established 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 forecast period, owing to the presence of manufacturers such as Applied Materials Inc, Kla Corporation, LAM Research Laboratories, and others. Subsequently, major 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 instance, according to Euractiv Germany Reports, the German government planned to invest USD 3.39 billion in the semiconductor manufacturing plant.

The Middle East & Africa and South America are projected to have moderate growth due to the existence of some companies functioning in these regions. Also, rising disposable income of the population is expected to result in increasing spending on home appliances and consumer appliances across Dubai, Brazil, Argentina, and others. This is expected to increase the demand for machine manufacturing IC chips and components.

KEY INDUSTRY PLAYERS

Prominent Players Emphasize on Strategies to Improve Overall Market Presence

Semiconductor manufacturing equipment players have adopted 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. Moreover, 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 instance, 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 TOP SEMICONDUCTOR MANUFACTURING EQUIPMENT COMPANIES:

• 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 (Japan)


• Hitachi High-Technologies Corporation (Japan)


• ASM International (U.S.)


• Canon Machinery Inc (Japan)

KEY INDUSTRY DEVELOPMENTS:

• April 2023: Applied Materials, Inc. unveiled VeritySEM 10, a new eBeam metrology system tailored for accurately measuring the critical dimensions of semiconductor device features patterned with EUV and emerging High-NA EUV lithography.


• March 2023: SCREEN PE Solutions Co., Ltd., a subsidiary of SCREEN Holdings Co., Ltd., introduced the Ledia 7F-L direct imaging system to address the growing demand for precise pattern formation on large substrates and metal masks, particularly in telecommunications and IoT infrastructure.


• January 2023: Advantest Corporation finalized an agreement to acquire Shin Puu Technology Co., Ltd., a Taiwanese supplier of printed circuit boards (PCBs), essential components in electronic devices, engaged in their manufacturing and assembly.


• December 2022: Tokyo Electron Limited launched CELLESTA MS2, a new surface preparation and wafer cleaning system featuring brushes and dual-fluid spray technology for enhanced physical cleaning efficiency. This system can process both wafer surfaces simultaneously, achieving over 1.5 times greater productivity per unit area compared to TEL's previous system.


• June 2022: Hitachi High-Tech Corporation introduced the inspection system DI2800, a new field wafer defect inspector essential for the semiconductor manufacturing process.

REPORT COVERAGE

The report focuses on leading regions across the globe to offer a better understanding of various applications. Moreover, the report offers insights into the industry dynamics and analyzes technologies utilized at a rapid pace across the world. It also comprises some of the key factors and restraints to help the readers gain in-depth knowledge about the market.

Report Scope & Segmentation