"Catapult Your Business to Fore, Gain Competitive Advantage "

Semiconductor Manufacturing Equipment Market Size, Share & Industry, By Equipment Type (Front-end Equipment, Back-end Equipment), By Dimension (2D, 2.5D, 3D), By Application (Semiconductor Fabrication Plant/Foundry, Semiconductor Electronics Manufacturing, Test Home), and Regional Forecast, 2022-2029

Region : Global | Format: PDF | Report ID: FBI101964

 

KEY MARKET INSIGHTS

Play Audio Listen to Audio Version

The global semiconductor manufacturing equipment market is estimated to grow from USD 111.66 billion in 2023 to USD 237.57 billion by 2031; it is expected to record a CAGR of 9.9% during the forecast period. Based on our analysis, the global market exhibited a decline of -6.4% in 2020 as compared to 2019. The global COVID-19 pandemic has been unprecedented and staggering, with semiconductor manufacturing equipment experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels.


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.


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.


COVID-19 IMPACT


Market Growth Impacted Due to Partial or Complete Closure of Manufacturing Activities


The partial or complete lockdown implemented globally due to COVID-19 outbreak resulted in the downfall of many manufacturing processes. In addition, 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). For instance, the net sales of Tokyo Electron Limited dropped by -11.8% from 2019-2020.


The key players witnessed a substantial increase in revenue generated after the third quarter of 2020, owing to re-opening of manufacturing facilities at full pace. For instance, the net sales of Applied Materials Inc increased by around 2.8% in 2020 as compared to 2019.  Furthermore, from the 2nd quarter of 2020, the demand for these products kept on growing and is set to register a significant growth. The demand for front end as well as back end manufacturing equipment is anticipated to surge with the rise in the demand for semiconductor chips and components. Furthermore, innovative technologies adopted by clients and work on research & development are projected to impel the long-term growth of the market.


LATEST TRENDS


Request a Free sample to learn more about this report.


Technological Advancements to Positively Boost the Market Growth


Key market players are focusing on introducing technological advancements with nano-imprinting, state-of-the art lithography technology, and the fastest manufacturing speed. For instance, in September 2021, Riber based in the U.S. launched a new MBE 6000 machine for semiconductor manufacturing applications for Asia. This machine was adopted for manufacturing of electronics and optoelectronic devices. These types of electronic components are largely used in telecommunication channels such as 4G, 5G, and fiber optic networks. The machines have features such as high production capacity and high accuracy. These types of machines provide high profit margins for manufacturers and suppliers. In the past few years, these machines have implemented new technological advancements such as Artificial Intelligence (AI), and Industry 4.0 for improving production capacity, high accuracy, reducing wastage, and also improving the profit margins for major players, which is projected to boost the market growth.


DRIVING FACTORS


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


The industry has recorded an increasing adoption of semiconductor components, IC chips, and logic circuits for autonomous, connected, consumer electronics, home appliances, and electric vehicles. In addition, increasing automation in the automotive sector surged the demand for lithographic systems and semiconductor chips, which is anticipated to propel the demand for machine manufacturing semiconductor components.


Furthermore, 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 various economies such as India, the U.S., and others. This factor is anticipated to boost the demand for manufacturing machines. In addition, rise in demand for smart cities and smart homes, which increases the demand for IC chips, and components, fuels the market growth. 


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. 


SEGMENTATION


By Equipment Type Analysis


To know how our report can help streamline your business, Speak to Analyst


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 of 10.0% during the forecast period (2022-2029). 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


Asia Pacific Semiconductor Manufacturing Equipment Market Size, 2021 (USD Billion)

To get more information on the regional analysis of this market, Request a Free sample


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.


To know how our report can help streamline your business, Speak to Analyst


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 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 (Japan)

  • Hitachi High-Technologies Corporation (Japan)

  • ASM International (U.S.)

  • Canon Machinery Inc (Japan)


KEY INDUSTRY DEVELOPMENTS:



  • May 2021 – Applied Materials Inc launched an optical semiconductor inspection machine using advanced technologies such as Artificial Intelligence (AI) and Big Data. These machines are used in semiconductor manufacturing plants to automatically inspect chips and detect killer defects in IC chips. These chips are used for electronics devices.

  • December 2021 – Hitachi High-Tech Corporation, a subsidiary of Hitachi, introduced the new GS1000 electron beam area inspection system. The machine provides precise and quick inspection through the use of a common platform with high-speed inspection systems with Scanning Electron Microscope (SEM). Further, the machine improves the accuracy of semiconductor wafer products.  

  • November 2021 - Advantest Corporation acquired R&D Altanova Inc, which deals in discrete devices, silicon wafers, substrates, for interface boards for electronics sectors. The acquisition was done for improving the portfolio of these products across multiple sectors.

  • July 2021 -  Tokyo Seimitsu Co Ltd launched the new “SURFCOM NEX” contour measuring instrument. These machines have features such as high efficiency, high precision, high accuracy, and high reliability. It performs 1.6 times as per conventional measurement machines.

  • December 2020 -  KLA Corporation launched a series of wafer geometry machines such as SP7Xp wafer and PWG5TM. These machines are designed for minimizing the challenges in the manufacturing of semiconductor chips and discrete devices. These machines are used in manufacturing of cutting edge logic circuits. These chips are integrated into the automotive and electronics industries.   


REPORT COVERAGE


An Infographic Representation of Semiconductor Manufacturing Equipment Market

To get information on various segments, share your queries with us



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






















































ATTRIBUTE



  DETAILS



Study Period



2018 – 2029



Base Year



2021



Estimated Year



2022



Forecast Period



2022 – 2029



Historical Period



2018 – 2020



Unit



Value (USD Billion)



Segmentation



By Equipment Type, Dimension, Application, and Region



By Equipment Type




  • Front-end Equipment

    • Silicon Wafer Manufacturing

    • Wafer Processing Equipment



  • Back-end Equipment

    • Testing Equipment

    • Assembling & Packaging Equipment





By Dimension




  • 2D

  • 2.5D

  • 3D



By Application




  • Semiconductor Fabrication Plant/Foundry

  • Semiconductor Electronics Manufacturing

  • Test Home



By Region




  • North America (Equipment Type, Dimension, Application, and Country)

    • U.S. (By Equipment Type)

    • Canada (By Equipment Type)

    • Mexico (By Equipment Type)



  • Europe (Equipment Type, Dimension, Application, and Country)

    • Germany (By Equipment Type)

    • U.K. (By Equipment Type)

    • France (By Equipment Type)

    • Italy (By Equipment Type)

    • Rest of Europe



  • Asia Pacific (Equipment Type, Dimension, Application, and Country)

    • China (By Equipment Type)

    • India (By Equipment Type)

    • Japan (By Equipment Type)

    • South Korea (By Equipment Type)

    • Taiwan (By Equipment Type)

    • Rest of Asia Pacific



  • Middle East and Africa (Equipment Type, Dimension, Application, and Country)

    • GCC Countries (By Equipment Type)

    • South Africa (By Equipment Type)

    • Rest of Middle East and Africa



  • South America (Equipment Type, Dimension, Application, and Country)

    • Brazil (By Equipment Type)

    • Argentina (By Equipment Type)

    • Rest of South America








Frequently Asked Questions

Fortune Business Insights says that the market stood at USD 88.2 billion in 2021.

Fortune Business Insights says that the market will reach USD 196.7 billion in 2029.

Registering a CAGR of 9.9%, the market will exhibit strong growth during the forecast period.

Rising product demand for connected cars and wireless technology is expected to drive market growth

Applied Materials Inc, ASML, ASM International, Tokyo Electron Limited, and KLA Corporation are the top companies in the global market.

The front-end equipment segment is expected to capture the highest CAGR.

The semiconductor fabrication plant/foundry segment is expected to capture the highest CAGR in the market.

Asia Pacific is expected to capture the highest CAGR in the market

Complexity of patterns and functional defects is expected to restrain the growth of the market.

Seeking Comprehensive Intelligence on Different Markets?
Get in Touch with Our Experts

Speak to an Expert
  • Dec, 2022
  • 2021
  • 2018-2020
  • 140

Personalize this Research

  • Granular Research on Specified Regions or Segments
  • Companies Profiled based on User Requirement
  • Broader Insights Pertaining to a Specific Segment or Region
  • Breaking Down Competitive Landscape as per Your Requirement
  • Other Specific Requirement on Customization
Request Customization Banner

Client Testimonials

“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”

- U.S.-based biotechnology company focussing on treatment of chronic pain.

“Kudos to your team. Thank you very much for your support and agility to answer our questions.”

- Europe-based provider of solutions to automate data centre operations.

“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”

- India-based manufacturer of industrial and specialty intermediates with a strong global presence.

“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”

- One of the largest cosmetics company in the world.

“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”

- U.S. based startup operating in the cultivated meat market.

“We received the below report on the U.S. market from you. We were very satisfied with the report.”

- Global hearing aids manufacturer.

“I just finished my first pass-through of the report. Great work! Thank you!”

- U.S. based solar racking solutions provider.

“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”

- World’s leading advisory firm.

“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”

- Germany based machine construction company.

“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”

- Japanese manufacturing company of stationery products.

“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”

- One of the Leading Food Companies in Germany

“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”

- Intuitive Surgical

“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”

- Major Food Company in Japan

“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”

- Ziering Medical

“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”

- Major Manufacturer of Precision Machine Parts in India

“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”

- Hewlett-Packard

“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”

- Global Management Consulting Firm

“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”

- UK-based Start-up in the Medical Devices Sector

“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”

- One of the Largest Companies in the Defence Industry
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies . Privacy.
X