SEMICONDUCTOR MANUFACTURING EQUIPMENT MARKET

GMI Research analysis indicates that the Semiconductor Manufacturing Equipment Market size was estimated at USD 104.5 billion in 2023 and is slated to register a CAGR of 7.1% over the forecast period, and is projected to reach USD 180.9 billion in 2031

Major Market Drivers and Emerging Trends

The global semiconductor manufacturing equipment market size expansion is largely due to the increasing need for consumer electronic items. This demand surge for electronic products and electric vehicles can be attributed to higher incomes along with a growing interest in sophisticated electronics across multiple sectors. This growing interest in smartphones and various consumer electronics has spurred demand for enhanced and energy-efficient semiconductor chips. As new electronic devices gain popularity across social media platforms, people in urban areas are more inclined to purchase various gadgets with the latest features.

At the end of 2023, around seventy percent among the global population were using smartphones. However, since many users possess multiple smartphones, the actual number of subscriptions is higher than the user count. As electronic devices become more prevalent in the workplace and everyday activities along with consumers that seek greater battery lifespan and superior features, the need for semiconductors is expected to rise which supports the semiconductor manufacturing equipment market growth.

 A semiconductor plays a vital role in every electronic device as it fully regulates the electric current. It serves as a medium between conductors and insulators to control the electricity flow within the devices. Manufacturing equipment is utilized to produce IC chips and other components. Silicon wafer manufacturing equipment is employed during the initial phases of the production process.

The swift increase in semiconductor demand is driving the fabrication facilities expansion globally. Governments aim to enhance local manufacturing capabilities and decrease reliance on international supply chains with funding from both private and governmental sources which is anticipated to propel market growth. These advancements accelerate the integration of innovative manufacturing technologies and reinforce the industry’s effort to meet the surging semiconductors demand worldwide.

The other factor supporting the growth of the global semiconductor manufacturing equipment market share is innovations in technology. Major market players are dedicating their resources to the development of innovative technologies including nano-imprinting and sophisticated lithography to maximize manufacturing efficiency. Additionally, the rising need for smaller electronic components with higher energy efficiency is driving research and development initiatives in the semiconductor manufacturing industry. The trend toward smaller sizes and better performance is likely to promote the adoption of cutting-edge manufacturing technologies which contributes to market expansion.

Semiconductor manufacturing equipment expansion is also expected to be driven by advancements in cloud technology, 5G networks rollout and a rising interest in connected vehicles. Furthermore, people are ready to allocate more resources to advanced devices to enhance their lifestyle and overall experience with electronic products. Industries are also adopting automation along with robotic technologies to improve productivity. These systems depend significantly on specific semiconductors to monitor equipment and ensure safety. Therefore, the collaboration between advanced technologies has driven the need for semiconductor manufacturing equipment as it necessitates more innovative and diverse semiconductor components to support the changing digital environment.

However, semiconductor manufacturing equipment is very expensive and demands significant capital investment. The variability in machine prices is expected to hinder market growth as major players are also encountering challenges in sourcing raw materials. The manufacturing process further demands a clean environment and organized space for fabrication. Dust particles can negatively impact the entire manufacturing facility which results in significant losses for the company. Supply chain disruptions caused by defects in semiconductor production can subsequently lead to financial losses for manufacturers and vendors. The intricate design patterns resulting from multiple designs occupying a small area on a chip demands precise accuracy in transferring data onto the chip.

The market is also struggling with an insufficiency in understanding the evolving software updates and the challenges in recruiting qualified professionals. With rapid technological changes, it becomes increasingly challenging to learn new methods even for highly experienced individuals around the world. This leads to considerable difficulties in finding qualified individuals for the production of semiconductors employing advanced techniques.

Dimensions Insights: – 3D ICs registered the largest market size

The 3D ICs segment represents major advancements in semiconductor technology particularly in the vertical arrangement of active components across various layers. These offer superior performance and better power consumption in comparison to 2D ICs. Through-silicon vias are employed in 3D ICs to connect the various layers which enables data transmission with high bandwidth and low latency while efficiently utilizing the available space. These solutions further improve energy efficiency by reducing the need for extensive horizontal wiring and incorporating various functionalities into a smaller form design. Substantial growth is also anticipated in the 2D and 2.5D categories. It is attributed to characteristics including higher bandwidth along with lower time and costs associated with wiring which are propelling market growth.

Supply chain participant insights: IDM firms segment captured the largest market size

The IDM firms segment will hold a dominant position in the market with increased R&D investments by these companies aimed at producing sophisticated semiconductor ICs and systems on chips which contribute to its growth. These firms are working alongside providers of semiconductor manufacturing equipment to boost their capabilities in IC production. Industry participants are also enhancing IC manufacturing capabilities which leads to a rise in market demand.

Front-end equipment insights: Lithography registered the largest revenue share

Lithography holds a dominant position in the market as it can effortlessly produce intricate circuits with equipment that utilizes an ultra-high-performance lens to expose patterns on a wafer. These systems allow for uninterrupted mass production at once which makes them highly appropriate for industrial settings. The wafer surface conditioning category is expected to experience the fastest growth potential driven by continuous research and development efforts aimed at introducing new electronic devices which contribute to the market’s growth rate.

Back-end equipment insights: Assembly & packaging dominated the revenue share

The market is dominated by the assembly & packaging segment which is essential for properly assembling or packaging manufactured items to ensure the quality and performance of the end product. The wafer testing/IC testing segment is also experiencing significant growth as it is crucial for any manufactured product to undergo testing. Only those that pass quality checks are allowed to continue in the production process.

Regional Insight: Asia Pacific dominated the market share

Based on regional insights, Asia Pacific is set to lead the market driven by robust supply chains for semiconductor devices including circuits and discrete components in countries like China and Japan. With its strong production capabilities and a large consumer electronics industry, the region is well positioned for growth. Government efforts along with major investments from domestic and foreign players support this market expansion. The rising need for semiconductors in sectors like consumer electronics and automotive is further propelling market growth in the region. Innovation in technology and infrastructure enhancement are also bolstering the region’s competitive stance in the international market. Numerous suppliers in South Korea and India are also expected to foster market growth in Asia Pacific.

This region is also experiencing the fastest growth rate in semiconductor manufacturing equipment which is attributed to innovations in AI. The increasing need for electronic devices along with the electric vehicle’s rising popularity drives the need for dependable and superior semiconductor manufacturing equipment. The rising focus on technological independence particularly in South Korea and China enhances domestic R&D coupled with investment resources thereby boosting the semiconductor manufacturing market growth.

Germany is expected to dominate the largest share in Europe in the years ahead. It ranks fourth worldwide in electronic product manufacturing and is a key semiconductor manufacturing equipment market in Europe.

The market is highly competitive with numerous companies operating within it. Several major players within the market are Applied Materials, KLA Corporation and other companies.

Segments covered in the Report:

The Semiconductor Manufacturing Equipment market has been segmented based on the Front-End Equipment, Back-End Equipment, Dimension, and Supply Chain Participant. Based on Front-End Equipment, the market is segmented into Lithography, Wafer Surface Conditioning, Wafer Cleaning, Deposition, and Other Front-End Equipment. The Lithography segment is further divided into DUV Lithography and EUV Lithography. Wafer Surface Conditioning includes Etching and Chemical Mechanical Planarization, while Wafer Cleaning is segmented into Single-Wafer Spray System, Single-Wafer Cryogenic System, Batch Immersion Cleaning System, Batch Spray Cleaning System, and Scrubber. Deposition is divided into PVD and CVD. The Back-End Equipment segment includes Assembly & Packaging, Dicing, Metrology, Bonding, and Wafer Testing/IC Testing. Based on Dimension, the market is segmented into 2D ICs, 2.5D ICs, and 3D ICs. Based on Supply Chain Participant, the market is segmented into Foundries, IDM Firms, and OSAT Companies

Market Segmentation

Global Semiconductor Manufacturing Equipment Market by Region

• • North America Semiconductor Manufacturing Equipment Market (Option 1: As a part of the free 25% customization)

    • By Front-End Equipment
    • By Back-End Equipment
    • By Dimension
    • By Supply Chain Participant
    • United States of America (US) Market All-Up
    • Canada Market All-Up

  • Europe Semiconductor Manufacturing Equipment Market (Option 2: As a part of the free 25% Customization)

    • By Front-End Equipment
    • By Back-End Equipment
    • By Dimension
    • By Supply Chain Participant
    • United Kingdom (UK) Market All-Up
    • Germany Market All-Up
    • Spain Market All-Up
    • France Market All-Up
    • Rest of Europe Market All-Up

  • Asia-Pacific Semiconductor Manufacturing Equipment Market (Option 3: As a part of the free 25% Customization)

    • By Front-End Equipment
    • By Back-End Equipment
    • By Dimension
    • By Supply Chain Participant
    • China Market All-Up
    • Japan Market All-Up
    • India Market All-Up
    • Rest of APAC Market All-Up

  • ROW Semiconductor Manufacturing Equipment Market (Option 4: As a part of the free 25% Customization)

    • By Front-End Equipment
    • By Back-End Equipment
    • By Dimension
    • By Supply Chain Participant
    • Brazil Market All-Up
    • Saudi Arabia Market All-Up
    • South Africa Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Leading Market Players (Option 5: As a part of the free 25% customization – Profiles of 5 Additional Companies of your Choice)

• • Tokyo Electron (TEL)
  • Lam Research Corporation
  • ASML Holdings
  • KLA Corporation
  • Applied Materials, Inc.
  • Screen Holdings CO. Ltd.
  • Advantest Corporation
  • Teradyne, Inc.
  • Hitachi High-Technologies Corporation
  • Plasma-Therm LLC