Semiconductor Manufacturing Equipment Market

Global Semiconductor Manufacturing Equipment Market Size (2024 to 2029):

The global semiconductor manufacturing equipment market size was estimated at USD 92.1 Billion in 2023 and is expected to reach USD 164.95 Billion by 2029 from USD 101.49 billion in 2024, with a CAGR of 10.2% during the forecast period.

Current Scenario of the Global Semiconductor Manufacturing Equipment Market

A semiconductor is an important component of any electronic device. The electric current in the devices is completely managed by the semiconductor. It acts as a substance between the conductor and insulator to manage the flow of the electric current to the devices. The semiconductors are manufactured through a specific process. In general, the semiconductor has to be manufactured in a clean room to avoid it, as raw materials like silicon metal and others are highly sensitive to environmental contaminants. The equipment is installed in these clean rooms and integrated with the systems to produce semiconductor chips, Integrated circuits, and others.

MARKET DRIVERS

The increasing popularity of smartphones, even in rural areas, is certainly a major factor in the semiconductor manufacturing equipment market's growth.

Nowadays, the number of people owning smartphones or tablets is rapidly increasing where, and users can have access to many applications like email, web browsing, and others. Smartphones are becoming a part of business operations, where a person can work with smartphones through respective applications, which is surging the demand for smartphones. As semiconductors have a major role in the manufacturing of electronic devices, the rising number of smartphone users can propel the growth rate of the market at a higher rate. As per the reports, at present, there are 7.2 billion smartphone users across the globe.  It is projected that in the last five years, the number of smartphone users has gradually increased by 5% every year, which is a good sign for the growth rate of the semiconductor manufacturing equipment market.

Growing disposable income and rising preference to purchase high quality electronic devices at any cost especially in urban areas is likely to promote the market’s growth rate. In urban areas, people are more inclined to purchase various electronic devices with the most advanced features with the rising popularity of the newly launched devices through various platforms like social media.

Growing number of brand-new companies with the gradually increasing support from both private and public sectors is enhancing the growth rate of the semiconductor manufacturing equipment market.

MARKET RESTRAINTS

However, the semiconductor manufacturing equipment market’s growth rate is declining due to a lack of proper knowledge of the frequently changing updates in the software and difficulty in finding highly skilled professionals.

Technology is frequently changing, and it is highly difficult to learn new techniques with higher experiences anywhere in the world. Therefore, there is great difficulty in recruiting skilled personnel to manufacture semiconductors using advanced technologies. The design of the integrated circuits is difficult and will vary according to the applications required for specific devices. Therefore, frequently changing the programs according to the designs while manufacturing a semiconductor is slightly difficult for the workers and may also impede the growth rate of the semiconductor manufacturing equipment market.

MARKET OPPORTUNITIES

Frequent updates in technological developments and the penetration of artificial intelligence and machine learning are creating a positive scope for the semiconductor manufacturing equipment market in the coming years.

Advanced technology plays an important role in launching innovative designs in electronics according to customers' preferences. In recent times, the demand for miniature devices has gradually increased along with the advanced features. To develop new features in smartphones or other electronic devices, there is a high need for the development of complicated IC designs, which is solely possible with the best semiconductor manufacturing equipment. Also, the growing prominence of increasing the number of electronic devices according to the customer’s demand will eventually concentrate on adopting these devices to produce mass production in less time.

MARKET CHALLENGES

Disruptions in the supply chain of raw materials are posing a negative impact on the growth rate of the market.

The cost of raw materials is surging worldwide due to the disruptions in the supply chain. This will impact the cost of the final products, which will degrade the market’s growth rate. The cost of semiconductor manufacturing equipment is very high, and proper infrastructure is needed to produce high-quality products, which is likely to hinder the market’s growth rate in the coming years. Many small-scale companies could not establish the infrastructure required for equipment installation and also could not afford huge amounts of installation and maintenance. These factors are posing huge challenges for the key market players.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Semiconductor Manufacturing Equipment Market Analysis By Front-end Equipment

Lithography is witnessed in holding a prominent share of the semiconductor manufacturing equipment market. Lithography equipment can manufacture highly complex circuits easily using an ultra-high-performance lens and exposed on a wafer. These systems can produce mass production at a time without any disturbance, which is highly suitable for industries. The surface conditioning segment is likely to have the fastest growth opportunities during the forecast period. Ongoing R&D activities to launch innovative electronic devices are ascribed to leveraging the growth rate of the semiconductor manufacturing equipment market.

Global Semiconductor Manufacturing Equipment Market Analysis By Back-end Equipment

The assembly and packaging segment gears up to level up the market’s share during the forecast period. It is highly important to assemble or package the manufactured products properly to promote the quality and effectiveness of the final product, which shall enhance the segment’s growth rate. The water testing/IC testing segment is gaining huge traction over the market’s growth rate throughout the forecast period. For any product that is manufactured, it is highly important to go into the testing process, and the product that passes the quality check is only eligible for further processing. Therefore, this segment holds the prominent growth rate during the period 2024-2029.

Global Semiconductor Manufacturing Equipment Market Analysis By Fab Facility Equipment

The automation segment is greatly leading with the largest share of the market. The growing popularity of electric vehicles is likely to propel the growth rate of the automation segment. The demand for luxurious cars and other vehicles is greatly emphasized by advanced technology, where the need to design complex integrated circuits according to the applications is anticipated to level up the growth rate of the market. Likewise, chemical and gas control fab facility equipment is expected to have a prominent growth rate during the forecast period.

Global Semiconductor Manufacturing Equipment Market Analysis By Product Type

By product type, memory segment is ascribed in leading the largest share of the market. However, each and every product has huge opportunities as every product has the potential to manufacture the expected design according to the application requirements. Logic segment is set to have highest growth rate during the forecast period.

Global Semiconductor Manufacturing Equipment Market Analysis By Dimension

3D ICs segment is esteemed to have the fastest growth opportunities during the forecast period. In today’s world, the demand to launch innovative devices with various technologies like artificial intelligence and machine learning languages, the prominence to use the advanced dimension version for clear prospective in launching the product is quietly leveraging the growth rate of the market.

The 2.5D ICs segment has had huge opportunities in past years and continues to have the same growth rate in the foreseen years. Small-scale companies mostly use 2.5D ICs due to their cost-effectiveness and ability to improve the quality of their overall products.

REGIONAL ANALYSIS

North America is leading with the largest share of the semiconductor manufacturing equipment market. The presence of leading companies in automotive, healthcare, and electronics is a major factor in the market growth in the North American region. Developed countries like the US and Canada add fuel to the market’s growth with eventually rising investments. The rising popularity of the latest technological developments in electronics is greatly influencing the growth rate of the semiconductor manufacturing equipment market.

Europe is next to North America in holding the market’s share. Government support in the import and export of various electronic devices to other countries is enhancing the demand for the design of high-quality semiconductors with respect to various applications to leverage the growth rate of the European market. The growing per capita income and increasing expenditure on luxurious vehicles in the UK and Germany are likely to gear up new opportunities for the market in the coming years.

KEY PLAYERS IN THE GLOBAL SEMICONDUCTOR MANUFACTURING EQUIPMENT MARKET

Companies playing a prominent role in the global semiconductor manufacturing equipment market include  Tokyo Electron Limited (Japan), Lam Research Corporation (US), ASML (Netherlands), Applied Materials, Inc. (US), KLA Corporation (US), SCREEN Holdings Co., Ltd. (Japan), Teradyne, Inc. (US), Advantest Corporation (Japan), Hitachi, Ltd. (Japan), Plasma-Therm (US), and Others.

RECENT HAPPENINGS IN THE GLOBAL SEMICONDUCTOR MANUFACTURING EQUIPMENT MARKET

• In 2024, Lam Research Corporation announced that the semiconductor fabrication unit should expand its supply chain in India. The demand for the supply chain of semiconductors is increasing rapidly all across the world, where the need for a company’s key strategies and collaborations with other companies play an important role in effectively achieving its goals.

DETAILED SEGMENTATION OF THE GLOBAL SEMICONDUCTOR MANUFACTURING EQUIPMENT MARKET INCLUDED IN THIS REPORT

This research report on the global semiconductor manufacturing equipment market has been segmented and sub-segmented based on front-end equipment, back-end equipment, fab facility equipment, product type, dimension, and region.

By Front-end Equipment

• Lithography
  • DUV Lithography
• • EUV Lithography
• Wafer Surface Conditioning
  • Etching
• • Chemical Mechanical Planarization (CMP)
• Wafer Cleaning
  • Single-wafer Spray System
• • Single-wafer Cryogenic System
• • Batch Immersion Cleaning System
• • Batch Spray Cleaning System
• • Scrubber
• Deposition
  • PVD
• • CVD
• Other Front-end Equipment

By Back-end Equipment

• Assembly and Packaging
• Dicing
• Metrology
• Bonding
• Wafer Testing/ IC Testing

By Fab Facility Equipment

• Automation
• Chemical Control
• Gas Control
• Other Fab Facility Equipment

By Product Type

• Memory
• Foundry
• Logic
• MPU
• Discrete
• Analog,
• MEMS
• Others

By Dimension

• 2D ICs
• 2.5D ICs
• 3D ICs

By Region

• North America 
• Europe 
• Asia Pacific
• Latin America 
• Middle East & Africa