Semiconductor Manufacturing Equipment Market Forecasts to 2028 - Global Analysis By Product Type, Front-End Equipment, Back-End Equipment, Fab Facility Equipment, Supply Chain Participant, Dimension, Function, Application, End User and By Geography

According to Stratistics MRC, the Semiconductor Manufacturing Equipment Market is accounted for $105.30 billion in 2022 and is expected to reach $191.70 billion by 2028 growing at a CAGR of 10.5% during the forecast period. Semiconductors have become a crucial component of every digital product, including ALUs and phones. Various industries are relying heavily on semiconductors such as the automotive, consumer electronics, data processing, and networking and communications. The machinery used in semiconductor manufacturing handles the actual production of semiconductors. To create highly integrated devices on a wafer, these machines manipulate atoms using etching, deposition, and lithography.

According to the Semiconductor Industry Association (SIA), the U.S. industry's expenditures in R&D increased at a compound annual growth rate of about 6.6 percent from 1999 to 2019. Expenditures in R&D activities by U.S. companies tend to be consistently high, regardless of cycles in annual sales, which reflect the importance of investing in R&D production. In 2019, the R&D investment totaled USD 39.8 billion.

Market Dynamics:

Driver:

Increasing demand and government investments

The global semiconductor manufacturing equipment market expected to drive growth during the forecast period. Due to the increased demand for semiconductors in the manufacturing and, front-end semiconductor production facilities. Additionally, the government all around the world is highly investing in semiconductor manufacturing equipment industry. The government is also providing tax benefits to the manufacturers of semiconductor manufacturing equipment.

Restraint:

Complexity of patterns and environmental defects

The global semiconductor manufacturing equipment market expected to hinder growth during the forecast period. Due to the environmental factors causing disruptions and growing of the complications regarding to the miniaturized structures of circuits are projected to hinders the market. Due to manufacturing flaws, there is a delay in supply, which results in further losses from order cancellations and clients switching to different providers.

Opportunity:

Rising Demand for Data Business, Connected Cars, and IoT

The global semiconductor manufacturing equipment market have growth opportunities that drive the market. Applications for semiconductors, such as those in automobiles and other mobile devices, are diversifying. As a result, the market for machines used in semiconductor production is expanding. For instance, linked, electric, and driverless automobiles all make use of semiconductors. Therefore, it is projected that growing semiconductor demand in autonomous and hybrid vehicles will drive market revenue for semiconductor production equipment.

Threat:

Supply chain disruptions

The semiconductor industry is mature and diverse. No nation or business has complete value chain independence. Only a few of the inputs required are wafer materials, specialised chemicals and gases, processing equipment, final testing, and packaging; the businesses that supply these elements are distributed throughout the world. Offices, factories, and other commercial enterprises were shut down entirely around the world in the early phases of the epidemic, which had a negative impact on businesses and the global economy.

COVID-19 Impact:

COVID-19 pandemic had a negative influence on the market for semiconductor production equipment, which decreased participant revenues. As a result, the market's growth trend slowed down in 2020 and the first half of 2021. With the increase in production volume and the spike in demand for consumer electronics devices and hybrid electric vehicles in the third or fourth quarter of 2022, the demand for front-end equipment, back-end equipment, and fab facility equipment is anticipated to soar.

The lithography equipment segment is expected to be the largest during the forecast period

The lithography equipment segment is expected to have a lucrative growth during the forecast period, due to increasing demand for semiconductors on a worldwide scale. The increased demand for semiconductor chips across a variety of end-use sectors drives the increased use of photolithography equipment.

The wafer testing segment is expected to have the highest CAGR during the forecast period

The wafer testing segment is anticipated to witness the fastest CAGR growth during the forecast period, as demand for highly accurate ICs is credited with driving growth. Modern integrated circuits (ICs) must contain several functionalities, and the intricate circuitry requires the right testing tools to achieve precision.

Region with highest share:

The Asia Pacific region market is estimated to witness a highest share of the global semiconductor manufacturing equipment market during the forecast period, due to the rising developments in the semiconductor industry in economies such as India, South Korea, Japan, Taiwan and China in the region. Furthermore, the presence of major players along with increasing expansion activities by these players is also likely to support the growth of the market.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period. The market for semiconductor manufacturing equipment in Europe is expanding as a result of rising investments in the production of semiconductor equipment. Additionally, favourable trade relations with other countries are creating opportunities for the European market for semiconductor manufacturing equipment to grow.

Key players in the market

Some of the key players in Semiconductor Manufacturing Equipment Market include Hitachi High-Tech Corporation, Tokyo Electron Limited, Canon, Screen Holdings Co. Ltd., SML Holding, Semiconductor Company, Advantest Corporation, Lam Research Corporation, QP Technologies, KLA Corporation, Applied Materials, Nikon, Daifuku, Teradyne Inc., Kokusai, Electric Corporation, Veeco Instruments Inc., Screen Semiconductor Solutions, Gallant, Precision Machining (GPM), Contrel Semiconductor Technology, Plasma-Therm.

Key Developments:

In December 2021, Hitachi High-Tech Corporation announced the release of the Electron Beam Area Inspection System GS1000. The newly designed instrument provides precise and quick e-beam inspection through the use of a common platform based on established high-speed inspection SEMs and knowledge in industry-leading CD-SEM*1 technology, as well as high-speed and enormous measurements.

In May 2021, Lam Research Corp. introduced Vantex™, the most advanced dielectric etch technique built particularly for Sense.i™, considered to be the most intelligent etch platform. This groundbreaking design, which is based on etch leadership, provides improved performance and more extendibility for current and next-generation NAND and DRAM memory devices.

In January 2021, Teradyne collaborated with Syntiant Corp., an AI chip company, to successfully ship millions of its microwatt-power, deep learning neural decision processors to customers across the world.

Product Types Covered:

• Microprocessor Chips (MPU)
• Foundry
• Discrete
• Logic
• Memory
• Analog, Microelectromechanical Systems (MEMS), and Others

Front-End Equipments Covered:

• Wafer Surface Conditioning Equipment
• Lithography Equipment
• Deposition
• Wafer Cleaning
• Other Front-End Equipments

Back-End Equipments Covered:

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

Fab Facility Equipments Covered:

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

Supply Chain Participants Covered:

• Integrated Device Manufacturer (IDM) Firms
• Outsourced Semiconductor Assembly and Test (OSAT) Companies
• Foundries

Dimensions Covered:

• 2D ICS
• 3D ICS
• 5D ICS

Functions Covered:

• Integrated Circuits
• Optoelectronic, Sensors, and Discrete

Applications Covered:

• Semiconductor Fabrication Plant
• Semiconductor Electronics Manufacturing
• Test Home
• Discrete Semiconductor
• Optoelectronics Device
• Sensors

End Users Covered:

• Personal Computers (PCs)
• Mobile Handsets
• Televisions Assembly & Packaging

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances