Atomic Layer Etching ALE Equipment Market

Atomic Layer Etching Equipment Market Size

The global atomic layer etching equipment market was estimated at USD 1.1 billion with a volume of 258 units in 2024. The market is expected to grow from USD 1.2 billion in 2025 to USD 1.8 billion in 2030 and USD 2.5 billion by 2034 with a volume of 518 units, at a value CAGR of 8.5% and volume CAGR of 7.3%, during the forecast period of 2025–2034.

• The demand for atomic layer etching (ALE) equipment is growing due to an increase in demand for smaller, faster semiconductor devices, advances in quantum computing, increased needs for high performance energy efficient electronics, development of next generation electronic solutions based on new materials, and the increase of demand for miniaturization and complexity of integrated circuits.
  
• The demand for smaller, more powerful semiconductor devices is growing the demand for atomic layer etching (ALE) since atomic layer etching enables ultra-precision etching down to the atomic level. According to the Semiconductor Industry Association (SIA), global semiconductor sales reached nearly USD 527 billion in 2023, with close to one trillion chips shipped worldwide, underscoring their ubiquity in modern technology. The significant growth seen in the industry reflects a need for advanced etch methods such as ALE, as more miniaturization and performance chips that can be used for consumer electronics, IoT devices, and emerging applications, is evident in the marketplace.
  
• Advancements in quantum computing are driving significant growth in the ALE market, as precise etching is necessary for the development of smaller, highly precise quantum components. Recently, the U.S. Department of Energy (DOE) renewed funding amounting to USD 125 million over 5 years for the quantum systems accelerator, showing that funding for quantum technologies is heading in an upward direction. Funding is being added for quantum techniques evident to demonstrate the demand for atomic layer etching (ALE) to achieve the precision desired for the next phase of quantum devices and to expedite the commercialization of development.
  
• The Asia pacific region dominated with over 64.7% market share in 2024. The market is driven by rising semiconductor demand, rapid technological advancements and increasing investment in advanced manufacturing processes. According to Invest Korea, South Korea’s K-CHIPS Act offers tax credits of up to 15-25% for semiconductor facility investments and 30-50% for R&D, fostering advanced manufacturing and global competitiveness.
  

Atomic Layer Etching Equipment Market Trends

• The shift to sustainable and eco-friendly manufacturing practices is gaining traction in the semiconductor market. With increasing awareness of the environment and its concerns, ALE technology will increasingly contribute to reduce material waste, and energy usage. ALE's ability to perform layer-by-layer etching with minimal material wasting (0.1-1 nm/min) will help facilitate cleaner fabrication and supports sustainability initiatives worldwide. As conditions prevail to limit waste and energy usage in industry, it is expected that the trend will peak around 2030 to support UNEP aspirations to cut global waste by 50% by the year 2050, increases sustainability, increases efficiency, and promotes eco-friendly manufacturing.
  
• One key trend in the atomic layer etching (ALE) market is the rising use of ALE processes for coating instruments that are UV-sensitive. Among other agency innovations by the Jet Propulsion Laboratory (JPL), there exist coatings that are in development over at NASA’s Goddard Space Flight Center. There are coatings to increase the strength and durability of instruments for space missions. The expansion of space exploration is proving to be complex, however the role of ALE and ALD processes in precision coatings is expected to expand through future technology and peak in 2030 when coatings with ALE will be of vital use for the next generation of space technologies.
  
• The development of advanced manufacturing for nodes under 10nm began to accelerate in the latter half of the 2010s when many semiconductor technologies began to progress significantly. Increased demand is growing for components that are smaller and high performance, and atomic layer etching (ALE) is important because it can etch critical features, while having low potential to damage sensitive structures, as opposed to a more conventional plasma etching method. The trend is becoming more commonplace, as the precision requirements are increasing any time nodes shrink to smaller values. ALE technology supports growing demand for precision in sub-10nm manufacturing.
  

Atomic Layer Etching Equipment Market Analysis

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Based on the technology, the atomic layer etching (ALE) equipment market is bifurcated into plasma-based atomic layer etching, ion beam atomic layer etching, thermal atomic layer etching, hybrid atomic layer etching & others.

• The plasma-based atomic layer etching segment was the largest market and was valued at USD 515.8 million in 2024. As microelectronics and semiconductor fabrication grow, there will be further growth in ALE as it simply offers high precision, increase etch selective and enhance material control.
  
• Manufacturers should focus on market and supplying new plasma-based atomic layer etching (ALE) solutions to provide higher precision, increased etch selectivity, and improved material control to meet increasing demand for semiconductor manufacturing and advanced microelectronics as the semiconductor industry grows.
  
• The thermal atomic layer etching segment is anticipated to grow with a CAGR of 7.1 % during the forecast period of 2025 – 2034. The growth specifically driven by its capabilities to achieve precise etching at reduced temperatures, improved material selectivity, and reduced defects in advanced semiconductor manufacturing.
  
• Manufacturers must focus on making iterative improvements to its thermal ALE technology, to improve precision at lower temperatures, improve material selectivity, and to reduce defects, while satisfying the increased demand in advanced semiconductor fabrication.

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On the basis of application, the atomic layer etching equipment market is segmented into logic & microprocessors, memory devices, power & RF devices, advanced packaging, optoelectronics & photonics, mems & sensors & others.

• The logic & microprocessors segment was the largest market and was valued at USD 384.3 million in 2024. This growth is driven by the need for high-performance processors used in AI, 5G, and data centers, as well as advancement in semiconductor product manufacturing technologies.
  
• Manufacturers should focus on continued improvements in processes for precision etching technologies, investment in advanced ALE systems, and improvement in production process efficiency as smaller nodes needs arise in demand for high-performance logic devices and microprocessor devices in emerging technologies.
  
• The advanced packaging devices segment is the fastest growing market and is anticipated to grow with a CAGR of 11.4% during the forecast period of 2025 – 2034. The growth in this area is driven by demand for smaller, powerful devices, development of 5G and IoT enabled technologies, and the need for advanced packaging systems rather than reengineering devices to address better performance, power efficiency, and miniaturization.
  
• Manufacturers need to focus on advancing packaging systems, miniaturization, and thermal management in packaging systems, and investigating high-density interconnect solutions in addressing the improvised demand for advanced packaging systems in next generation electronic devices.
  

On the basis of end use, the atomic layer etching equipment market is categorized into IDMs (integrated device manufacturers), foundries, memory manufacturers, OSATs / packaging houses & others.

• The IDMs (integrated device manufacturers) segment was the largest market and was valued at USD 462.1 million in 2024. The growth in this area is driven, but not limited to, demand for advanced semiconductors, the move toward smaller process nodes, and IDMs investment in in-house production capabilities for efficiency and improvement and innovation.
  
• Manufacturers need to direct effort on improving process efficiencies, developing advanced etching technologies, and continuing to innovate on a small node fabrication approach to meet demand from IDMs for high-performance custom semiconductor projects.
  
• The OSATs / packaging houses segment is the fastest growing market and is anticipated to grow with a CAGR of 10.3% during the forecast period of 2025 – 2034. The growth of the OSATs / packaging houses segment is fuelled by the demand for advanced packaging solutions that incorporate higher performance, miniaturization, and cost-effective packaging techniques for next-generation semiconductor devices.
  
• Manufacturers need to contemplate packaging development initiatives, increasing process throughput, improvement of 3D packaging and heterogeneous integration, and responding to needs for high-performance, energy-efficient solutions for next-generation semiconductor technologies.

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North America atomic layer etching equipment market was valued at USD 218.8 million in 2024 and is anticipated to grow with a CAGR of 7.4% during the forecast period of 2025 – 2034. The North American atomic layer etching (ALE) equipment market growth is due to government investments in semiconductor manufacturing funded by the CHIPS Act, growing demand for energy efficient electronics, and expansion of the electric vehicle market.

• U.S. dominated the atomic layer etching (ALE) equipment market and was valued at USD 200.2 million in the year 2024. This growth in the U.S. market can be attributed to government investments in semiconductor manufacturing, the advent in AI and IoT applications, advancements in advanced node technology, and U.S. government and private sector demand in aerospace and defense industries.
  
• Manufacturers should focus on harnessing government investments, developing semiconductor node advancements, and satisfying increased demand from aerospace and defense end-users to drive growth in the U.S. market.
  
• The atomic layer etching (ALE) equipment market in Canada is anticipated to surpass USD 33.3 million by 2034, driven by increased focus on national security and tech independence, rising adoption of AI and IoT applications, and expansion of semiconductor fabrication facilities (Fabs)
  
• Manufacturers need to focus on leveraging national security initiatives in Canada, the expansion of more AI and IoT applications, and the demand for semiconductor fabrication facilities as growth areas to support heavy demand for precision etching part and tools.
  

The atomic layer etching equipment market in Europe is anticipated to grow with a CAGR of 6.8% during the forecast period of 2025 – 2034. Market growth is driven by EU initiatives to bolster semiconductor manufacturing, the expansion of high-tech R&D projects funded by the EU and growing demand for next-generation EU aerospace technology, which all drive the need for precision etching and high-end ALE equipment in Europe.

• Germany atomic layer etching (ALE) equipment market was valued at USD 38.3 million in the year 2024. Growth in the market is driven by Germany’s leadership in automotive electronics manufacturing, expansion of semiconductor research & innovation hubs, and growing demand for precision in microelectronics, driving growth for advanced ALE equipment.
  
• Manufacturers should invest in automotive electronics applications and develop advanced ALE equipment for microelectronics precision, as well as work with semiconductor research and innovation centres to remain at the forefront of technology in Germany's highly competitive market.
  
• UK atomic layer etching (ALE) equipment market is anticipated to surpass USD 58.3 million by 2034. This growth is fuelled by the emphasis on energy-efficient production of electronics, the demand for export of semiconductors, and increased investment in quantum computing technologies.
  
• Equipment manufactures should focus on energy-efficient electronics development meeting export demands for semiconductors and advancing quantum computing technologies in the UK supporting precision etching with the emergence of new high-tech industries.
  

The atomic layer etching equipment market in Asia Pacific is the largest market was valued 718.1 million in 2024. This growth is driven by the increasing semiconductor manufacturing capacity in the region, the demand increases for advance electronics along with considerable investments in AI, IoT, and 5G technologies.

• China atomic layer etching (ALE) equipment market is projected to reach USD 724.9 million by the year 2034. Growth is driven by China’s push for advanced microelectronics innovation and ongoing development of domestic advanced semiconductor nodes, which is developing demand for precise atomic layer etching (ALE) equipment in that region.
  
• Manufacturers should focus on developing advanced ALE equipment for China's growing semiconductor ecosystem by focusing on precision etching for advanced microelectronics in support of innovation and self-sufficiency.
  
• The atomic layer etching equipment market in Japan was valued at USD 155.7 million in 2024. The growth in the Japanese atomic layer etching market is being driven by dominance in advanced semiconductor technology, growing demand for precision in robotics, and increasing R&D investment in quantum computing; growth of the atomic layer etching market is directly linked to the need for high precision ALE equipment.
  
• Manufacturers should concentrate on being able to provide advanced ALE solutions for Japan's advanced semiconductor technology, precision robotics, and quantum computing technology research to produce high-performance chips in response to growing technology and innovation demand in Japan.
  
• India atomic layer etching (ALE) equipment market is anticipated to grow with a CAGR of over 12.6% during the forecast period of 2025-2034. Rapid market growth is due to increased domestic semiconductor research, the rise in precision requirements for electronics, and the early developments of India's smart city infrastructure that have contributed to the early adoption of advanced ALE equipment.
  
• Manufacturers need to focus on instituting ALE solutions to India’s emerging semiconductor research initiatives, the precision automotive electronics industry, and Smart City infrastructure projects to enable the country’s technology fueled growth.
  

The atomic layer etching equipment market in Latin America was valued at USD 20.5 million in 2024. The growth in Latin America is primarily driven from increased investments in semiconductor manufacturing, and the increasing technology infrastructure in places such as Brazil and Mexico. Additionally, with LA emphasis on a competitive semiconductor ecosystem, also with an increasing demand for high precision etching in automotive, electronics, and telecommunications.

MEA atomic layer etching (ALE) equipment market is projected to surpass USD 28.9 million by 2034. Growth in the region is being driven by increases in semiconductor manufacturing, demand for advanced electronics, and investments in AI and 5G technologies.

• South Africa atomic layer etching (ALE) equipment market was valued at USD 3.8 million in 2024. South Africa is growing because of the drive for semiconductor localization, and government support for advanced electronics research is spurring additional innovation and demand for atomic layer etching (ALE) equipment.
  
• Manufacturers need to focus on semiconductor localization, develop advanced electronics research supported by the government, and create ALE solutions to support growing demand from South Africa's smart manufacturing, automotive, and precision electronics ecosystem.
  
• The atomic layer etching equipment market in Saudi Arabia is projected to grow with a CAGR of 5.1% during the forecast period of 2025-2034. The growth in Saudi Arabia is associated with Saudi Vision 2030's focus on technology and the demand for precision in petro-electronics, as well as government incentives to increase high-tech manufacturing, and the combination of these factors is pushing forward demand for atomic layer etching (ALE) equipment.
  
• Manufacturers focus on semiconductor localization, advanced electronic research backed by government, and appropriate ALE solutions for smart manufacturing, automotive, and precision electronics in response to growing demand supported by South Africa's ecosystem.
  
• The atomic layer etching equipment market in UAE is anticipated to surpass USD 9 million by 2034. The UAE market growth is based on the rapid transformation of semiconductor manufacturing and the government investments in technology infrastructure, as well as the resulting demand for high-tech applications involving precision electronics like AI, 5G, and IoT.
  
• Manufacturers should increasingly focus on advanced semiconductor manufacturing, leverage government support for infrastructure investments in the UAE, and develop ALE solutions to support AI, 5G, and IoT precision etching applications.
  

Atomic Layer Etching Equipment Market Share

• The atomic layer etching (ALE) equipment market is a highly competitive and fragmented market with established and small companies within the market. Lam Research Corporation, Applied Materials, Tokyo Electron, Oxford Instruments & Samco Inc., are the key players in the atomic layer etching (ALE) equipment market. These companies collectively accounted for 85.3% of the total market share in 2024.
  
• Lam Research led the global atomic layer etching (ALE) equipment market in 2024 with a commanding 31.4% market share. The company benefitted from innovative technologies and a strong customer base in semiconductor manufacturing, especially in advanced technology nodes.
  
• Applied Materials held 29.5% of the global atomic layer etching (ALE) market in 2024, with a primary focus on delivering innovative solutions for semiconductor manufacturing. Applied Materials' technology focuses on advanced node processing with a dedication to logic and memory devices to increase precision and efficiency in etching.
  
• Tokyo Electron finished with 19.6% of the global atomic layer etching (ALE) equipment market in 2024 with a strong portfolio of advanced etching solutions. The company focuses on high-precision, high-reliability technology for next-generation semiconductor manufacturing processes.
  
• Oxford Instruments achieved a 3.1% market share in 2024 due to its innovative atomic layer etching (ALE) technologies, which cater to advanced semiconductor applications. The company promoted precision etching and research-focused solutions, and high-quality equipment that support the emerging technologies and improved the company’s competitive position.
  
• Samco Inc. secured 1.7% of the atomic layer etching (ALE) equipment market in 2024, with a focus on developing precision etching solutions for research and development. This company's innovative solutions are aimed at new markets and technologies such as quantum computing and nanofabrication.
  

Atomic Layer Etching Equipment Market Company

The top prominent companies operating in the atomic layer etching (ALE) equipment market include:

• Oxford Instruments
• Samco Inc. 
• CORIAL
• Nano Vacuum Pty Ltd
• Lam Research Corporation
• Hitachi High-Tech Corporation
• Mattson Technology, Inc.
• Applied Materials 
• Tokyo Electron
• NAURA 
  

Companies such as Lam Research, Applied Materials, and Tokyo Electron are the leaders of the ALE equipment sector. Each of these organizations has developed high-performing etching equipment utilizing ALE technology with atomic-level precision, thus providing a next-generation solution for semiconductor fabrication.

Oxford Instruments, Mattson Technology, and Hitachi High Tech are challengers in the ALE market. Each of these organizations has developed technically competent solutions in, or that include, a high-precision etching system with ALE capabilities; however, each is still growing their presence in the ALE market and typically concentrates on niche market segments or applications rather than compete head-on with the leaders.

CORIAL, Samco Inc., and Nano Vacuum Pty Ltd are followers in the ALE space. Each of these organizations has developed a reliable precision etching system with some ALE capabilities. Typically, these organizations work in highly specialized niche applications or focus on specialized markets, such as research and newer niche semiconductor applications. Therefore, these organizations offer reliable solutions but are not as dominant in the market as the leaders.

Plasma-Therm is a niche organization in the ALE market that develops high-precision etching systems for specialized sectors, such as MEMS and semiconductor R&D. Each of the solutions offered by Plasma-Therm is specified with high regard for precision in each application; nevertheless, like the followers, they cannot compete in terms of scale or mass-market adoption versus the leaders.

Atomic Layer Etching Equipment Industry News

• In 2025, Samco Inc. has introduced the RIE-400iP-ALE, the first Atomic Layer Etching configuration in Australia, which has been sent to the University of Adelaide for developing research directed at quantum materials and nanoscale device fabrication.
  
• In 2024, Hitachi High-Tech Corporation has released the DCR Etch System 9060 Series, for isotropic atomic-layer etching. This new system was designed specifically for professionals to tackle all aspects of etching 3D NAND and DRAM devices, while making the construction of their next-generation semiconductor memory and logic devices simpler.
  
• In 2025, Samco Inc. delivered Australia's first Atomic Layer Etching (ALE) system, the RIE-400iP-ALE, to the University of Adelaide. This cutting-edge equipment will advance quantum materials research and innovation.
  

The atomic layer etching equipment market research report includes in-depth coverage of the industry with estimates and forecasts in terms of revenue (USD Million) and volume (Units) from 2021 – 2034 for the following segments:

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Market, By Technology                

• Plasma-based atomic layer etching
• Ion beam atomic layer etching
• Thermal atomic layer etching
• Hybrid atomic layer etching
• Others

Market, By Application                 

• Logic & microprocessors
• Memory devices
• Power & RF devices
• Advanced packaging
• Optoelectronics & photonics
• MEMS & sensors
• Others

Market, By Wafer Size                 

• 200 mm
• 300 mm
• 450 mm

Market, By End Use                      

• IDMs (integrated device manufacturers)
• Foundries
• Memory manufacturers
• OSATs / packaging houses
• Others

The above information is provided for the following regions and countries: 

• North America 
  • U.S.
  • Canada 
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Netherlands 
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • UAE