Semiconductor Manufacturing Equipment Market Size By Product (Front-end Equipment [Lithography, Polishing & Grinding, Water Surface Conditioning Equipment], Back-end Equipment [Wafer Manufacturing Equipment, Assembly & Packaging Equipment, Test Equipment]), By Dimension (2D, 2.5D, 3D), By Supply Chain Process (Outsourced Semiconductor Assembly and Test (OSAT), Integrated Device Manufacturer (IDM), Foundry), Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2020 – 2026

Published Date: Aug 2020  |  Report ID: GMI4233  |  Authors: Preeti Wadhwani, Shubhangi Yadav

Report Format: PDF   |   Pages: 150   |   Base Year: 2019

Summary Table of Contents Industry Coverage Methodology

Industry Trends

Semiconductor Manufacturing Equipment Market size exceeded USD 55 billion in 2019 and is poised to grow at a CAGR of 6% between 2020 and 2026.

The rising trend toward vehicle electrification and increasing adoption of electric and hybrid vehicles around the globe will create the market opportunities for semiconductor manufacturing equipment providers. According to IEA (International Energy Agency), in 2019, the electric vehicles accounted for 2.6% of the global car sales and around 1% of the global car stock, which will be accelerated by 40% per year. This will increase the requirement for microcontrollers, high power modules, discrete components, and other power semiconductors, accelerating the market growth.

Semiconductor Manufacturing Equipment Market
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The market players in the automotive sector are continuously involved in new collaboration and partnership agreements to further improve their market presence for advanced vehicle technologies. This will positively influence the growth opportunities for advanced semiconductor manufacturing equipment.

The trade war between the U.S. and China has led several manufacturers to relocate their manufacturing facilities from China to other East Asian countries, to overcome trade restriction and avoid high tariffs. This has created lucrative market opportunities in South Korea, Taiwan and Japan with Taiwan becoming the largest importer of semiconductor manufacturing equipment for three consecutive years in a row. Moreover, the COVID-19 pandemic has led to increasing demand for advanced computing devices and AI-integrated chips, positively influencing the semiconductor manufacturing equipment market demand. However, the lockdown scenario worldwide has hampered the manufacturing industry and capability to integrate semiconductor manufacturing equipment into their facilities.

Semiconductor Manufacturing Equipment Market Report Coverage
Report Coverage Details
Base Year:2019
Market Size in 2019:55 Billion (USD)
Forecast Period:2020 to 2026
Forecast Period 2020 to 2026 CAGR:6%
2026 Value Projection:80 Billion (USD)
Historical Data for:2015 to 2019
No. of Pages:150
Tables, Charts & Figures:182
Segments covered:Product, Dimension, Supply Chain Process, Region
Growth Drivers:
  • Rising demand for advanced and miniaturized semiconductor components in consumer electronics
  • Technological advancements in lithography process
  • Electrification in vehicles and proliferation of electric vehicles worldwide
  • Rising penetration of 5G and IoT devices
  • Increasing demand for chipsets in computing and AI applications
  • Growing demand for power efficient semiconductor from medial applications
  • Government initiatives to propel semiconductor industry in the U.S. and Taiwan
Pitfalls & Challenges:
  • High purchase and maintenance cost
  • Functional defects and complexity in patten for advance chipsets

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Technological innovations in EUV lithography will drive the market growth

In the front-end equipment, lithography holds for the majority of market share of over 30% and is anticipated to register around 6% growth rate in the semiconductor manufacturing equipment market through 2026. Lithography equipment is the high cost system whose cost can go as high up to USD 100 million per unit and offers high profit margin to its suppliers. However, the demand is cyclic in nature and is mostly driven by IDMs and foundries in the Asia Pacific region.

In February 2019, ASML announced the shipment of 18 high-end lithography machines for USD 2.16 billion in total to Taiwan Semiconductor Manufacturing Company (TSMC), where each machine cost USD 1.2 hundred million. Companies are more inclined toward technological innovations and introduction of laser plasma as light source to deliver high-quality wavelength in EUV (extreme ultraviolet) lithography equipment. This will help foundry suppliers to reduce maintenance and operational cost, thereby increasing the market opportunity for lithography.

Rising developments in advanced memory products will create opportunities for 2.5D in the semiconductor manufacturing equipment market

Semiconductor Manufacturing Equipment Market

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The 2.5 D segment accounted for a market share of over 35% in 2019 and is projected to expand at a CAGR of around 7% during the forecast period. The growth is majorly attributed to the rising demand for 2.5D architecture in stack memory modules to deliver high bandwidth memory and improved performance; therefore, industry leaders are more inclined to replace traditional semiconductor scaling with 2.5D packaging architecture to achieve high chip functionality in small form factors.

The proliferation of advanced technologies, such as high-performance computing, 5G, and artificial intelligence in consumer electronics, is propelling the demand for 2.5D technology architecture. It helps foundry suppliers and designers with quick designing prototyping and achieving fast time to market regarding delivery. As a result, the companies are inclined toward partnership and collaboration agreements to integrate 2.5D technology into semiconductor manufacturing equipment.

Rising investment by IDM companies to establish new manufacturing facilities will fuel the market expansion

U.S. Semiconductor Manufacturing Equipment Market

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IDM held significant semiconductor manufacturing equipment market share of 40% in 2019 and is estimated to observe growth of more than 7% from 2020 to 2026 impelled by rising investment by IDM firms to enhance their research and development activities for technologically advanced and miniaturized products including smart ICs, RFID circuits, sensors, and ultralow power microcontrollers to cater to high demand in various industry verticals.

The companies in IDM are also emphasizing on investments to enhance their manufacturing facilities of advanced semiconductor products, driving the demand for semiconductor manufacturing equipment. In April 2019, Texas Instruments announced to invest USD 3.1 billion for the development of a new manufacturing facility of 300-millimeter wafers in Texas, U.S. This new business expansion will help the company to enhance its chip production for a wide range of applications including industrial machinery, smartphones, and connected cars.

Increasing initiatives by the government will propel the market value in the Asia Pacific region

Asia Pacific Semiconductor Manufacturing Equipment Market

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Asia Pacific semiconductor manufacturing equipment market dominated for over 70% revenue share and will witness a growth rate of 7% till 2026. Taiwan is projected to exhibit the highest growth rate in the region due to several government initiatives and proposals to accelerate advanced technologies, such as AI, boosting the growth opportunity for semiconductor manufacturing equipment in the region.

The presence of several semiconductor components and foundry suppliers, such as TSMC, Howteh Technology, Gallant Precision Machining Co., Ltd, among others., will accelerate the industry size in the region These major players are continuously investing in new technologies and business expansions.

According to SEMI (Semiconductor Equipment and Materials International), in June 2020 report, TMSC has planned to invest around USD 16 billion in a new facility and equipment and leading-edge technologies, such as 7nm to 3 nm chips, by the end of 2020. Through this, the company will cater to increasing demand from HPC devices, servers, and 5G chips, increasing the growth opportunities for the market.

Focus on new product launch to stay competitive in the market

Major players in the market include Applied Materials, Inc., LAM RESEARCH CORPORATION, Tokyo Electron Limited, ASML, KLA-Tencor, Dainippon Screen Mfg. Co., Ltd, among others. Market players are continuously focusing on new product launches and innovations and integrating advanced features to meet the growing consumer demand.

For example, in December 2019, Hitachi High-Technologies Corporation announced the development of its new advanced CD Measurement SEM to deliver high through throughput performance and improved precision measurement. The new model aids to deliver mass production of 5nm devices and 3nm devices for EUV lithography.

The semiconductor manufacturing equipment market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2015 to 2026 for the following segments:

Market, By Product

  • Front-end equipment
    • Lithography
    • Polishing & grinding
    • Water surface conditioning equipment
    • Others
  • Back-end equipment
    • Wafer manufacturing equipment
    • Assembly & packaging equipment
    • Test equipment
    • Others

Market, By Dimension

  • 2D
  • 2.5D
  • 3D

Market, By Supply Chain Process

  • OSAT
  • IDM
  • Foundry

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Russia
    • Netherlands
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Taiwan
    • Argentina
    • Mexico
    • Israel


Frequently Asked Questions (FAQ) :

The market size of semiconductor manufacturing equipment exceeded USD 55 billion in 2019.
The industry share of semiconductor manufacturing equipment is poised to grow at a CAGR of 6% between 2020 and 2026.
In 2019, lithography from the front-end equipment accounted for 30% market share and may record 6% CAGR through 2026, driven by the fact that it offers high profit margin to suppliers.
The 2.5 D dimension segment will depict appreciable growth owing to rising demand for 2.5D architecture in stack memory modules for delivering improved performance and high bandwidth memory. The segment held 35% revenue share in 2019 and may register 7% CAGR through 2026.
Increasing investment to better R&D programs for technologically developed & miniaturized products like RFID circuits and smart ICs will push IDM supply chain process segment, that held 40% market share in 2019 and may register 7% CAGR through 2026.
These firms are likely to invest in the Asia Pacific, owing to rising government initiatives to accelerate advanced technologies. APAC dominated the industry in 2019 with 70% market share and may record 7% CAGR through 2026.
The COVID-19 pandemic has led to production shutdowns and disruption in supply chains, adversely impacting the market share. However, it has also led to rising demand for advanced AI-integrated chips and computing devices that will push the industry growth.

Premium Report Details

  • Published Date: Aug 2020
  • Pages: 150
  • Tables: 160
  • Charts / Figures: 22
  • Companies covered: 15
  • Countries covered: 14

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