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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), COVID-19 Impact Analysis, Growth Potential, Competitive Market Share & Forecast, 2023 – 2032

  • Report ID: GMI4233
  • Published Date: Dec 2022
  • Report Format: PDF

Industry Drivers

Semiconductor Manufacturing Equipment Market size crossed USD 100 billion in 2022 and is anticipated to exhibit over 5% CAGR from 2023 to 2032. A surge in investments across advanced mobility solutions will impel the market demand.
 

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New trends in the automotive sector such as electric and hybrid mobility, AI-based automotive systems, and shared mobility are proliferating the demand for high-performance semiconductors, sensors, and microcontrollers. Growing consumer interest in electric vehicles will pave the way for a massive chip production volume, thus consolidating the industry value.
 

Impact of COVID-19 pandemic on the market

The COVID-19 pandemic introduced new challenges in the semiconductor manufacturing equipment market with significant disruptions to the global supply chain. The pandemic resulted in an unprecedented semiconductor shortage due to a dearth of production capacity and restricted global trade. While consumer purchases dropped in the early phase of the pandemic, the second phase witnessed a dramatic rise in demand for semiconductor chips due to the rapid adoption of digital solutions across various sectors.
 

Due to the worldwide lockdown, businesses shifted to work-from-home models to maintain productivity, which expedited the need for smartphones, laptops, tablets, and other devices. Doctors & patients switched to digital healthcare, whereas students adopted an e-learning approach. However, growing efforts to address the burgeoning semiconductor offer lucrative scope for semiconductor manufacturing equipment providers.
 

High cost of equipment may impede product demand

Hefty purchasing power and maintenance expenditure is required when purchasing semiconductor manufacturing machinery. Equipment such as lithography is very expensive with prices as high as up to USD 150 million. They are also rather complex in nature and rely on expert technical interventions. IF proper training is not provided, these machines can be very difficult to operate which is a key factor hindering product adoption. However, increasing developments in the field of fabrication and simplification of manufacturing processes will help overcome the challenges.
 

Rising silicon wafer production to boost adoption of front-end semiconductor production equipment

The front-end equipment product segment size was more than USD 70 billion in 2022. Front-end equipment is in high demand across wafer fabrication facilities since they offer a myriad of benefits including high-end wafer processing, high electrical conductivity, and lower operational costs.
 

Silicon wafer production has increased substantially in recent years due to widespread applications and rapid digitization. The components are extensively used as semiconductors in electronics and the manufacturing of integrated circuits that encompass millions of transistors, and other critical components.
 

Advancements in chip packaging technologies to foster the adoption of 3D ICs among chipmakers

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The 3D packaging technology in the semiconductor manufacturing equipment market is estimated to reach USD 95 billion revenue by the end of 2032.  With growing pressure on chipmakers to meet the surging demand for chipsets, IC manufacturers are ramping up efforts to boost production by leveraging new chip packaging technologies such as 3D ICs. Such advancements are allowing chipmakers to supply circuits offering compact size, and high performance at lower costs. 3D packaging allows semiconductor memory developers to create wafers and memory storage devices capable of reducing footprint whilst offering superior storage capacity.
 

Increasing demand for third-party IC packaging to augment expansion of OSAT vendors

The outsourced semiconductor assembly and test (OSAT) supply chain process segment is expected to record 7% growth through 2032, credited to the implementation by consumer electronics and automotive OEMs for assembly, packaging, and testing services.
 

OSAT firms are seeking automated machinery and equipment for integration in their plant facilities enabling outsourcing of semiconductor and electronic devices for customers. The growing need to maximize the time and capacity of semiconductor fabs is increasing OSAT engagement to ensure a faster and continuous supply of semiconductors.
 

Lower operational costs foster expansion of APAC industry

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Asia Pacific semiconductor manufacturing equipment market size is poised to exceed USD 195 billion by 2032. A surging production of semiconductor memory and consumer electronic devices in countries such as China, Japan, Taiwan, and South Korea will propel the market expansion across the region.
 

Operational and production costs are relatively lower in APAC countries as compared to their western counterparts. According to data published by the Semiconductor Industry Association, and the Boston Consulting Group (BCG), the U.S. is 30% more expensive than China when it comes to operating a semiconductor production facility.
 

New product developments to favor semiconductor manufacturing equipment industry expansion

Some of the leading players in the market include ASML, Applied Materials, Inc., Advantest, Teradyne, Lam Research Corporation, Tokyo Electron Limited, Veeco Instruments Inc., EV Group (EVG), Onto Innovation, KLA Corporation, and SCREEN Semiconductor Solutions Co., Ltd.
 

These companies are focusing on the development of technologically advanced manufacturing equipment. For instance, in June 2022, Hitachi High-Tech Corporation launched a new Inspection System DI2800 field wafer defect inspector, a critical component in the semiconductor manufacturing process.
 

The semiconductor manufacturing equipment market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2032 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
    • UK
    • Germany
    • France
    • Italy
    • Netherlands
    • Russia
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • Taiwan
  • LAMEA
    • Argentina
    • Mexico
    • Israel

 

Authors: Preeti Wadhwani, Aayush Jain

Frequently Asked Questions (FAQ) :

The market size for semiconductor manufacturing equipment was more than USD 100 billion in 2022 and is anticipated to exhibit over 5% CAGR from 2023-2032.
Asia Pacific market value is poised to exceed USD 195 billion by 2032, driven by surging production of semiconductor memory and consumer electronic devices.
The 3D packaging technology segment is estimated to reach over USD 95 billion by 2032 due to the growing use of 3D ICs by chipset and IC manufacturers.
ASML, Advantest, Teradyne, Lam Research Corporation, EV Group (EVG), Onto Innovation, KLA Corporation are some of the leading players in the market.

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 26
  • Tables & Figures: 282
  • Countries covered: 15
  • Pages: 250
  • Upcoming Report: Details can be customized to meet your information and data needs. Feel free to share your detailed research requirements via this form.

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