Global Semiconductor Manufacturing Equipment Market By Product (Front-end Equipment and Back-end Equipment), Dimension (2D, 2.5D, and 3D), Application (Testing & Inspection, Integrated Device Manufacturers, Semiconductor Fabrication Plant, and Foundry) and Region - Market Share, Trend Analysis, Competitive Intelligence, Historical Data, and Forecast 2023 - 2030

Market Perspective

The global Semiconductor Manufacturing Equipment Market was valued at USD 95.87 billion in 2022 and is projected to reach USD 134.58 billion by 2030, growing at a CAGR of 4.96% from 2023 to 2030.

Semiconductor manufacturing equipment comprises an array of machinery and tools integral to the production of semiconductor chips. These tools include systems for lithography, etching, deposition, inspection, and testing, which are crucial in fabricating intricate semiconductor devices. The design of this equipment is engineered to support the precise and delicate processes required to produce highly complex integrated circuits. The applications of semiconductor manufacturing equipment span across various industries, enabling the creation of chips used in electronic devices, communication systems, automotive technology, healthcare instruments, and industrial machinery.

Key factors driving industry growth encompass the demand for higher processing speeds, enhanced chip functionalities, and the need for more efficient and smaller devices. Continuous technological advancements and innovation, along with the pursuit of miniaturization and increased performance, are key drivers propelling the development and adoption of semiconductor manufacturing equipment. Meeting the escalating demand for sophisticated semiconductor devices in a wide array of applications also fuels the evolution and advancements in this sector.

Key Insights

• Based on product, the front-end equipment segment acquired the largest market share in 2022
• Based on dimension, the 2D segment captured the largest industry share in 2022
• Based on application, the semiconductor fabrication plant segment acquired the largest market share in 2022
• On the basis of region, North America accounted for the largest market share in 2022

Increasing Demand for Electrification of Vehicles Drives Semiconductor Equipment Market Growth

The rising need for the electrification of vehicles is significantly propelling the development of the semiconductor manufacturing equipment market. As the automotive industry increasingly shifts toward electric vehicles (EVs), there is a growing need for sophisticated semiconductor chips that power the advanced technologies within these vehicles. These chips enable crucial functionalities such as battery management systems, power electronics, and control systems. The surge in EV production necessitates higher volumes of high-performance semiconductor devices, thus driving the demand for cutting-edge semiconductor manufacturing equipment to support this burgeoning market.

High Purchase and Maintenance Costs Limits Market Growth

The semiconductor manufacturing equipment market is facing a significant restraint due to the high purchase and maintenance costs associated with cutting-edge machinery. The initial investment required for acquiring advanced equipment, along with the subsequent costs of maintenance and upgrades, pose considerable financial challenges for companies entering or expanding in this market. As technology evolves rapidly, companies must continuously invest in upgrading their equipment to remain competitive, leading to persistent and substantial financial commitments. These elevated costs create barriers for smaller players and could potentially strain the financial resources of even larger companies, impacting their ability to invest in the latest semiconductor manufacturing technologies.

Recent Developments

June 2023:

• Imec and ASML announced plans to strengthen their collaboration in the following phase of developing an advanced high-numerical aperture (High-NA) extreme ultraviolet (EUV) lithography pilot line at Imec. This collaboration aimed to push the boundaries of lithography technology.
• Lam Research Corp. launched Coronus DX, a pioneering bevel deposition solution specifically designed to tackle critical manufacturing obstacles in next-generation logic, 3D NAND, and advanced packaging applications.

Febraury 2023: Veeco Instruments completed the acquisition of Epiluvac AB to strengthen its capabilities in enabling advanced silicon carbide (SiC) applications for the growing electric vehicle market.

December 2022:

• Applied Materials, Inc. revealed plans to invest billions in innovation infrastructure and expand global manufacturing capacity by 2030. The investment was intended to improve semiconductor performance, power, and cost, and foster customer collaboration.
• Hitachi High-Tech unveiled the LS9600, a cutting-edge system designed to detect particles and defects on non-patterned wafer surfaces. With its high-output, short-wavelength laser, the LS9600 enhances throughput while maintaining the required sensitivity levels for mass production of advanced semiconductor devices.

Segmentation Analysis

Based on product, the market is categorized into front-end equipment and back-end equipment. The front-end equipment segment garnered the highest revenue in 2022. This dominance was primarily backed by rapid technological advancements that are enabling the fabrication of smaller and more powerful chips. The increasing demand for cutting-edge semiconductor devices across multiple industries also contributed to the front-end equipment's dominance in the market.

Based on dimension, the market is categorized into 2D, 2.5D, and 3D. The 3D semiconductor segment is anticipated to depict the fastest growth through the forecast period due to its ability to enhance chip performance. 3D technology enables the stacking of semiconductor layers, improving efficiency and performance. This approach allows for greater miniaturization and improved functionality, catering to the mounting demand for high-performance chips in various applications.

Based on application, the market is categorized into testing & inspection, integrated device manufacturers, semiconductor fabrication plant, and foundry. The semiconductor fabrication plant segment held the highest valuation in 2022 due to its crucial role in chip production. These plants are the core locations where semiconductor chips are manufactured, involving various processes like lithography, etching, and inspection. Their significance in the overall manufacturing process contributes to their substantial valuation in the market.

The foundry segment is expected to register the highest CAGR over the forecast period. This growth can be attributed to a surge in the demand for semiconductor manufacturing equipment, driven by technological advancements and increasing consumer electronics consumption. Additionally, favorable government policies and the presence of established semiconductor companies are impelling segment growth considerably. Furthermore, surging focus of foundries on research and development, coupled with their ability to attract investments, is boosting their position as a key contributor in the global semiconductor manufacturing equipment market. This growth is attributed to ongoing investments in leading-edge and mature process nodes, indicating a positive outlook for the foundry sector in the semiconductor industry.

Asia Pacific Dominated the Market Owing to Notable Technological Advancements

Asia Pacific dominated the market in 2022 with the highest valuation, driven by the presence of established manufacturing hubs and rapid technological advancements. The region's leading position is attributed to key players' presence and the region's solid infrastructure supporting semiconductor manufacturing. Countries like China, Taiwan, and South Korea play pivotal roles in semiconductor production, establishing Asia Pacific as the global leader in semiconductor manufacturing equipment. Notably, China has become the largest country market within the Asia Pacific region, capturing 55% of the market share and accounting for 31 % of the global market revenue.

North America to be the Fastest Growing Region with Increased R&D Activities

North America is estimated to be the fastest-growing region in the global market over the review period primarily due to increased investment in R&D activities and the prevalent demand for advanced semiconductor technologies. The region houses significant technology companies investing heavily in semiconductor innovation. The growing need for semiconductors in various industries, especially in emerging technologies like AI, IoT, and electric vehicles, positions the region as a key driver for regional market growth. For instance, in December 2022, according to Semiconductor Industry Association, the semiconductor industry has eagerly embraced the CHIPS incentives, launching numerous projects worth over USD 200 billion in private investments in the United States, showcasing its strong commitment to the program.

Competitive Landscape

The global semiconductor manufacturing equipment is fragmented with key players such as Applied Materials, Inc., Tokyo Electron Limited, TE Connectivity, Hitachi High-Tech Corporation, Lam Research Corporation, Veeco Instruments Inc., Teradyne Inc., Ferrotec Corporation, ASML, NIDEC CORPORATION, KLA Corporation, and SCREEN Holdings Co., Ltd., among others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product innovation, and collaborations to expand their business globally and enhance their competitive position.

The global Semiconductor Manufacturing Equipment Market is segmented as follows:

By Product

• Front-end Equipment
• Back-end Equipment

By Dimension

• 2D
• 5D
• 3D

By Application

• Testing & Inspection
• Integrated Device Manufacturers
• Semiconductor Fabrication Plant
• Foundry

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America