Semiconductor Manufacturing Equipment Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Semiconductor Manufacturing Equipment Market Size

Semiconductor Manufacturing Equipment Market Trends & Growth Drivers

Advancements in Technologies Are Major Trends in Market

• The major market players are focusing on increasing manufacturing speeds and deploying the nanoimprint lithography technology. For example, in July 2023, India and Japan signed an MoU for the development of semiconductors, under which the main focus of India is on the sophisticated packaging at multiple levels. India aims to manufacture electronics and optoelectronic components for 4G, 5G, and fiber optic networks.
• With sustained R&D, advanced materials and processes, lithography innovations, 3D integration and packaging, smart manufacturing and industry 4.0, next-generation metrology and inspection, and green, sustainability manufacturing processes have emerged. They are helping enhance innovation, efficiency, and competitiveness in the semiconductor manufacturing equipment market.
• Nowadays, semiconductor production machines are designed for high accuracy as well as high production capacity, so manufacturers and suppliers can widen their profit margins. Moreover, these machines now comply with Industry 4.0 standards and AI capabilities to improve production capacity and accuracy and reduce wastage.

Rising Focus on Automation via Wireless Communications Is Key Driver for Market

• Present times are marked by the skyrocketing adoption of logic circuits, IC chips, and a host of other semiconductor components in electric vehicles, home appliances, consumer electronics, medical devices, and industrial machinery.
• The rising focus on the development of autonomous vehicles raises the demand for semiconductor chips, which, in turn, drives the sale of machines for manufacturing these components, such as lithographic systems.
• There is also a growing adoption of semi-insulating SiC wafers by the telecommunications industry to build 5G networks.
• The growing demand for smart homes and smart cities increases the demand for ICs and other components and, in turn, of the equipment used to produce them.

Lack of Skilled Manpower Poses Significant Challenges in Market Advance

• After the completion of semiconductor facility construction, many challenges still need to be overcome, before production can begin. Among these, the lack of skilled manpower in emerging as well as advanced economies is one of the main challenges. For the production of semiconductor chips, extensive expertise is needed, which only professionals with the knowledge and skills to transform raw materials into finished goods by utilizing specialized equipment, such as CNC machines, can bring.
• The global talent gap is a widespread concern for the semiconductor industry, and many major foundries are now facing a shortage of skilled manpower in varying degrees.

Semiconductor Manufacturing Equipment Market Industry Outlook

Equipment Type Insights

• The front-end category holds the larger market share, of 70%, in 2024, and it is expected to witness the higher CAGR, of 10.7%, from 2024 to 2030. These machines are vital for manufacturing silicon wafers via lithography, deposition, wafer cleaning, etching, and many more processes.
• Within the front-end category, lithography holds the largest share. With EUV lithography equipment, the exposure of critical layers of the wafers is done in one step. As a result, the cost of producing semiconductor devices decreases.
• The back-end bifurcation is driven by the advancement in compact packaging solutions meant for the automotive and consumer electronics industries.

The equipment types covered in the report include:

• Front-End (Larger and Faster-Growing Category)
• Lithography   
• EUV
• DUV
• Deposition    
• ALD
• CVD
• Wafer cleaning        
• Single-wafer cleaning system
• Scrubber system
• Single-wafer cryokinetic cleaning system
• Batch spray cleaning system
• Others
• Etching         
• Plasma etching system
• Gas–chemical etching system
• Back-End
• Assembly and packaging    
• Dicing
• Metrology     
• Bonding        
• Wafer/IC testing
• Others

Product Type Insights

• The memory category holds the largest market share, of 25%, in 2024. This dominance is credited to the worldwide use of memory chips in different electronic devices, such as IoT devices, smartphones, servers, and computers. Memory chips include flash memory, DRAM, and SRAM, which are used for data storage and retrieval.
• Logic components will witness a considerable CAGR, of 10.9%, during the forecast period. In the electronic circuits of devices that require data processing capabilities, they are the building blocks.

The following product types are included in the report:

• Memory (Largest and Fastest-Growing Category)
• Logic Components
• Microprocessors
• Analog Components
• Optoelectronic Components
• Discrete Components
• Others

Dimension Insights

• The 3D category holds the largest market share, of around 50%, in 2024, and it is expected to witness the highest CAGR, of 10.8%, from 2024 to 2030. This is attributed to the higher performance and higher efficiency of 3D semiconductor components and the developments in high-bandwidth memory (HBM) products. These devices are mostly used in cell phones, digital cameras, and personal digital assistants.

The following dimensions are included in the report:

• 2D
• 2.5D
• 3D (Largest and Fastest-Growing Category)

Application Insights

• The semiconductor fabrication plant/foundry category is dominating the market, with a share of around 55%, in 2024. It will also be the fastest-growing category, at a CAGR of 10.8%, from 2024 to 2030. This will be due to the rising demand for semiconductors from the automotive, electronics, and medical devices industries.

The following applications are included in the report:

• Semiconductor Electronics Manufacturing
• Semiconductor Fabrication Plant/Foundry (Largest and Fastest-Growing Category)
• Testing & Inspection

Supply Chain Process Insights

• The integrated device manufacturer (IDM) category holds the largest market share, of 45%, in 2024. IDM firms are responsible for managing the majority of the semiconductor supply chain, from the design and to the final assembly. They also offer a high level of control over device quality and supply chain efficiency.

The following supply chain processes are included in the report:

• OSAT
• IDM (Largest Category)
• Foundry (Fastest-Growing Category)

APAC Is Largest Region

• In 2024, Asia-Pacific holds the largest revenue share, of around 50%. The continuous growth of the semiconductor industry, with an expansion in production volumes and the financial support of regional governments, drives the market.
• Many North American and European semiconductor firms have manufacturing plants in Japan, Taiwan, China, and South Korea, with many of them now eyeing India as well.
• North America is expected to develop at a significant CAGR from 2024 to 2030, as regional governments are offering financial help and other forms of support to foundries. Manufacturers such as KLA Corporation, Applied Materials Inc., and LAM Research Laboratories aim to establish factories where substantial subsidies are available.
• Nowadays, Europe is focusing on the semiconductor market, seeing the rising demand for these components here and in other regions. The government at the EU and country levels is also investing in semiconductor foundries, to reduce the dependence on China and boost local production.
• The market in the MEA and LATAM is projected to grow because of the entry of overseas market players in these regions. Additionally, the rising spending on home appliances and other consumer electronics in the U.A.E., Brazil, Argentina, Saudi Arabia, and other countries, as a result of the increasing disposable income of consumers, drives the market.

The regions and countries analyzed in this report include:

• North America
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • Germany (Largest and Fastest-Growing Country Market)
  • U.K.
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Largest and Fastest-Growing Regional Market)
  • China (Largest and Fastest-Growing Country Market)
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest Country Market)
  • South Africa
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

Market Concentration – Fragmented

• The semiconductor manufacturing equipment market is fragmented. Various companies such as Tokyo Electron Limite, Lam Research Corporation, ASML, Applied Materials Inc., KLA Corporations, Ferrotec Holdings Corporation, and Hitachi Ltd., are engaging in service modifications, strategic alliances, geological expansion, and partnerships to augment their presence.

Semiconductor Manufacturing Equipment Industry News

• In April 2024, Lam Research announced plans to join the U.S.–India Partnership to train approximately 60,000 Indian engineers on the semiconductor technology.
• In February 2024, Tata Semiconductor Assembly and Test Pvt Ltd. announced plans to invest around INR 27,000 in a greenfield facility in Assam. The factory will carry out the assembly and testing of semiconductor chips for applications across the automotive, mobile devices, and AI sectors.
• In June 2023, Micron Technology Inc. announced the installation of a new semiconductor assembly and a test facility in India.
• In March 2023, Tokyo Electron announced plans to build a new production plant at its Tohoku office site.