Semiconductor Manufacturing Equipment Market - Forecast(2024 - 2030)

Semiconductor Manufacturing Equipment Market Overview

Semiconductor Manufacturing Equipment Market size is valued at $429.1 billion in 2021 and is expected to reach a value of $704.2 billion by 2027 at a CAGR of 5.8% during the forecast period 2022-2027. Increased investments in memory devices, integrated circuits, micro-electromechanical systems are driving technological improvements in the semiconductor sector, which in turn creates positive impact on the growth of this market. The emergence of artificial intelligence, internet of things and machine learning technologies is expected to create a market for Insulators as this technology aid memory chip to process large data in less time, which also plays a major role in the growth. Moreover, greater demand for faster and advanced memory chip and microprocessor in industrial application, advancement in wafer fabrication equipment, along with silicon wafer fabrication and deposition equipment are expected to boost the growth of Semiconductor Manufacturing Equipment Market. Semiconductors technology continues to shrink in size and shapes, a single chip may hold more and more devices, indicating more capabilities per chip. As a result, a number of previously-used chips are now being combined into a single chip, resulting in highly-integrated solutions. Owing to such advancement in technology the Gallium arsenide market is expected to spur its Semiconductor Manufacturing Equipment Market share, which will fuel the growth of semiconductor manufacturing equipment industry during the forecast period 2022-2027.

Report Coverage

The report: “Semiconductor Manufacturing Equipment Market Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the Semiconductor Manufacturing Equipment Market report.

By Components: Analog IC, Sensors, MPU, MCU, Memory Devices, Lighting Devices, Discrete Power Devices, Others
By Equipment Type: Front-End Equipment (Lithography Equipment (DUV Lithography and EUV Lithography), Water Surface Conditioning Equipment (Etching and Chemical Mechanical Planarization), Wafer Cleaning Equipment (Single-Wafer Spray System, Single-Wafer Cryogenic System, Batch Immersion Cleaning System, Batch Spray Cleaning System and Scrubber), Deposition Equipment (PVD and CVD) and Others), Back-End Equipment (Assembly and Packaging (Assembly and Packaging Equipment), Dicing Equipment, Bonding Equipment, Metrology Equipment, Test Equipment), fab facility equipment (Automation Equipment, Chemical Control Equipment, Gas Control Equipment and Others)
By Dimension: 2D, 2.5D and 3D
By Application: Networking & Communication, medical & healthcare, Automotive, Consumer electronics, Industrial and Others
By Process: Water Production, Wafer Fabrication, Doping, Masking, Etching, Thermal Oxidation and Others
By Geography: North America (U.S, Canada, Mexico), Europe (Germany, UK, France, Italy, Spain, Belgium, Russia and Others), APAC(China, Japan India, South Korea, Australia and Others), South America(Brazil, Argentina, and others), and RoW (Middle east and Africa)

Key Takeaways

• In component segment Memory device is expected to drive the overall market growth owing to on-going technological advancement such as virtual reality and cloud computing.
• Networking and communication is expected hold the large share owing to rise in demand for smart phone and smart devices around the world.
• APAC region is estimated to account for the largest share in the global market during the forecast period due to rise of electronic equipment production and presence of large local component manufacturers.

Semiconductor Manufacturing Equipment Market Share value (%) in 2021, By Application

Semiconductor Manufacturing Equipment Market Segment Analysis- By Component

Based on the component segment, the market is segmented into Analog IC, Sensors, MPU, MCU, Memory Devices, Lighting Devices, Discrete Power Devices, Others. Memory device is expected to drive the overall market growth at a CAGR of 6.1% owing to on-going technological advancement such as virtual reality and cloud computing. High average selling price of NAND flash chips and DRAM would contribute significantly to revenue generation, which drives the market and provides incentive to the market players to take various strategic steps to expand their market share. In June 2021, Micron Technology made an announcement regarding the launch of its new memory and storage products, 176-layer NAND flash and 1-alpha DRAM chips for the data economy, specifically designed to deal with the bottleneck in feeding data between memory, storage, and processing solutions in modern computers. Such developments accelerates the growth of this market. Over the constant evolution, logic devices utilized in special purpose application particular signal processors and application specific integrated circuits are expected to grow at the fastest rate.

Semiconductor Manufacturing Equipment Market Segment Analysis - By Application 

Based on application segment, the market is segmented into Networking & Communication, medical & healthcare, Automotive, Consumer electronics, Industrial, Others. Networking and communication segment held around 16.5% of the market share in 2021 and is estimated to witness significant growth during 2022-2027, due to the increasing demand for smart phone and smart devices around the world. According to a recent report, there will be approximately 820 million smart-phone users in India 2022. Such high demand for smart-phones will create positive impact on the growth of this market. Moreover, due to Impact of Covid 19, the necessity of working from home has risen, which has impacted the use of devices such as laptops, routers and other positively. This in turn, is expected to boost the networking and communication segment growth, which will also drive the Semiconductor Manufacturing Equipment Market size. According to IPC Economic outlook December 2021, the electronics industry, which includes categories such as components, loaded boards, computers, communications equipment, and consumer electronics is being increased by 2.6% in November 2021. Therefore, the above-mentioned factors will increase the demand for networking & communication during the forecast period.

Semiconductor Manufacturing Equipment Market Segment Analysis – By Geography 

APAC region is estimated to account for the largest Semiconductor Manufacturing Equipment Market share at 44.8% during the forecast period owing to rise of electronic equipment production. Due to the extensive on-going migration of various electrical equipment and the existence of local component manufacturers, China is recognized as the region's leading country. The market in North America is expected to grow at a rapid pace, owing to rising R&D spending. The shutdown, particularly in China will have significant impact on semiconductor production, which will drive up lead times. A report states that, in 2019, China accounted for over 50% of worldwide semiconductor consumption. Disruption in China will likely have a significant impact on companies across the globe and up and down the electronics and semiconductor value chain. COVID-19 is having a large impact on both consumers as well as Semiconductor Manufacturing Equipment companies. As of mid-2020, travel restrictions particularly in China as well as across the APAC and European markets are significantly limiting the semiconductor industry. In addition, critical electronics manufacturing hubs were temporarily shut down to limit COVID-19’s spread in China as well as across the globe. This confluence of events is hitting the global supply chain, impacting primarily suppliers due to shortages of materials, components, and finished goods for which companies are significantly dependent on China. The consumers are also being impacted through reduced spending in China on semiconductor-dependent products. This spending has significantly reduced in China as well as across the global markets. Allied industries such as automotive and consumer electronics are the primary sources of demand reduction.

Semiconductor Manufacturing Equipment Market Drivers 

Increase in Utilization of Consumer Electronics across the world drives the growth

Rise in technological advancement in consumer electronic devices have created a massive demand for integrated circuit chip, as these IC chips are used in most of the devices such as Smartphones, TV’s, refrigerator for advanced/ smart functioning, which positive drives the growth of this market. Moreover, investment towards semiconductor industries by the leading consumer electronics companies such as Apple, Samsung and other is expected to boost the Semiconductor Manufacturing Equipment Market share by country. In November 2021, Samsung Electronics Announced a New Advanced Semiconductor Fab Site in Texas, U.S which includes a $17 billion investment in a new facility will boost production of advanced semiconductors. Such investments will fuel the growth rate. The adoption of cloud computing has pushed growth for server CPUs and storage, which is ultimately expected to drive the Semiconductor Manufacturing Equipment Market growth. Wireless-internet are being adopted on a global scale and it requires semiconductor equipment, as a result, the Semiconductor Manufacturing Equipment Market is fueled by demand and income created by their production.

Use of AI and Generative Design in Semiconductor Manufacturing Equipment is a major driver for this market

Artificial intelligence and machine learning algorithms quickly produce multiple iterations of a design based on predefined specifications, including structural composition, materials, and available manufacturing methods that allows the creation of standardized designs that can maximize the production cycle as well as functionality. Along with it, generative design also has been a solution that is being implemented to improve efficiency of the semiconductor manufacturing industry. Implementation of such technologies in this industry drives the growth of this market. Covid-19 has created an additional impetus for speed that could accelerate the adoption of generative design approaches. The adoption of 3D printing, in particular high-speed sintering, to shore up vulnerabilities highlighted by the pandemic and improve production efficiency and cost in conjunction with generative and standardized design will be a major part of future manufacturing cycles in the semiconductor sector. In February 2022, Mitsubishi Electric Corporation announced about the launch of two new models of the AZ600, a wire-laser metal 3D printer, which melts welding wire with a laser beam to create high-quality 3D structures. Such developments accelerate the growth of this market. The rapid prototyping and production cycle through the usage of High-Speed Sintering will reduce time to market and ensure on time delivery in a post Covid-19 world, where demand will rise significantly for the semiconductor sector. Adoption of new technologies such as light-based manufacturing and nanotechnology in conjunction with the aforementioned technologies will also drive improvements in the semiconductor production in the mid to long term as well. Hence, the above-mentioned factors provide the incentive to the market players to introduce new and advanced products in the market, which will drive the growth during the forecast period 2022-2027.

Semiconductor Manufacturing Equipment Market- Challenges 

Complexity of Supply Chain Driven by Changing Functionality of Chipsets is creating challenges for this market

The Semiconductor Manufacturing Equipment Market is being held back by the constantly changing functionality of semiconductor chips and the unique demands of end-users from various industries. The factors such as Power efficiency, unrealistic schedules, and cost-down considerations are hindering the Semiconductor Manufacturing Equipment Market analysis. The supply chain stability has also taken a nosedive in recent years. The rapidly evolving environment in the semiconductor sector is plagued by different problems such as enhancing revenue growth and profitability, delivering new products that match customer requirements, and ability to manage global operations effectively. This has created significant bottlenecks in component manufacturing and procurement that has raised supply chain issues even prior to the Covid-19 pandemic. The front end (FE) cycle Times are typically much higher than back end (BE) cycle times. The typical production period of the Front-End cycle is typically 6-8 weeks, whereas back-end cycle times are much lower at 1-2 weeks only. This results in complex differing inventory requirements at different production processes, which needs additional planning and tracking. The lack of planning, frequent changes in functionality of chipsets, supply chain disruption as well as slow implementation of technology are the major challenges of this industry.

Semiconductor Manufacturing Equipment Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Semiconductors Market. In 2021, the market of Semiconductor Manufacturing Equipment industry outlook has been fragmented by several companies The Semiconductor Manufacturing Equipment top 10 companies include:

1. ASML Holdings N.V.
2. Advantest Corporation
3. Applied Materials Inc.
4. Hitachi High-Technologies Corporation.
5. KLA-Tencor Corporation.
6. LAM Research Corporation
7. Plasma-Therm
8. Teradyne Inc.
9. Tokyo Electron Limited
10. Screen Holdings Co., Ltd.

Acquisitions/Technology Launches

• In July 2020, Qualcomm introduced QCS410 AND QCS610 system on chips, this is designed for premium camera technology, including powerful artificial intelligence and  machine learning features.
• In November 2020, Samsung announced it production of its 12GB and 24GB LPDDR4X uMCP chip, offering high quality memory and data transfer rate upto 4266 Mbps in smartphones.
• In April 2021, CMC Materials acquired International Test Solutions which will enable them to help solve their customers’ most demanding challenges and maximize their yield & throughput in the Semiconductor Manufacturing Equipment process.

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