Semiconductor Manufacturing Equipment Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2031

The semiconductor manufacturing equipment are the machinery and tools, used in the production of semiconductor devices like integrated circuits and microchips. The equipment plays an important role in various stages of semiconductor production including water processing, lithography, deposition, etching and inspection. These manufacturing equipment consist of a wide range of highly specialized machines performed specific tasks for precision and accuracy. These semiconductor manufacturers to produce advanced computers, automotive sector and IoT devices.

MARKET OVERVIEW

The global market valuation of semiconductor manufacturing equipment market was valued at approximately USD 103.1 Billion in 2023 and is projected to reach USD 237 Billion in 2031 exhibiting a CAGR of 9.9% during the forecast period of 2024-2031. Semiconductor manufacturing equipment is essential for powering modern devices and enable innovations in technology. The market is aligned with vast industries, which makes it a sustainable and growing market.

GROWTH DRIVERS

The continuous advancements in the semiconductor technology like development smaller and more powerful chips, this innovation requires the state-of-the-art equipment's, drives the demand for advanced semiconductor manufacturing equipment. The increase in demand for consumer electronics like smart phones, tablets, laptops and other smart appliances is one of the significant drivers of the semiconductors which creates opportunities for the market. 

The consumer electronics market is projected to reach USD 269.2 billion by 2024 and expected to reach USD 397 billion by 2029 with 2.6 billion users, according to Statista.  The expansion of 5G network and devices drives the need for semiconductor manufacturing equipment, for high performance chips to support data speed and connectivity. According to 5g Americas, there are currently 296 commercial 5G networks worldwide and it is expected to grow to 438 by 2025.

According to 5G observatory the 5Gcoverage has grown by 35% and in high income countries 89% of people are covered by 5G networks. The proliferation of IoT divide cross various industries which include automotive, healthcare and manufacturing is driving the demand for specialized semiconductor manufacturing equipment. According to IoT Analytics, by 2027 there will be 29 billion IoT connections.

The rise of Ai and ML technologies across industries drives the demand for the chips optimized with AI processing. The automotive is a significant user of the semiconductor for their ADAS and autonomous driving technologies coupled with the wide adoption of electric vehicles. Bloomberg states that they expect the global passenger EV sales to increase by 21% in 2024.

MARKET SEGMENTATION:

·         By Type– Lithography (DUV and EUV), Water Surface Conditioning (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, CVD and others), back-end equipment (assembly and packaging, dicing, metrology, bonding, water testing/IC testing)

·         By Product Type – Memory, Foundry, Logic, MPU, Discrete, Analog, MEMs and others

·         By Dimension- 2D,2.5D and 3D

·         By Application- Semiconductor fabrication plant/foundry, semi electronics manufacturing and test home

·         By Supply Chain participant- IDM firms, OSAT companies and foundries

·         By Region- North America, Europe, Asia Pacific, The Middle East and Africa, South America

Semiconductor Manufacturing Equipment Market Segment By Product Type Segment Review:

The deep ultraviolet (DUV) lithography it will utilizes ultraviolet light with a wavelength of 193 nanometer to pattern features on the semiconductor wafers. It is used for manufacturing logic and memory chips with advanced process nodes. Extreme ultraviolet (EUV) lithography utilizes light with a wavelength of 13.5 nanometer and enables the fabrication of smaller and more complex semiconductor features. The etching equipment used to selectively. move material from semiconductor wafers to modify surface properties. The chemical mechanical planarization is used for polishing semiconductor water surfaces and. for ensuring uniformity and smoothness. The single-wafer spray system uses a spray mechanism to clean individual semiconductor wafers with precision and efficiency.

The cryogenic cleaning systems use freezing temperatures to remove particles or residues from the semiconductor wafer. The batch emersion cleaning systems utilizes multiple wafers simultaneously and immerse them in cleaning solution to remove the impurities. The batch spray cleaning system is similar like single wafer spray system, it cleans multiple wafers simultaneously using a spray-based mechanism. The scrubber utilizes mechanical scrubbing action which is combined with chemical solutions to clean the semiconductor wafers. The PVD equipment is used to deposit thin films of material on the semiconductor vapor wafers with the help of evaporation.

The CVD allows the deposition of thin films by chemical reactions on the semiconductor surface, offering precise control over film properties and thickness. The assembly and packaging equipment handles the packaging of semiconductor chips into final products. The dicing equipment is used to separate individual semiconductor chips from a wafer with high precision cutting. The metrology equipment for forms critical measurements and inspections on the semiconductor wafers and chips. The bonding equipment is used for bonding semiconductor chips or components on the substrates for further integration. The wafer testing/IC testing equipment is used to perform function and electrical test on the semiconductor devices to verify the performance and functionality.

Semiconductor Manufacturing Equipment Market Segment By Product Type Segment Review:

The memory semiconductor manufacturing equipment is specialized for the fabrication of memory chips like DRAM and NAND flash. The foundry semiconductor manufacturing equipment is utilized by semiconductor foundries which provide manufacturing services for fablass semiconductor companies. The logic semiconductor manufacturing equipment is utilized for fabricating logic chips that are used in CPUs, GPUs and other computing.  The MPU manufacturing equipment is specifically designed for the fabrication of microprocessors which are used in computing devices, servers or embedded systems.

The discrete semiconductor manufacturing equipment utilized for producing discrete semiconductor devices like diodes, transistors and power management components. The analog semiconductor manufacturing equipment is used for fabrication of analog integrated circuits that are used in various applications like audio amplifier, sensors and signal processing. The MEMs manufacturing equipment is used for MEMs devices that are used in sensors microsystems and actuators.

Semiconductor Manufacturing Equipment Market Segment By Dimension Type Segment Review:

The 2D semiconductor equipment is designed for the traditional planar semiconductor fabrication process, where the circuits are created on the flat surface. The 2.5D semiconductor manufacturing involves. The stacking of multiple 2D chips together on a single package, interconnected using advanced packaging technologies like silicon interposers. It provides high performance in reduced form factors and improved power efficiency in electronic devices.  The 3D semiconductor manufacturing involves the stacking of multiple layers of active components vertically, which enables higher device density improved performance and reduced interconnect length. It represents the cutting edge of semiconductor technology, providing performance, power efficiency and miniaturization.

Semiconductor Manufacturing Equipment Market Segment by Application Segment Review:

The semiconductor fabrication plants, also known as fabs or foundries, are the facilities that are equipped with specialized equipment for manufacturing integrated circuits and other semiconductor devices. These facilities involves complex processes like photolithography, etching, deposition and wafer testing. The semiconductor electronics manufacturing refers to the assembling, testing, and packaging of semiconductor devices into the final products like microprocessors, memory chip sensors or integrated circuits.

In this segment, the semiconductor components are mounted, connected, tested and packaged into the finished products. The test homes are the special facilities that are equipped with semiconductor testing equipments for the evaluation of functionality performance and reliability of semiconductor devices. These facilities conducts various tests including wafer probing, final testing, and burn-in testing, to check that the semiconductor product meets the quality and performance standards.

Semiconductor Manufacturing Equipment Market Segment by Distribution Participant Segment Review:

The IDM firms are the companies that design, manufacture and market the semiconductor products under their own brand names. These companies have in-house semiconductor fabrication facilities where they can produce their own integrated circuits. They invest in diverse range of semiconductor manufacturing to support their product portfolio. OSAT company provides the outsourcing of semiconductor assembling packaging and testing services to the IDM firms and fabless semiconductor companies.

They are specialized in the assembling and testing of semiconductor devices which includes integrated circuits, MEMs devices, sensors and optoelectronic components. The foundries semiconductor manufacturing companies are specialized in the fabrication of integrated circuits on a contract basis. These companies offer semiconductor fabrication services to the fabless semiconductor companies and IDM firm, who do not have their own facilities for fabrication.

Semiconductor Manufacturing Equipment Market Regional Analysis:

North America is a valuable market driven by the factors like the region is the hub for technological innovation and semiconductor research, driven by the presence of semiconductor leading semiconductor companies. Europe is another valuable market due to the presence of robust automotive manufacturing hub and industrial base which drives the demand for semiconductor chips used in automotive electronics and industrial automation. Asia Pacific is a rapidly growing market due to the dominance in semiconductor manufacturing where countries like China, Taiwan, South Korea and Japan dominates the global semiconductor manufacturing and are known as manufacturing hub. The middle East and Africa is a promising market driven factors like infrastructure development including smart cities and digital transformation initiatives. South America is a growing market due to urbanization and industrialization.

Key Challenges:

The primary challenge of the market is lack of skilled workforce, the production necessity, specialized expertise and requires professionals with the knowledge and skills to transform raw materials into finished goods by utilizing specialized equipment. The semiconductor manufacturing equipment have to comply with various strict regulatory standards and industry certifications, which include safety regulations and intellectual property rights, which adds complexity to the design, manufacturing and distribution processes. which may hinder the market growth. The rapid rapid technological advancements leads to frequent changes of existing equipments which may strain resources and increase the cost.

Competitive Landscape:

In the highly competitive Semiconductor Manufacturing Equipment, companies are investing heavily in research and development to innovate and improve the product and services. They are also collaborating, forming strategic partnerships, or acquiring other companies to gain access to new market segments, enhance distribution networks, and increase market share. Recent developments includes – SCREEN PE solutions launched Ledia7F-L for telecommunications and IoT, in March 2023.  Applied materials launched VeritySEM 10 by utilizing EUV, in April 2023. Advantest corporation acquired Shin Puu technology, in January 2023.  Tokyo Electron Limited launched CELLESTA MS2, in December 2022.  Hitachi High-Tech corporation launched GS1000, in December 2021.  

Global Key Players:

·         Tokyo Electron Limited

·         ASMLHolding N.V.

·         Applied Materials, Inc.

·         Teradyne, Inc.

·         ASM International N.V.

·         Hitachi High-Technologies Corporation

·         LAM Research Corporation

·         SCREEN Holdings Co., Ltd

·         KLA Corporation

·         Plasma-Therm, LLC

·         Advantest Corporation

·         Semiconductor Equipment Corporation

Attributes	Details
Base Year	2022
Trend Period	2024 – 2031
Forecast Period	2024 – 2031
Pages	215
By type	Lithography (DUV and EUV), Water Surface Conditioning (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, CVD and others), back-end equipment (assembly and packaging, dicing, metrology, bonding, water testing/IC testing)
By Product Type	Memory, Foundry, Logic, MPU, Discrete, Analog, MEMs and others
By Dimension	2D,2.5D and 3D
By Application	Semiconductor fabrication plant/foundry, semi electronics manufacturing and test home
By Supply Chain participant	IDM firms, OSAT companies and foundries
By region	North America, Europe, Asia Pacific, the Middle East and Africa, and South America
Company Profiles	Tokyo Electron Limited, ASMLHolding N.V., Applied Materials, Inc., Teradyne, Inc., ASM International N.V., Hitachi High-Technologies Corporation, LAM Research Corporation, SCREEN Holdings Co., Ltd, KLA Corporation, Plasma-Therm, LLC, Advantest Corporation, Semiconductor Equipment Corporation
Edition	1st edition
Publication	May 2024