The Global Semiconductor Manufacturing Equipment Market Size Was Valued At USD 88.2 Billion In 2021. The Market Is Projected To Grow From USD 101.6 Billion In 2022 To USD 196.7 Billion By 2029, Exhibiting A CAGR Of 9.9% During The Forecast Period.

Semiconductor Manufacturing Equipment Market Overview:

The global COVID-19 pandemic has been unprecedented and shocking. Demand for equipment used to make semiconductors is lower than expected in all regions compared to levels before the pandemic. Based on our research, the global market was 6.4% smaller in 2020 than it was in 2019.

Semiconductor wafers, IC chips, memory chips, circuits, and many other things are made with semiconductor manufacturing equipment. In the early stages of making silicon wafers, manufacturing equipment is used. Wafer processing tools include photolithography tools, etching machines, chemical vapor deposition machines, measuring machines, and process/quality control equipment.

In industries like electronics, cars, and data processing, the demand for semiconductors is expected to go up, which will increase the demand for these products and help the market grow. Also, the rise in sales of electric cars and the growing need for semiconductors in automotive applications creates opportunities for the companies that sell these products. Compared to 2020, sales of electric cars around the world went up by 109% in 2021.

The growth of the semiconductor manufacturing equipment market is likely to be driven by the rising demand for discrete devices, power semiconductors, and high power modules from different end users. Also, there is a growing trend of putting semiconductors on a single chip because more and more people want smaller products. In this case, this equipment is mostly used to put together parts of a semiconductor into a single chip. Also, the use of semiconductors in data centre applications, which is made possible by artificial intelligence (AI), is helping the market grow. IC chips are used to put together these data centers, which helps lower operational costs and improve efficiency.

Market Dynamics:

Latest Trends:

Key market players are focusing on bringing out new technologies like nano-imprinting, cutting-edge lithography, and the fastest manufacturing speed. For example, in September 2021, Riber, a company based in the United States, released a new MBE 6000 machine for Asia that was used to make semiconductors. This machine was adopted for manufacturing of electronics and optoelectronic devices. These types of electronic components are largely used in telecommunication channels such as 4G, 5G, and fibre optic networks. The machines have things like a high capacity for making things and a high level of accuracy. These types of machines provide high profit margins for manufacturers and suppliers. In the past few years, these machines have used new technologies like Artificial Intelligence (AI) and Industry 4.0 to improve production capacity, high accuracy, reduce waste, and increase profit margins for major players. This is expected to help the market grow.

Driving Factors:

Semiconductor parts, IC chips, and logic circuits are being used more and more in autonomous and connected consumer electronics, home appliances, and electric vehicles. Also, the automotive industry is becoming more automated, which is driving up the demand for lithographic systems and semiconductor chips. This is likely to drive up the demand for machines that make semiconductor components.

Also, the use of SIC wafers (semi-insulating carbide wafers) in the telecommunications industry to build 5G network connections in countries like India, the U.S., and others has been on the rise. This is likely to make more people want to buy manufacturing machines. The market is also growing because more people want smart cities and smart homes, which means they need more IC chips and other parts.

Restraining Factors:

Equipment for making semiconductors is very expensive and requires a lot of capital. It is expected that the fluctuating prices of machines will slow the growth of the market. This is because the big players are having trouble getting their hands on the raw materials. Also, the COVID-19 pandemic and the disruptions in the supply chain are affecting trade between China and the U.S. and the import and export of parts, which directly affects the cost of making these machines. For example, the cost of these systems ranges from $15 billion to $20 billion. These things are expected to slow the growth of the market.

For the process of making semiconductors to work, you need a clean system and a clean room. The dust particles can slow down the whole manufacturing plant, which costs the company a lot of money. Due to a mistake made while making semiconductors, a delay in the supply chain costs the vendors or manufacturers money. Due to the fact that there are many design patterns on a chip in a small space, transferring precise data on the chip needs to be done with high accuracy. Also, the wavelength of lithography equipment gets shorter as the demand for SIC wafers of different sizes go up. All of these things are likely to slow the growth of the market.

Segmentation Analysis:

Equipment Type:

During the predicted time period, the segment of front-end equipment will have the highest CAGR, at 10%. (2022-2029). Due to the presence of key players who offer these kinds of systems, the front-end equipment segment is a big part of the market. Also, as the number of end users who need IC chips and logic circuits grows, more of these systems are used, which helps the market grow in this segment.

With the introduction of new packaging solutions for the automotive and consumer electronics industries, the back-end equipment market is expected to grow at a fast rate. All of these things help the market grow.

By Dimension:

The 3D segment is expected to grow quickly and already leads the market. This is because of things like the growth of High Bandwidth Memory (HBM) products, better performance, and more efficient use of resources. Most digital cameras, cell phones, and personal digital assistants have these kinds of parts.

There will be a lot of growth in the 2D and 2.5D segments. This is because of things like higher bandwidth, more functions on the chip, a wider bandwidth, and less time and money spent on wires. These things help the market grow.

By Application:

The semiconductor fabrication plant/foundry segment is expected to lead the market because end users like medical devices, electronics, and cars are using more and more semiconductors.

As more people learn about testing semiconductors and their parts, the semiconductor electronics manufacturing sector is expected to grow at a very fast rate. Also, the growth of this segment is likely to be pushed by strict government policies about testing devices.

Regional Insights:

Asia-Pacific is in the best position to lead the market because countries like Taiwan, Japan, and China have strong supply chains for semiconductor devices like circuits, discrete devices, and logic circuits. It is expected that the growth of the automotive and consumer electronics industries will increase the demand for SIC wafers and IC chips in these industries. Also, there are a lot of important suppliers in India and South Korea, which should help the market grow in the Asia-Pacific region.

China is one of the places where equipment for semiconductors is made. The largest number of major players, like Sizone Technology, JW Insights, and others, are based in China. The demand for these machines is also expected to be boosted by the well-established infrastructure sector and the growing automotive industry. Also, these machines are used to make IC chips, logic circuits, SIC wafers, and other types of chips and circuits. This is likely to make more people want to buy equipment for making semiconductors, which will help the market grow.

During the forecast period, North America is expected to grow by a factor of ten. This is because there are many manufacturers there, such as Applied Materials Inc, Kla Corporation, LAM Research Laboratories, and others. So, big companies in the area are trying to set up plants in places where there are a lot of government subsidies.

In the coming years, it is expected that Europe will grow a lot. This is because of good trade relationships with other countries and efforts by the government to invest in new plants that make semiconductors. For example, Euractiv Germany Reports said that the German government planned to put $3.39 billion into the plant that makes semiconductors.

Scope Analysis

Recent Development:

• May 2021 – Applied Materials Inc launched optical semiconductor inspection equipment that uses advanced technologies such as artificial intelligence (AI) and big data. This machine is used in semiconductor manufacturing plants to automatically inspect chips and detect killer defects in IC chips. These chips are used in electronic devices.
• December 2021 – Hitachi High-Tech Corporation, a subsidiary of Hitachi, introduces the new GS1000 Electron Beam Area Inspection System. The machine uses a common platform with high-speed inspection systems with scanning electron microscopes (SEMs) to provide accurate and fast inspections. The machine also improves the accuracy of semiconductor wafer products.
• November 2021 - Advantest Corporation acquired R&D Altanova Inc, which deals with discrete devices, silicon wafers and substrates for interface boards in the electronics sector. Acquisitions were made to improve the portfolio of these products across multiple segments.
• July 2021 - Tokyo Seimitsu Co Ltd has launched the new "SURFCOM NEX" Contour Meter. This machine has features such as high efficiency, high precision, high precision and high reliability. Performs 1.6 times that of conventional meters.
• December 2020 - KLA Corporation introduced a series of wafer geometry machines such as the SP7Xp wafer and PWG5TM. This machine is designed to minimize problems in semiconductor chip and discrete manufacturing. These machines are used for manufacturing state-of-the-art logic circuits. These chips are integrated into the automotive and electronics industries.

Market Segmentation

By Equipment Type:

• Front-end Equipment
• Silicon Wafer Manufacturing
• Wafer Processing Equipment
• Back-end Equipment
• Testing Equipment
• Assembling & Packaging Equipment

By Dimension:

• 2D
• 5D
• 3D
• Others

By Application:

• Semiconductor Fabrication Plant/Foundry
• Semiconductor Electronics Manufacturing
• Test Home
• Others

By Companies:

• Applied Materials Inc (U.S.)
• Tokyo Electron Limited (Japan)
• Lam Research Corporation (U.S.)
• ASML (Netherlands)
• Dainippon Screen Group (Japan)
• KLA Corporation (Netherlands)
• Ferrotec Holdings Corporation (Japan)
• Hitachi High-Technologies Corporation (Japan)
• ASM International (U.S.)
• Canon Machinery Inc (Japan)
• Others