July 23, 2024

The Transition To Chip Manufacturing Innovation Is Anticipated To Openup The New Avenue For Semiconductor Equipment Market.

The Semiconductor Equipment Market is estimated to be valued at US$ 83.3 Bn in 2023 and is expected to exhibit a CAGR of 9.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Semiconductor equipment are machines used during the fabrication of semiconductor devices such as integrated circuits. Key semiconductor equipment includes crystal growers, lithography systems, die attach equipment, and bonders, among others. Lithography systems are used to print circuit patterns on silicon wafers. Die attach equipment help attach the integrated circuit to a package. Bonder machines electrically connect the circuit to lead frames. Semiconductor equipment forms an integral part of the manufacturing process for making integrated circuits that power all modern electronics including computers, smartphones, cars, and home appliances.

Market Dynamics:
Technology advancement is one of the key drivers propelling the growth of the global semiconductor equipment market. Continuous innovation and miniaturization of semiconductor devices have increased the complexity of chip manufacturing processes. This has necessitated upgrades to existing semiconductor equipment as well as development of new types of advanced equipment. For instance, EUV (extreme ultraviolet) lithography systems offer higher resolution for shrinking circuit sizes below 10nm node compared to existing argon fluoride laser lithography systems.
Another driver is rising demand for semiconductor chips across industries. Semiconductors are increasingly found in a wide range of products and applications beyond computers such as electric and autonomous vehicles, renewable energy equipment, internet of things devices, and more. This is fueling the need for more semiconductor manufacturing capacity worldwide and subsequent investments in semiconductor equipment by foundries and IDMs.

Segment Analysis
The semiconductor equipment market is segmented by product type, end-user, and region. Based on product type, the lithography segment dominates the market with more than 30% market share due to the growing demand for the advanced chips with smaller node sizes. Lithography equipment is used to transfer circuit patterns onto semiconductor wafers and plays a vital role in the manufacturing of integrated circuits.

PEST Analysis
The semiconductor industry receives government support policies for development and research activities in many countries. For instance, the US Chips Act provides around $52 billion funding to boost domestic semiconductor manufacturing and research.
Economic: The overall economic growth across industries is driving the demand for advanced semiconductors. The booming electronics sector and increasing digitalization are fueling the semiconductor equipment market growth.
Social: The rising demand for smart electronics such as smartphones, tablets, and wearables from young tech-savvy consumers is propelling the market. Also, the growing adoption of AI and IoT is creating new opportunities.
Technological: Developments in process technologies allow manufacturing smaller chips. Furthermore, new lithography technologies like EUV lithography enable the production of more advanced nodes below 10 nm.

Key Takeaways
The Global Semiconductor Equipment Market Size is expected to witness high growth, exhibiting a CAGR of 9.3% over the forecast period, due to increasing demand for advanced chips across industries. The market size is projected to reach US$ 83.3 billion by 2023.

The Asia Pacific region dominates the global market with over 50% share due to presence of several foundries and IDMs in countries like China, Taiwan, South Korea and Japan. China is the fastest growing market in the region owing to government support for semiconductor self-sufficiency.

Key players operating in the semiconductor equipment market are Applied Materials, Inc., ASML Holding, Canon, Tokyo Electron, Lam Research, KLA-Tencor, Dainippon Screen, Advantest, Teradyne, and Hitachi High-Technologies. Applied Materials and ASML Holding are the market leaders due to their wide product portfolio and large client base.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it