all report title image
  • Published On : Jul 2022
  • Code : CMI2532
  • Industry : Semiconductors
  • Pages : 188
  • Formats :

Semiconductor equipment are the electronic components that utilize the electronic properties of semiconductor materials, such as silicon, germanium, organic semiconductors and gallium arsenide, which are used to manufacture semiconductor devices or integrated circuits. Semiconductor equipment helps in achieving a desired output from semiconductors. It is a huge sized equipment that comprises multiple step processes that produce a semiconductor constituents. Semiconductor equipment are used in order to ensure assembling of the semiconductor parts, wafer fab, and testing of the entire device.

Recent Developments:

  1. In February 2022, Lam Research Corp., a U.S.-based supplier of wafer fabrication equipment and services for the semiconductor industry, announced a new suite of specific etch products that apply breakthrough wafer fabrication techniques and novel chemistries that support chipmakers in developing gate-all-around (GAA) transistor structures
  2. In December 2021, Applied Materials, Inc., a company that supplies equipment, services, and software, collaborated with A*STAR’s Institute of Microelectronics to accelerate Heterogeneous Chip Integration with Hybrid Bonding Technology.

Global semiconductor equipment market is expected to witness significant growth during the forecast period of 2022–2030. The market growth is majorly attributed to increasing adoption of semiconductor equipment for different applications such as consumer electronics, automotive, and communications sector. According to the Coherent Market Insights, by 2030, the semiconductor equipment industry is set to experience a massive benefits from ongoing development and innovation in connectivity, communications, advanced software, the automotive industry, and data centers. For instance, in October 2018, Samsung Electronics launched new automotive semiconductors, which will bring its market-proven technologies and diversify its business portfolio into the automotive sector.

Restraint:

The current semiconductor manufacturers produce 7 nanometer (nm) chips, but the industry is exploring the possibilities of 5nm and 3 nm chips for future projects. Such small chip requirements come with manufacturing challenges such as electrostatic and quantum effects which can reduce wafer yield and also impact the wafer performance. Furthermore, imperfections in the silicon substrate while manufacturing will render the wafers unusable. All these challenges can restraint the growth of the global semiconductor equipment market.

Global Semiconductor Equipment Market - Impact of Coronavirus (Covid-19) Pandemic

Most countries have been affected by the COVID-19. It had a severe effect on businesses, trade, and public health across the globe. Lockdowns were imposed which restricted travel within states and countries. The supply chain operations for all businesses halted as all the countries across the world are interdependent when it comes to the semiconductor industry. Due to lockdowns, supply chain operations were disrupted and many manufacturing hubs were closed temporarily. Furthermore, during the pandemic, consumers and companies started adopting new technologies such as IoT (Internet of Things), AI (Artificial Intelligence), and others which resulted in a surge in demand for semiconductors in the automobile and consumer electronics sector. However, due to supply chain disruptions, there was shortage of semiconductor components and this hampered the growth of the global semiconductor equipment market.

Asia Pacific region held a dominant position in the Global Semiconductor Equipment Market in 2021

Statistics:

Asia Pacific held a dominant position in the global semiconductor equipment market battery in 2021, followed by North America.

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Semiconductor Equipment Market Report Coverage

Report Coverage Details
Base Year: 2021 Market Size in 2021: US$ 69.73 Bn
Historical Data for: 2017 to 2020 Forecast Period: 2022 to 2030
Forecast Period 2022 to 2030 CAGR: 9.3 % 2030 Value Projection: US$ 150.85 Bn
Geographies covered:
  • North America: U.S. and Canada
  • Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
  • Europe: Germany, U.K., France, Italy, Russia, and Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
  • Middle East and Africa: GCC Countries, South Africa, and Rest of Middle East and Africa
Segments covered:
  • By Product Type: Semiconductor Front-end Equipment and Semiconductor Back-end Equipment
  • By Application: Discrete Semiconductor, Optoelectronic Device, Sensors, and Integrated Circuits
  • By Equipment: Wafer Processing, Assembly & Packaging, and Testing Equipment
  • By End Use: PCs, Mobile Handsets, and Televisions Assembly & Packaging
Companies covered:

Applied Materials, Inc., ASML Holding, Canon, Tokyo Electron, Lam Research, KLA-Tencor, Dainippon Screen, Advantest, Teradyne, and Hitachi High-Technologies

Growth Drivers:
  • Increasing demand for gadgets such as smartphones and smart TVs  
  • Rising investment in research and development to innovate cutting–edge technologies for semiconductor equipment 
Restraints & Challenges:
  • Manufacturing challenges such as electrostatic and quantum effects which impact the wafer performance

Figure 1: Global Semiconductor Equipment Market Share (%), By Region, 2021

Semiconductor Equipment  | Coherent Market Insights

Asia Pacific is the leading region in the global semiconductor equipment market and is expected to witness high growth over the forecast period. In Asia Pacific, emerging economies such as China and India are manufacturing hubs for consumer electronic products, including smartphones, home appliances, and televisions. According to  analysis, in 2017, over 458 Mn units of smartphone devices were sold in China. Similarly, in India, there is a rise in demand for IT hardware and office automation products, and consumer electronics such as mobile phones, automotive products etc., which is spurring the demand for semiconductors equipment. Growth of the regional market is primarily driven by increased use of consumer electronics products, which in turn has increased the demand for semiconductor equipment.

North America accounted for the second-largest semiconductor equipment market globally. The demand for vehicles in the North America region is growing significantly. Semiconductor chips are an important part of modern vehicles, as these chips can perform various functions such as managing emissions, provide vehicle safety, store vehicle data, and others. This high demand for semiconductor chips is directly impacting the semiconductor equipment market. Hence, the semiconductor equipment market is expected to gain traction during the forecast period.

Semiconductor Front-end equipment is expected to drive the Global Semiconductor Equipment Market during the forecast period

Among product type, the semiconductor front-end equipment segment is expected to exhibit the highest growth rate during the forecast period. The front-end equipment includes wafer processing equipment, fabrication facilities and automation equipment, masking equipment, and wafer manufacturing equipment. Typically, wafer processing equipment are machines that perform lithography, surface preparation, deposition, etching, inspection, ion implant, and thermal processing. The back-end includes automatic testing, process diagnostic equipment, assembly and packaging equipment. According to analysis, the semiconductor front-end equipment segment accounts for roughly 70% of industry sales, with the semiconductor back-end equipment segment making up the balance.

Figure 2: Global Semiconductor Equipment Market Value (US$ Bn) Analysis and Forecast, 2017 - 2030

Semiconductor Equipment  | Coherent Market Insights

The global semiconductor equipment market was valued at US$ 69.73 Bn in 2021 and is expected to reach US$ 150.85 Bn by 2030, growing at a CAGR of 9.3% between 2022 and 2030.

Major players operating in the global semiconductor equipment market include Applied Materials, Inc., ASML Holding, Canon, Tokyo Electron, Lam Research Corp., KLA-Tencor, Dainippon Screen, Advantest, Teradyne, and Hitachi High-Technologies.

Semiconductor equipment is an electronic circuit component that is neither a good conductor nor a good insulator, which exploits the electronic properties of semiconductor material, such as silicon, germanium, and gallium arsenide, as well as organic semiconductors. Such devices have found wide applications in compactness optical sensors, power devices as well as light emitters, owing to their compactness, reliability, and low cost.

Semiconductor equipment have replaced the thermionic devices or vacuum tubes in most applications. A single integrated circuit (IC), such as a microprocessor chip, requires its own electric generating plant to work in replacement of set of vacuum tubes for enhancing the high-speed of optoelectronic applications. Furthermore, semiconductor equipment have found use in the designing of logic gates and digital circuits, high voltage applications, analog circuits, automobiles, amplifiers and microprocessors, LED lights.

Market Dynamics

The global semiconductor equipment market growth is attributed to rise in demand for various modern gadgets such as smart phones and laptop.  The smart phone and laptops are embedded with millions of tiny transistors to empower various functionalities such as low voltage and high speed optimized embedded SRAMs, radiation hardened embedded SRAMs and custom embedded SRAM solutions, etc.  Moreover, a rising disposable income increases the probability of consumer spending on consumer electronics, which is leading to higher potential sales of consumer electronics such as smartphones, tablets, laptops, and gaming consoles. As there is high demand for smartphones in emerging economies such as India, China, Japan etc., the instances of smartphone adoption are very high among the urban population as compared to the rural population. These factors are expected to drive the market growth during the forecast period 2022-2030.

Key features of the study:

  • This report provides an in-depth analysis of the global semiconductor equipment market size (US$ Billion) and compound annual growth rate (CAGR %) for the forecast period (2022-2030), considering 2021 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrices for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approvals, regional outlook, and competitive strategies adopted by the leading  market players
  • It profiles leading players in the global semiconductor equipment market based on the following parameters – company overview, financial performance, product portfolio, geographical presence, market capital, key developments, strategies, and future plans
  • Companies covered as a part of this study include Applied Materials, Inc., ASML Holding, Canon, Tokyo Electron, Lam Research Corp., KLA-Tencor, Dainippon Screen, Advantest, Teradyne, and Hitachi High-Technologies
  • Insights from this report would allow marketers and management authorities of companies to make informed decisions regarding future product launches, product upgrades, market expansion, and marketing tactics
  • The global semiconductor equipment market report caters to various stakeholders in this industry including investors, suppliers, managed service providers, third-party service providers, distributors, new entrants, and value-added resellers
  • Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the global semiconductor equipment market

Detailed Segmentation

  • Global Semiconductor Equipment Market, By Product Type:
    • Semiconductor Front-end Equipment
    • Semiconductor Back-end Equipment
  • Global Semiconductor Equipment Market, By Application:
    • Discrete Semiconductor
    • Optoelectronic Device
    • Sensors
    • Integrated Circuits
  • Global Semiconductor Equipment Market, By Equipment:
    • Wafer Processing
    • Assembly & Packaging
    • Testing Equipment
  • Global Semiconductor Equipment Market, By End Use:
    • PCs
    • Mobile Handsets
    • Televisions Assembly & Packaging
  • Global Semiconductor Equipment Market, By Region:
    • North America
      • By Country:
        • U.S.
        • Canada
    • Europe
      • By Country:
        • Germany
        • Italy
        • U.K.
        • France
        • Russia
        • Rest of Europe
    • Asia Pacific
      • By Country:
        • China
        • India
        • Japan
        • Australia
        • South Korea
        • ASEAN
        • Rest of Asia Pacific
    • Latin America
      • By Country:
        • Brazil
        • Mexico
        • Argentina
        • Rest of Latin America
    • Middle East and Africa
      • By Country/Region:
        • GCC Countries
        • South Africa
        • Rest of Middle East and Africa
  • Company Profiles
    • Applied Materials, Inc.
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments/ Updates
    • ASML Holdings
    • Canon
    • Tokyo Electron
    • Lam Research Corp.
    • KLA-Tencor
    • Dainippon Screen
    • Advantest
    • Teradyne
    • Hitachi High-Technologies

 “*” marked represents similar segmentation in other categories in the respective section.

Frequently Asked Questions

The global semiconductor equipment market is expected to reach US$ 150.85 Bn by 2030.
The market is expected to witness a CAGR of 9.3% during the forecast period (2022-2030).
Rising demand for combustion and electric vehicles is expected to boost the growth of the market.
The Mobile Handsets segment held the largest market share among the end use in 2021.
Asia Pacific held the largest share in the market in 2021, accounting for 33% share, in terms of value.
Key players operating in the market include Applied Materials, Inc., ASML Holding, Canon, Tokyo Electron, Lam Research, KLA-Tencor, Dainippon Screen, Advantest, Teradyne, and Hitachi High-Technologies.

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