Semiconductor Equipment Market

Global Semiconductor Equipment Market - Insights

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. Moreover, growing demand for electronics and gadget services have contributed majorly to growth of the semiconductor equipment market. According to the Coherent Market Insights’ analysis, the global semiconductor equipment industry witnessed growth with a market size of US$ 57.1 billion in 2017, and by 2019, the market is expected to grow by 14.8%, accounting for US$ 70.9 billion. This significant growth is expected to propel demand for semiconductor materials in Artificial Intelligence (AI) programs, such as autonomous vehicles, automotive, consumer electronics, IoT, and AI-driven electronics. Extensive use of the semiconductors in electronic devices such as smartphones, flat-screen monitors & LED TVs, civil aerospace, and military systems is expected to drive growth of the semiconductor industry.

Global semiconductor equipment market is expected to witness significant growth during the forecast period of 2018–2026. 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 2026, 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.

Figure 1. Global Semiconductor Equipment Market Share (%), by Region (2018 & 2026)

Source: Coherent Market Insights, 2017-18

Asia Pacific semiconductor equipment market accounted for largest share in 2018

Asia Pacific is expected to be the largest and fastest growing region in the semiconductor equipment market during the forecast period of 2018-2016, owing to increasing adoption of semiconductor equipment for innovative technologies such as connected vehicles, industrial automation, and other process automation. According to Coherent Marker Insights’ analysis, in 2018, the countries such as China, Taiwan, Korea, India, Japan, and India hold more than 90% market share in the semiconductor equipment market.

Asia Pacific region also has presence of key industry participants such as Tokyo Electron Limited, IHI Corporation, and Hitachi Kokusai Electric Inc., which will help Asia Pacific region retain its dominance over the forecast period. Furthermore, companies are increasingly investing on the construction of new foundries. For instance, in 2017, companies such as Intel, Micron, Toshiba, and Global Foundries have increased their fab or foundries investments. Furthermore, in June 2018, South Korea witnessed a surge in semiconductor foundries investments from Samsung, as it increased investment from US$ 8 Bn to US$18 Bn in 2017-2018. This is expected to ensure steady growth for Asia Pacific region, thereby augmenting the overall growth of the semiconductor equipment market.

Figure 2. Global Semiconductor Equipment Market Share (%), By Product Type (2018 & 2026)

Source: Coherent Market Insights, 2017-18

The semiconductor market is gaining significant traction among industrial sectors such as automotive, aircraft, telecommunication, and wireless devices. This growth in semiconductor industry is attributed to increase in international investment in response to a rapid rise in consumer demand from various geographical locations. For instance, in December 2015, United Microelectronics Corporation (UMC) collaborated with the Xiamen government and FuJian Electronics and Information Group on a US$ 6.2 billion investment in a semiconductor fabrication plants. Increased industrial productions and reviving consumer confidence further led to an increase in demand for semiconductor-related products and equipment across the world.

China is expected to hold dominant position in the semiconductor equipment market over the forecast period. The Chinese government has also established the China Integrated Circuit (IC) Industry Investment Fund to finance semiconductor equipment research and development as well as invested in chip manufacturing, with an aim to improve the competitiveness and bolster its technical supply chain over the longer term. The rapid growth of the Chinese semiconductor industry is based on the Chinese government’s efforts. According to Coherent Market Insights, Chinese government is planning to invest more than 200 trillion in semiconductor equipment industry until 2025, to boost the domestic production ratio from 13% to 70%.

Key companies

Some of the key players operating in the global semiconductor equipment market include Applied Materials, ASML, Canon, Tokyo Electron, Lam Research, 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 2018-2026.

Key features of the study:

• This report provides in-depth analysis of semiconductor equipment market size (US$ Million), and Compound Annual Growth Rate (CAGR %) for the forecast period (2018– 2026), considering 2017 as the base year
• It elucidates potential revenue opportunity across different segments and explains attractive investment proposition matrix for this market
• This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, regional outlook, and competitive strategy adopted by leading players
• It profiles leading players in the global semiconductor equipment market based on the following parameters – company overview, financial performance, product portfolio, geographical presence, semiconductor equipment market capital, key developments, strategies, and future plans
• Companies covered as part of this study include the ASML, Canon, Tokyo Electron, Lam Research, KLA-Tencor, Dainippon Screen and others
• Insights from this report would allow marketers and the management authorities of the companies to make informed decision regarding their 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, manufacturers, distributors, new entrants, and financial analysts
• 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
• Optoelectronics 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 Geography:
• North America
• By Product Type:
• Semiconductor Front-end Equipment
• Semiconductor Back-end Equipment
• By Application:
• Discrete Semiconductor
• Optoelectronics Device
• Sensors
• Integrated Circuits
• By Equipment:
• Wafer Processing
• Assembly & Packaging
• Testing Equipment
• By End Use:
• PCs
• Mobile Handsets
• Televisions Assembly & Packaging
• By Country:
• U.S.
• Canada
• Europe
• By Product Type:
• Semiconductor Front-end Equipment
• Semiconductor Back-end Equipment
• By Application:
• Discrete Semiconductor
• Optoelectronics Device
• Sensors
• Integrated Circuits
• By Equipment:
• Wafer Processing
• Assembly & Packaging
• Testing Equipment
• By End Use:
• PCs
• Mobile Handsets
• Televisions Assembly & Packaging
• By Country:
• UK
• Germany
• Italy
• France
• Russia
• Rest of Europe
• Asia Pacific
• By Product Type:
• Semiconductor Front-end Equipment
• Semiconductor Back-end Equipment
• By Application:
• Discrete Semiconductor
• Optoelectronics Device
• Sensors
• Integrated Circuits
• By Equipment:
• Wafer Processing
• Assembly & Packaging
• Testing Equipment
• By End Use:
• PCs
• Mobile Handsets
• Televisions Assembly & Packaging
• By Country:
• China
• Singapore
• Japan
• Rest of Asia Pacific
• Latin America
• By Product Type:
• Semiconductor Front-end Equipment
• Semiconductor Back-end Equipment
• By Application:
• Discrete Semiconductor
• Optoelectronics Device
• Sensors
• Integrated Circuits
• By Equipment:
• Wafer Processing
• Assembly & Packaging
• Testing Equipment
• By End Use:
• PCs
• Mobile Handsets
• Televisions Assembly & Packaging
• By Country:
• Brazil
• Mexico
• Rest of Latin America
• Middle East
• By Product Type:
• Semiconductor Front-end Equipment
• Semiconductor Back-end Equipment
• By Application:
• Discrete Semiconductor
• Optoelectronics Device
• Sensors
• Integrated Circuits
• By Equipment:
• Wafer Processing
• Assembly & Packaging
• Testing Equipment
• By End Use:
• PCs
• Mobile Handsets
• Televisions Assembly & Packaging
• By Country:
• GCC Countries
• Israel
• Rest of Middle East
• Africa
• By Product Type:
• Semiconductor Front-end Equipment
• Semiconductor Back-end Equipment
• By Application:
• Discrete Semiconductor
• Optoelectronics Device
• Sensors
• Integrated Circuits
• By Equipment:
• Wafer Processing
• Assembly & Packaging
• Testing Equipment
• By End Use:
• PCs
• Mobile Handsets
• Televisions Assembly & Packaging
• By Country:
• Northern Africa
• Central Africa
• South Africa
• Company Profiles
• Applied Materials*
• Company Overview
• Product Portfolio
• Financial Performance
• Key Strategies
• Recent Developments/ Updates
• ASML
• Canon
• Tokyo Electron
• Lam Research
• KLA-Tencor
• Dainippon Screen
• Advantest
• Teradyne
• Hitachi High-Technologies

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