The global semiconductor equipment market
was valued at US$ 57.1 billion in 2017, and is projected to reach US$ 107.76 billion by 2026, exhibiting a CAGR of 7.2% over the forecast period, according to Global Semiconductor Equipment Market Report, 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 System, Testing Equipment), by End Use (PCs, Mobile Handsets, Televisions Assembly & Packaging), and by Region (North America, Europe, Asia Pacific, and LAMEA), published by
Semiconductor Equipment is the tool or machinery used for the purpose of designing and testing of machines that manufacture semiconductors in different application sector. Growth in the semiconductor equipment market is driven by high adoption of technologically advanced semiconductor equipment in sectors such as automotive, power devices, and consumer electronics. Furthermore, technology used in semiconductor production equipment is constantly being improved due to rising demand for efficiently performing consumer products such as wireless semiconductors. This enables the manufacturers of semiconductor equipment to improve the technology and efficiency aspects in semiconductor equipment industry. Similarly, the demand for automotive semiconductors is also growing, due to increasing number of automobiles on roads. The technologies such as vision-based sensors, enhanced graphics processing units, application processors, and DRAM & NAND flash are explicitly utilized in automotive semiconductors. For instance, in December 2017, Canon, Inc. commenced with sales of new 200 mm wafer equipment for I-line and KrF lithography equipment. This equipment is expected to mass-produce memory, logic and image sensor devices necessary for automotive technologies.
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Key Trends and Analysis of the Global Semiconductor Equipment Market:
Key Takeaways of the Market:
- Among product type, 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.
- Among end use, mobile handset is expected to be the fastest growing segment during the forecast period. The various semiconductor consuming sectors such as digital media, consumer electronics, automotive and wireless are demanding devices with multi-features, having different technologies. This demand is leading to a shift from discrete-based designs to micro-controller based designs and the end products are becoming portable and smaller in size. Furthermore, growth of mobile applications is driving the combination of microprocessors and digital signal processors in order to take advantage of these both technologies.
- According to ’, 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 market.
- According to ’ research, the U.S. is one of the leading countries in terms of market share in the semiconductor equipment market. The sales of the semiconductor equipment in U.S. is projected to rise at the highest CAGR in terms of revenue over the forecast period of 2018-2016, owing to increasing demand for smartphones, network hardware, computers, tablets, digital televisions, wireless communication infrastructure, and electro-medical devices are stimulating the global demand for semiconductors equipment across country. According to ’ analysis, over 85% of the U.S. semiconductor sales take place outside of the U.S., and the 87% of semiconductor equipment sales take place outside of the U.S. Hence, in order to compete in semiconductor equipment industry most semiconductor and semiconductor manufacturing equipment companies must export.
- Some of the major players operating in the global semiconductor equipment market include Applied Materials, ASML, Canon, Tokyo Electron, Lam Research, KLA-Tencor, and Dainippon Screen.