USD 67.69 billion
Global Semiconductor Production Equipment Market Size, Share, Growth Analysis, By Equipment Type(Front-end Equipment, Back-end Equipment), By Product Type(Dicing Machine, Probing Machines), By Application(Semiconductor Fabrication Plant/Foundry, Semiconductor Electronics Manufacturing), By Fabrication Process(Automation, Chemical Control Equipment), By Supply Chain Process(Outsourced Semiconductor Assembly, Test (OSAT)), By Function(Integrated and OSD) - Industry Forecast 2024-2031
Report ID:
SQMIG45N2084 |
Region:
Global |
Published Date: February, 2024
Pages:
242
|
Tables:
173 |
Figures:
79
Global Semiconductor Production Equipment Market Insights
Global Semiconductor Production Equipment Market size was valued at USD 67.69 billion in 2019 and is poised to grow from USD 95.70 billion in 2023 to USD 192.52 billion by 2031, growing at a CAGR of 9.13% during the forecast period (2024-2031).
Investment in semiconductor fabrication and increase in manufacturing of automobiles and consumer electronics are the major semiconductor production equipment market growth drivers. Miniaturization of IC’s and investment in the development of technology in the production and fabrication of different electronic machines are also creating a demand for semiconductor production gear.
Different countries governments spend on the expansion of semiconductor foundries to meet the increasing need of semiconductors' chips. Major vendors are close competitors in the global market in terms of R&D investment to offer customizable semiconductor processing equipment to their customers and grow their product ranges. They are increasingly extending their supply chain, which will allow them to seize more market share in the semiconductor production equipment market.
Semiconductor production factories include different kinds of machines that are used to make semiconductors. Semiconductors are being fast adopted by both consumer markets and the automotive industry. Components such as abatement and sub-fab systems, DC & RF power generators, mass flow controllers, process control valves, RF match, roughing pumps, temperature controllers, and turbopumps are examples of semiconductor production equipment.
Semiconductor manufacturing operations also adopt dicing and probing machines, CMP, polish and edge grinders, chemical mechanical planarization, integrated circuit production equipment, and sliced wafer demounting and cleaning machines for semiconductor production.
Semiconductors are used to create lots of electrical & electronic products like desktop computers, mobile phones & portable electronic equipment. New technology R&D is forecast to promote the semiconductor production equipment market growth in the next few years. Consumer electronics producers are extensively exploring the field where compact devices are developed, opening a new area for a corresponding growth in the demand for advanced semiconductor manufacturing equipment. Efficiency, compactness, cost-effectiveness are the competitive advantages of pocket products. Many semiconductor production equipment are used to produce integrated circuits and other semiconductor components employed in the tiny-scaled electronic devices.
US Semiconductor Production Equipment Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Front-end Equipment
Fastest Growth
Back-end Equipment
Growth Rate
9.13% CAGR
Global Semiconductor Production Equipment Market ($ Bn)
Country Share for Asia Pacific Region (%)
Global Semiconductor Production Equipment Market By Equipment Type ($ Bn)
Global Semiconductor Production Equipment Market By Equipment Type (%)
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Global Semiconductor Production Equipment Market Segmental Analysis
Global Semiconductor Production Equipment Market is segmented by equipment type, product, dimension, supply chain process, end user industry, and region. Based on equipment type, the market can be segmented into front-end equipment, and back-end equipment. Based on product, the market is segmented into discrete, memory, logic, analog, and others. Based on dimension, the market is segmented into 2 Dimension, 2.5 Dimension and 3 Dimension. Based on supply chain process, the market is segmented into IDM, OSAT, and Foundry. Based on end user industry, the market is segmented into computers & peripherals, consumer electronics, telecommunication equipment, industrial equipment, aerospace & defence, and transportation. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Analysis by Equipment Type
Front end equipment consists of tools that are employed during the first stages of semiconductor production, such as silicon-wafer fabrication equipment, photolithography equipment, deposition machines, etching machines, ion implantation machines, mechanical polishing machines and a few others. It was at the top of the market list preventing all the others from making profit. As there is an ongoing trend for the microchips to be denser and more efficient so they can be used in a processor, graphic processing units, IoT devices, etc., the need for front end equipment is growing. Imminent development of semiconductor layouts into smaller and more complex structures with high density also ensures the requirement for front end manufacturing technologies with advanced capabilities.
However, in contrast to front end, the back-end equipment is used for assembling, inspecting and testing semiconductors following their initial fabrication and production. This is going to include various kinds of machinery for handling, testing and quality control of semiconductor devices. Given the trend towards miniaturization and advanced design complexity for semiconductor devices, the back-end equipment sector is speculated to grow at a much higher CAGR for the forecast period. In the contemporary semiconductor industry, the number of precise functions in assembly, testing and inspection is growing due to the more complex semiconductor devices that are smaller with more functions.
Analysis by End User Industry
Computers & Peripherals industry and it is the largest one, which constitutes 32% of the end-user distribution. The broad scope of the sector covers Computer Systems, which include desktop PCs, laptops, servers, and peripheral devices such as printers and monitors. This demand segment is driven by the producers of semiconductor machine tools who make the technologies that have advanced characteristics. These characteristics include high performance, energy efficiency, and miniaturization. Manufacturers in the Computers & Peripherals industries pay special attention to the sophisticated advanced equipment at the initial production stage, including cutting edge silicon-wafer fabrication tools and photolithography systems, which are used to develop custom-made semiconductors equipment for current-generation computing gadgets.
However, the Consumer Electronics product segment still emerging as the fastest growing market for the semiconductor production equipment sector. This industry, which helps 21% end-users with smartphones, tablets, television, gaming console and wearable devices, is another major contender. Advanced consumer electronics being into vogue shall facilitate innovation and pave the way for highly integrated, energy-saving semiconductor products. The influence of these alterations is an increase in the demand for semiconductor equipment manufacturing, including the back-end processes such as the packaging, testing, and quality control to yield high-performing, reliable, and quality semiconductor components for smart devices.
Global Semiconductor Production Equipment Market By Equipment Type, 2023 (%)
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Global Semiconductor Production Equipment Market Regional Insights
Asia Pacific has the largest market share in 2023. Boom in the semiconductor output will define the region's market pace. Asia Pacific has a leading role in the semiconductor industry supply chain, as Taiwan, South Korea, and China are responsible for a bulk of global semiconductor foundry revenue. Rush in fund to semiconductor sector serves as the main impetus in China which brings about the semiconductor production equipment market stats. In September 2023, China put forward a plan for setting up a new state-directed investment fund with the purpose of mobilizing about 40 Bn US dollars to support its semiconductor industry.
Asia-Pacific continues to dominate as the world production equipment market, but North America seems to be one of the fastest-growing emerging regions. In the United States, semiconductor manufacturing activities are in a new growth spurt, with automotive, consumer electronics, and industrial sectors as the main drivers of the demand for chips. A few aspects play significant roles in the North American market sales growth. To begin with, there is more reliance on manufacturing semiconductors locally which is becoming a hot issue because of the global chip shortage and the supply chain vulnerabilities highlighted. Thus, there have been more investment in the development of semiconductor fabrication capacities and performance upgrade of production apparatus, respectively, which increases the need for sophisticated production machinery. Furthermore, North America is seeing a growing trend of partnership among industry players, research laboratories, and government agencies which aims to scale semiconductor production. For example, efforts like the CHIPS Act (Creating Helpful Incentives to Produce Semiconductors for America) are welcomed by the semiconductor industry as they provide semiconductor manufacturing and research incentives in the region.
Global Semiconductor Production Equipment Market By Region, 2024-2031
- Largest
- Fastest
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Global Semiconductor Production Equipment Market Dynamics
Semiconductor Production Equipment Market Drivers
Rapid growth of consumer electronics:
-
The surging demand for semiconductor chips from manufacturers of consumer electronics, integrated health systems, and sensor equipment is causing the development of the semiconductor industry. As an increasing number of people started using consumer electronics in their daily life, smartphones, laptops, televisions, and other electronic devices, the industry is growing even bigger. To meet the growing demand for the products semiconductors are used in, consumer electronics such as telecommunications, information technology, machine automation, power & solar panel production are expected to be an essential key driver. With continuous digital content elevation and reinforcement of connectivity, as well as mobility going forward, more market areas will be opened in the next few years.
Rapidly increasing semiconductor demand in the automobile sector:
-
The automotive sector still serves both as a basis for demand and as a source for potential for semiconductor vendors, as it did during the recessions and demand variations. Trends like the rise and demand for autonomous and electric vehicles, as well as the increasing number of semiconductors components per vehicle is a prominent incentive pushing industry for semiconductor manufacturers. When the automotive industry starts using more semiconductor components e.g. sensors, microcontrollers, and radar chips for their cars, the machine tool industry also expands to produce semiconductor components.
Semiconductor Production Equipment Market Restraints
High cost of machines and disruptions to supply chain:
- The semiconductor manufacture equipment which is the main industry in the supply chain holds a huge number of participants. Nonetheless the COVID-19 pandemic made huge disruption to the global supply chain. The production plants should preferably be placed in clean territories only. Same is true, the equipments supplied for semiconductor manufacturing must not have defects. Primary among the disadvantages is the higher cost of semiconductor machines and very high initial budget declaration. One of the factors for retarding market development predicts to be price volatility of machines.
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Global Semiconductor Production Equipment Market Competitive Landscape
The global semiconductor production equipment market is highly competitive and dynamic as a result of continuous innovations and ever-increasing requirement for semiconductors devices. In the market, powerful players from the industry fight for dominating the market via product performance, technical innovation, pricing strategies and global distribution networks. Constant flow of investments into products’ research and development accompanied with the adoption of revolutionary methods by market players is regarded as the source of domination on the market. The competitive industry landscape is mainly defined by the strategic partnerships, collaborations, and acquisitions taken by market parties to target the market reach and enhance the product portfolio. Furthermore, the industry is being populated by startups converging on cutting edge technologies in their particular markets, which increases the competition and accelerates the pace of innovation in semiconductor manufacturing technology.
Semiconductor Production Equipment Market Top Players Company Profiles
- Applied Materials, Inc.
- ASML Holding NV
- Lam Research Corporation
- Hitachi High Technologies Corporation
- Ultratech, Inc.
- Nova Measuring Instruments Ltd.
- KLA-Tencor Corporation
- Screen Holdings Co., Ltd.
- Advantest Corporation
- Mycronic AB
- SPTS Technologies Ltd.
- Teradyne Inc.
- ASM International N.V.
- Nikon Corporation
- Canon Inc.
- BE Semiconductor Industries N.V. (Besi)
- Veeco Instruments Inc.
- Rudolph Technologies, Inc.
- Onto Innovation Inc.
- Tokyo Electron Limited
Semiconductor Production Equipment Market Recent Developments
- In February 2024, the ASML Holding NV launched its new chip manufacturing machine, the High-NA Extreme UV priced at €350 million and weighing 65 tons. Intel Corp. has department One's first shipment on April 18, and it is going to allow production of the chip in December next year. The machine can build 8-nm thickness semiconductor liners, which are 1.7 times smaller than its predecessor, that will highly increase the flow of information making chips more efficient and accurate.
- In January 2024, Applied Materials Inc. partnered with Google to pioneer technical innovation in the realm of virtual/augmented reality (VR/AR). This partnership does not only opt to benefit from Applied Materials' materials engineering proficiency but Google's platforms for creation of lightweight visual displays for advanced AR experiences. The main idea of the statement is the rapid deployment of mass production of AR products and services, applications.
- In December 2023, Applied Materials, Inc. and CEA-Leti announced an evolution of their long-standing collaboration into a more specific focus on the development of distinctive materials engineering solutions for a range of specialized semiconductor applications.
Global Semiconductor Production Equipment Key Market Trends
- Semiconductor Fabrication Plant to be the Leading Area of Demand: Although designing process has been completed, chip manufacturing facilities called fabs or foundries are the next sites of semiconductor chips. In first manufacturing line (front-end fabrication), wafer chips are manufactured by placing them on wafer round sheets made of circular silicon or, to a minor extent, other semiconducting materials called wafers with 8- or 12-inch diameter. Integration is a process which creates a design that is as literal as the transistors, utilizing all the SMEs and materials. Stage 1, one heats up the silicon with the help of the furnace, and then the silicon is being sliced to the round disks – the wafers. Semiconductor fabrication facilities (“fabs”) make chips into wafers in two steps: low cost, high throughput, and the final products are comprised of metal interconnects between the transistors and other electrical devices in different material layers on the silicon. Working in concert, the electrical devices and interconnects (wires) supply current to the circuit. Among the top producers of the semiconductor market share and fab capacity in the world are US, Taiwan, South Korea, Japan, and China firms of which most have their headquarters and the fab locational physic still in these countries. The creation of semiconductor products is actually carried out reciprocally by multiple enterprises (which are producing the materials or coordinating the logistics). However, along with the rise in the process complexity of manufacturing of semiconductor chips also goes up the development cost. Different business models have been used by companies to reduce their costs and, thus, obtain opportunity to survive in the market of semiconductors. In November 2023, China has set up 42 lithography systems with the worth of USD 816.8 million. Information technology (IT) is a major export for the Netherlands with lithography systems totaling USD 762.7 million or about ten times the amount brought into the country last year.
Global Semiconductor Production Equipment Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyzes the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to our global Semiconductor Production Equipment Market analysis, the substantial growth of market is driven by increasing demand for advanced electronic devices across various sectors including consumer electronics, automotive, healthcare, and industrial automation. The market is categorized by rapid technological advancements such as the transition towards smaller nanometer semiconductor nodes, the adoption of 3D IC packaging, and the integration of AI and IoT technologies. Additionally, the expansion of 5G infrastructure and the proliferation of connected devices are further fueling the demand for semiconductor production equipment. Key players in the market are focusing on innovation and strategic collaborations to develop cutting-edge equipment capable of meeting the stringent requirements of next-generation semiconductor manufacturing processes.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 67.69 billion |
| Market size value in 2031 | USD 192.52 billion |
| Growth Rate | 9.13% |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
| Historical Year | 2019 |
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Global Semiconductor Production Equipment Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Global Semiconductor Production Equipment Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Global Semiconductor Production Equipment Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Global Semiconductor Production Equipment Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Global Semiconductor Production Equipment Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Global Semiconductor Production Equipment Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Global Semiconductor Production Equipment Market Report Snapshots
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