What is the global market size of Semiconductor Production Equipment Market?

Global Semiconductor Production Equipment Market size was valued at USD 87.9 billion in 2021 and is poised to grow from USD 95.81 billion in 2022 to USD 208.09 billion by 2030, growing at a CAGR of 9% in the forecast period (2023-2030).

Who are the key vendors in the Global Semiconductor Production Equipment Market?

The semiconductor production equipment market is a fairly competitive area. The manufacturers are using both organic and inorganic expansion methods to compete in the fragmented market for semiconductor equipment. As products become increasingly complicated in response to rising technical demands, well-known corporations are proactively engaging in R&D efforts. Key players are also concentrating on product portfolio growth tactics including mergers and acquisitions and collaborations. 'Applied Materials, Inc.', 'ASML Holding NV', 'Lam Research Corporation', 'Tokyo Electron Limited', 'KLA-Tencor Corporation', 'Screen Holdings Co., Ltd.', 'Advantest Corporation', 'Hitachi High Technologies Corporation', '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.', 'Ultratech, Inc.', 'Nova Measuring Instruments Ltd.', 'Mycronic AB', 'SPTS Technologies Ltd.'

What is the key driver of Global Semiconductor Production Equipment Market?

Increasing investments in manufacturing facilities: To maintain their competitiveness in the market, memory producers including Western Digital, Samsung Electronics, Micron Technology, Intel, and SK Hynix, Toshiba are investing in new production sites. Growing demand for semiconductor chips has given supply chain participants like chip producers, product manufacturers, and material suppliers the chance to diversify their product offerings. Developments in fabrication facilities are being driven by this. The manufacturing of semiconductor chips will rise as a result of manufacturers' increasing investments in manufacturing facilities. Given that OEMs are placing more emphasis on the release of semiconductor chips for consumer electronics products, this is anticipated to have a favorable impact on the demand for semiconductor equipment.

What is the key market trend for Global Semiconductor Production Equipment Market?

The increasing use of hybrid and electric vehicles is one of the trends that is influencing the market for equipment used in semiconductor fabrication. This trend is expected to continue at a 40% annual growth rate. In electric cars, a lot of semiconductors are employed as parts and components. As a result, this aspect is promoting the growth of the global market for semiconductor manufacturing equipment.

Which region accounted for the largest share in Global Semiconductor Production Equipment Market?

Based on the region, the Asia Pacific region currently dominates the global semiconductor production equipment market. Due to the existence of significant semiconductor manufacturing equipment vendors with headquarters in China and Taiwan, Asia Pacific now retains the largest share and will rule the industry in the upcoming years. Additionally, these nations are signing the Information Technology Deal (ITA) plurilateral agreement with the World Trade Organization, which will eliminate tariffs on IT products and create non-tariff export restrictions for the United States. As a result, nations like Japan and Korea are expanding their economic chances to market their products globally.

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 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 Report Snapshots

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FAQs

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).

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. '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'

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.

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.

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