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Semiconductor Manufacturing Equipment Market Size, By Product (Front-end Equipment [Lithography, Polishing & Grinding, Water Surface Conditioning Equipment], Back-end Equipment [Wafer Manufacturing Equipment, Assembly & Packaging Equipment, Test Equipment]), By Dimension (2D, 2.5D, 3D), By Supply Chain Process (Outsourced Semiconductor Assembly and Test (OSAT), Integrated Device Manufacturer (IDM), Foundry), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027

  • Report ID: GMI4233
  • Published Date: Oct 2021
  • Report Format: PDF

Industry Trends

Semiconductor Manufacturing Equipment Market size surpassed USD 50 billion in 2020 and is estimated to grow at a CAGR of over 8% from 2021 to 2027. The market is gaining traction due to rising inclination toward the adoption of advanced packaging technology across Integrated Devices Manufacturers (IDMs) and foundries.
 

Semiconductor Manufacturing Equipment Market Overview

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The advanced packaging technology helps these players to manufacture technically advanced semiconductor wafers and chipsets that offer high performance, a smaller footprint, and low-power consumption features. The transition toward the More than Moore approach with continuous change in wafer & transistor node size is expected to accelerate the semiconductor manufacturing equipment market growth. Several industry participants are extensively investing in research & development to innovate advanced packaging technologies in the market.
 

The COVID-19 pandemic has severely affected the acceptance of semiconductor manufacturing equipment by the automotive, industrial, and consumer electronics sectors owing to the temporary shutdown of manufacturing facilities in the first half of 2020. In early 2020, the supply chain for the semiconductor industry was heavily impacted attributed to prolonged lockdowns imposed by governments and regulatory bodies across the globe. This factor has severely hindered the market potential for semiconductor manufacturing equipment providers. In the second half of 2020, the demand for desktop/PCs, laptops, tablets, and smartphones witnessed a rapid increase due to the increasing work-from-home scenario. An increase in demand for consumer electronic goods across the North American and APAC economies during the pandemic is set to support the business growth of semiconductor manufacturing equipment vendors.
 

Technological advancements in extreme ultraviolet (EUV) lithography will fuel the semiconductor manufacturing equipment market expansion

The front-end semiconductor manufacturing equipment segment dominated more than 60% of revenue share in 2020 and will showcase around 9% growth rate through 2027. Industry growth is credited to several high-end features offered by the lithography front-end equipment, such as nano-imprinting, high accuracy, and faster chipset-processing speed, which support the volume/mass manufacturing of semiconductors. These lithography systems are high-cost equipment whose prices can be accounted for up to USD 150 million per unit. This semiconductor manufacturing equipment provide high-profit margins to their manufacturers & suppliers. The demand for lithography equipment is cyclic and is majorly driven by foundry companies & IDMs.
 

Rising developments in High Bandwidth Memory (HBM) products will propel the market progression

Semiconductor Manufacturing Equipment Market Share

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The 2.5D segment held 35% of the semiconductor manufacturing equipment market share in 2020 and is poised to attain a CAGR of 8% till 2027 led by the increasing usage of 2.5D packaging architecture in stacked memory modules. In stacked semiconductor memory, 2.5D architecture achieves high chip functionalities, wider bandwidth, and enhanced memory performance. The market leaders highly emphasize on replacing traditional 2D architecture with 2.5D stacked architecture to stay competitive in the industry. Increasing development in High Bandwidth Memory (HBM) products will further foster the industry expansion for semiconductor manufacturing equipment.
 

Increasing investments by IDM companies to establish new manufacturing facilities will impel the market demand

Semiconductor Manufacturing Equipment Market Size

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The integrated device manufacturer (IDM) segment in the semiconductor manufacturing equipment market captured more than 45% of revenue share in 2020. The industry progression is attributed to the rising investments by IDM firms to enhance their research & development activities to develop technically advanced semiconductor ICs, sensors, RFID circuits, and system on chips. These players are collaborating with semiconductor manufacturing equipment providers to increase their IC production capacity. The industry participants are also emphasizing on enhancing their IC manufacturing facilities, which will further boost the demand for semiconductor manufacturing equipment in the market.
 

Growing government initiatives and investments to augment semiconductor manufacturing in the APAC region

APAC Semiconductor Manufacturing Equipment Market

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Asia Pacific semiconductor manufacturing equipment market accounted for over 75% of revenue share in 2020 and is projected to observe 8.5% gains by 2027. Market revenue is driven by supportive government initiatives and funding activities to promote semiconductor manufacturing in the region. For instance, in October 2021, the Japanese Government announced a subsidy of USD 7.12 billion to TSMC and Sony for the joint construction of a semiconductor factory in Western Japan. The new plant will focus on manufacturing semiconductors in the range of 22 nm to 28 nm and the construction is predicted to be completed by 2024. The new plat will create high demand for new front-end & back-end equipment.
 

Focus on strategic alliances and acquisitions to stay competitive in the market

Key companies operating in the semiconductor manufacturing equipment market are Tokyo Electron Limited, Applied Materials, Inc., ASML, LAM RESEARCH CORPORATION, and Canon Inc. These leaders are highly focusing on new product developments and innovations to stay competitive among other participants.
 

The semiconductor manufacturing equipment market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2016 to 2027 for the following segments:

Market, By Product

  • Front-end equipment
    • Lithography
    • Polishing & grinding
    • Water surface conditioning equipment
    • Others
  • Back-end equipment
    • Wafer manufacturing equipment
    • Assembly & packaging equipment
    • Test equipment
    • Others

Market, By Dimension

  • 2D
  • 2.5D
  • 3D

Market, By Supply Chain Process

  • OSAT
  • IDM
  • Foundry

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Russia
    • Netherlands
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • Taiwan
  • LAMEA
    • Mexico
    • Argentina
    • Israel

 

Authors: Ankita Bhutani, Preeti Wadhwani

Frequently Asked Questions (FAQ) :

Market size of semiconductor manufacturing equipment surpassed USD 50 billion in 2020 and will witness a CAGR of more than 8% between 2021 and 2027 due increasing adoption of advanced packaging technology.

Front-end segment will grow at around 9% CAGR up to 2027 owing to high-end features, including high accuracy, and nanoimprinting.

Integrated device manufacturers contributed over 45% revenue share in 2020 and will grow with increasing investments in R&D activities.

Asia Pacific market is projected to grow at around 8.5% CAGR through 2027 due to robust government policies.

LAM RESEARCH CORPORATION, Tokyo Electron Limited, ASML, Applied Materials, Inc. and Canon Inc. are some of the leading companies in global market.

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Premium Report Details

  • Base Year: 2020
  • Companies covered: 15
  • Tables & Figures: 219
  • Countries covered: 15
  • Pages: 250

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