Abstract
Summary
The semiconductor manufacturing equipment market is projected to reach USD 149.8 billion by 2028 from USD 91.2 billion in 2023, at a CAGR of 10.4% from 2023 to 2028. The major factors driving the market growth of the semiconductor manufacturing equipment market include increasing demand for semiconductor fabrication facilities, and the need for semiconductor parts in electric and hybrid vehicles.
The wafer testing/IC testing segment is projected to grow at the highest growth CAGR during the forecast period
The wafer testing/IC testing segment is projected to grow at the highest growth CAGR during the forecast period. The growth can are attributed to the need for accuracy in ICs. ICs need to be incorporated with multiple functions, and complex circuitry needs proper testing equipment to achieve accuracy. Wafer testing equipment are vital for testing electronic devices for functionality and performance at different points during the semiconductor manufacturing process. With new technological developments, there is an increase in the design complexities and development of new products.
Memory segment held the largest share of the semiconductor manufacturing equipment market in 2022
In 2022, memory held the largest share of the semiconductor manufacturing equipment market. Remote work and education fueled demand for laptop computers, propelling the dynamic random-access memory (DRAM) industry to greater heights in 2021. Solid-state drives (SSDs) using NAND flash storage, a nonvolatile storage that does not require power to maintain data, are being used by automotive and data center sectors. SSDs are now the industry standard for laptops and other mobile devices. A similar trend and increased use of memory ICs are expected in the automotive sector mainly due to the trends such as electric vehicles and autonomous vehicles, among others.
Asia Pacific is expected to account for the highest CAGR during the forecast period
The semiconductor manufacturing equipment market in Asia Pacific is projected to witness significant growth in the next few years owing to the increased adoption of this technology in Japan, China, and South Korea. China and Japan are the economic powerhouses of the region. Moreover, digitalization is rapidly gaining traction in developing countries like India. The use of smartphones and tablets is very high in the country. For instance, according to the India Brand Equity Foundation (IBEF), smartphone shipments in India in 2021 were valued at USD 173 million, which was a 14% increase from 2020.
The break-up of profile of primary participants in the semiconductor manufacturing equipment market-
• By Company Type: Tier 1 – 25%, Tier 2 – 35%, Tier 3 – 40%
• By Designation Type: C-level – 35%, Director Level – 25% , Others – 40%
• By Region Type: Americas – 29%, Europe, Middle East & Africa – 46%, Asia Pacific – 25%
The major players of semiconductor manufacturing equipment market are Applied Materials, Inc. (US), ASML (Netherlands), Tokyo Electron Limited (Japan), Lam Research Corporation (US), and KLA Corporation (US), among others.
Research Coverage
The report segments the semiconductor manufacturing equipment market and forecast its size based on front-end equipment, back-end equipment, fab facility equipment, product type, dimension, supply chain participant, and region. The report also provides a comprehensive review of drivers, restraints, opportunities, and challenges influencing the market growth. The report also covers qualitative aspects in addition to the quantitative aspects of the market.
Reasons to buy the report:
The report will help the market leaders/new entrants in this market with information on the closest approximate revenues for the overall semiconductor manufacturing equipment market and related segments. This report will help stakeholders understand the competitive landscape and gain more insights to strengthen their position in the market and plan suitable go-to-market strategies. The report also helps stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, opportunities, and challenges.
The report provides insights on the following pointers:
• Analysis of key drivers (increasing demand for semiconductor fabrication facilities, growing semiconductor industry, rising demand for semiconductor parts in electric and hybrid vehicles, surging demand for AI chips driven by future AI-driven workloads and applications, implementation of 5G technology, adoption of 5G technology and IoT increases demand for advanced semiconductors in US, and rising demand for electric vehicles in US), restraints (high cost of ownership and complexity of patterns and functional defects restrains semiconductor manufacturing process), opportunities (shortage of semiconductors leading to development of new manufacturing facilities, government initiatives to boost domestic semiconductor industry, and CHIPS Act to strengthen semiconductor supply chain in US), and challenges (lack of skilled workforce worldwide, environmental factors causing disruptions, possibility of water shortage at semiconductor fab facilities, longer construction timelines for new fabs in US, and shortage of lithography equipment) influencing the growth of the semiconductor manufacturing equipment market.
• Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product launches in the semiconductor manufacturing equipment market
• Market Development: Comprehensive information about lucrative markets – the report analyses the semiconductor manufacturing equipment market across varied regions
• Market Diversification: Exhaustive information about new products, untapped geographies, recent developments, and investments in the semiconductor manufacturing equipment market
• Competitive Assessment: In-depth assessment of market shares, growth strategies and product offerings of leading players like Applied Materials, Inc. (US), ASML (Netherlands), Tokyo Electron Limited (Japan), Lam Research Corporation (US), and KLA Corporation (US).
Table of Contents
1 INTRODUCTION 43
1.1 STUDY OBJECTIVES 43
1.2 MARKET DEFINITION 43
1.2.1 INCLUSIONS AND EXCLUSIONS 44
1.3 STUDY SCOPE 45
1.3.1 MARKETS COVERED 45
1.3.2 REGIONAL SCOPE 46
1.3.3 YEARS CONSIDERED 46
1.4 CURRENCY CONSIDERED 46
1.5 UNITS CONSIDERED 47
1.6 MARKET STAKEHOLDERS 47
1.7 SUMMARY OF CHANGES 47
1.7.1 RECESSION IMPACT 47
2 RESEARCH METHODOLOGY 48
2.1 RESEARCH DATA 48
2.1.1 SECONDARY AND PRIMARY RESEARCH 50
2.1.2 SECONDARY DATA 50
- 2.1.2.1 List of key secondary sources 51
- 2.1.2.2 Secondary sources 51
2.1.3 PRIMARY DATA 52
- 2.1.3.1 Breakdown of primaries 52
- 2.1.3.2 Key data from primary sources 52
- 2.1.3.3 Key industry insights 53
2.2 FACTOR ANALYSIS 54
2.3 MARKET SIZE ESTIMATION 56
2.3.1 BOTTOM-UP APPROACH 56
- 2.3.1.1 Approach for obtaining market size/share using bottom-up analysis (demand side) 56
2.3.2 TOP-DOWN APPROACH 57
- 2.3.2.1 Approach for obtaining market share/size using top-down analysis (supply side) 57
2.4 DATA TRIANGULATION 58
2.5 RESEARCH ASSUMPTIONS 59
2.5.1 ASSUMPTIONS 59
2.5.2 RESEARCH LIMITATIONS 60
2.6 RISK ASSESSMENT 60
2.7 IMPACT OF RECESSION ON SEMICONDUCTOR MANUFACTURING EQUIPMENT MARKET 61
3 EXECUTIVE SUMMARY 62
3.1 IMPACT OF RECESSION ON SEMICONDUCTOR MANUFACTURING EQUIPMENT MARKET 62
3.1.1 GLOBAL ECONOMY OUTLOOK 62
3.1.2 PRE-RECESSION SCENARIO 63
3.1.3 POST-RECESSION SCENARIO 63
4 PREMIUM INSIGHTS 68
4.1 OPPORTUNITIES FOR PLAYERS IN SEMICONDUCTOR MANUFACTURING EQUIPMENT MARKET 68
4.2 SEMICONDUCTOR MANUFACTURING EQUIPMENT MARKET, BY FRONT-END EQUIPMENT 69
4.3 SEMICONDUCTOR MANUFACTURING EQUIPMENT MARKET, BY BACK-END EQUIPMENT 69
4.4 SEMICONDUCTOR MANUFACTURING EQUIPMENT MARKET, BY FAB FACILITY EQUIPMENT 70
4.5 SEMICONDUCTOR MANUFACTURING EQUIPMENT MARKET, BY PRODUCT TYPE 70
4.6 SEMICONDUCTOR MANUFACTURING EQUIPMENT MARKET, BY DIMENSION 71
4.7 SEMICONDUCTOR MANUFACTURING EQUIPMENT MARKET, BY SUPPLY CHAIN PARTICIPANT 71
4.8 SEMICONDUCTOR MANUFACTURING EQUIPMENT MARKET, BY COUNTRY 72
4.9 SEMICONDUCTOR MANUFACTURING EQUIPMENT MARKET, BY REGION 72
5 MARKET OVERVIEW 73
5.1 INTRODUCTION 73
5.2 MARKET DYNAMICS 73
5.2.1 DRIVERS 74
- 5.2.1.1 Increasing demand for semiconductor fabrication facilities 74
- 5.2.1.2 Growing semiconductor industry 74
- 5.2.1.3 Rising demand for semiconductor parts in electric and hybrid vehicles 75
- 5.2.1.4 Surging demand for AI chips driven by future AI-driven workloads and applications 76
- 5.2.1.5 Implementation of 5G technology 77
- 5.2.1.6 Adoption of 5G technology and IoT increases demand for advanced semiconductors in US 78
- 5.2.1.7 Rising demand for electric vehicles in US 78
5.2.2 RESTRAINTS 80
- 5.2.2.1 High cost of ownership 80
- 5.2.2.2 Complexity of patterns and functional defects in semiconductor chips 80
5.2.3 OPPORTUNITIES 81
- 5.2.3.1 Shortage of semiconductors leading to development of new manufacturing facilities 81
- 5.2.3.2 Government initiatives to boost domestic semiconductor industry 81
- 5.2.3.3 CHIPS Act to strengthen semiconductor supply chain in US 83
5.2.4 CHALLENGES 87
- 5.2.4.1 Lack of skilled workforce worldwide 87
- 5.2.4.2 Environmental factors causing disruptions 87
- 5.2.4.3 Longer construction timelines for new fabs in US 88
- 5.2.4.4 Possibility of water shortage at semiconductor fab facilities in US 89
- 5.2.4.5 Shortage of lithography equipment 89
5.3 SUPPLY CHAIN ANALYSIS 90
5.4 TRENDS AND DISRUPTIONS IMPACTING CUSTOMERS 94
5.4.1 REVENUE SHIFT AND NEW REVENUE POCKETS FOR MARKET PLAYERS 95
5.5 SEMICONDUCTOR MANUFACTURING EQUIPMENT MARKET ECOSYSTEM 95
5.6 PORTER’S FIVE FORCES ANALYSIS 96
5.6.1 THREAT OF NEW ENTRANTS 97
5.6.2 THREAT OF SUBSTITUTES 98
5.6.3 BARGAINING POWER OF SUPPLIERS 98
5.6.4 BARGAINING POWER OF BUYERS 98
5.6.5 INTENSITY OF COMPETITIVE RIVALRY 98
5.7 CASE STUDIES 99
5.7.1 IMPLEMENTATION OF JBK’S MAKING SERVICE WORK PROGRAM TO TRAIN FIELD ENGINEERS ON SEMICONDUCTOR PRODUCTION EQUIPMENT 99
5.7.2 CLOSED-LOOP MONITORING AND CONTROL BASED ON THERMAL BEHAVIOR TO HELP DECREASE REJECTIONS 99
5.7.3 SPTS’S DRIE TECHNOLOGY STRENGTHENED IMEC’S SILICON ETCH PLATFORM 100
5.8 TECHNOLOGY ANALYSIS 100
5.8.1 WAFER BONDING 100
5.8.2 FLIP CHIP 100
5.8.3 FAN-OUT WAFER-LEVEL PACKAGING (FOWLP) 101
5.8.4 SOFT SOLDER 101
5.9 AVERAGE SELLING PRICE ANALYSIS 101
5.10 TRADE ANALYSIS 102
5.10.1 IMPORT SCENARIO 102
5.10.2 EXPORT SCENARIO 103
5.11 PATENTS ANALYSIS, 2019-2023 104
5.12 KEY CONFERENCES AND EVENTS, 2023-2024 112
5.13 KEY STAKEHOLDERS AND BUYING CRITERIA 113
5.13.1 KEY STAKEHOLDERS ON BUYING PROCESS 113
5.13.2 BUYING CRITERIA 114
5.14 TARIFFS AND REGULATORY LANDSCAPE 115
5.14.1 TARIFFS 115
5.14.2 REGULATORY BODIES, GOVERNMENT AGENCIES, AND OTHER ORGANIZATIONS 115
- 5.14.2.1 North America 115
- 5.14.2.2 Europe 115
5.14.3 REGULATIONS 116
5.14.4 STANDARDS 116
6 SEMICONDUCTOR MANUFACTURING EQUIPMENT MARKET, BY FRONT-END EQUIPMENT 117
6.1 INTRODUCTION 118
6.2 LITHOGRAPHY 123
6.2.1 DUV LITHOGRAPHY 125
- 6.2.1.1 Involves projection optics through i-line, KrF, ArF Dry, and ArFi 125
6.2.2 EUV LITHOGRAPHY 125
- 6.2.2.1 Help maximize efficiency and yield in semiconductor manufacturing process 125
6.3 WAFER SURFACE CONDITIONING 128
6.3.1 ETCHING 132
- 6.3.1.1 Wet etching cleans wafers and dry etching removes substrate material 132
6.3.2 CHEMICAL MECHANICAL PLANARIZATION (CMP) 136
- 6.3.2.1 Combination of chemical and mechanical forces to smoothen and flatten silicon wafers 136
6.4 WAFER CLEANING 139
6.4.1 SINGLE-WAFER SPRAY SYSTEMS 142
- 6.4.1.1 Provide precise control over localized surface 142
6.4.2 SINGLE-WAFER CRYOGENIC SYSTEMS 143
- 6.4.2.1 Effectively clean wafers without using water and chemicals 143
6.4.3 BATCH IMMERSION CLEANING SYSTEMS 143
- 6.4.3.1 Can be effectively reused for several batches of wafers 143
6.4.4 BATCH SPRAY CLEANING SYSTEMS 144
- 6.4.4.1 Provide abilities of batch immersion processing systems and single-wafer processing systems 144
6.4.5 SCRUBBERS 145
- 6.4.5.1 Help remove nano-sized slurry particles 145
6.5 DEPOSITION 145
6.5.1 PVD 148
- 6.5.1.1 Performs processes with lower risk and with inexpensive materials 148
6.5.2 CVD 149
- 6.5.2.1 Used to produce complex structures and high-performance solid materials 149
6.6 OTHER FRONT-END EQUIPMENT 149
7 SEMICONDUCTOR MANUFACTURING EQUIPMENT MARKET, BY BACK-END EQUIPMENT 153
7.1 INTRODUCTION 154
7.2 ASSEMBLY AND PACKAGING 159
7.2.1 OSAT COMPANIES TO CONTRIBUTE SIGNIFICANTLY TO SEGMENT GROWTH 159
7.3 DICING 165
7.3.1 PLASMA DICING IS BETTER THAN CONVENTIONAL BLADE AND LASER DICING 165
7.4 METROLOGY 168
7.4.1 GROWTH IN AUTOMATION LED TO INCREASED PENETRATION OF METROLOGY EQUIPMENT TO REDUCE DEFECTS 168
7.5 BONDING 171
7.5.1 3D SEMICONDUCTOR ASSEMBLY AND PACKAGING ARE KEY GROWTH FACTORS FOR BONDING EQUIPMENT SEGMENT 171
7.6 WAFER TESTING/IC TESTING 175
7.6.1 RISING DEMAND FOR HIGH-QUALITY ELECTRONIC PRODUCTS BOOSTS DEMAND FOR TESTING EQUIPMENT DURING FABRICATION AND ASSEMBLY 175
8 SEMICONDUCTOR MANUFACTURING EQUIPMENT MARKET, BY FAB FACILITY EQUIPMENT 179
8.1 INTRODUCTION 180
8.2 AUTOMATION 184
8.2.1 INCREASING DEMAND FOR FACTORY AUTOMATION IN SEMICONDUCTOR INDUSTRY TO DRIVE SEGMENT 184
8.3 CHEMICAL CONTROL 185
8.3.1 RISING DEMAND TO DELIVER RELIABLE AMOUNT OF CHEMICALS WITH REQUIRED PURITY LEVEL DURING SEMICONDUCTOR MANUFACTURING PROCESS DRIVES MARKET GROWTH 185
8.4 GAS CONTROL 185
8.4.1 NECESSITY TO PROVIDE PRECISE CONTROL AND MIXING OF INDUSTRIAL PROCESS GASES TO FUEL MARKET GROWTH 185
8.5 OTHER FAB FACILITY EQUIPMENT 186
9 SEMICONDUCTOR MANUFACTURING EQUIPMENT MARKET, BY PRODUCT TYPE 188
9.1 INTRODUCTION 189
9.2 MEMORY 190
9.2.1 DEMAND FOR APPLICATION PROCESSORS AND OTHER TELECOM DEVICES TO DRIVE SEGMENT 190
9.3 FOUNDRY 193
9.3.1 PURE-PLAY FOUNDRIES TO WITNESS GROWTH DUE TO DEMAND FOR APPLICATION PROCESSORS AND OTHER TELECOM DEVICES 193
9.4 LOGIC 194
9.4.1 LOGIC DEVICES HELP BUILD CONFIGURABLE DIGITAL CIRCUITS USED IN ALL ELECTRONIC DEVICES 194
9.5 MPU 196
9.5.1 EXTENSIVE USE IN CONSUMER ELECTRONICS TO BOOST DEMAND FOR MPUS DURING FORECAST PERIOD 196
9.6 DISCRETE 197
9.6.1 INCREASING MINIATURIZATION OF DEVICES TO DRIVE DEMAND FOR DISCRETE COMPONENTS 197
9.7 ANALOG, MEMS, AND OTHERS 199
9.7.1 GROWTH OF MEMS IS ATTRIBUTED TO DEMAND FROM CONSUMER ELECTRONICS AND MEDICAL APPLICATIONS 199
10 SEMICONDUCTOR MANUFACTURING EQUIPMENT MARKET, BY DIMENSION 202
10.1 INTRODUCTION 203
10.2 2D ICS 205
10.2.1 LOW INITIAL COST OF 2D IC TECHNOLOGY PROMOTES ITS USE IN CONVENTIONAL HIGH-END APPLICATIONS 205
10.3 2.5D ICS 206
10.3.1 HELP INCREASE CAPACITY AND PERFORMANCE OF SEMICONDUCTOR DEVICES 206
10.4 3D ICS 207
10.4.1 MINIATURIZATION OF DEVICES DRIVES DEMAND FOR 3D ICS 207
11 SEMICONDUCTOR MANUFACTURING EQUIPMENT MARKET, BY SUPPLY CHAIN PARTICIPANT 209
11.1 INTRODUCTION 210
11.2 IDM FIRMS 211
11.2.1 FOCUS ON SEMICONDUCTOR DESIGN AND PRODUCTION AND HAVE INTERNAL CAPABILITY TO PERFORM BOTH 211
11.3 OSAT COMPANIES 212
11.3.1 LESS INVESTMENTS AND ATTRACTIVE REVENUE FOSTER GROWTH OF OSAT COMPANIES 212
11.4 FOUNDRIES 213
11.4.1 INCREASED SEMICONDUCTOR OUTSOURCING BY FABLESS COMPANIES TO SPUR GROWTH OF FOUNDRY PLAYERS 213
12 SEMICONDUCTOR MANUFACTURING EQUIPMENT MARKET, BY REGION 215
12.1 INTRODUCTION 216
12.2 AMERICAS 217
12.2.1 US 224
- 12.2.1.1 To lead semiconductor manufacturing equipment market in Americas 224
12.2.2 CANADA 225
- 12.2.2.1 Government initiatives to drive market 225
12.2.3 REST OF THE AMERICAS 226
12.3 EUROPE, MIDDLE EAST & AFRICA 227
12.3.1 GERMANY 233
- 12.3.1.1 Growth in smart homes and connected cars to boost demand for semiconductor manufacturing equipment 233
12.3.2 UK 234
- 12.3.2.1 Flourishing consumer electronics industry to drive market growth 234
12.3.3 IRELAND 234
- 12.3.3.1 Presence of Intel’s fab to drive semiconductor manufacturing equipment market 234
12.3.4 FRANCE 235
- 12.3.4.1 Well-developed semiconductor production fabs to boost market growth 235
12.3.5 ITALY 235
- 12.3.5.1 Increased government investments to strengthen Italy’s semiconductor industry to drive market growth 235
12.3.6 REST OF EUROPE, MIDDLE EAST & AFRICA 235
12.4 ASIA PACIFIC 236
12.4.1 SOUTH KOREA 242
- 12.4.1.1 High manufacturing capability to drive market growth 242
12.4.2 CHINA 243
- 12.4.2.1 Huge customer and supplier base to fuel market growth 243
12.4.3 TAIWAN 244
- 12.4.3.1 Presence of many key OSAT companies to drive market growth in Taiwan 244
12.4.4 JAPAN 244
- 12.4.4.1 Increasing demand for vehicles and consumer electronics and expanding presence of market players to drive market 244
12.4.5 REST OF ASIA PACIFIC 245
13 COMPETITIVE LANDSCAPE 246
13.1 OVERVIEW 246
13.2 MARKET EVALUATION FRAMEWORK 246
13.2.1 PRODUCT PORTFOLIO 247
13.2.2 REGIONAL FOCUS 247
13.2.3 MANUFACTURING FOOTPRINT 247
13.2.4 ORGANIC/INORGANIC STRATEGIES 248
13.3 MARKET SHARE ANALYSIS, 2022 248
13.4 FIVE-YEAR REVENUE ANALYSIS OF TOP FIVE COMPANIES, 2018-2022 250
13.5 KEY COMPANY EVALUATION QUADRANT, 2022 251
13.5.1 STARS 251
13.5.2 EMERGING LEADERS 251
13.5.3 PERVASIVE PLAYERS 251
13.5.4 PARTICIPANTS 252
13.6 STARTUPS/SMES EVALUATION QUADRANT 253
13.6.1 COMPETITIVE BENCHMARKING 256
13.6.2 PROGRESSIVE COMPANIES 257
13.6.3 RESPONSIVE COMPANIES 257
13.6.4 DYNAMIC COMPANIES 257
13.6.5 STARTING BLOCKS 258
13.7 COMPANY FOOTPRINT 259
13.8 COMPETITIVE SCENARIOS AND TRENDS 263
13.8.1 PRODUCT LAUNCHES 263
13.8.2 DEALS 268
13.8.3 OTHERS 272
14 COMPANY PROFILES 274
14.1 KEY PLAYERS 274
14.1.1 TOKYO ELECTRON LIMITED 274
14.1.2 LAM RESEARCH CORPORATION 280
14.1.3 ASML 290
14.1.4 APPLIED MATERIALS, INC. 295
14.1.5 KLA CORPORATION 304
14.1.6 SCREEN HOLDINGS CO., LTD. 312
14.1.7 TERADYNE, INC. 318
14.1.8 ADVANTEST CORPORATION 321
14.1.9 HITACHI, LTD. (HITACHI HIGH-TECH CORPORATION) 328
14.1.10 PLASMA-THERM 333
14.2 OTHER PLAYERS 336
14.2.1 VEECO INSTRUMENTS INC. 336
14.2.2 EV GROUP (EVG) 337
14.2.3 ONTO INNOVATION 338
14.2.4 NORDSON CORPORATION 339
14.2.5 ADVANCED DICING TECHNOLOGIES (ADT) 340
14.2.6 QP TECHNOLOGIES 341
14.2.7 EVATEC AG 342
14.2.8 MODUTEK CORPORATION 343
14.2.9 NIKON CORPORATION 343
14.2.10 SEMICONDUCTOR EQUIPMENT CORPORATION 344
14.2.11 DAIFUKU CO., LTD. 344
14.2.12 FORMFACTOR, INC. 345
14.2.13 CANON INC. 346
14.2.14 SEMES 347
14.2.15 KOKUSAI ELECTRIC CORPORATION 348
15 APPENDIX 349
15.1 DISCUSSION GUIDE 349
15.2 KNOWLEDGESTORE: MARKETSANDMARKETS’ SUBSCRIPTION PORTAL 353
15.3 CUSTOMIZATION OPTIONS 355
15.4 RELATED REPORTS 355
15.5 AUTHOR DETAILS 356