Semiconductor Production Equipment Market (By Product: Front-end equipment, Back-end equipment; By Dimension: 2D, 2.5D, 3D; By Supply Chain Process: OSAT, IDM, Foundry) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023 - 2032


The global semiconductor production equipment market was estimated at USD 72 billion in 2022 and is expected to reach over USD 176 billion by 2032 with a remarkable CAGR of 9.40% during the forecast period 2023 to 2032. 

Semiconductor Production Equipment Market Size 2023-2032

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Key Takeaways

  • Asia Pacific led the global market with the highest market share of 40% in 2022.
  • By Product, the front-end semiconductor segment has held the biggest revenue share of 75% in 2022.
  • By Dimension, the 2.5D segment generated more than 35% of revenue share in 2022.
  • By Supply Chain Process, the integrated device manufacturer (IDM) segment had the largest market share of 45% in 2022.

Semiconductor Production Equipment Market Size in the Asia Pacific 2023 To 2032

The Asia Pacific semiconductor production equipment market was valued at USD 46.80 billion in 2022 and is projected to grow around USD 116.51 billion by 2032 with a significant CAGR of 9.60% between 2023 to 2032.

Asia Pacific Semiconductor Production Equipment Market Size 2023 To 2032

The Asia Pacific semiconductor manufacturing equipment market accounted for more than 75% of revenue in 2022, and is predicted to increase at an annual rate of 8.5% by 2032. The supportive government programmers and financial actions are expected to boost semiconductor production in the region driving the market revenue. The consumer electronics market is centered on Asia Pacific, which is served by various fabrication sites in the Asia Pacific area.

Semiconductor Production Equipment Market Share, By Region, 2020 (%)

China, Japan, South Korea, and Taiwan have the most fabrication plants in the world. Favorable economic conditions and low labor costs in Asia Pacific are the primary drivers that are anticipated to drive the growth of the Semiconductor Production Equipment market. The region is one of the world's greatest markets for electric and autonomous vehicles, as well as a hotbed of consumer electronics demand in recent years. As a result, semiconductor goods have grown in popularity, driving the demand for semiconductor production equipment.

Growth Factors

The market for semiconductor manufacturing equipment is predicted to grow as consumer electronics demand grows. The rising demand for semiconductor chips from producers of consumer electronics, medical gadgets, and sensor systems is propelling the semiconductor industry forward. The rise of the middle class, changing lifestyle tastes, and a growing desire to use smart electronic devices have all contributed to the growth of consumer electronics in recent years. This indicates that over the projection period, the market for semiconductor manufacturing equipment will rise at a rapid pace.

Furthermore, during the projection period, the semiconductor sector is expected to increase at a CAGR of above 5%. This is attributed to a rise in both mobile and consumer electronic device sales. Over the projection period, emerging technologies such as the Internet of Things (IoT), connected gadgets, ultra-high-definition (UHD) televisions, automotive automation, and hybrid laptops will continue to fuel demand for semiconductor wafers. Market analysts predict that demand for semiconductor wafers would rise significantly throughout the forecast period, particularly in the automotive and industrial sectors.

Other growth-promoting elements include the use of artificial intelligence (AI) technologies and the integration of connected devices with the Internet of Things (IoT). IoT-enabled silicon-based sensors are being used in production equipment by electronics makers to provide remote monitoring capabilities for complex circuit boards. Other factors, such as the growing trend of device downsizing and intensive research and development (R&D) efforts, are expected to propel the growth of Semiconductor Production Equipment market even more. For instance, On 12th September 2021, Lam Research has announced that in December 2021, it will establish a new 45,000 square foot plant in Sherwood, Oregon, to increase its manufacturing footprint in the state. This new site will provide chipmakers with the crucial instruments needed to produce chips that power sophisticated electronic devices. Lam is one of the world's top providers of semiconductor fabrication equipment. The new plant is Lam's fifth in the United States, and it will strengthen the company's resilience and ability to satisfy growing customer demand as chipmakers attempt to scale up production globally.

Report Scope of the Semiconductor Production Equipment Market

Report Highlights Details
Market Size in 2023  USD 78.41 Billion
Market Size by 2032  USD 176 Billion
Growth Rate from 2023 to 2032 CAGR of 9.40%
Largest Market Asia Pacific
Base Year 2022
Forecast Period 2023 to 2032
Segments Covered Product, Dimension, Supply Chain Process
Regional Scope
  • North America
  • Europe
  • Asia Pacific
  • LAMEA
Companies Mentioned Tokyo Electron Limited, Applied Materials, Inc., ASML, LAM RESEARCH CORPORATION, and Canon Inc.

 

Product Insights

Based on the Product, in 2022, the front-end semiconductor production equipment category accounted for more than 60% of sales and is expected to expand at CAGR of 9.1% during the forecast period.

Semiconductor Production Equipment Market Share, By Product, 2020 (%)

Several high-end capabilities given by lithography front-end equipment credited with the industry's growth, as they support semiconductor volume/mass manufacturing. These lithography systems are expensive pieces of equipment, costing up to USD 150 million per unit. The producers and providers of semiconductor production equipment benefit from substantial profit margins. Foundry firms and IDMs are the primary drivers of lithography-based semiconductor production equipment demand.

Dimension Insights

Based on the Dimension, the Semiconductor Production Equipment Market is divided 2D, 2.5D and 3D. Because of the rising use of 2.5D packaging architecture in stacked memory modules, the 2.5D sector hit 35% market share in 2022 and is expected to grow at an annual rate of 8.2% until 2032. 2.5D design achieves greater chip functions, broader bandwidth, and improved memory performance in stacked semiconductor memory. To be competitive in the industry, market leaders place a strong emphasis on replacing traditional 2D architecture with 2.5D layered architecture. The expansion of the semiconductor manufacturing equipment sector will be aided by increased development of High Bandwidth Memory (HBM) products.

Supply Chain Process Insights

Based on the Supply Chain Process, the Semiconductor Production Equipment Market is divided into OSAT, IDM and Foundry. In the semiconductor manufacturing equipment market, the integrated device manufacturer (IDM) sector accounted for more than 45% of revenue in 2020. The advancement of the sector can be credited to IDM companies increasing their spending in research and development to develop technically sophisticated semiconductor ICs, sensors, RFID circuits, and system on chips. To enhance their IC production capacity, these companies are partnering with semiconductor manufacturing equipment providers. Participants in the industry are also focusing on improving their IC production facilities, which will drive up demand for semiconductor manufacturing equipment in the market.

Key Companies Profiled

The global semiconductor production equipment market is characterized by the presence of various small and big players. The major market player includes Tokyo Electron Limited, Applied Materials, Inc., ASML, LAM RESEARCH CORPORATION, and Canon Inc. As the market is competitive in nature, the players are indulged in rapid adoption of advanced technologies to improve the performance of the semiconductors and in raising their competitive share by means of strategic initiatives like mergers, new product and acquisitions.

Segments Covered in the Report

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

By Dimension

  • 2D
  • 2.5D
  • 3D

By Supply Chain Process

  • OSAT
  • IDM
  • Foundry

By Geography

  • North America
  • Europe
  • Asia Pacific
  • LAMEA

 

Frequently Asked Questions

What is the current size of semiconductor production equipment market?
The global semiconductor production equipment market size was reached at USD 72 billion in 2022 and is projected to reach over USD 176 billion by 2032.
What is the CAGR of semiconductor production equipment market?
The global semiconductor production equipment market is growing at a CAGR of 9.40 % during the forecast period 2023 to 2032.
Which are the driving factors of the semiconductor production equipment market?
Rising demand for mobile phones and rapid growth of consumer electronic product fosters the market growth.
Who are the major players in the semiconductor production equipment market?
The major market player includes Tokyo Electron Limited, Applied Materials, Inc., ASML, LAM RESEARCH CORPORATION, and Canon Inc.
Which region will lead the global semiconductor production equipment market?
The Asia Pacific semiconductor manufacturing equipment market accounted for more than 75% of revenue in 2022, and is predicted to increase at an annual rate of 8.5% by 2032.

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