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.
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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.
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.
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.
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 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 |
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| Companies Mentioned | Tokyo Electron Limited, Applied Materials, Inc., ASML, LAM RESEARCH CORPORATION, and Canon Inc. |
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.
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.
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.
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
By Dimension
By Supply Chain Process
By Geography
Chapter 1. Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
Chapter 2. Research Methodology
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
Chapter 3. Executive Summary
3.1. Market Snapshot
Chapter 4. Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Channel Analysis
4.3.3. Downstream Buyer Analysis
Chapter 5. COVID 19 Impact on Semiconductor Production Equipment Market
5.1. COVID-19 Landscape: Semiconductor Production Equipment Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Global Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
Chapter 6. Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
Chapter 7. Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
Chapter 8. Global Semiconductor Production Equipment Market, By Product
8.1. Semiconductor Production Equipment Market, by Product Type, 2023-2032
8.1.1. Front-end equipment (Front-end equipment, Lithography, Polishing & grinding, Water surface conditioning equipment, Others)
8.1.1.1. Market Revenue and Forecast (2020-2032)
8.1.2. Back-end equipment (Wafer manufacturing equipment, Assembly & packaging equipment, Test equipment, Others)
8.1.2.1. Market Revenue and Forecast (2020-2032)
Chapter 9. Global Semiconductor Production Equipment Market, By Dimension
9.1. Semiconductor Production Equipment Market, by Dimension, 2023-2032
9.1.1. 2D
9.1.1.1. Market Revenue and Forecast (2020-2032)
9.1.2. 2.5D
9.1.2.1. Market Revenue and Forecast (2020-2032)
9.1.3. 3D
9.1.3.1. Market Revenue and Forecast (2020-2032)
Chapter 10. Global Semiconductor Production Equipment Market, By Supply Chain Process
10.1. Semiconductor Production Equipment Market, by Supply Chain Process, 2023-2032
10.1.1. OSAT
10.1.1.1. Market Revenue and Forecast (2020-2032)
10.1.2. IDM
10.1.2.1. Market Revenue and Forecast (2020-2032)
10.1.3. Foundry
10.1.3.1. Market Revenue and Forecast (2020-2032)
Chapter 11. Global Semiconductor Production Equipment Market, Regional Estimates and Trend Forecast
11.1. North America
11.1.1. Market Revenue and Forecast, by Product (2020-2032)
11.1.2. Market Revenue and Forecast, by Dimension (2020-2032)
11.1.3. Market Revenue and Forecast, by Supply Chain Process (2020-2032)
11.1.4. U.S.
11.1.4.1. Market Revenue and Forecast, by Product (2020-2032)
11.1.4.2. Market Revenue and Forecast, by Dimension (2020-2032)
11.1.4.3. Market Revenue and Forecast, by Supply Chain Process (2020-2032)
11.1.5. Rest of North America
11.1.5.1. Market Revenue and Forecast, by Product (2020-2032)
11.1.5.2. Market Revenue and Forecast, by Dimension (2020-2032)
11.1.5.3. Market Revenue and Forecast, by Supply Chain Process (2020-2032)
11.2. Europe
11.2.1. Market Revenue and Forecast, by Product (2020-2032)
11.2.2. Market Revenue and Forecast, by Dimension (2020-2032)
11.2.3. Market Revenue and Forecast, by Supply Chain Process (2020-2032)
11.2.4. UK
11.2.4.1. Market Revenue and Forecast, by Product (2020-2032)
11.2.4.2. Market Revenue and Forecast, by Dimension (2020-2032)
11.2.4.3. Market Revenue and Forecast, by Supply Chain Process (2020-2032)
11.2.5. Germany
11.2.5.1. Market Revenue and Forecast, by Product (2020-2032)
11.2.5.2. Market Revenue and Forecast, by Dimension (2020-2032)
11.2.5.3. Market Revenue and Forecast, by Supply Chain Process (2020-2032)
11.2.6. France
11.2.6.1. Market Revenue and Forecast, by Product (2020-2032)
11.2.6.2. Market Revenue and Forecast, by Dimension (2020-2032)
11.2.6.3. Market Revenue and Forecast, by Supply Chain Process (2020-2032)
11.2.7. Rest of Europe
11.2.7.1. Market Revenue and Forecast, by Product (2020-2032)
11.2.7.2. Market Revenue and Forecast, by Dimension (2020-2032)
11.2.7.3. Market Revenue and Forecast, by Supply Chain Process (2020-2032)
11.3. APAC
11.3.1. Market Revenue and Forecast, by Product (2020-2032)
11.3.2. Market Revenue and Forecast, by Dimension (2020-2032)
11.3.3. Market Revenue and Forecast, by Supply Chain Process (2020-2032)
11.3.4. India
11.3.4.1. Market Revenue and Forecast, by Product (2020-2032)
11.3.4.2. Market Revenue and Forecast, by Dimension (2020-2032)
11.3.4.3. Market Revenue and Forecast, by Supply Chain Process (2020-2032)
11.3.5. China
11.3.5.1. Market Revenue and Forecast, by Product (2020-2032)
11.3.5.2. Market Revenue and Forecast, by Dimension (2020-2032)
11.3.5.3. Market Revenue and Forecast, by Supply Chain Process (2020-2032)
11.3.6. Japan
11.3.6.1. Market Revenue and Forecast, by Product (2020-2032)
11.3.6.2. Market Revenue and Forecast, by Dimension (2020-2032)
11.3.6.3. Market Revenue and Forecast, by Supply Chain Process (2020-2032)
11.3.7. Rest of APAC
11.3.7.1. Market Revenue and Forecast, by Product (2020-2032)
11.3.7.2. Market Revenue and Forecast, by Dimension (2020-2032)
11.3.7.3. Market Revenue and Forecast, by Supply Chain Process (2020-2032)
11.4. MEA
11.4.1. Market Revenue and Forecast, by Product (2020-2032)
11.4.2. Market Revenue and Forecast, by Dimension (2020-2032)
11.4.3. Market Revenue and Forecast, by Supply Chain Process (2020-2032)
11.4.4. GCC
11.4.4.1. Market Revenue and Forecast, by Product (2020-2032)
11.4.4.2. Market Revenue and Forecast, by Dimension (2020-2032)
11.4.4.3. Market Revenue and Forecast, by Supply Chain Process (2020-2032)
11.4.5. North Africa
11.4.5.1. Market Revenue and Forecast, by Product (2020-2032)
11.4.5.2. Market Revenue and Forecast, by Dimension (2020-2032)
11.4.5.3. Market Revenue and Forecast, by Supply Chain Process (2020-2032)
11.4.6. South Africa
11.4.6.1. Market Revenue and Forecast, by Product (2020-2032)
11.4.6.2. Market Revenue and Forecast, by Dimension (2020-2032)
11.4.6.3. Market Revenue and Forecast, by Supply Chain Process (2020-2032)
11.4.7. Rest of MEA
11.4.7.1. Market Revenue and Forecast, by Product (2020-2032)
11.4.7.2. Market Revenue and Forecast, by Dimension (2020-2032)
11.4.7.3. Market Revenue and Forecast, by Supply Chain Process (2020-2032)
11.5. Latin America
11.5.1. Market Revenue and Forecast, by Product (2020-2032)
11.5.2. Market Revenue and Forecast, by Dimension (2020-2032)
11.5.3. Market Revenue and Forecast, by Supply Chain Process (2020-2032)
11.5.4. Brazil
11.5.4.1. Market Revenue and Forecast, by Product (2020-2032)
11.5.4.2. Market Revenue and Forecast, by Dimension (2020-2032)
11.5.4.3. Market Revenue and Forecast, by Supply Chain Process (2020-2032)
11.5.5. Rest of LATAM
11.5.5.1. Market Revenue and Forecast, by Product (2020-2032)
11.5.5.2. Market Revenue and Forecast, by Dimension (2020-2032)
11.5.5.3. Market Revenue and Forecast, by Supply Chain Process (2020-2032)
Chapter 12. Company Profiles
12.1. Tokyo Electron Limited
12.1.1. Company Overview
12.1.2. Product Offerings
12.1.3. Financial Performance
12.1.4. Recent Initiatives
12.2. Applied Materials, Inc.
12.2.1. Company Overview
12.2.2. Product Offerings
12.2.3. Financial Performance
12.2.4. Recent Initiatives
12.3. ASML
12.3.1. Company Overview
12.3.2. Product Offerings
12.3.3. Financial Performance
12.3.4. Recent Initiatives
12.4. LAM RESEARCH CORPORATION
12.4.1. Company Overview
12.4.2. Product Offerings
12.4.3. Financial Performance
12.4.4. Recent Initiatives
12.5. Canon Inc
12.5.1. Company Overview
12.5.2. Product Offerings
12.5.3. Financial Performance
12.5.4. Recent Initiatives
Chapter 13. Research Methodology
13.1. Primary Research
13.2. Secondary Research
13.3. Assumptions
Chapter 14. Appendix
14.1. About Us
14.2. Glossary of Terms
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