Global Semiconductor Equipment Manufacturing Market Size Likely to Expand at a CAGR of 7.78% By 2033

As per the current market research conducted by the CMI Team, the global Semiconductor Equipment Manufacturing Market size is expected to record a CAGR of 7.78% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 111.38 Billion. By 2033, the valuation is anticipated to reach USD 218.60 Billion.

Semiconductor Equipment Manufacturing Market: Growth Factors and Dynamics

• Increasing Need for Advanced Semiconductors: The applications are AI, Internet of Things (IoT), 5G, and even autonomous vehicles, all of which make one dependent on these chips and thus create a demand for sophisticated manufacturing equipment. The need for these technologies changes because they require high-performance chips and better with smaller nodes and higher densities of transistors; thus, there will be investment in advanced tools such as extreme ultraviolet (EUV) lithography and atomic layer deposition equipment. Continued expansion of connected and smart devices, along with all industries, guarantees future continuous demand for next-generation semiconductors and, thus, fuels growth in the equipment market.

• Transition into Smaller Node Sizes: The demand extends to unique and accurate machines as this industry continues to make advancements toward manufacturing semiconductors at nodes smaller than 3 nm. Chip improvements, power savings, and architecture support are possible with a smaller node. For instance, the availability of certain advanced etching and deposition instruments is key in achieving the essential nanometer-scale precision. This raises challenges for manufacturers, who must constantly upgrade their existing systems to keep pace with emerging new technologies and thus continue to drive the expansion of this market.

• Growth of AI and IoT Applications: These specific applications transform industries by requiring powerful and efficient chips in combination with demanding standards of high bandwidth, low latency, and energy-efficient semiconductor solutions depending on advanced manufacturing processes; thus, they provide an opportunity for the equipment manufacturer since firms will invest in state-of-the-art tools for meeting the specifications of AI accelerators, IoT sensors, and edge devices. The return on investment is long-term oriented because these technologies’ growing global adoption promises to increase the market and support growth.

• Expansion of semiconductor foundries: The proliferation of semiconductor demand has led to considerable investments in new fabrication plants (fabs) and some expansions of existing ones, especially in Asia-Pacific and North America. While government investment and private companies are allocating billions of dollars to establish the most modern foundries, items such as photolithography, metrology, and wafer inspection tools have seen enormous increases in demand. Emerging investments will help address the current situation of global chip short supplies and increase the resilience of local supply chains.

• Government Support and Incentives: All governments are implementing policies and monetary incentives to boost the semiconductor manufacturing business. Example programs include the U.S. CHIPS Act and the European Union’s semiconductor funding initiatives. Such programs are meant to assist countries in diversifying sources of supply away from imports and into localized production capabilities. These developments increase demand for standard equipment as new manufacturing facilities are established compared to upgraded ones, resulting in more opportunities for equipment suppliers.

• Advances in Semiconductor Packaging: Advanced packaging techniques are putting the icing on the cake of prestige from the advanced packaging world. They include techniques like 3D stacking, chipset integration, and heterogeneous integration, which raise the overall performance levels, lower power consumption, and enhance compact designs for functions like AI and autonomous driving. The only items supporting manufacturers amid the increasing complexity of packaging are specialized tools such as precision bonding, inspection, and encapsulation. Such has brought with it the increased need to procure advanced equipment.

Semiconductor Equipment Manufacturing Market: Partnership and Acquisitions

• In 2021, the optical semiconductor inspection device that Applied Materials Incorporate launched is the digitization of new technologies such as big data and AI. These pieces of equipment are used in semiconductor manufacturing industries to verify chips that build electronic devices and assess defective integrated circuits.

Report Scope

Semiconductor Equipment Manufacturing Market: COVID-19 Analysis

The semiconductor equipment manufacturing market had a negative impact owing to the pandemic and the subsequent disruptions in global supply chain networks, shortage of labor force, and late production timelines. Lockdowns and restrictions in key manufacturing countries like China, South Korea, and Taiwan made a hole in their procurement and delivery of critical components, including silicon wafers, lithography tools, and rare materials.

Labor-related absenteeism due to health factors necessarily forced even more operational hindrances that impaired the manufacture and installation of equipment. Consumer spending dropped towards the onset of the pandemic, and so induced a short-term dip in demand for consumer electronics. While the demand for semiconductors underwent a cyclical fluctuation as remote work and the digital infrastructure impetus increased, the diversion of money into other needs and the initial disruptions highlighted the workload vulnerability of the industry to global crises.

List of the prominent players in the Semiconductor Equipment Manufacturing Market:

• ACM Research Inc.
• Advantest Corporation
• Applied Materials Inc.
• ASML
• Cohu Inc.
• Dainippon Screen Group
• EV Group (EVG)
• Ferrotec Holdings Corporation
• KLA Corporation
• Lam Research Corporation
• Modutek Corporation
• Nordson Corporation
• SCREEN Semiconductor Solutions Co. Ltd.
• Tokyo Electron Limited
• Tokyo Seimitsu Co. Ltd.
• Others

The Semiconductor Equipment Manufacturing Market is segmented as follows:

By Process

• Back-end
• Front-end

By Dimension

• 3D
• 5D
• 2D

By Application

• Testing & Inspection
• Semiconductor Fabrication Plant/Foundry
• Semiconductor Electronics Manufacturing

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America