Semiconductor Equipment Market Size 2024-2028 

The semiconductor equipment market size is estimated to grow by USD 37.20 billion at a CAGR of 7.08% between 2023 and 2028. The market is experiencing significant growth, driven by increasing investments in advanced fabrication facilities and the expansion of the global chip manufacturing industry. With the number of chip fabrication (FABS) continuing to rise worldwide, the market is poised for continued expansion. However, the semiconductor industry is known for its cyclical nature, which presents challenges for market participants. To stay competitive, companies must innovate and adapt to changing market conditions. Additionally, advancements in technology, such as the development of new manufacturing processes and the integration of artificial intelligence and machine learning into semiconductor production, are key trends shaping the market. Despite these challenges and trends, the long-term outlook for the semiconductor equipment market remains positive, with strong demand for advanced technology solutions expected to drive growth.

What will be the Size of the Market During the Forecast Period?

For More Highlights About this Report, Request Free Sample

Market Dynamic and Customer Landscape

The market is witnessing significant growth due to the increasing demand for electronic devices, particularly in the smartphone and consumer electronics industries. The market is driven by the deployment of wireless technologies such as 5G and the integration of artificial intelligence, augmented reality, and mission-critical services. The market is segmented into semiconductors, wafer sizes, and wafer fabrication equipment. Semiconductors include memory chips, integrated circuits, and sensors. Wafer sizes include 300 mm silicon wafers and 200 mm silicon wafers. Wafer fabrication equipment includes jet wave machines and other equipment used in the production of semiconductor circuits. The Chips and Science Act is driving advancements in semiconductor machinery, including molecular beam epitaxy equipment and testing and assembly equipment, to support the development of 2 Dimension, 3 Dimension, and 25 Dimension technologies for automotive industries and Internet of Things technologies. The market is also influenced by the semiconductor shortage and the growing demand for low-cost semiconductors. The market is further propelled by the increasing number of mobile subscriptions, mobile broadband subscriptions, and smartphone-related subscriptions. The market is expected to grow significantly due to the increasing demand for Silicon Carbide, AI-enabled chips, and optoelectronics in various applications such as fixed wireless access, the Internet of Things, and mission-critical services. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

Growing investments in fabrication facilities is notably driving market growth. The semiconductor equipment market is witnessing significant investments from memory manufacturers such as Samsung Electronics, Western Digital, Micron Technology, Toshiba, SK Hynix, and Intel, to expand their production capacity in response to the increasing demand for semiconductor chips. This trend is creating opportunities for supply chain members, including chip makers, equipment manufacturers, and material suppliers, to broaden their product offerings. For instance, in January 2021, Samsung announced plans to invest over USD10 billion to construct its most advanced logic chipmaking facility in the US.

Furthermore, this investment, among others, underscores the growing importance of next-generation semiconductor technology in various sectors, including cyber-physical systems, 5G infrastructure, and the automotive industry. The demand for high-speed RAM and non-volatile memory, particularly in the development of advanced technologies like self-driving cars and artificial intelligence, is further fueling this investment wave. Semiconductor equipment manufacturers are also focusing on the production of metals and silicon to cater to the increasing demand for semiconductor components. Thus, such factors are driving the growth of the market during the forecast period.

Significant Market Trends

Increase in number of chip fabrication (fabs) worldwide is the key trend in the market. The market is experiencing significant growth due to the escalating demand for advanced technology in various sectors. The surge in sales of consumer electronics, such as smartphones, hybrid PCs, wearables, and video game consoles, is driving the semiconductor industry to expand its manufacturing capabilities. Approximately 90% of new fabrication plants (fabs) will be 300mm fabs, with a substantial portion of investments allocated towards the production of memory and logic devices based on market demand. For instance, Taiwan Semiconductor Manufacturing Co. Ltd. and United Microelectronics Corp. announced plans to establish a production facility at their 12-inch wafer fabs in China in November 2019.

Furthermore, this expansion will significantly impact the semiconductor equipment market, with increased demand for wafer-level manufacturing equipment, die-level packaging, assembly manufacturing equipment, and test equipment. The integration of cyber-physical systems in 5G infrastructure and the automotive industry is further fueling the demand for high-performance semiconductors, including non-volatile memory and high-speed RAM, made from silicon and metals. Thus, such trends will shape the growth of the market during the forecast period.

Major Market Challenge

Cyclical nature of semiconductor industry is the major challenge that affects the growth of the market. The market experiences cyclical fluctuations, leading to increased operational costs for vendors due to factors such as low demand, overcapacity, and price wars. Capital expenditures undertaken by semiconductor equipment providers contribute to higher operational expenditures, forcing semiconductor device manufacturers to curtail production and decrease demand for semiconductor equipment. This results in delayed sales, revenue recognition, and excess inventory during downturns. Moreover, price wars caused by poor demand negatively impact vendors' gross margins.

Furthermore, in the current technological landscape, the semiconductor industry's cyclical nature is further complicated by the integration of cyber-physical systems and the development of 5G infrastructure. The automotive industry's growing reliance on non-volatile memory and high-speed RAM made from silicon and metals intensifies the demand for semiconductor equipment. Despite these challenges, the semiconductor equipment market continues to evolve, driven by advancements in technology and the increasing need for efficient and high-performance electronic devices. Hence, the above factors will impede the growth of the market during the forecast period

Key Market  Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Applied Materials Inc. - The company offers semiconductor equipment such as low-power chips, and sensors.

The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Advanced Dicing Technologies
• Advantest Corp.
• Applied Materials Inc.
• ASM International NV
• ASML
• Daifuku Co. Ltd.
• EV Group
• Evatec AG
• Hitachi Ltd.
• KLA Corp.
• Lam Research Corp.
• Modutek Corp.
• Nikon Corp.
• Nordson Corp.
• Nova Measuring Instruments Ltd
• Onto Innovation Inc.
• Screen Holdings Co. Ltd
• Teradyne Inc.
• Tokyo Electron Ltd.
• Veeco Instruments Inc.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Segmentation

By End-user 

The OSAT segment is estimated to witness significant growth during the forecast period. The semiconductor industry is experiencing significant growth, particularly in the areas of smartphones, consumer electronics, and wireless technologies, driven by the deployment of 5G and the integration of artificial intelligence (AI), augmented reality (AR), and mission-critical services. This growth is leading to an increased demand for semiconductor circuits, including memory chips, integrated circuits (ICs), optoelectronics, sensors, discretes, and 2D, 2.5D, and 3D semiconductor solutions. 

Get a glance at the market share of various regions Download the PDF Sample

The OSAT segment was the largest segment and was valued at USD 29.42 billion in 2018. OSATs (outsourced semiconductor assembly and test) play a crucial role in meeting this demand, with the number of OSAT companies in Asia Pacific (APAC), particularly China, expanding rapidly. The availability of substantial financial resources in China, derived from asset conversions, enables OSATs to invest in capacity expansions. Government support for the semiconductor industry in major countries in APAC, including South Korea, Japan, and China, is further fueling the growth of these facilities. The increasing costs of packaging and testing equipment are also driving the growth of OSAT vendors. Additionally, the development of new technologies, such as fan-out wafer-level packaging (FOWLP), is creating new opportunities for OSATs. Moreover, the semiconductor sector is witnessing a shortage of semiconductor components, which is increasing the demand for low-cost semiconductors. This shortage is affecting various industries, including solar panels, plug-in electric vehicles, wind turbines, smart meters, and 5G connectivity. To address this issue, there is a growing focus on the development of AI-enabled chips and the use of advanced semiconductor tooling and machinery, such as jet wave machines, to improve manufacturing efficiency. The geopolitical landscape is also impacting the semiconductor sector, with various countries seeking to secure their semiconductor supply chains. This trend is expected to continue, with the semiconductor industry remaining a significant area of focus for governments and businesses alike.

By Region

For more insights on the market share of various regions Download PDF Sample now!

APAC is estimated to contribute 91% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

The market is experiencing significant growth due to the increasing demand for advanced electronic devices, particularly in the smartphone and consumer electronics sectors. The proliferation of wireless technologies, such as 5G deployment and the Internet of Things (IoT), is driving the need for more semiconductor circuits, including memory chips, integrated circuits, optoelectronics, sensors, discretes, and 2D, 2.5D, and 3D semiconductors. The semiconductor industry is also witnessing a shift towards AI-enabled chips and mission-critical services, including fixed wireless access and augmented reality. Moreover, the semiconductor sector is essential for various applications, such as solar panels, plug-in electric vehicles, wind turbines, and smart meters, which require 5G connectivity. The global semiconductor market is expected to grow due to the semiconductor shortage, with an increasing focus on wafer sizes and wafer fabrication equipment. The geopolitics of semiconductor tooling and machinery is also a significant factor influencing the market. The semiconductor industry is expected to continue its growth trajectory, with applications in various sectors, including telecommunications, automotive, healthcare, and industrial automation.

Segment Overview

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• End-user Outlook
  • OSA
  • IDMs
  • Foundries

• Region Outlook 
  • APAC
    • China
    • India
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • South America
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

You may also interested in the below market reports

• Semiconductor Manufacturing Equipment Market: Analysis APAC, Europe, North America, Middle East and Africa, South America - US, China, India, Taiwan, Germany - Size and Forecast

• Semiconductor Wafer Inspection Equipment Market: Analysis APAC, North America, Europe, South America, Middle East and Africa - China, US, Germany, Canada, UK - Size and Forecast 

• Semiconductor Market: Analysis APAC, North America, Europe, South America, Middle East and Africa - US, China, Taiwan, South Korea, Germany - Size and Forecast

Market Analyst Overview

The market is a dynamic and ever-evolving industry that caters to the production of various electronic devices, including Smartphones, Consumer electronics, and devices utilizing Wireless technologies, Artificial intelligence, and 5G deployment. Semiconductors, such as Memory chips, Integrated Circuits, Silicon Carbide, and sensors, are integral to these devices. Wafer fabrication equipment is used to create Semiconductor circuits, while semiconductor tooling and machinery are essential for their production. The market is fueled by the increasing demand for low-cost semiconductors and the expansion of 5G deployment, leading to the growth of Mission-critical services, Fixed wireless access, and the Internet of Things.

Furthermore, the Semiconductor sector also benefits from the integration of AI-enabled chips, optoelectronics, and discretes in various applications, such as Solar panels, Plug-in electric vehicles, Wind turbines, and Smart meters. The semiconductor equipment market is further influenced by the ongoing 2D, 2.5D, and 3D wafer fabrication processes, as well as the increasing adoption of Jet wave machines. The Semiconductor shortage is a significant challenge, necessitating continuous innovation and development in the industry. Additionally, geopolitical factors and the evolving regulatory landscape play a crucial role in shaping the market landscape.

Download PDF Sample

What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies