by Semiconductor equipment is used for manufacturing integrated circuits, which is a fundamental component of electronic devices. Semiconductor equipment include products such as wafer processing equipment, assembly and packaging equipment, and others. Wafer processing equipment includes oxidation systems, diffusion systems, photolithography equipment, deposition systems, etching systems, and others. Assembly and packaging equipment is used for dicing, bonding, and various packaging methods.
The global semiconductor equipment market is estimated to be valued at US$ 83.3 billion in 2023 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing Demand for Scalable and High-Performance Devices: The increasing adoption of advanced technologies such as artificial intelligence, big data analytics, blockchain, augmented reality, 5G, and IoT is driving demand for scalable and high-performance devices. This in turn is expected to drive the demand for advanced semiconductor chips that perform complex tasks seamlessly. Manufacturing advanced chips requires scaled-up and high-performance semiconductor equipment. This is expected to drive growth of the semiconductor equipment market over the forecast period.
Semiconductor Equipment Market is Expected to be Flourished by Growing Demand for Scalable and High-Performance Devices: Manufacturers are focusing on developing advanced semiconductor equipment with higher resolution and speeds to manufacture scaled-down and complex chip designs. This is expected to support manufacturing of advanced chips and fuel growth of the semiconductor equipment market over the forecast period.
Segment AnalysisThe global semiconductor equipment market is segmented into front-end equipment and back-end equipment. The front-end equipment segment currently dominates the market and accounts for over 60% market share. This is because front-end equipment such as lithography, etching and deposition machines see higher demand during early stages of wafer fabrication. The miniaturization trend in semiconductors has also increased the requirement for newer and advanced front-end equipment.
PEST Analysis
Political: The trade restrictions between US and China can impact the supply chains of semiconductor equipment makers. Both countries are also offering incentives to boost local semiconductor manufacturing.
Economic: The global economic recovery post-Covid and rise in demand for electronic devices is positively impacting the semiconductor equipment market. The equipment spending is also rising with increased capital expenditure by foundries and IDMs.
Social: The increasing proliferation of electronic products in daily lives is driving the demand for more advanced semiconductors. This is benefiting the semiconductor equipment market.
Technological: The drivers for newer process nodes such as 3nm and below is driving the need for innovative equipment solutions with higher resolution and integration capabilities. Lithography machines are working on EUV and multi-beam e-beam technologies.
Key Takeaways
The Global Semiconductor Equipment Market Analysis is expected to witness high growth supported by trends such as digital transformation, 5G rollout, and increasing electronics content in automotive.
Regional Analysis: The Asia Pacific region currently dominates the market due to presence of foundries and OSATs in countries like Taiwan, South Korea, and China. Taiwan is projected to remain the fastest growing regional market due to investments by TSMC in advanced nodes.
Key players operating in the semiconductor equipment market are Keysight Technologies, Fluke Corporation (Fortive Corporation),Rohde & Schwarz, Yokogawa Electric Corporation, Agilent Technologies, Anritsu Corporation,Tektronix (Fortive Corporation),EXFO Inc., B&K Precision Corporation, Hioki E.E. Corporation,Chauvin Arnoux Group, AMETEK, Inc., National Instruments Corporation, Gossen Metrawatt, Keithley Instruments (Tektronix). Key players are focusing on development of equipment for applications like 5G, AI, and IoT to further drive the industry growth.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
