The Global Semiconductor Equipment Market is estimated to be valued at US$ 83.3 Bn in 2023 and is expected to exhibit a CAGR of 9.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Semiconductor equipment includes fabrication equipment such as wafer fabrication, assembly & packaging equipment, and process control/measurement equipment. Fabrication equipment dominates the semiconductor equipment market, accounting for more than 50% of the total market share. Fabrication equipment is used in the manufacturing of integrated circuits by performing various operations like cleaning, film deposition, etch and material removal to produce complex circuit patterns on semiconductor wafers.
Market key trends:
One of the key trends in the semiconductor equipment market is the transition toward outsourced semiconductor assembly and test (OSAT). OSAT refers to the outsourcing of back-end semiconductor assembly, packaging/testing, and final product return to specialized contract manufacturers. This allows pure-play foundries to focus on advanced wafer fabrication while leveraging the economies of scale achieved by OSAT providers for backend operations. This trend has positively impacted the demand for assembly & packaging equipment in the semiconductor equipment market.
Porter’s Analysis
Strength: Semiconductor equipment manufacturing requires advanced technological expertise which acts as a barrier for new entrants. Wide applications of semiconductors across sectors like computing, communications, consumer electronics augments the market growth.
Weakness: Higher initial investment and maintenance costs associated with semiconductor equipment poses challenges for small players. Frequent technological upgradations increase replacement costs.
Opportunity: Emerging applications of semiconductors in areas such as IoT, AI, automotive electronics and 5G networks present lucrative opportunities. Growing demand for memory chips from data centers boosts the semiconductor equipment market.
Threats: Trade conflicts and geopolitical tensions among major countries impact supply chains of semiconductor equipment manufacturers. Volatility in raw material prices poses threat to consistent profit margins.
Key Takeaways
The Global Semiconductor Equipment Market Size is expected to witness high growth, exhibiting CAGR of 9.3% over the forecast period, due to increasing demand for digitalization and connectivity solutions across industries. The market size for 2023 is US$ 83.3 Bn.
Regional analysis
Asia Pacific dominates the global semiconductor equipment market with a share of over 50% in 2023, led by countries like China, South Korea, and Taiwan. This is attributed to presence of leading wafer fabrication facilities and inexpensive labor in the region. North America is anticipated to grow at a substantial rate during 2023-2030 due rising local manufacturing of chips to secure supply chains.
Key players
Key players operating in the semiconductor equipment market are Applied Materials, Inc., ASML Holding, Canon, Tokyo Electron, Lam Research, KLA-Tencor, Dainippon Screen, Advantest, Teradyne, and Hitachi High-Technologies. The market is consolidated in nature with top players accounting for over 75% of the revenue share. Players are focusing on expanding manufacturing capacities and offering advanced technologies such as EUV lithography and 3D NAND fabrication solutions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it