The Semiconductor Manufacturing Equipment Market is valued at USD 73.39 Billion in 2021 and is expected to reach USD 135.90 Billion by 2028 with a CAGR of 9.2% over the forecast period.
Global Semiconductor Manufacturing Equipment Market: Global Size, Trends, Competitive, Historical & Forecast Analysis to 2022-2028, Increasing demand for electrification in vehicles and proliferation of electric vehicles worldwide, rising number of government initiatives to support the semiconductor industry and growing application of in the manufacturing of consumer electronics, such as smartphones, tablets, and laptops are some of the major factors driving the growth of the Global Semiconductor Manufacturing Equipment Market.
Semiconductor manufacturing equipment (SME) is used in perchance the most multifarious and advanced manufacturing process in the world, the production of semiconductor devices. Semiconductors, such as microprocessors and memory devices, are used in an extensive variety of manufactured products, including special computers, telecommunications equipment, and many common consumer electronics goods. The technology used in this equipment is continually being improved because of consumer demand for higher-performing semiconductors. The semiconductor industry is vast and possesses several ranges of applications. Semiconductor manufacturing equipment is a vital component for carrying out fabrication processes. Semiconductor manufacturing is a difficult process and requires a high-quality fab facility. Semiconductor manufacturing equipment has a wide range of applications in the manufacturing of products for various industries such as automotive, electronics, robotics, etc.
Covid-19 has shown a severe impact on the growth of the semiconductor manufacturing equipment market. The Covid-19 pandemic has rigorously affected the acceptance of semiconductor manufacturing equipment by the automotive, industrial, and consumer electronics areas owing to the temporary shutdown of manufacturing services in the first half of 2020. In early 2020, the source chain for the semiconductor industry was severely impacted attributed to extended lockdowns imposed by governments and regulatory bodies across the globe. This factor has severely delayed the market potential for semiconductor manufacturing equipment providers. In the second half of 2020, the response for desktop/PCs, laptops, tablets, as well as smartphones witnessed a fast increase due to the increasing work-from-home scenario. A growing response for consumer electronic goods across the North America and APAC regions during the pandemic is set to support the business development of semiconductor manufacturing equipment vendors.
The semiconductor manufacturing equipment market is segmented on the basis of front-end equipment, back-end equipment, fab facility equipment, product type, dimension, supply chain participant and region & country level. Based on front-end equipment, the semiconductor manufacturing equipment market is classified into lithography, wafer surface conditioning, deposition, cleaning and others. Based on back-end equipment, the semiconductor manufacturing equipment market is classified into assembly and packaging, dicing, bonding, metrology and testing. Based on fab-facility equipment, the semiconductor manufacturing equipment market is classified into automation, chemical control, gas control and others. Based on product, the semiconductor manufacturing equipment market is classified into automation, chemical control, gas control and others, memory, foundry, logic, MPU, discrete, analog, MEMS, and others. The semiconductor manufacturing equipment market is segmented on basis of dimension, 2D, 2.5D and 3D. Based on supply chain participants, the semiconductor manufacturing equipment market is classified into, OSAT companies, IDM firms and foundries.
The regions covered in this semiconductor manufacturing equipment market report are Asia-Pacific, North America, Europe, and the Rest of the World. Based on a country level, the semiconductor manufacturing equipment market is subdivided into the U.S., Mexico, Canada, U.K., France, Germany, Italy, China, Japan, India, Southeast Asia, Middle East Asia (UAE, Saudi Arabia, Egypt) GCC, Africa, etc.
Some of the key players for the global semiconductor manufacturing equipment market are:
In March 2020; Lam Research announced a newly designed plasma etch technology and system solution based on Sensi.i platform. The new technology aids the chipmakers with extendibility and advanced functionality for future generations. Some of the other benefits offered by Sensi.i platform are space-saving architecture, ability to identify patterns and trends and capture and analyze data among others.
The increasing application of semiconductor manufacturing in the electrification in vehicles and proliferation of electric vehicles sector increases the market value for semiconductor manufacturing equipment. Semiconductor devices are used in the electric vehicle for critical functions, such as sensing, safety features, power management, displays, and control of the vehicle. For instance; The Delhi government recently approved 1,000 low floors AC electric buses to be used in Delhi’s public transport system. Moreover, according to the union road, transport and highway minister Nitin Gadkari in Parliament in India, a total of 870,141 electric vehicles were registered in India. Furthermore, Tata Motors is India's largest electric vehicle manufacturer, according to Tata Motors, its total passenger vehicle sales stood at 99,002 units as compared with 68,806 units sold in the same period in 2020. So increasing demand for electrification in vehicles and the proliferation of electric vehicles drives the growth of the market.
In addition, an increasing number of government initiatives to support the semiconductor industry in the North America & Asia Pacific is also supplementing the growth of the semiconductor manufacturing equipment market. According to the India Electronics & Semiconductor Association, the Indian electronic system design and manufacturing (ESDM) market will grow from US$ 76 billion in 2013 to US$ 400 billion by 2020 as well as according to the India brand equity Foundation (IBEF), in the union budget 2017-18, the government of India increased the allocation for incentive schemes like the modified special incentive package scheme (M-SIPS) and the electronic development fund (EDF) to Rs 745 crore (US$ 111 million) for providing a boost to the semiconductor as well as the electronics manufacturing industry.
However, the small dust particles affect the complete semiconductor manufacturing and fabrication process which require clean room and hygienic equipment for manufacturing. Additionally, manufacturing faults also cause a delay in supply and can cause an additional loss in the form of order cancellation and shift of customers to other suppliers. This needs high accuracy for transferring correct data to the chip. All these factors may hinder market growth. Despite that, increasing technological advancements in this field may create several opportunities for the further growth of the global semiconductor manufacturing equipment industry in the forecast period.
Geographically, Asia Pacific is expected to witness the fastest growth in the global semiconductor manufacturing equipment market. For instance; in October 2021, the Japanese Government declared a subsidy of 800 billion yen to TSMC and Sony for the joint production of a semiconductor factory in Western Japan. The new plant will concentrate on manufacturing semiconductors in the range of 22 nm to 28 nm and the production is predicted to be completed by 2024. The innovative plat will create a high response for new front-end & back-end equipment.
North America region is expected to show significant growth in the semiconductor manufacturing equipment market within the forecast period. Semiconductors are mostly used in the manufacturing of consumer electronics, such as smartphones, tablets, and laptops these aspects will help increase the value of the market in this region. In the 2021 fiscal year, HP Inc. generated 63.5 billion U.S. dollars in revenue, up 12 percent from the previous year period.
Middle East and Africa
|2015 - 2020
|2021 - 2028
|Market Size in 2021:
|USD 73.39 Billion
|Base year considered
|Forecast Period CAGR %:
|Market Size Expected in 2028:
|USD 135.90 Billion
|Tables, Charts & Figures:
|Semiconductor Manufacturing Equipment Companies
|Tokyo Electron, LAM Research, ASML, Applied Materials, KLA-Tencor, Screen Semiconductor Solutions, Hitachi High Technologies, Nikon, Hitachi Kokusai, ASM International, CSUN Manufacturing, Kenmec Mechanical Engineering, Mirle Automation, Gallant Precision Machining (GPM), Usun Technology, Contrel Semiconductor Technology, others,
|By Front-end Equipment, By Back-end Equipment, By Fab Facility Equipment, By Product:By Dimension, By Supply Chain Participant
|North America, U.S., Mexico, Canada, Europe, UK, France, Germany, Italy, Asia Pacific, China, Japan, India, Southeast Asia, South America, Brazil, Argentina, Columbia, The Middle East and Africa, GCC, Africa, Rest of the Middle East and Africa
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