Semiconductor Manufacturing Equipment Market by Front-end Equipment (Silicon Wafer Manufacturing, Wafer Fabrication), Back-end Equipment (Testing, Assembling & Packaging), Dimension, Component, End User, and Geography - Global Forecast to 2030

The Semiconductor Manufacturing Equipment Market is expected to reach $171.6 billion by 2030, at a CAGR of 6% during the forecast period of 2024–2030. The growth of this market is mainly driven by rapid technological advancements coupled with consumers' increasing acceptance of connected devices, rising demand for semiconductors and the resultant proliferation of fabrication facilities, and increasing utilization of semiconductors in EV manufacturing. However, the growing adoption of 5g technology and increasing acceptance of autonomous vehicles is a major trend in the global semiconductor manufacturing equipment market. Supply chain disruptions caused by the COVID-19 pandemic may restrain the market to a certain extent. Moreover, the development of user-friendly and easy-to-integrate designs is a challenge for market growth. Government initiatives aimed at boosting the semiconductors industry and the growing use of connected devices in home automation are expected to offer significant opportunities for the growth of this market.

Impact of COVID-19 on the Semiconductor Manufacturing Equipment Market

The COVID-19 pandemic created a crisis among different sub-sectors. The pandemic highlighted the potential risks and susceptibilities of the modern-day electronics & semiconductors value chain. This challenged the major and local players operating in the industry to consider transforming their global supply chain model. The lockdown restrictions impacted manufacturing operations, with production facilities either completely shutting down or running at reduced capacities to ensure social distancing and employee safety. Semiconductor manufacturing industries came to a standstill due to raw material & workforce shortages, supply chain disruptions, and restrictions on international trade. Most industries, such as consumer electronics and automotive, were affected by the negative impact of COVID-19; however, other industries, such as cloud-computing data centers, communication & connectivity technology, and healthcare, witnessed gradual but consistent growth. This helped the semiconductor manufacturing equipment market to regain its growth. In addition, favorable government policies & initiatives, including reduction and ease in interest rates, exceptions in tax, and the number of financial packages, are also aimed at promoting the growth of this market.

Although COVID-19 has affected most semiconductor manufacturing equipment businesses across the globe, these businesses are eyeing to make a strong comeback by attracting consumers in the post-COVID-19 business environment. For instance, in October 2021, Advantest Corporation (Japan) entered into an agreement to acquire R&D Altanova, Inc. (U.S.) to expand its test and measurement solutions across the continuously evolving semiconductor value chain. In July 2021, Tokyo Seimitsu Co., Ltd. (Japan) launched the new SURFCOM NEX (DX2/SD2) contour measuring instrument. These machines have features such as high efficiency, high precision, high accuracy, and high reliability. Such initiatives, along with the rise in the production volume and demand for consumer electronic devices and hybrid electric vehicles, contribute to the market growth post the COVID-19 pandemic.

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After Beijing launched unprecedented drills around Taiwan, the U.S. and China military conflict may affect the consumer market and important industrial manufacturing bases and slow down global manufacturing and production. The trade war led to market turbulence for semiconductor chipmakers. The U.S. is opposing foreign-made chips manufactured with American technology from being sold to China. The economic fallout, the heightened concern about vulnerabilities and dependencies, and the rising concern over geopolitical conflicts resulting from the disruptive shortage have also fueled the tech war between the U.S. and China. This has led to inflated pricing and constraints on raw materials, affecting semiconductor manufacturing and distribution to a certain extent.

Further, ongoing conflicts between Russia and Ukraine have escalated into hybrid warfare and digital skirmishes with the potential to cripple industrial infrastructure. The situation has been evolving unpredictably, and organizations and industries have been alert, anticipating, and planning for various scenarios. This has also affected the growth of the semiconductor manufacturing equipment market to a certain extent.

Rapid Technological Advancements Coupled with Consumers' Increasing Acceptance of Connected Devices are Expected to Drive the Market Growth

Consistent enhancements in advanced technologies are widening the application areas of semiconductor devices. The growing acceptance and adoption of connected devices also create significant growth opportunities for the semiconductor manufacturing equipment market. The emergence of modern technologies such as AI, IoT, and cloud computing for various applications in this industry is increasingly creating opportunities for integrating connected devices to further improve user experience.

Leading players operating in this market constantly focus on integrating innovative platforms with advanced technologies to expand their product offerings, increase their market share, and enhance overall customer experience. For instance, in August 2021, Applied Materials, Inc. (U.S.) launched a new semiconductor inspection system called Enlight^® Optical Inspection, based on big data and AI technology, which inspects chips automatically and identifies defects that can ruin chips. In December 2021, Hitachi High-Tech Corporation (Japan) announced the development of the Electron Beam Area Inspection System GS1000 to improve the manufacturing productivity of semiconductor devices by optimizing processes and improving yields. The newly-designed instrument provides precise and quick e-beam inspection. Such initiatives, along with the advancements in connected devices, are supporting market growth in the coming years.

Key Findings in the Semiconductor Manufacturing Equipment Market Study:

In 2024, the Front-end equipment Segment is Expected to Dominate the Semiconductor Manufacturing Equipment Market

Based on type, the semiconductor manufacturing equipment market is segmented into front-end equipment and back-end equipment. In 2022, the front-end equipment segment accounted for the larger share of the global semiconductor manufacturing equipment market. This segment is also expected to register the highest CAGR during the forecast period. The large market share of this segment is attributed to the growing consumer electronics market and the increasing number of foundries, rising demand for electric and hybrid vehicles, and the need to streamline production, improve yield and reliability, and minimize design and manufacturing errors

In 2024, the Memory Segment is Expected to Dominate the Semiconductor Manufacturing Equipment Market

Based on component, the semiconductor manufacturing equipment market is segmented into memory, logic, analog, microprocessing units (MPUs), optical devices, discrete devices, microcontroller units (MCUs), sensors, and digital signal processors (DSPs). In 2022, the memory segment accounted for the largest share of the global semiconductor manufacturing equipment market. This segment is also expected to register the highest CAGR during the forecast period. The large market share of this segment is attributed to the increasing use of memory devices in the automotive sector for infotainment & navigation systems and advanced safety devices, decreasing prices of memory devices; and increasing consumption of memory in electronics devices, rising investment in various research & development activities for the development of existing and forthcoming memory devices to increase efficiency

Asia Pacific to be the Fastest Growing Regional Market

Based on geography, the global semiconductor manufacturing equipment market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. Asia-Pacific is expected to register the highest CAGR during the forecast period. The large market share of Asia-Pacific is mainly attributed to the presence of rapidly developing economies, the rising demand for semiconductor manufacturing equipment, rapid growth in automotive and industrial electronics, the proliferation of IoT devices, the presence of major players in Taiwan and China, increasing need for high-quality processing equipment for semiconductive materials, and increasing government initiatives to support semiconductor industries.

Key Players

The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by the leading semiconductor equipment manufacturers between 2020 and 2022. The key players operating in the semiconductor manufacturing equipment market are Tokyo Electron Limited (Japan), Lam Research Corporation (U.S.), SCREEN Holdings Co., Ltd. (Japan), Teradyne, Inc. (U.S.), Advantest Corporation (Japan), Hitachi High-Tech Corporation (Japan), Applied Materials, Inc. (U.S.), KLA Corporation (U.S.), Plasma-Therm (U.S.), ASML (Netherlands), Taiwan Semiconductor Manufacturing Company Limited (Taiwan), Ferrotec Holdings Corporation (Japan), Canon Machinery Inc. (Japan), Veeco Instruments Inc. (U.S.), Onto Innovation Inc. (U.S.), Nordson Corporation (U.S.), and Tokyo Seimitsu Co., Ltd. (Japan).

Scope of the report:

Semiconductor Manufacturing Equipment Market by Type                         

• Front-end Equipment           
  • Silicon Wafer Manufacturing Equipment
  • Wafer Fabrication Equipment
  • Other Front-end Equipment
• Back-end Equipment
  • Testing Equipment
  • Assembling & Packaging Equipment
  • Other Back-end Equipment

Semiconductor Manufacturing Equipment Market, by Dimension

• 2D
• 2.5D
• 3D           

Semiconductor Manufacturing Equipment Market, by Component

• Memory
• Logic
• Analog
• Microprocessing Units (MPUs)
• Optical Devices
• Discrete Devices
• Microcontroller Units (MCUs)
• Sensors
• Digital Signal Processors (DSPs)      

Semiconductor Manufacturing Equipment Market, by End User

• Integrated device manufacturers (IDMs)
• Foundries
• Outsourced Semiconductor Assembly and Test (OSAT)

Semiconductor Manufacturing Equipment Market, by Geography

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
  • Italy
  • Spain
  • Netherlands
  • Denmark
  • Sweden
  • Rest of Europe
• Asia-Pacific
  • China
  • India
  • Japan
  • Taiwan
  • South Korea
  • Singapore
  • Malaysia
  • Rest of Asia-Pacific
• Latin America
• Middle East & Africa

Key questions answered in the report: