Semiconductor Dry Etch Systems Market - Forecasts from 2024 to 2029

The semiconductor dry etch systems market is projected to grow at a CAGR of 5.52% over the forecast period, from US$17.381 billion in 2024, and is expected to reach US$22.742 billion by 2029.

Semiconductor dry etch systems are pivotal machines in the manufacture of integrated circuits (ICs) or microchips. They utilize an exact method to expel material from a silicon wafer, making complex designs that characterize the electrical components and pathways within a chip. These frameworks are fundamental devices for making advanced, as well as effective microchips.

One of the major drivers for the growing market size of the semiconductor dry etch systems can be the increase in the global demand for electronic devices. The rising demand for compatible, faster, and more powerful electronic gadgets like smartphones, tablets, and high-performance computing systems requires the utilization of advanced semiconductor chips with complex circuitry. Moreover, the miniaturization components like MEMS, sensors, and transistors also require advanced dry etching systems competent in dealing with these smaller features.

The International Roadmap for Devices and Systems (IRDS) 2022 reports stated that there is a constant rise in the global sales of optoelectronics and sensors, with an increment from $16.5 Billion in 2020 to $24.3 billion by 2022 in sensors sales. In contrast, optoelectronics sales were forecasted to rise from $44 billion to $54.2 billion by 2022. Moreover, it also traces technology roadmap targets for transistor dimensions. This rise in component sales would demand a more precise and progressed dry etching techniques system, leading to an increment in the market expansion.

The semiconductor dry etch systems market is estimated to grow moderately, fueled by the growing demand for advanced semiconductors and the increasing adoption of Artificial Intelligence (AI), the Internet of Things (IoT), and 5G networks worldwide. In addition, favorable government initiatives and investments in the semiconductor industry are expected to pave the way for future market growth.

SEMICONDUCTOR DRY ETCH SYSTEMS MARKET DRIVERS:

• The rising adoption of emerging technologies is expected to bolster the demand for the semiconductor dry etch systems market globally.

The major drivers for the increase in the semiconductor dry etch systems market are the growing demand for the emergence of advances in technologies like Artificial Intelligence (AI), the Internet of Things (IoT), and 5G network systems, which require more effective and productive semiconductors. Dry etch frameworks play a vital role in manufacturing these advanced chips. Moreover, the global demand for food and beverage products will expand multifold with the rise in the global population.

As per IBM global AI Adoption Index 2023, it stated that the business organizations in India, UAE, Singapore, and China are leading in AI usage with 59%, 58%, 53%, and 50%, respectively. Moreover, India is a well-known global market for electronic items, with domestic production esteemed at $101 billion in FY23. The industry is divided into mobile phones, IT hardware, consumer electronics, strategic electronics, industrial electronics, wearables & hearables, PCBA, auto electronics, LED lighting, and electronic components, which account for 43%, 5%, 12%, 0.3%, 0.7%, 8%, 3%, and 11%, respectively taking basis with FY22 data.

The rapid increase in AI adoption will fuel and lead to a significant requirement for advanced dry etch systems for manufacturing AI hardware. Additionally, the rollout of 5G networks requires chips capable of handling high-speed data transmission and complex signal processing, thereby propelling the expansion of the semiconductor dry etch industry in the coming years.

Semiconductor Dry Etch System Market Geographical Outlook

• The United States is predicted to contribute significantly to market growth.

The United States is anticipated to hold a significant market share in the projected period. This is owing to the increasing demand for consumer electronics and data storage devices coupled with the country's advanced technological development. Moreover, the high-resolution patterning capabilities are anticipated to propel the requirement for precise patterning and etching needs in various industries in the upcoming years.

Additionally, the presence of major market players such as Lam Research and Applied Materials will significantly impact the growth prospects in the projected period. For instance, as per Lam Research, a leading player in the United States, the demand for semiconductor etching will continue to expand in the future, driven by the growth of 5G, AI, and IoT, among others. Further, the etching equipment will get additional impetus due to the rising complexity of manufacturing semiconductor devices at a rapid pace.

The key developments in the market are anticipated to propel the innovations under semiconductor dry etch systems. For instance, in 2022, Lam Research announced a wide range of etch products that emerged from wafer fabrication techniques to promote chipmakers' development of gate-all-around (GAA) transistor structures. The etch portfolio comprises products such as Selis, Prevos, and Argos that help the company gain a competitive advantage in memory semiconductor solutions.

Moreover, in 2022, Applied Materials, headquartered in the United States and a well-known player in the semiconductor dry etch systems market, announced its business plan for investing in innovation infrastructure in the United States. This will aid in the expansion of its global manufacturing capacity until 2030.

Furthermore, according to the U.S. Census Bureau, the estimated retail sales of electronic and appliance stores reached around US$91,900 million in 2023 from US$74,804 million in 2020. This reflects lucrative prospects for semiconductor dry etch systems with rising demand for electronic devices and advanced semiconductors, including memory chips, microprocessors, and sensors, in the country during the forecast period.

Semiconductor Dry Etch System Market Key Players:

• Applied Materials- Applied Materials is one of the global leaders in the semiconductor dry etch systems market. The company has a well-known presence for providing a comprehensive range of innovative Etch processes to meet all dynamic requirements of users such as EUV patterning, 3D NAND, and FOWLP. The manufacturing operations of the company are located in Austin, Texas, and Singapore, with additional facilities across the United States, Germany, Korea, and Taiwan, among others.
• Hitachi High - Technologies Corporation - Hitachi High-Technologies Corporation, a Japanese multinational corporation, specializes in advanced technologies, particularly conductor etch systems for the semiconductor industry. Its primary product line is the Conductor Etch System.
• Lam Research Corporation- Lam Research Corporation is a leading supplier of semiconductor dry etch systems. It caters to various applications and wafer sizes for high-volume production of logic and memory devices in the semiconductor equipment industry.

Market Segmentation:

The Semiconductor Dry Etch Systems Market is segmented and analyzed as below:

By Type

• Dielectric Etching
• Conductor Etching

By Application

• Logic & Foundry
• MEMS
• Sensors
• Power Devices
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• United Kingdom
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Taiwan
• Indonesia
• Others