Semiconductor Production Equipment Market Size, Share, Growth Analysis, By Front-end Equipment Type (Lithography, Wafer Cleaning), By Dimension (2 Dimension, 2.5 Dimension), By Region- Industry Forecast 2024-2031

Global semiconductor production equipment market size was valued at USD 92.0 billion in 2022 and is poised to grow from USD 98.90 billion in 2023 to USD 176.39 billion by 2031, growing at a CAGR of 7.50% during the forecast period (2024-2031).

Investment in semiconductor fabrication and the growing production of automobiles and consumer electronics are key drivers of growth in the semiconductor production equipment market. The miniaturization of integrated circuits (ICs) and ongoing technological advancements in electronic machinery are also fueling demand for semiconductor production equipment. Governments worldwide are investing in expanding semiconductor foundries to address the rising need for semiconductor chips. Major players in the global market are heavily investing in research and development to offer customizable semiconductor processing equipment and to expand their product offerings. By extending their supply chains, these vendors aim to capture a larger market share. Semiconductor manufacturing involves a variety of machines designed for different stages of production. The rapid adoption of semiconductors in consumer electronics and the automotive industry is driving demand for equipment like abatement and sub-fab systems, DC & RF power generators, mass flow controllers, and process control valves. Additionally, semiconductor production facilities utilize dicing and probing machines, chemical mechanical planarization (CMP) tools, and wafer demounting and cleaning systems. The development of new technologies and the demand for compact, efficient, and cost-effective electronic devices are expected to further boost the growth of the semiconductor production equipment market.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Semiconductor Production Equipment market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Semiconductor Production Equipment Market Segmental Analysis

Global semiconductor production equipment market is segmented based on front-end equipment type, back-end equipment type, fab facility equipment type, product, dimension, supply chain process, end user industry, and region. Based on Front-end Equipment, the market is segmented into Lithography, Polishing & Grinding (DUV Lithography, EUV Lithography), Water Surface Conditioning Equipment (Etching, Chemical Mechanical Planarization (CMP)), Wafer Cleaning (Single-wafer Spray System, Single-wafer Cryogenic System, Batch Immersion Cleaning System, Batch Spray Cleaning System, Scrubbers, Deposition (PVD, CVD), and others. Based on Back-end Equipment type, the market is segmented into Wafer Testing/ IC Testing, Assembly & Packaging Equipment, Dicing, Metrology, Bonding, and others. Based on Fab Facility Equipment type, the market is segmented into Automation, Chemical Control, Gas Control, and others. Based on product type, the market is segmented into Discrete, Foundry, MPU, memory, logic, analog, MEMS, and others. Based on dimension, the market is segmented into 2 Dimension, 2.5 Dimension and 3 Dimension. Based on supply chain process, the market is segmented into IDM, OSAT, and Foundry. Based on end user industry, the market is segmented into computers & peripherals, consumer electronics, telecommunication equipment, industrial equipment, aerospace & defence, and transportation. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Drivers of the Global Semiconductor Production Equipment Market

The semiconductor industry is experiencing significant growth due to the rising demand for semiconductor chips from manufacturers of consumer electronics, integrated health systems, and sensor equipment. The proliferation of electronic devices such as smartphones, laptops, and televisions has driven this expansion. As more people integrate these devices into their daily lives, the industry continues to expand. To meet this increasing demand, sectors such as telecommunications, information technology, machine automation, and power and solar panel production are becoming key drivers of semiconductor usage. Additionally, the ongoing advancement in digital content and the enhancement of connectivity and mobility are expected to open new market opportunities in the coming years.

Restraints in the Global Semiconductor Production Equipment Market

The semiconductor manufacturing equipment sector, a key player in the supply chain, involves numerous participants. However, the global supply chain experienced significant disruptions due to the COVID-19 pandemic. Production facilities for semiconductor equipment ideally need to be situated in clean environments, and the machinery must be defect-free to ensure reliability. A major drawback in the industry is the high cost of semiconductor manufacturing machines and the substantial initial investment required. Additionally, price volatility of these machines poses a challenge, potentially hindering market growth.

Market Trends of the Global Semiconductor Production Equipment Market

Once the design process is complete, the next step in semiconductor production involves chip manufacturing facilities, known as fabs or foundries. In the initial phase, called front-end fabrication, semiconductor chips are created by placing silicon wafers, typically 8 or 12 inches in diameter, onto round sheets made of circular silicon or other semiconducting materials. The fabrication process begins with heating silicon in a furnace, followed by slicing it into round wafers. The fabrication process is divided into two main stages: the first focuses on low-cost, high-throughput production, while the final stage involves creating products with metal interconnects that link transistors and other electrical components through multiple material layers on the silicon wafer. These interconnects and electrical devices work together to supply current to the circuit. Major players in the semiconductor market, such as firms from the US, Taiwan, South Korea, Japan, and China, dominate global fab capacity and market share, with most having their headquarters and fabs located in these countries. The complexity of chip manufacturing processes has increased development costs, prompting companies to adopt various business models to remain competitive. For instance, in November 2023, China invested USD 816.8 million in 42 lithography systems, while the Netherlands, a leading exporter of IT, reported lithography system exports totalling USD 762.7 million, significantly higher than previous years.