Semiconductor Equipment Market Size, Share, Opportunities, And Trends By Equipment Type (Front-end Equipment, Back-end Equipment), By End-User (Foundries, IDM Firms, OSAT Companies), And By Geography - Forecasts From 2023 To 2028

The semiconductor equipment market is projected to grow at a CAGR of 3.95% to reach US$133.114 billion in 2028 from US$101.475 billion in 2021.

Semiconductor equipment is an electronic component that operates mainly on the electronic properties of silicon, germanium, gallium arsenide, as well as organic semiconductors. This semiconductor market is being driven by technological developments such as 5G wireless technologies and artificial intelligence. Several factors influence the market, including a steady rise in demand for high-performance, low-cost semiconductors, which has various short-, medium-, and long-term effects. One of the main factors anticipated to drive the market is the rollout of 5G. As a result, innovations like augmented reality, mission-critical services, fixed wireless access, and the Internet of Things would be made possible by the spread of 5G which will boost the semiconductor equipment market growth.

The rising semiconductor equipment usage in consumer electronics will boost the semiconductor equipment market growth.

Consumer electronics makes a major contribution to the market growth of semiconductor equipment. The consumer electronics industry is driven by increased demand for goods such as tablets, smartphones, laptop computers, and wearable devices. Semiconductors are used in almost every aspect of the electronic industry. Semiconductor equipment such as integrated chips, diodes, and transistors power appliances such as microwaves, freezers, game consoles, and mobile phones. According to World Bank data, there have been 6.3 billion smartphone subscriptions by the end of 2021, accounting for approximately 77% of all mobile phone subscriptions, and By 2027, this figure is projected to rise to 7.8 billion, accounting for 87% of all mobile users.

In 2020, VAT Group spent over USD 44 million, or 6% of its net sales, on R&D, most of this money was employed to create products with the accuracy and purity needed for the upcoming age of semiconductor equipment production nodes of 5 nm and less. In addition, the business wanted to expand into related areas including the production of flat-panel displays and solar panels as well. The semiconductor equipment market is huge in different regions and countries. For instance, according to PIB, in February 2022, The Indian semiconductors market was valued at USD 15 billion in 2020, and it is predicted to be around USD 63 billion by 2026. These research projects and the development of new, enhanced products in semiconductor equipment are anticipated to boost the semiconductor equipment market growth.

The usage of semiconductor equipment in OSAT will further drive the market.

Third-party service suppliers of semiconductor assembly, packaging, and testing are known as OSAT providers. OSAT has played an important part in the semiconductor industry by bridging the gap between IC design and availability. The scope for OSAT and semiconductor foundries is growing as more semiconductor equipment, such as microcontrollers, sensors, and radar chips, are used in automotive and other industries. According to Semiconductor Industry Association (SIA) estimates that global semiconductor industry sales were USD 43.6 billion in May 2021, up 4.1% from April 2021's total of USD 41.9 billion and a 26.2% rise over May 2020's total of USD 4.6 billion. Additionally, semiconductor equipment revenue grew 21.7% from April 2020 to USD 34.4 billion and 1.9% from March 2021 to USD 41.0 billion in April 2021.? As the sales of semiconductors equipment are increasing which are being produced and supplied by OSAT and semiconductor foundries the production will also boost which will propel the semiconductor equipment market growth.

The Asia-pacific region is expected to dominate the market growth during the forecast period.

The semiconductor industry has a significant presence in the Asia Pacific. China region has emerged as a major manufacturer of advanced semiconductor technology equipment tools. In contrast, the Chinese government continues to emphasize the semiconductor sector as a driver of economic development and technological leadership. In April 2022, Teradyne Inc., a leading supplier of automated test equipment, revealed that it had shipped the 7,000th unit of its J750 semiconductor test platform to Nations Technologies, a leading Chinese microcontroller unit (MCU) and security integrated circuit (IC) chip maker. To increase the semiconductor equipment market presence in various regions of Asia pacific, the South Korean part and other significant foundry hubs are increasing their investments and providing incentives. In May 2021, According to a statement from the Ministry of Trade, Industry, and Energy said, chip shipments are anticipated to double to USD 200 billion by 2030. These developments and investments in semiconductors will boost the semiconductor equipment market growth in the Asia Pacific region during the forecasted period.

Market Developments:

• In February 2022, United Microelectronics Corporation (UMC), a Taiwanese global semiconductor foundry, announced plans to construct a new advanced manufacturing facility in Singapore. The new facility would be constructed next to the company's existing plant in Pasir Ris known as Fab12i.

Semiconductor Equipment Market Scope:

 

Report Metric	Details
Market Size Value in 2021	US$101.475 billion
Market Size Value in 2028	US$133.114 billion
Growth Rate	CAGR of 3.95% from 2021 to 2028
Base Year	2021
Forecast Period	2023 – 2028
Forecast Unit (Value)	USD Billion
Segments Covered	Equipment Type, End-User, and Geography
Regions Covered	North America, South America, Europe, Middle East and Africa, Asia Pacific
Companies Covered	Applied Materials Inc., ASML Holding Semiconductor Company, Tokyo Electron Limited, KLA Corporation, Lam Research Corporation, Hitachi Corporation, Teradyne Inc., SCREEN Semiconductor Solutions Co. Ltd.
Customization Scope	Free report customization with purchase

 

Market Segmentation:

• By Equipment Type
  • Front-end Equipment
  • Back-end Equipment
• By End-User
  • Foundries
  • IDM Firms
  • OSAT Companies
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    •  Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • UK
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Australia
    • Others

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base, and Forecast Years Timeline

2. RESEARCH METHODOLOGY  

2.1. Research Data

2.2. Research Design

3. EXECUTIVE SUMMARY

3.1. Research Highlights

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Market Opportunities

4.4. Porter’s Five Forces Analysis

4.4.1. Bargaining Power of Suppliers

4.4.2. Bargaining Power of Buyers

4.4.3. Threat of New Entrants

4.4.4. Threat of Substitutes

4.4.5. Competitive Rivalry in the Industry

4.5. Industry Value Chain Analysis

5. SEMICONDUCTOR EQUIPMENT MARKET BY EQUIPMENT TYPE

5.1. Introduction

5.2. Front-end Equipment

5.3. Back-end Equipment

6. SEMICONDUCTOR EQUIPMENT MARKET BY END-USERS

6.1. Introduction

6.2. Foundries

6.3. IDM Firms

6.4. OSAT Companies 

7. SEMICONDUCTOR EQUIPMENT MARKET BY GEOGRAPHY

7.1. Introduction

7.2. North America 

7.2.1. USA

7.2.2. Canada

7.2.3. Mexico

7.3. South America 

7.3.1. Brazil

7.3.2. Argentina

7.3.3. Others

7.4. Europe 

7.4.1. UK

7.4.2. Germany

7.4.3. France

7.4.4. Italy

7.4.5. Others

7.5. Middle East and Africa 

7.5.1. Saudi Arabia

7.5.2. UAE

7.5.3. Others

7.6. Asia Pacific 

7.6.1. China

7.6.2. Japan

7.6.3. India

7.6.4. South Korea

7.6.5. Taiwan

7.6.6. Others

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Emerging Players and Market Lucrativeness

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Vendor Competitiveness Matrix

9. COMPANY PROFILES

9.1. Applied Materials Inc.

9.2. ASML Holding Semiconductor Company 

9.3. Tokyo Electron Limited 

9.4. KLA Corporation 

9.5. Lam Research Corporation 

9.6. Hitachi Corporation 

9.7. Teradyne Inc.

9.8. SCREEN Semiconductor Solutions Co. Ltd.

Applied Materials Inc.

ASML Holding Semiconductor Company

Tokyo Electron Limited

KLA Corporation

Lam Research Corporation

Hitachi Corporation

Teradyne Inc.

SCREEN Semiconductor Solutions Co. Ltd.