Semiconductor Front-End Equipment Market Size, Share, Opportunities, And Trends By Equipment Type (Lithography Equipment, Etching Equipment, Wafer Fabrication Equipment, Others), By Application (Analog Switches, Amplifiers, Digital Circuits, Phase Shift Oscillator, Others), By End-User (Automotive, Consumer Electronics, IT and Communications, Others) And By Geography - Forecasts From 2023 To 2028

The semiconductor front-end equipment market is projected to grow at a CAGR of 3.32% to reach US$102.015 billion in 2028 from US$81.18 billion in 2021.

Market Overview:

Semiconductor manufacturing equipment is the apparatus used to create various electrical and integrated circuits (ICs). The most often used semiconductor production equipment is the front end. Front-end equipment includes silicon wafer manufacture, photolithography, deposition, etching, ion implantation, and mechanical polishing. Their many benefits are streamlined production, enhanced output and dependability, decreased design and manufacturing errors, and improved worker safety.

Growing demand for semiconductor fabrication facilities, a thriving semiconductor industry, rising demand for semiconductor components in electric and hybrid vehicles, and soaring demand for AI chips fueled by upcoming workloads and applications driven by AI are the main factors driving the market for semiconductor front-end manufacturing equipment.

Semiconductor Front-end Equipment Market Drivers

• The market will increase exponentially due to the introduction of new front-end equipment facilities.

According to SEMI's quarterly World Fab Forecast study, global semiconductor equipment investment for front-end facilities is anticipated to increase by 18% YOY to an all-time high of US$107 billion in 2022, marking the third straight year of growth after a 42% increase in 2021. This noteworthy accomplishment is a testament to the persistent drive to increase and enhance capacity to suit a wide range of markets and develop applications, reiterating expectations for long-term industry growth to allow electronics for the digital world. For instance, A deal was reached between Samsung Electronics and ASML in June 2022 to launch EUV lithography equipment and high-numerical-aperture (NA) EUV lithography equipment the following year. Intel said earlier this year that it had secured a deal to buy five of these pieces of machinery and would use them to start making 1.8-nm chips in 2025. TSMC also said that it would use high-NA EUV lithography equipment in its process for the first time in the world in 2024 at the Silicon Valley Technology Symposium in the United States in June 2022. Compared to current EUV lithography equipment, next-generation high-NA EUV lithography equipment can engrave finer circuits. The outcome of a competitive technological competition in the electronics business is viewed as a game changer.

Semiconductor Front-end Equipment Market Segmentation Analysis

• By equipment type, the wafer fabrication segment will grow significantly over the forecasted period.

An expanding semiconductor industry, a rising need for semiconductor fabrication facilities, and investments in wafer fabrication facilities worldwide are driving the wafer fabrication equipment market for semiconductor front-end production equipment. For instance, Toshiba Electronic Devices & Storage Corporation announced in February 2022 that its main discrete semiconductor production plant would receive a new 300-millimeter wafer fabrication facility for power semiconductors. Toshiba has accelerated the commencement of production on 300-millimeter lines and increased production capacity on 200-millimeter lines to keep up with demand growth. Market trends will be considered when making decisions on the new fab's overall capacity and equipment investment, the start of production, production capacity, and production schedule.

Additionally, in May 2022, Texas Instruments opened new 300-mm semiconductor wafer production facilities in Sherman, Texas. Tens of millions of analog and embedded processing chips used in all types of electronics will be produced daily at the new fabs. The historic investment might generate US$30 billion and up to 3,000 jobs. To accommodate the anticipated increase of semiconductors in electronics, the company's newest 300-millimeter wafer fab began production in September 2022 and will build up over the following months.

Semiconductor Front-end Equipment Market Key Developments: 

• July 2021: Nexperia announced the formation of ITEC, its semiconductor equipment manufacturing branch, as a completely autonomous entity in July 2021. The company also offers smart vision inspection systems based on deep learning technology for semiconductor front-end and back-end manufacturing. ITEC offers industrial automation and smart manufacturing solutions that include scheduling, optimization, traceability, and analytical capabilities through Big Data analytics and machine learning.
• June 2021: The EVG Step-and-Repeat (S&R) Mastering Shop, a new service offering to help customers accelerate the deployment of nanoimprint lithography (NIL) in high-volume manufacturing, has been established by EV Group. The EVG S&R Mastering ShopTM provides contract manufacturing of large-area master templates and stamps, which produce working stamps for wafer-level and panel-level NIL processing using EVG's equipment and cleanroom facilities.

Semiconductor Front-end Equipment Market – Geographical Outlook

• Investing in semiconductor manufacturing facilities in India will cause Asia Pacific to grow fastest.

Most semiconductor foundries worldwide are located in the Asia-Pacific area, home to well-known firms like TSMC, Samsung Electronics, etc. India's market share in the production of electronic systems has grown dramatically in recent years. The popularity of electronic goods is accelerating due to technological advancements like the introduction of 5G networks and the Internet of Things. The Ministry of Electronics and Information Technology unveiled the plan for setting up Semiconductor Fabs in India in December 2021 to draw significant investments for setting up semiconductor wafer fabrication facilities within the nation to strengthen the electronics manufacturing ecosystem. Up to 50% of the project's cost is included in the financial help provided. This is being done in keeping with the National Policy on Electronics 2019 (NPE 2019), which aims to establish India as a hub for Electronics System Design and Manufacturing (ESDM) and strengthen the industry's ability to compete internationally. The semiconductor front-end equipment market is predicted to benefit significantly from this.

Semiconductor Front-End Equipment Market Scope:

 

Report Metric	Details
Market Size Value in 2021	US$81.18 billion
Market Size Value in 2028	US$102.015 billion
Growth Rate	CAGR of 3.32% from 2021 to 2028
Base Year	2021
Forecast Period	2023–2028
Forecast Unit (Value)	USD Billion
Segments Covered	Equipment Type, Application, 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
Customization Scope	Free report customization with purchase

 

The Semiconductor Front-end Equipment Market is segmented and analyzed as follows:

• By Equipment Type
  • Lithography Equipment
  • Etching Equipment
  • Wafer Fabrication Equipment
  • Others
• By Application
  • Analog Switches
  • Amplifiers
  • Digital Circuits
  • Phase Shift Oscillator
  • Others
• By End-User
  • Automotive
  • Consumer Electronics
  • IT and Communications
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • 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. Assumptions

 

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 Force 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 FRONT-END EQUIPMENT MARKET ANALYSIS, BY EQUIPMENT TYPE

5.1. Introduction

5.2. Lithography Equipment

5.3. Etching Equipment 

5.4. Wafer Fabrication Equipment

5.5. Others 

 

6. SEMICONDUCTOR FRONT-END EQUIPMENT MARKET ANALYSIS, BY APPLICATION

6.1. Introduction

6.2. Analog Switches 

6.3. Amplifiers 

6.4. Digital Circuits

6.5. Phase Shift Oscillator

6.6. Others 

 

7. SEMICONDUCTOR FRONT-END EQUIPMENT MARKET ANALYSIS, BY END-USERS

7.1. Introduction

7.2. Automotive

7.3. Consumer Electronics

7.4. IT and Communications

7.5. Others 

 

8. SEMICONDUCTOR FRONT-END EQUIPMENT MARKET ANALYSIS, BY GEOGRAPHY

8.1. Introduction

8.2. North America 

8.2.1. USA

8.2.2. Canada

8.2.3. Mexico

8.3. South America 

8.3.1. Brazil

8.3.2. Argentina

8.3.3. Others

8.4. Europe 

8.4.1. UK

8.4.2. Germany

8.4.3. France

8.4.4. Italy

8.4.5. Others

8.5. Middle East and Africa 

8.5.1. Saudi Arabia

8.5.2. UAE

8.5.3. Others

8.6. Asia Pacific 

8.6.1. China

8.6.2. Japan

8.6.3. India

8.6.4. South Korea

8.6.5. Taiwan

8.6.6. Others

 

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Emerging Players and Market Lucrativeness

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Vendor Competitiveness Matrix

 

10. COMPANY PROFILES

10.1. Applied Materials Inc

10.2. ASML Holding Semiconductor Company

10.3. Tokyo Electron Limited  

10.4. KLA Corporation  

10.5. Lam Research Corporation  

10.6. Hitachi Corporation  

Applied Materials Inc

ASML Holding Semiconductor Company

Tokyo Electron Limited 

KLA Corporation 

Lam Research Corporation 

Hitachi Corporation