by Semiconductor equipment are used for manufacturing electronic devices and components. This includes tools for deposition, lithography, etching and cleaning processes. Semiconductor equipment enable mass production of integrated circuits with higher efficiency and precision.
The global Semiconductor Equipment Market is estimated to be valued at US$ 83.3 Bn in 2023 and is expected to exhibit a CAGR of 9.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trend in the Semiconductor Equipment Market is the growing adoption of miniaturization technology. Manufacturers are increasingly focusing on developing more compact and advanced semiconductor fabrication equipment to support the production of next-generation miniaturized semiconductor devices. Miniaturization allows for higher transistor density, lower power consumption and improved performance. The demand for miniaturized chips is being driven by the growth in smartphones, wearables and IoT devices. Semiconductor equipment manufacturers are investing in R&D to create nano-scale lithography, deposition and etching tools in order to manufacture chips with smaller node sizes and support ongoing miniaturization of electronic products. This trend is expected to continue driving market growth over the forecast period.
SWOT Analysis
Strength: The semiconductor equipment market witnesses significant technological advancements leading to development of more efficient and miniaturized chips. Equipment manufacturers are investing heavily in R&D to develop advanced lithography, deposition, etching and other equipment.
Weakness: High initial capital requirements for setting up semiconductor fabs act as a barrier, especially for new entrants. Equipment upgrades need to be done regularly to match fast pace of technological changes in the semiconductor industry.
Opportunity: Growing demand for chips from automotive, IoT and 5G infrastructure is driving the need for greater wafer volume production and advanced nodes. Expanding applications of semiconductors in various end-use industries present new opportunities.
Threats: Trade restrictions and geopolitical tensions among major countries can disrupt global supply chains. Slowdowns in the economy can negatively impact investments in new fabs and equipment upgrades by chip manufacturers.
Key Takeaways
The global Semiconductor Equipment Market Share is expected to witness high growth, exhibiting CAGR of 9.3% over the forecast period, due to increasing demand for digital electronics and proliferation of IoT devices. Asia Pacific dominates the market currently, accounting for over 50% share due to presence of several chip foundries and integrated device manufacturers in countries like China, South Korea and Taiwan.
Regional analysis
North America is expected to grow at a significant rate during the forecast period owing to ongoing technological advancements and strong government support for semiconductor R&D in the US. In Europe, governments are promoting initiatives to ramp up domestic chip manufacturing capabilities and reduce dependence on Asian suppliers.
Key players operating in the semiconductor equipment market are Applied Materials, Inc., ASML Holding, Canon, Tokyo Electron, Lam Research, KLA-Tencor, Dainippon Screen, Advantest, Teradyne, and Hitachi High-Technologies. The top players are investing heavily in R&D to develop next-generation lithography, wafer inspection, and fab equipment required for producing chips smaller than 2 nm node. Collaboration between foundries and equipment vendors have become crucial to tackle technological challenges.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
