Semiconductor Equipment Market Is Estimated To Witness High Growth Owing To Increasing Investments In Foundries And Memory Plants

Semiconductor Equipment Market

 The semiconductor equipment market comprises equipment that are used for designing and manufacturing semiconductors and integrated circuits. The key types of equipment include wafer processing equipment, packaging equipment, and testing equipment. Wafer processing equipment such as lithography, etching, deposition, and process control equipment are used for fabricating circuits on wafers. Wafer processing dominates the market due to wide usage of these equipment in manufacturing various semiconductor products including memory chips, processors, and logic devices.

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 Dynamics:
Increasing investments from major players in setting up new semiconductor foundries and memory plants is a key factor driving growth of the semiconductor equipment market. For instance, according to the Semiconductor Industry Association, in 2021 global semiconductor industry capital spending increased by 13% to reach US$ 152 billion, with 44% of spending by memory chipmakers and 33% by foundries. Also, growing demand for mobile devices, 5G technology, electric vehicles, and advanced driver-assisted systems (ADAS) has increased requirement for more advanced and powerful semiconductors offering faster processing speed and higher bandwidth. This is propelling semiconductor manufacturers to procure newer and high-precision semiconductor equipment such as EUV lithography tools to manufacture next-generation chips. However, high costs associated with semiconductor equipment poses a challenge to widespread adoption.

SWOT Analysis

Strength: The semiconductor equipment market has strong presence of key global players with strong foothold. The increasing demand for electronics and semiconductors globally acts as a driver for equipment demand. Rapid technological advancements in semiconductor manufacturing processes have increased the complexity and capabilities of semiconductor equipment.

Weakness: Heavy investment requirement for research and development activities in the semiconductor equipment sector poses significant challenge. Rising commoditization of certain equipment types increases pricing pressures.

Opportunity: Growing semiconductor foundries and fabless manufacturing units across various regions present huge market opportunities. Increasing miniaturization of semiconductor devices and demand for specialized manufacturing equipment open new avenues.

Threats: Trade restrictions and geopolitical tensions among major countries affect equipment procurement decisions. Changing technology cycles and overcapacity risks pose challenges.

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 investment by chipmakers in advanced logic and memory devices for various applications such as artificial intelligence, 5G networks, and high-performance computing. Increased outsourcing of semiconductor manufacturing activities to dedicated foundries also boosts market opportunities.

Regional analysis North America accounted for the largest share of over 30% in the global semiconductor equipment market in 2023 owing to presence of large semiconductor integrated device manufacturers and foundries in the US. Asia Pacific region is anticipated to witness the fastest growth rate over the coming years supported by robust semiconductor industries in China, South Korea, and Taiwan. Countries like China, South Korea, and Taiwan are spearheading the global semiconductor manufacturing activities and investing heavily in advanced technology infused equipment.

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. These players are focusing on equipment portfolio expansion through mergers, acquisitions and strategic partnerships. They are investing significantly in R&D to develop advanced equipment for diversified semiconductor manufacturing applications.

For more details on the report, Read-

https://www.pressreleasebulletin.com/semiconductor-equipment-market-trends-size-and-share-analysis/

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