The Global Semiconductor Production Equipment Market size is expected to reach $153.8 billion by 2028, rising at a market growth of 9.2% CAGR during the forecast period

Semiconductor production equipment is used to manufacture memory chips, semiconductor circuits, and other components. The ability of free electrons to easily move between atoms in semiconductors allows the free flow of electricity through them.


New York, Feb. 22, 2023 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Global Semiconductor Production Equipment Market Size, Share & Industry Trends Analysis Report By Dimension, By Supply Chain Process, By Product Type, By Function, By Regional Outlook and Forecast, 2022 - 2028" - https://www.reportlinker.com/p06422664/?utm_source=GNW
This ability makes semiconductors ideal for designing and developing compounds like wafers, integrated circuits, diodes, etc., used in many electronic devices and systems.

The semiconductor industry is expanding quickly, which is helping to boost sales of modern semiconductor production equipment and propel the market upward. Consumers’ rising desire for electronic gadgets drives the demand for chips, which is anticipated to indirectly raise the requirement for semiconductor production equipment. The demand for consumer electronics is rising globally, which can be linked to the growing necessity for user-friendly electronic products as well as the expanding residential sector. For example, MEMS, optoelectronics, and MOEMS devices are used in the mass manufacturing of electronic items, including wearables, smartphones, and white goods.

Due to the delicate nature of semiconductor processing, precise supervision of automated steps, including cutting, drying, washing, etching, and assembly, as well as total control over working parameters like temperature and humidity, are required. A solution for improved control of these parameters, along with other automated processes, and the environment where semiconductors are made, is provided by semiconductor production equipment. Semiconductor production equipment provides numerous advantages like improved production, greater output & dependability, fewer production & design errors, decreased process & equipment downtime, and enhanced workplace security.

COVID-19 Impact Analysis

The pandemic had a negative impact on the semiconductor production equipment market. During the COVID-19 pandemic, the electronics industry suffered adversely, as the pandemic also created a significant shortage in the semiconductor supply chain. Due to the COVID-19 lockdown, numerous semiconductor sector components could not be produced, which led to a shortage of semiconductors worldwide. In addition, end-users of semiconductors originally cut back on their production equipment purchases due to the recession. After the decline in cases, several businesses have displayed considerable indications of recovery.

Market Growth Factors

Growing demand for consumer electronics worldwide

The increasing demand for semiconductor chips from producers of consumer electronics, medical devices, and sensor systems is driving the rise of the semiconductor business. Since more people are using consumer electronics like cell phones, laptops, televisions, and other devices, the industry is growing. The need for production equipment is expected to rise because semiconductors are crucial to many sectors related to consumer electronic products, including telecommunications, information technology, machine automation, power & solar photovoltaic, and others. Rising digital content and improved connectivity, as well as mobility in the coming years, will further promote market expansion.

Rising semiconductor usage in the automotive industry

The automotive industry continues to be a significant source of demand as well as a source of potential for semiconductor vendors, despite recent recessions and demand variations. Trends like the rise in demand for autonomous & electric vehicles and the increasing number of semiconductor components per vehicle are key motivators for semiconductor manufacturers. As more semiconductor components, such as sensors, microcontrollers, and radar chips, are utilized in automobiles, the market for semiconductor production equipment expands.

Market Restraining Factors

High costs of machines and interruptions to the supply chain

The supply chain for the semiconductor production equipment market has a large number of participants. However, the coronavirus pandemic significantly hindered the market’s supply chain. The locations of semiconductor production plants must be in tidy areas. Moreover, there should be no flaws in the equipment supplied for making semiconductors. Most importantly, semiconductor equipment is expensive and requires a significant upfront investment. Machine price volatility is anticipated to impede market expansion.

Dimension Outlook

On the basis of dimension, the semiconductor production equipment market is fragmented into 2 dimension, 2.5 dimension, and 3 dimension. The 2 dimension segment acquired a substantial revenue share in the semiconductor production equipment market in 2021. The 2 dimension semiconductors allow reduced length as well as reusability, which further reduces time and system cost. This aspect is causing the segment for equipment used in 2D semiconductor fabrication to grow more quickly.

Supply Chain Process Outlook

Based on supply chain process, the semiconductor production equipment market is categorized into IDM, OSAT, and foundry. The OSAT segment procured a considerable growth rate in the semiconductor production equipment market in 2021. OSAT (Outsourced semiconductor assembly and test) companies provide test services as well as third-party IC packaging. These companies’ test and package silicon products made by foundries before putting them on the market.

Product Type Outlook

On the basis of product type, the semiconductor production equipment market is divided into front-end equipment and back-end equipment. The front-end equipment segment acquired the largest revenue share in the semiconductor production equipment market in 2021. All of the manufacturing tools used to produce semiconductors are included in the front-end equipment. The rising demand for chips that are highly efficient and dense for use in IoT devices, CPUs, GPUs, and other devices is partially responsible for the expansion of the segment.

Function Outlook

Based on function, the semiconductor production equipment market is segmented into integrated circuits and OSD. The integrated circuits (ICs) segment witnessed the maximum revenue share in the semiconductor production equipment market in 2021. An Integrated Device Manufacturer (IDM) oversees each step of the production and sales processes in the semiconductor industry. IDMs help reduce costs, maintain the optimum operation of manufacturing plants, and aid in the development of market strategies. These benefits of IDMs are attributed to the growth of the segment.

Regional Outlook

On the basis of region, the semiconductor production equipment market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific region recorded the largest revenue share in the semiconductor production equipment market in 2021. The region’s sizable semiconductor industry, which benefits from the demand for semiconductors, is responsible for the segment’s rise. This has a favorable impact on the prognosis for the market for semiconductor production equipment in the region.

The major strategies followed by the market participants are Acquisition. Based on the Analysis presented in the Cardinal matrix; Applied Materials, Inc., ASML Holdings N.V., Lam Research Corporation and KLA Corporation are the forerunners in the Semiconductor Production Equipment Market. Companies such as Carl Zeiss AG, Teradyne, Inc. and Screen Holdings are some of the key innovators in Semiconductor Production Equipment Market.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Alsil Material, ASML Holdings N.V., SCREEN Holdings Co., Ltd., Teradyne, Inc., Applied Materials, Inc., Veeco Instruments, Inc., KLA Corporation, Nikon Corporation, Carl Zeiss AG, and Lam Research Corporation.

Recent Strategies deployed in Semiconductor Production Equipment Market

Partnerships, Collaborations & Agreements

Oct-2022: Applied Materials, Inc. collaborated with BE Semiconductor Industries N.V., a company engaged in the manufacturing of semiconductors. Through this collaboration, the combining companies would create a solution for die-based hybrid bonding, a chip-to-chip interconnect technology that enables subsystem designs and heterogeneous chips for applications involving 5G, AI and high-performance computing. Additionally, this would accelerate heterogeneous integration technology and enhance the types of equipment.

Jan-2022: ASML Holding N.V. collaborated with Intel Corporation, a semiconductor chip manufacturer. This move would help in boosting semiconductor lithography technology. This collaboration would ensure cost-efficient manufacturing of chips by providing lithographic improvements in lesser cycle time, energy, cost and complexity.

Product Launches and Product Expansions

Dec-2022: KLA Corporation unveiled Axion T2000 X-ray metrology system to help memory chip manufacturers. This product can count high aspect ratio device features along with exceptional accuracy, speed, precision and resolution. Axion T2000 confirms the smooth production of memory chips utilized for artificial intelligence, edge computing, 5G and data centers.

Jun-2021: KLA Corporation released four new products: C205 broadband plasma patterned wafer inspection system, I-PAT® inline defect part average testing screening solution, Surfscan® SP A2/A3 unpatterned wafer inspection system and 8935 high productivity patterned wafer inspection system. These launched products would deliver a creative solution for inline screening and finding possible reliability defects. Additionally, these products would assist microchip manufacturing plants in achieving reliability and quality chips to maximize output.

Sep-2020: KLA unveiled three semiconductor packaging techniques: ICOS T3/T7 Series, Kronos 1190 wafer inspection system and ICOS F160XP die sorting and inspection system. These launched systems help the customers to master the challenges in integrated circuits. Additionally, these products would permit users to advance the fabrication of semiconductor devices.

Acquisition and Mergers

Nov-2022: Lam Research Corp. completed the acquisition of SEMSYSCO GmbH. With the addition of SEMSYSCO, Lam gains capabilities in advanced packaging, ideal for leading-edge logic chips and chiplet-based solutions for high-performance computing (HPC), artificial intelligence (AI) and other data-intensive applications.

Nov-2022: Lam Research Corp. acquired SEMSYSCO GmbH, a semiconductor manufacturing company. This acquisition would enhance the of company’s packaging capabilities which is suitable for chip-based solutions, artificial intelligence, data-intensive applications and data-intensive applications.

Oct-2022: ASML took over Berliner Glas Group, a company supplying components for EUV and DUV lithography. This acquisition would lead to the addition of the capabilities of both the companies in manufacturing and R&D to assist further growth and launches of EUV systems to deliver important services to the customers.

Jun-2022: Applied Materials completed the acquisition of Picosun Oy, a company manufacturing semiconductor equipment. This acquisition would broaden the suite of Applied Materials and customer involvement. Moreover, this would help the company to support customers in putting more functionality and intelligence in various edge computing equipment.

Geographical Expansions

Nov-2022: ZEISS is expanding its geographical footprint in Germany by building a multifunctional factory. This facility is accompanied by technical operations building in which compressed air can be generated. This expansion would help in manufacturing high-tech products like lithography optics that need special conditions.

Dec-2021: Lam Research Corp. (Nasdaq: LRCX) today announced the expansion of its manufacturing footprint in Oregon. The new facility is Lam’s fifth manufacturing site in the United States and will further enhance its resilience and ability to meet increasing customer demand, as chip suppliers seek to ramp up production globally.

Dec-2021: Lam Research Corp. is expanding its geographical footprint by opening a manufacturing facility in Oregon, USA. This would enhance the company’s ability to meet the demands of customer and ramp up the chip supplies globally.

Scope of the Study

Market Segments covered in the Report:

By Dimension

• 3-Dimension

• 2.5-Dimension

• 2-Dimension

By Supply Chain Process

• IDM

• OSAT

• Others

By Product Type

• Front-end Equipment

• Back-end Equipment

By Function

• Integrated Circuits

• OSD

By Geography

• North America

o US

o Canada

o Mexico

o Rest of North America

• Europe

o Germany

o UK

o France

o Russia

o Spain

o Italy

o Rest of Europe

• Asia Pacific

o China

o Japan

o India

o South Korea

o Singapore

o Malaysia

o Rest of Asia Pacific

• LAMEA

o Brazil

o Argentina

o UAE

o Saudi Arabia

o South Africa

o Nigeria

o Rest of LAMEA

Companies Profiled

• Alsil Material

• ASML Holdings N.V.

• SCREEN Holdings Co., Ltd

• Teradyne, Inc.

• Applied Materials, Inc.

• Veeco Instruments, Inc.

• KLA Corporation

• Nikon Corporation

• Carl Zeiss AG

• Lam Research Corporation

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