Semiconductor Capital Equipment Market to Grow by USD 14.53 Billion (2024-2028) as Semiconductor Fabs Increase, with AI Powering Market Evolution- Technavio

NEW YORK, Oct. 15, 2024 /PRNewswire/ -- Report on how AI is driving market transformation - The Global Semiconductor Capital Equipment Market  size is estimated to grow by USD 14.53 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 4.5%  during the forecast period. Rising number of semiconductors fabs is driving market growth, with a trend towards advances in wafer size. However, shortage of skilled and trained personnel  poses a challenge - Key market players include Advanced Micro Fabrication Equipment Inc, Advantest Corp., Applied Materials Inc., ASM International NV, ASML, Hitachi Ltd., II VI Inc., KLA Corp., Kulicke and Soffa Industries Inc., Lam Research Corp., Nikon Corp., Onto Innovation Inc., Planar Systems Inc., Screen Holdings Co. Ltd, Teradyne Inc., Tokyo Electron Ltd., Tokyo Seimitsu Co. Ltd., Veeco Instruments Inc., Vicky Electrical Contractors India Pvt. Ltd., and Voltabox AG.

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Key Market Trends Fueling Growth

The semiconductor industry has experienced significant shifts in wafer sizes over the past five decades, with the adoption of larger diameter wafers leading to cost savings of around 20%-25%. Currently, 300-mm wafers are widely used for manufacturing Integrated Circuits (ICs). This trend is anticipated to persist during the forecast period, with companies investing heavily in the construction and upgrading of 300-mm fabrication plants. For instance, SK Hynix is building an M14 fab for 300-mm technology in South Korea. However, there will still be demand for 200-mm wafers during the forecast period. Semiconductor component manufacturers are also planning to develop 450-mm wafer technology, with pilot production expected to begin during 2019-2020. These changes in wafer sizes will necessitate the need for advanced assembly and packaging equipment in the semiconductor industry. 

The semiconductor capital equipment market is experiencing significant trends driven by cloud computing, digital data, and the increasing use of artificial intelligence and machine learning technologies. Integrated device manufacturers require advanced equipment for semiconductor chips production, including panel displays and photolithography systems like EUV lithography and wafer steppers. The global semiconductor crisis necessitates investments in advanced packaging solutions such as system-level packaging and heterogeneous integration. The technological landscape is shifting towards energy efficiency, with next-generation process nodes like FinFET, 3D NAND, GaN, and SiC gaining popularity. The automotive sector's electrification and autonomous driving trends fuel demand for semiconductor manufacturing equipment. A skilled workforce, equipment maintenance, and software solutions for process control and multi-step inspection are essential for maintaining efficiency and productivity. Equipment suppliers must adapt to meet these demands, offering retrofits and advanced lithography systems like photolithography and testing equipment. 

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Market Challenges

• The semiconductor manufacturing sector is experiencing a significant challenge due to the retirement of baby boomers and the resulting skills gap. This issue is exacerbated by the declining focus on technical education and the growing preference of the younger generation for service industry careers. Consequently, there is a shortage of skilled personnel capable of manufacturing and operating complex machines. This lack of expertise has a ripple effect on the semiconductor market, particularly impacting sales of capital equipment such as assembly and wafer-level assembly equipment. The industry must address this issue through targeted education and training programs to ensure a steady supply of qualified workers and maintain the competitiveness of the semiconductor market.
• The semiconductor capital equipment market faces several challenges in various industries. In consumer electronics, keeping up with trends like smart wearables and industrial screens requires advanced processing technologies such as etching, ion implantation, wafer back grinding, and chemical evaporation. Manufacturing processes for semiconductor components in industries like medical and healthcare, IT, telecommunication, and electronics demand polishing, AI-machine learning, robotics arms, assembly equipment, and automated test equipment. Wafer processing, surface conditioning, chemical mechanical planarization, and chemical vapor deposition are essential for memory manufacturers and foundries. Small businesses and startups in the semiconductor sector also require affordable solutions for high-performance computing, data storage solutions, sensor market, and 5G technology. Transistors, microchips, and copper are key components in all these applications.

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Segment Overview 

This semiconductor capital equipment market report extensively covers market segmentation by

1. Type 
• 1.1 Wafer-level manufacturing equipment
• 1.2 Packaging and assembly equipment
• 1.3 Automated test equipment
2. Geography 
• 2.1 APAC
• 2.2 North America
• 2.3 Europe
• 2.4 South America
• 2.5 Middle East and Africa

1.1 Wafer-level manufacturing equipment-  The semiconductor capital equipment market refers to the industry that manufactures and sells machinery, tools, and systems used in the production of semiconductors. This market is significant due to the continuous advancements in technology and the increasing demand for electronic devices. Companies in this market provide equipment for various processes such as wafer fabrication, testing, and packaging. Key players include Applied Materials, Lam Research, and Tokyo Electron. These companies invest heavily in research and development to offer innovative solutions and maintain their competitive edge. The market is expected to grow steadily due to the rising demand for semiconductors in various industries including automotive, consumer electronics, and telecommunications.

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Research Analysis

The semiconductor capital equipment market is experiencing significant growth due to the increasing demand for advanced electronic devices, particularly smartphones, and the adoption of technological changes such as wireless technology and 5G services. The market is also driven by the need for low-cost semiconductors to support the mass production of consumer electronics. The semiconductor industry is undergoing a major shift towards 5G adoption, which is leading to an increase in wafer fabrication capacity and the expansion of foundries and memory manufacturers. The integration of augmented reality, mission-critical services, fixed wireless access, and the Internet of Things is also driving the demand for semiconductor production. Additionally, cloud computing, digital data, artificial intelligence, and integrated device manufacturers are fueling the growth of the semiconductor market. The sensor market, panel displays, semiconductor chips, and system-level packaging are also key areas of focus for semiconductor capital equipment manufacturers.

Market Research Overview

The semiconductor capital equipment market is experiencing significant growth due to the increasing demand for advanced electronic devices, including smartphones and consumer electronics, as well as the adoption of 5G services and technologies like wireless technology, augmented reality, and IoT. Technological changes in industries such as IT, telecommunication, medical, and automotive are driving the need for semiconductor components with advanced processing capabilities. Semiconductor manufacturing involves various processes like etching, ion implantation, wafer back grinding, chemical evaporation, polishing, and surface conditioning, which require specialized capital equipment. The integration of AI-machine learning, robotics arms, assembly equipment, and automated test equipment is essential for high-performance computing, data storage solutions, and sensor market applications. The semiconductor industry is undergoing a global crisis due to the shortage of microchips, transistors, and other semiconductor components. Foundries and memory manufacturers are investing in semiconductor production, and technology providers are developing advanced packaging solutions like heterogeneous integration, system-level packaging, and FinFET to address the crisis. The technological landscape is evolving rapidly, with the emergence of mission-critical services, fixed wireless access, and industrial verticals like manufacturing processes, smart wearables, industrial screens, and data centers. Small businesses and startups are also entering the semiconductor market with innovative solutions, fueling competition and innovation. The semiconductor industry is essential for various applications, including digital data, artificial intelligence, machine learning technologies, high-performance computing, and cloud computing. The semiconductor crisis and technological advancements are creating opportunities for capital equipment manufacturers to invest in advanced processing, copper, and other semiconductor manufacturing equipment. The automotive sector is also undergoing a digital transformation, with electrification, autonomous driving trends, and the integration of advanced technologies like AI and machine learning. These trends are driving the demand for semiconductor components and capital equipment in the automotive industry. In summary, the semiconductor capital equipment market is experiencing significant growth due to the increasing demand for advanced electronic devices, the adoption of 5G technology, and the digital transformation of various industries. Capital equipment manufacturers are investing in advanced processing, copper, and other semiconductor manufacturing equipment to meet the growing demand and address the global semiconductor crisis.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type
• Wafer-level Manufacturing Equipment
• Packaging And Assembly Equipment
• Automated Test Equipment
• Geography
• APAC
• North America
• Europe
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio