The global semiconductor manufacturing equipment market was valued at USD 95.3 billion in 2021 and is projected to reach USD 175.0 billion by 2027; it is anticipated to register a CAGR of 8.5% during the forecast period. Surging demand for AI chips driven by future AI-driven workloads and applications is propelling the demand for semiconductor manufacturing equipment worldwide.
In 2021, the lithography equipment segment held the largest share of the semiconductor manufacturing equipment market, and a similar trend is likely to be observed during the forecast period. The key factors contributing to the growth of the lithography equipment segment is the globally increasing demand for semiconductor devices, which has led to the increased use of photolithography equipment. Key players in the semiconductor manufacturing equipment market are also adopting organic growth strategies to strengthen their semiconductor manufacturing equipment product portfolio.
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In 2021, the wafer testing segment held the largest size of the semiconductor manufacturing equipment market. The growth and the largest share of the wafer testing segment are attributed to the need of accuracy in ICs. Nowadays, ICs need to be incorporated with multiple functions, and the complex circuitry needs proper testing equipment to achieve accuracy. The increased investments in R&D and technological advancements in networking and communication devices have led to a rise in the demand for best-of-class ICs and SoCs. This demand can be fulfilled by investing in testing equipment for developing the best-quality ICs, which, in turn, would propel the growth of the wafer testing segment.
In 2021, the chemical control equipment segment held a larger share of the semiconductor manufacturing equipment market. Chemical control equipment are used widely for checking the flow and level of chemicals used in wafer fabrication, cleaning, and other processes, which has led to the largest share of this segment. Contamination control through chemical control equipment has a significant impact on yield and equipment efficiency, as these equipment provide repeated and reliable delivery of pure chemicals during the semiconductor manufacturing processes.
In 2021, memory accounted for the largest share in the semiconductor manufacturing equipment market. Remote work and education fueled demand for laptop computers, propelling the dynamic random-access memory (DRAM) industry to greater heights in early 2021. A similar trend and an increased use of memory ICs is expected in the automotive sector mainly due to the trends such as electric vehicles and autonomous vehicles, among others. Further, new memory technologies such as MRAM, PCRAM, and ReRAM are expected to replace most of the traditional technologies. This shift in the memory market has demanded a change in the dynamics of manufacturing equipment, compelling semiconductor manufacturing equipment providers to develop more efficient designs for device manufacturers
In 2021, the semiconductor manufacturing equipment market for 3D IC manufacturing is expected to grow at the highest CAGR during the forecast period. The demand for 3D ICs is increasing as companies have been trying to increase functional integration through multi-chip modules, silicon in package, and package-on-package schemes. With the increased demand for improved functionality and miniaturization of portable devices such as cell phones, digital cameras, and laptop computers, manufacturers and IDMs are expected to opt for 3D ICs, thus bolstering the growth of this segment.
In 2021, IDM firms segment held the largest share of the semiconductor manufacturing equipment market, as most IDM firms are tier 1 companies with a substantial spending in the R&D, some being Intel Corporation (US), Samsung (South Korea), and Texas Instruments (US). Certain strategies of these companies also aid in fostering the growth of the segment.
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APAC accounted for the largest share of the semiconductor manufacturing equipment market in 2021; a similar trend is likely to continue during the forecast period. The market in APAC is driven by continuous developments in the semiconductor industry, expansion of the semiconductor manufacturing equipment companies operating in the region, and financial support for the semiconductor industry by governments of regional countries.