The semiconductor manufacturing equipment market is projected to grow from USD 66.1 billion in 2020 to USD 103.5 billion by 2025, at a CAGR of 9.4%. Key factors fueling the growth of this market include the growing consumer electronics market, an increase in the number of foundries, and the trend of miniaturization and technology migration.
Memory device accounted for largest share of semiconductor manufacturing equipment market in 2019
In 2019, equipment for memory devices accounted for the largest share of the market. Various memory devices such as dynamic random access memory (DRAM), synchronous dynamic random access memory (SDRAM), and Flash memory (NAND or NOR) are used in computers, laptops, digital music players, gaming devices, and mobile internet devices. In the current scenario, NAND Flash memory widely opts for mobile electronics. Companies have been trying to find a single universal memory that combines the benefits of Flash memory, DRAM, and SRAM. New technologies in memory devices, such as MRAM, ZRAM, PCRAM, and RRAM, are expected to replace most of the traditional technologies. This shift in the market has demanded the change in dynamics of manufacturing equipment, enforcing semiconductor manufacturing equipment providers to develop efficient designs for the device manufacturers.
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Lithography equipment accounted for largest share of front-end semiconductor manufacturing equipment market in 2019
Among the front-end equipment, the lithography equipment accounted for the largest share of the market in 2019. The major reason for the largest size of the lithography equipment market was the higher system cost, although the shipment is comparatively small in number. The market for lithography equipment has been experiencing a drastic technological shift. The adoption of lithography equipment has been increasing owing to the rising requirement for reducing the thickness of wafer to ~7 nm node, increasing production capacity, and developing multilayer designing.
Wafer testing equipment accounted for largest share of back-end semiconductor manufacturing equipment market in 2019
Among the back-end equipment, the wafer testing equipment accounted for the largest share of the market in 2019. Although the testing equipment is mostly focused on back-end processes, it is also used in front-end processes. These testing devices are vital for testing electronic devices for functionality and performance at different points during the semiconductor manufacturing process. With new technological development, there is an increase in the design complexities and development of new products. The increased investments in R&D and technological advancement in networking and communication devices has raised the demand for best-of-class ICs and SOCs. This need can be satisfied by enabling the investment in testing equipment for developing the best quality ICs.
Semiconductor manufacturing equipment market in APAC accounted for largest share of market in 2019
APAC accounted for the largest share of the semiconductor manufacturing equipment's market in 2019, and a similar trend is likely to continue in the near future. An increasing number of IDMs in the region is expected to boost the market growth in the near future. Similarly, the mass production of electronic products such as smartphones, tablets, sensors, industrial equipment, wearables, and white goods, makes China and Taiwan, the largest manufacturer of consumer electronics. Taiwan and South Korea contribute to a large number of semiconductor foundries and OSAT companies, showcasing greater demand for equipment. The Chinese market contributes to cheap labor as compared to other regions owing to which companies find low-cost skilled labor for the manufacturing plant. These factors help the semiconductor manufacturing equipment's market to grow in the APAC region.
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Key Market Players
Tokyo Electron (Japan), LAM Research (US), ASML (Netherlands), Applied Materials (US), KLA-Tencor (US), Screen Holdings (Japan), Teradyne (US), Advantest Corporation (Japan), Hitachi High-Technologies (Japan), Plasma-Therm (US) are a few major companies operating in the market. These companies have adopted both organic and inorganic growth strategies such as product launches, agreements, partnerships, collaborations, and acquisitions to strengthen their position in the market.