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Global Semiconductor Production Equipment Market: Snapshot

Global market for semiconductor production equipment has been covered under the scope of this report. Semiconductor production equipment (SPE) is used in possibly the most advanced and complex manufacturing process in the world, which is, the production of semiconductor devices. Semiconductor products, such as memory devices and microprocessors are used in a wide range of devices such as personal computers, consumer electronics and telecommunications equipment. Chip-containing semiconductor products have multiplied in the past years and this has been a key contributor to the increased productivity in every sector of the world.

Technologies used in semiconductor production equipment are constantly changing owing to the dynamic business environment and the rising demand for high performance semiconductors. However, these advancements in chip technology can reduce the presence of existing chips and the semiconductor production equipment used to make them may become obsolete in just matter of years if an aggressive research and development program is not employed to maintain attractiveness in the semiconductor production equipment industry.

The demand for semiconductor production equipment is directly proportional to the demand for semiconductors, which, in turn, is proportional to the strength of the economy. The attractiveness of individual semiconductor production equipment firms is thus linked to their capability to design, manufacture and sell products capable of maintaining the standard of the latest and technologically advanced semiconductors at low cost.

Overall, the global semiconductor production equipment market is forecast to reach US$79.51 bn by the end of 2025. In 2016, the market was valued at US$41.24 bn. If these figures hold true, the global semiconductor production equipment market will exhibit a CAGR of 7.6% between 2017 and 2025.

semiconductor production equipment market

Electronics Manufacturers Emerge as Major Contributor to Growth Witnessed in Market

The global semiconductor production equipment market, by equipment type, is classified into four categories: Assembly and packaging equipment, wafer processing equipment, test equipment, and other equipment. As of 2016, the wafer processing equipment contributed to the largest revenue share of global semiconductor production equipment market owing to its wide application areas in the production of semiconductors.

The global semiconductor production equipment market, by end-user, is segmented into foundry, semiconductor electronics manufacturer, testing house and others. As of 2016, semiconductor electronics manufacturer contributed to largest revenue share of a little short of 55% in the global market. The rise in demand for semiconductor electronics such as tablets, and smartphones, among others are likely to drive the growth of this segment during the forecast period.

North America Emerges as Leading Regional Market, Asia Pacific to Showcase Lucrative Opportunities

Regionally, the global semiconductor production equipment market is segmented into North America, Europe, Asia Pacific, Middle East and Africa and Latin America. By revenue, North America held the dominant share of 43.5% in 2016. The presence of several leading manufacturers as well as rapid advancements in technology are responsible for the dominance of this region. By revenue, Asia Pacific emerged as the second largest market in the same year, followed by Europe. China will be a major contributor to the growth of the Asia Pacific region owing to the development of a number of semiconductor manufacturing facilities (fab) in the region.

Some of the leading players in the semiconductor production equipment market are Applied Materials, Inc. (U.S.), Tokyo Electron Ltd. (Japan), ASML Holding, N.V. (Netherlands), Lam Research Corporation (U.S.), Hitachi, Ltd. (Japan), and Advantest Corporation (Japan). Some of the other companies operating in the market are KLA-Tencor Corporation (US), Teredyne (U.S.), Nikon Corporation (Japan), SCREEN Holdings Co., Ltd. (Japan), and Tokyo Seimitsu Co., Ltd. (Japan), among others.

Global Semiconductor Production Equipment Market: Overview

This report provides strategic analysis of the global semiconductor production equipment market. The scope of the report includes competitive analysis of various market segments based on equipment type and end-user of semiconductor production equipment in various industry verticals and in-depth scrutiny of the market across different geographic segments. Projections of sales of fab (semiconductor fabrication/manufacturing facility) equipment segment of semiconductor production equipment showed a significant growth rate in the global market from 2017 to 2025. The growth is to be fueled by rise in demand for equipment for foundries, and for power and memory semiconductor manufacturing. China is likely to invest considerably in new fab facilities outstripping planned facilities in Southeast Asia and Taiwan, the U.S., Korea, Europe, and the Middle East & Africa. This will ensure steady growth for China and the Asia Pacific region, thereby augmenting the overall growth of the semiconductor production equipment market.

Global Semiconductor Production Equipment Market: Trends and Opportunities

Current growth in the production of electronics is one of the main driver of the global semiconductor production equipment market. Rising demand for tablets, smartphones, wireless communication infrastructure, network hardware, digital televisions, computers and medical devices is encouraging the global demand for semiconductors, thereby boosting the demand for semiconductor production equipment. The Internet of Things (IoT) or internet connected devices will play a significant role to the semiconductor demand in the coming years, as will the growth of smart cities, smart grids, and automated smart manufacturing. These factors will propel the overall growth of the semiconductor production equipment market.

Global Semiconductor Production Equipment Market: Segmentation

The global semiconductor production equipment market, by equipment type, has been divided into assembly and packaging equipment, wafer processing equipment, test equipment, and other equipment. Other equipment include other front-end and back-end equipment such as silicon wafer manufacturing equipment and spluttering equipment. Silicon wafer manufacturing equipment is primarily employed to manufacture pure silicon by growing cylindrical silicon crystals and then cutting these crystals into silicon wafers of desired sizes. This equipment comprises of saws, lasers, and polishing and grinding equipment.

The global semiconductor production equipment market, by end-user, has been divided into foundry, semiconductor electronics manufacturer, testing house, others. Some of the other users of semiconductor production equipment include independent manufacturers performing some part of the process of wafer fabrication to packaging. These units often offer low-cost processes which force the big companies to outsource a particular process to these specialized vendors in order to increase quality as well as to reduce cost.

The global market has been segmented into five regions: North America, Europe, Asia Pacific, Middle East and Africa and Latin America. The market revenue for semiconductor production equipment market has been provided in terms of US$ Billion, and volume has been provided in terms of thousand units, along with the CAGR for the forecast period from 2017 to 2025.

Global Semiconductor Production Equipment Market: Scope of the Report

The report also includes competitive profiling of leading players in the industry and their market share to aid in strategic decision making. The market attractiveness analysis and company market share analysis included in the report provide insight into market dynamics, industry competition and strategies adopted by market leaders.

The report also breaks down and reviews the various factors impacting the market growth, which can be appropriately described as market drivers, restraints, and opportunities. These factors help to determine the various existing trends and their impact on the market growth. Overall, taking into consideration the various factors affecting the semiconductor production equipment market, the report includes a holistic analysis of the global semiconductor production equipment market, and provides an estimate of growth for the period 2017 to 2025.

Companies Mentioned in the Report

Some of the leading players in the market are Applied Materials, Inc. (U.S.), Tokyo Electron Ltd. (Japan), ASML Holding, N.V. (Netherlands), Lam Research Corporation (U.S.), Hitachi, Ltd. (Japan), and Advantest Corporation (Japan). Some of the other companies operating in the market are KLA-Tencor Corporation (US), Teradyne (U.S.), Nikon Corporation (Japan), SCREEN Holdings Co., Ltd. (Japan), and Tokyo Seimitsu Co., Ltd. (Japan) among others.

The market has been segmented as follows:

Semiconductor production equipment market, by Equipment Type:

  • Assembly and Packaging Equipment
  • Wafer Processing Equipment
  • Test Equipment
  • Other Equipment

Semiconductor production equipment market, by End-user:

  • Foundry
  • Semiconductor Electronics Manufacturer
  • Testing House
  • Others

Semiconductor production equipment market, by Geography: The market is segmented on the basis of geography into:

  • North America
    • The U.S.
    • Rest of North America
  • Europe
    • The Netherlands
    • The UK
    • Germany
    • Rest of Europe
  • Asia Pacific
    • Taiwan
    • South Korea
    • Rest of Asia Pacific
  • Middle East and Africa
    • United Arab Emirates (UAE)
    • South Africa
    • Rest of MEA
  • Latin America
    • Brazil
    • Argentina
    • Rest of Latin America