The semiconductor manufacturing equipment market was valued at USD 39.07 Billion in 2016 and is expected to reach USD 62.56 Billion by 2023, at a CAGR of 6.86% during the forecast period.

The key factors driving the semiconductor manufacturing equipment include progress in research and development (R&D) facilities, growing consumer electronics market, and increase in the number of foundries.

The semiconductor production equipment mainly consists of two types: front-end and back-end process equipment. The front-end equipment comprises advanced technology and integration, which require heavy investment. Though expensive, front-end equipment is profitable and adds more value to the final product. Thus, frontend equipment holds a major share in the market compared with back-end equipment.

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Lithography equipment to lead the semiconductor manufacturing equipment market in the coming years

Lithography held a major share of the semiconductor manufacturing equipment market than other equipment in 2016. Lithography has progressed over the past few years because of extensive R&D in this field. New and advanced technologies are now available to the manufacturers of semiconductor devices, which have enabled them to manufacture high-quality devices. The application of different semiconductor devices such as ICs and transistors in various industries such as automotive, telecommunication, and consumer electronics led to the increased demand for semiconductor devices. Hence, the demand for lithography equipment has increased gradually.

Market for bonding equipment to witness a high growth in the near future

Today, in the semiconductor manufacturing industry, wafer bonding is rapidly launching itself as a persistent technology. To ensure dependability and efficient productivity, wafer-bonding equipment became a necessity for semiconductor manufacturers. The bonding equipment implements numerous operations such as surface preparation and cleaning, wafer alignment, wafer bonding, and post-bond metrology. Standardization is highly valued by the integrated device manufacturers and silicon foundries. As a result, the demand for bonding equipment is expected to exhibit a high growth in the coming years.

APAC held the largest share of the semiconductor manufacturing equipment market in 2016

APAC accounted for the largest share of the semiconductor manufacturing equipment market in 2016 and is expected to grow at the highest CAGR between 2017 and 2023. The growth is attributed to increasing industrialization and urbanization in the region. Furthermore, the increasing semiconductor manufacturing capacity in Japan, China, Taiwan, and South Korea are key factors responsible for the increasing adoption of photolithography equipment. Some major companies such as SCREEN Holdings Co., Ltd. (Japan), Tokyo Electron Limited (TEL) (Japan), and Advantest Corporation (Japan) are also responsible for the dynamic growth of the semiconductor manufacturing equipment market in APAC.

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The leading players operating in the semiconductor manufacturing equipment market include Tokyo Electron Limited (Japan), LAM RESEARCH Corporation (US), ASML Holdings N.V. (Netherlands), Applied Materials Inc. (US), KLA-Tencor Corporation (US), Screen Holdings Co., Ltd (Japan), Teradyne Inc. (US), Advantest Corporation (Japan), Hitachi High-Technologies Corporation (Japan), and Plasma-Therm (US).

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