Semiconductor Equipment Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The Semiconductor Equipment Market stood at USD 101. 75 billion in 2021 and is expected to reach USD 142. 53 billion in 2027, registering a CAGR of 4. 08% during the forecast period. The global semiconductor industry is driven by the simultaneous growth of smartphones and other devices, such as advanced consumer electronics and automotive growth.
New York, Aug. 23, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Semiconductor Equipment Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" - https://www.reportlinker.com/p06316173/?utm_source=GNW
Key Highlights
These industries are driven by technology transitions, such as wireless technologies (5G) and artificial intelligence. Several factors, like a steady rise in demand for high-performance and low-cost semiconductors, drive the market with varying impacts over the short, medium, and long-term periods.
The deployment of 5G is expected to be one of the key factors facilitating this recovery. This is because the expansion of 5G will lead to the expansion of the wireless industry and enable innovations like augmented reality, mission-critical services, fixed wireless access, and the massive internet of things.
Furthermore, with the gradual transitions in the semiconductor industry, such as the miniaturization of nodes and wafer sizes, the demand for increasing wafer sizes for ultra-large-scale integration technology has fostered the growth of semiconductor equipment such as lithography equipment. Moreover, the fab manufacturers are shifting process monitors from bare wafers to production wafers due to the higher cost and inspection challenges faced by wafer miniaturization.
The global demand for 300mm silicon wafers is strong, whereas the demand for 200mm has also seen a surge in recent years. According to SEMI, 200mm fabs are gearing up to add over 600,000 wafers per month across the world during 2017–2022. Such trends are further expected to act as catalysts for the growth of the market studied.
The COVID-19 pandemic disrupted the supply chain and production of semiconductors worldwide, especially in China, during the initial phase of 2020. The primary reason was a labor shortage, during which several semiconductor companies suspended operations. This created a crunch for end-product companies that depend on semiconductors.
Key Market Trends
Increase in Demand of Smartphones will Drive the Market
Consumer electronics is the fastest-growing segment among all, which is contributing to market growth. The main driving force for this segment is the growth of smartphones, which is expected to rise with the rise in population.
Mobile subscribers are also expected to grow from 5.1 billion in 2018 to 5.8 billion in 2025, as per GSM 2019 Report. Due to the miniaturization trend of mobile devices, there has been a rise in the semiconductor industry, which in return drives the market for the semiconductor equipment market.
Moreover, according to the Consumer Technology Association, smartwatch unit sales reached 141 million (unit sales) in 2018, from 75 million in 2017, which is expected to contribute to the semiconductor industry.
Samsung introduced its Galaxy Watch in August 2018, a smartwatch with a Bluetooth or standalone LTE model. Moreover, Huami Corporation, a biometric and activity data-driven company with significant expertise in smart wearable technology, also launched the Amazfit Verge and the Amazfit smartwatch.
Therefore, all the above factors are expected to drive the market for semiconductor equipment.
Asia-Pacific is Expected to Significantly Drive the Market
The Asia-Pacific semiconductor manufacturing equipment market is projected to witness significant growth due to the cyclical resumption of growth in the semiconductor industry and the expansion of the equipment manufacturers operating in the region. One of the major factors for this expansion is the financial support that Asian governments are extending to this industry. Chins established the National Integrated Circuit Industry Investment Fund, which supports the expansion of the domestic equipment industry.
Due to increasing demand and competition from other players operating in the region, major players, like Samsung Electronics Co., are investing in miniaturizing semiconductors, a process called extreme ultraviolet lithography. The company has planned a USD 116 billion investment to counter growing competition from TSMC.
According to data released by SEMI, Taiwan is expected to become the largest equipment market in the world in the coming years, going ahead of Korea. China and Korea are expected to occupy the second and third positions. The equipment market recovery is fueled by advanced logic and foundry, multiple new projects in China, and, to some extent, growth in the demand for memory chips.
Growing R&D expenditure will likely keep the area ahead of the curve during the projection period. For instance, TSMC is investing in a new R&D facility that will be operational in 2020 to facilitate the development of the futuristic 3-nanometer process or even more sophisticated technologies. TSMC intends to begin mass production of the 5nm process in the first half of 2020, followed by the 3nm process in 2022.
Moreover, the de-Americanization of the Chinese semiconductor industry, which sourced crucial semiconductor components and technologies from the United States, is expected to strengthen the domestic semiconductor equipment industry. The availability of incentives from the Chinese government is expected to facilitate the development of component manufacturers in the domestic setup.
Competitive Landscape
The Semiconductor Equipment Market is mature, with a small number of large companies accounting for the vast majority of revenue, profit, and growth. Firm specialization is driven by the high research and development investments and capital expenditures required to compete in the SME industry. Some of the key players are Applied Materials Inc., ASML Holding Semiconductor Company, and KLA Corporation. A few recent developments in this market are:
November 2021 - Soitec, a leading company in designing and manufacturing semiconductor materials, acquired NOVASiC, an advanced technology company operating in polishing and reclaiming wafers on silicon carbide (SiC). The acquisition enabled Soitec to develop semiconductors for power supply systems in industrial and electromobility applications.?
May 2021 - Applied Materials Inc. introduced Draco, a new hard mask material that has been co-optimized to work with Applied’s Sym3 Y etch system, in a process monitored by Applied’s PROVision eBeam metrology and inspection system that can take nearly half a million measurements per hour. The Draco hard mask improves etch selectivity by about 30%, allowing for a shorter mask. Advanced RF pulsing, which synchronizes etching with byproduct removal to enable patterning holes that are completely cylindrical, straight, and uniform, is included in the Draco hard mask and Sym3 Y co-optimization.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06316173/?utm_source=GNW
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