Semiconductor Manufacturing Equipment Market To Reach $95.9 Billion By 2025: MarketsandMarkets

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  • Increasing investments in R&D facilities due to COVID-19 impact and increasing demand for electric and hybrid vehicles are the key drivers of this growth
  • The APAC region is projected to hold the largest share of semiconductor manufacturing equipment market in 2025
Image for representation (pic credit-ceth ksu)

The global semiconductor manufacturing equipment market will grow to $95.9 billion by 2025 from $62.4 billion in 2020 at a CAGR of nine per cent between 2020 to 2025 as per a report by MarketsandMarkets. The report said that the key factors that will drive this growth are the increasing investments in R&D facilities due to COVID-19 impact and increasing demand for electric and hybrid vehicles.

It added that some other factors like the growing consumer electronics market and the increasing number of foundries due to COVID-19, the trend of miniaturization and technology migration, and high demand for chips to provide computation power and connectivity for AI applications are also pushing the growth.

Photolithography equipment

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The report added that the high demand for semiconductor devices has led to the use of photolithography equipment. It said that in 2019, the lithography segment accounted for the largest share of the semiconductor manufacturing equipment market, by front-end equipment. The report stated that the key reason for the largest size of the lithography equipment market is the high system cost, even though the shipment volume is comparatively small. The application of different semiconductor devices such as ICs and transistors in industries like automotive, telecommunication, and consumer electronics has driven the demand.

The report said that the memory segment of the semiconductor manufacturing equipment market, by product type, is projected to grow at a higher CAGR during the forecast period. New memory technologies like magneto-resistive random access memory (MRAM) and resistive random access memory (ReRAM) are expected to replace traditional technologies. Memory devices require high-precision bonding, testing, cleaning, and packaging for the best performance.

As per the report, ” 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.”

APAC to lead

As per the report, the APAC region is projected to hold the largest share of the semiconductor manufacturing equipment market in 2025. This is due to the presence of a large number of Outsourced Semiconductor Assembly and Test (OSAT) companies in the region. These companies use various front-end, back-end, and fab facility equipment in the semiconductor fabrication process.

The report added that an increasing number of integrated device manufacturers ( IDMs) in the region is expected to boost the semiconductor manufacturing equipment market growth in the near future. The mass production of electronic products like smartphones, sensors, industrial equipment, and wearables among others in China and Taiwan is also expected to accelerate the market growth in APAC.

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