- Asia Pacific is projected to have considerable market growth during the forecast period
- By front-end equipment, the lithography segment is anticipated to grow at the significant rate during the forecast period
The global semiconductor manufacturing equipment market is expected to reach $131.20 billion by 2027 growing at a CAGR of 11.2 per cent during the forecast period as per a report by ResearchAndMarkets. It accounted for $56.12 billion in 2019.
Some of the key factors helping in this growth are increasing investments in R&D facilities, growing demand for electric and hybrid vehicles, trend of miniaturisation and technology migration, and high demand for chips to provide computation power and connectivity for AI applications. High purchase and maintenance costs are likely to restraining the market growth.
It added, “Semiconductor manufacturing is a difficult process that provides quality assertion of various semiconductor products. This equipment is used in order to safeguard assembling of semiconductor parts, testing of the entire device and wafer fab. It is an important component for carrying out fabrication processes.”
Semiconductor manufacturing equipment includes systems like oxidation systems, epitaxial reactors, diffusion systems, ion implantation equipment, physical vapor deposition systems, chemical vapor deposition systems, photolithography equipment, and etching equipment.They are usedto deposit and remove different materials on and from the wafer in specific patterns until the circuit is completely built on the wafer.
Lithography segment is anticipated to grow at the significant rate
By front-end equipment, the lithography segment is anticipated to grow at the significant rate during the forecast period. This is due to increasing demand for semiconductor devices across the globe has led to the use of photolithography equipment for manufacturing semiconductor devices.
The major 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 increased demand.
Asia Pacific is projected to have considerable market growth
Asia Pacific is projected to have considerable market growth during the forecast period. This is due to favorable economic conditions and cheap labor costs in APAC. The report added that the development of semiconductor devices in Asian economies such as China, Japan, South Korea, and Taiwan drives the semiconductor manufacturing equipment market in the region. APAC is the hub for the consumer electronics market. It is served by several fabrication plants present in the APAC region. China, Japan, South Korea, and Taiwan own the maximum number of fabrication plants globally.