Global Semiconductor Machinery Manufacturing Industry Report

Semiconductors power many different types of electronics, which have become critical components in an era where more and more products rely on connected technologies. The production of semiconductors involves companies that design the chips, manufacture them, and supply the needed technologies, materials, and machinery.  

The global semiconductor machinery manufacturing industry makes the equipment used to make semiconductors, also known as computer chips or integrated circuits. 

Semiconductor machinery manufacturing involves the design, development, manufacturing, and maintenance of specialized equipment used in various stages of semiconductor production. These stages include wafer processing, lithography, deposition, etching, testing, and packaging. The highly sophisticated machinery includes tools such as photolithography machines, chemical vapor deposition equipment, etching systems, ion implanters, wafer probers, and packaging machines.  

 

The global semiconductor machinery manufacturing industry is expected to grow at a compound annual growth rate (CAGR) of 13% from $121.5 billion in 2024 to $223.8 billion by the end of 2029, according to a recent report by Research and Markets. 

The importance of semiconductor manufacturing has become more critical over the last few decades. According to Statista, the worldwide electric vehicle fleet will have 77 million passenger vehicles by 2025 versus only 20 million units in 2022. Additionally, in 2021, roughly 11 million battery electric vehicles were operating globally, and more than four million new electric vehicles were added to the global fleet versus the previous year. EV market expansion means increasing demand for semiconductors.  

Furthermore, smartphones require continuous development of image sensors and are expected to be one of the critical applications within the global semiconductor industry by 2025. 

Semiconductor machine manufacturers do not face external competition, so they have primarily unwavering demand from chip production companies focused on making the next generation of faster processors and memory modules. 

Segmentation 

By Type 

• Semiconductor Front-end Equipment 
• Semiconductor Back-end Equipment 

By Application 

• Integrated Circuit 
• Discrete Device 
• Optoelectronic Device 
• Sensors 

Market Trends 

Key trends shaping the semiconductor machinery manufacturing industry include:  

• Growing demand for microelectronics and more minor chips 
• Integration of artificial intelligence, machine learning, and augmented and virtual reality in equipment manufacturing  
• Shifts towards more advanced packaging techniques  
• Increasing investment in R&D for machinery innovation  
• Ongoing challenges in the global semiconductor supply chain  
• More emphasis on sustainability and energy-efficient machinery  
• Growing semiconductor production in new regions 
• Adoption of next-generation technologies in production processes  
• More complex chips are leading to more high-tech machinery requirements  
• International Trade Tensions’ Impacts on Equipment Supply Chains  
• High demand for electric vehicles and smart devices 
• Expansion of 5G networks 
• Dependence on skilled workforces for advanced operation and maintenance  
• Obstacles in sourcing raw materials due to geopolitical issues and trade policies  
• Rapid advancements in 3D NAND technology 

By 2030, the logic segment is expected to continue dominating the global semiconductor machinery manufacturing market. This is due to the rising adoption of semiconductor equipment to make logic chips. Also, the growth will be fueled by the escalating manufacturing complexity of logic devices coupled with robust demand for semiconductors in things such as cloud computing, AI, 5G networks, and the Internet of Things. 

By Region 

The Asia-Pacific region holds the highest market share in the industry because many Asian countries are global manufacturing hubs. The area strongly focuses on semiconductor manufacturing, which drives the need for semiconductor manufacturing equipment. Furthermore, demand is also higher due to many key players in the semiconductor machinery manufacturing market. 

North America also accounts for a significant share of the semiconductor machinery manufacturing market, driven by robust research and development activities and the presence of key players. 

Specifically, in the United States, revenue in the sector has grown at a CAGR of 3.3% over the past five years to reach an estimated $28.1 billion in 2024.  

Europe is also seeing steady growth, supported by investments in semiconductor manufacturing infrastructure and evolving technological innovation. 

M&A 

The global community continues to see semiconductor shortages that stemmed from disrupted supply chains from COVID-19 pandemic shutdowns. There continues to be widespread uncertainty across the automotive and consumer electronics sectors, but the good news is that some manufacturers have announced their expansion plans. Key players in the industry are making significant investments, which are expected to further innovation and drive market expansion. These investments are centered around the development of new products, as well as the expansion of distribution networks, which are expected to stimulate future demand. The demand in the industry presents opportunities for businesses and investors to make strategic moves to find solutions that increase production.