Global Semiconductor Manufacturing Equipment Market

Oct 2019| VMF158A| Verified Market Research

Report Highlights

Global Semiconductor Manufacturing Equipment Market Share By Dimension, By Fab Facility, By Front End Equipment and By Back End Equipment, By geographic Scope And Forecast

According to Verified Market Research, the Global Semiconductor Manufacturing Equipment Market was valued at USD 44,133.3 Million in 2018 and is expected to witness a growth of 8.0% from 2019-2026 and reach USD 75,612.2 Million by 2025.

Semiconductor Manufacturing Equipment can be defined as machinery used to manufacture semiconductors. The semiconductor industry is vast and possesses various range of applications. There are two main aspects in the semiconductor manufacturing equipment industry: front end equipment and back-end equipment. Semiconductor manufacturing equipment is an important component for carrying out fabrication processes. The semiconductor manufacturer is a laborious process and requires a high-quality fab facility.

Semiconductor manufacturing equipment includes systems such as oxidation systems, epitaxial reactors, diffusion systems, ion implantation equipment, physical vapor deposition systems, chemical vapor deposition systems, photolithography equipment, and etching equipment. Such equipment is used in order to deposit and remove different materials on and from the wafer in specific patterns until the circuit is completely built on the wafer.

Growing demands for consumer electronics is expected to fuel the market for semiconductor manufacturing equipment. The growth of the semiconductor industry is highly driven by the increasing demand for semiconductor chips from consumer electronic devices, medical devices, and sensor systems manufacturers. In more recent years, expanding middle-class, changing lifestyle preferences, growing inclination toward using smart electronic devices are among the primary factors driving the growth of consumer electronics. This suggests that the market growth rate for semiconductor manufacturing equipment will increase significantly over the forecast period.

The semiconductor equipment industry is cyclical in nature. This affects the operating results of the equipment vendors due to severe downturns during this period. According to our sources, equipment manufacturers face risks such as overcapacity, decreased demand, and increased price competition. During cyclical periods, customers reduce purchases, postpone the delivery date of ordered products, and may cancel orders. This acts as a potential restraint for the market.

The semiconductor industry is expected to grow at a CAGR of more than 5% during the forecast period. This is due to the increase in sales of both mobile and consumer electronic devices. The emergence of new technologies such as IoT, connected devices, ultra-high-definition (UHD) TVs, automation in automobiles, and hybrid laptops will continue to drive the demand for semiconductor wafers in the market over the forecast period.

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