Semiconductor Manufacturing Equipment Market Size, Share, Trends, Industry Analysis Report: By Product Type, By Front-End Equipment, By Fab Facility Equipment, By Back-End Equipment, By Dimension, By Supply Chain Process, and By Region – Market Forecast, 2025–2034
- Published Date:May-2025
- Pages: 129
- Format: PDF
- Report ID: PM4746
- Base Year: 2024
- Historical Data: 2020-2023
Market Overview
The global semiconductor manufacturing equipment market size was valued at USD 101.78 billion in 2024 and is expected to reach USD 109.26 billion by 2025 and USD 211.24 billion by 2034, exhibiting a CAGR of 7.6% during 2025–2034.
The semiconductor manufacturing equipment market encompasses machinery, tools, and systems used in the production of semiconductor devices such as integrated circuits (ICs), semiconductor memory chips, and other active electronic components. The market is critical to the broader semiconductor industry, which powers advancements in technology across sectors such as consumer electronics, automotive, telecommunications, and healthcare. The proliferation of 5G networks and high-performance computing applications creates a need for more sophisticated semiconductor chips, accelerating the adoption of advanced manufacturing equipment. According to the 5G Americas, global 5G connections are projected to reach 6.8 billion by 2027, with North American penetration at 36%, totaling approximately 601 million connections.
Increasing focus on automation and smart manufacturing processes enhances productivity and precision in semiconductor fabrication facilities, supporting semiconductor manufacturing equipment market expansion. Additionally, the global push toward sustainability and energy-efficient solutions contributes to the development of next-generation semiconductors, further propelling demand for innovative manufacturing tools. Geopolitical shifts and supply chain disruptions have led to increased efforts in reshoring semiconductor production, leading to higher investments in local manufacturing capabilities.
To Understand More About this Research: Request a Free Sample Report
Market Dynamics
Rising Demand for Advanced Electronics
Rising demand for advanced electronics, including smartphones, IoT devices, and AI-powered systems, is significantly contributing to the semiconductor manufacturing equipment market growth. The increasing need for high-performance, energy-efficient, and miniaturized components has prompted manufacturers to invest heavily in advanced fabrication methods such as extreme ultraviolet (EUV) lithography and advanced packaging solutions. This surge in demand accelerates innovation across the semiconductor value chain and shapes market dynamics by pushing for faster production cycles and higher yield rates. Additionally, the proliferation of emerging technologies such as autonomous vehicles, smart homes, and industrial automation is expanding the application scope for semiconductors, further strengthening the necessity for advanced fabrication capabilities to meet the evolving technological landscape.
Increasing Government Initiatives and Funding to Boost Domestic Semiconductor Production
Government initiatives and funding aimed at boosting domestic semiconductor production in regions such as North America, Europe, and Asia Pacific play a pivotal role in contributing to the growing demand for semiconductor manufacturing equipment. The Biden-Harris Administration announced that the US Department of Commerce invested up to USD 300 million in advanced packaging research projects in Georgia, California, and Arizona to boost semiconductor development. Strategic investments through subsidies, tax incentives, and national semiconductor programs are designed to reduce supply chain vulnerabilities and enhance technological sovereignty. These policy measures encourage the establishment of advanced fabrication facilities and foster public-private partnerships that drive innovation. Moreover, government-backed initiatives stimulate research and development efforts focused on next-generation semiconductor materials and manufacturing processes, thereby strengthening regional competitiveness and ensuring the long-term resilience of the global semiconductor ecosystem.
Segment Insights
Market Assessment by Product Type
The global market segmentation, based on product type, includes memory, MPU, foundry, logic, discrete, and others. In 2024, the logic segment accounted for the largest share of the semiconductor manufacturing equipment market due to the surging demand for high-performance computing, artificial intelligence, and advanced data center operations. Logic chips, critical for processing complex tasks, are experiencing accelerated adoption across sectors such as automotive electronics, edge computing, and next-generation networking technologies. The rising complexity of logic architectures, including the transition to sub-5nm nodes and the integration of heterogeneous systems, is fueling intensive investments in advanced lithography, metrology, and inspection equipment. This trend underscores the critical role of logic semiconductor production in shaping future digital infrastructure and sustaining technological leadership.
The memory segment is projected to register the highest CAGR during the forecast period due to the exponential growth of data-centric applications and the rising need for high-capacity, energy-efficient memory solutions. Demand for DRAM and NAND flash is being propelled by AI training workloads, real-time analytics, and the proliferation of cloud computing environments. Additionally, the development of next-generation memory technologies, such as MRAM and ReRAM, requires sophisticated manufacturing techniques, further driving equipment innovation. These dynamics are intensifying the focus on process enhancements and yield optimization within memory fabrication, positioning the memory segment as a key catalyst for the expansion of the industry.
Market Evaluation by Dimension
The global market segmentation, based on dimension, includes 2D ICs, 2.5D ICs, and 3D ICs. In 2024, the 2D ICs segment accounted for the largest share due to the maturity of traditional fabrication processes and the extensive infrastructure supporting planar technologies. 2D ICs continue to dominate high-volume manufacturing for a broad range of consumer electronics, automotive, and industrial applications, offering proven performance and scalability at competitive costs. The established ecosystem for 2D IC production, encompassing equipment suppliers, foundries, and material providers, reinforces their market dominance, even as the industry explores more advanced integration strategies. This foundation allows manufacturers to maximize existing capital investments while supporting consistent product innovation.
The 3D ICs segment is expected to register the highest CAGR during the forecast period, driven by the escalating need for higher performance, energy efficiency, and space optimization in semiconductor devices. Advanced packaging technologies such as through-silicon via (TSV) and hybrid bonding are enabling vertical integration of multiple dies, significantly enhancing bandwidth and reducing latency. These advantages are critical for AI accelerators, high-end mobile devices, and advanced automotive systems, where traditional scaling methods face diminishing returns. Growing investments in heterogeneous integration and system-in-package (SiP) solutions are accelerating the adoption of 3D ICs, reshaping manufacturing paradigms, and pushing equipment capabilities to new technological frontiers.
Regional Outlook
By region, the study provides market insights into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. In 2024, Asia Pacific held the largest market share due to the presence of an extensive, vertically integrated semiconductor supply chain anchored by countries such as Taiwan, South Korea, Japan, and China. According to the US International Trade Commission, Taiwan holds 18% of global semiconductor manufacturing capacity and is home to around 92% of advanced chip production. Aggressive capital investments from leading foundries and integrated device manufacturers (IDMs) into next-generation fabrication facilities, including sub-5nm and gate-all-around (GAA) node developments, are reinforcing the region's dominance. Strong government-backed initiatives supporting domestic semiconductor resilience, combined with advanced expertise in lithography, etching, and metrology technologies, are further elevating Asia Pacific's global leadership. The concentration of major end-use industries, including consumer electronics and electric vehicles, also sustains high demand for advanced manufacturing equipment.
The North America semiconductor manufacturing equipment market is projected to experience the highest CAGR during the forecast period due to extraordinary national efforts to boost onshore semiconductor production capabilities. Strategic legislation, such as the CHIPS and Science Act, is injecting billions into the construction of advanced fabs, significantly increasing demand for sophisticated manufacturing tools. Leading technology companies are rapidly expanding their domestic production footprints, targeting critical applications such as AI accelerators, quantum computing, and next-generation communication systems. The push toward supply chain security, coupled with aggressive advancements in EUV lithography and process control innovation, positions North America for sustained high-growth momentum.
Key Players and Competitive Analysis
The competitive landscape of the semiconductor manufacturing equipment market is intensifying, shaped by detailed industry analysis, aggressive market expansion strategies, and a surge in strategic alliances aimed at strengthening technological leadership. Companies are increasingly engaging in joint ventures and mergers and acquisitions to diversify their portfolios and expand their presence across critical nodes such as sub-5nm and emerging packaging technologies. Post-merger integration has become a focal point, as firms seek to rapidly consolidate expertise in areas such as EUV lithography, wafer inspection, and advanced etching processes. Frequent product launches tailored to evolving semiconductor architectures, including 3D ICs and heterogeneous integration, reflect a growing emphasis on customization and process innovation.
Technology Advancements, particularly in areas such as AI-driven metrology, atomic layer deposition, and defect detection, are redefining competitive advantages. Strategic partnerships with fab operators and material suppliers are further accelerating development cycles and enabling faster deployment of next-generation manufacturing solutions. Heightened investment in R&D, coupled with collaborations across the supply chain ecosystem, is critical for sustaining market leadership. The focus on sustainability, yield optimization, and the reduction of production costs continues to influence equipment design, marking a new era of precision engineering and operational excellence within the semiconductor manufacturing equipment industry.
Advantest Corporation, engaged in the semiconductor manufacturing equipment market, specializes in the development and production of automatic test equipment (ATE) and measuring instruments essential for semiconductor device testing and electronic system validation. The company’s product portfolio encompasses test systems for system-on-chip (SoC), memory, and radio frequency (RF) semiconductors, as well as metrology and inspection tools, including multi-vision metrology scanning electron microscopes and 3D imaging analysis tools. Advantest provides a comprehensive range of services, such as consulting, engineering support, test program development, production ramp-up assistance, remote support, and tailored production solutions that integrate with customer manufacturing execution systems to enhance efficiency and product quality. With operations in 18 countries, Advantest maintains a significant presence across North America, Europe, and Asia, supported by subsidiaries and regional headquarters, including a major facility in San Jose, California, and a strong network throughout Japan and other key semiconductor markets.
Applied Materials Inc. operates in the semiconductor manufacturing equipment segment, focusing on supplying equipment, services, and software for the fabrication of integrated circuits, flat panel displays, and solar photovoltaic products. The company’s product portfolio is extensive, featuring tools for thin film deposition, etching, chemical and physical vapor deposition (CVD, PVD), atomic layer deposition (ALD), ion implantation, inspection, metrology, and automation solutions that enable the production of advanced chips and displays at near-atomic precision. Applied Materials also offers software for process optimization and predictive analytics, as well as comprehensive customer support and consulting services. Headquartered in Santa Clara, California, the company serves customers worldwide, with a strong presence in North America and strategic hubs in Singapore and Europe. It operates across 19 countries and supports manufacturing, R&D, and customer service functions globally.
List of Key Companies in Semiconductor Manufacturing Equipment Market
- Advantest Corporation
- Applied Materials Inc.
- ASML
- Cohu, Inc.
- Dainippon Screen Group
- EV Group (EVG)
- KLA Corporation
- Lam Research Corporation
- SCREEN Semiconductor Solutions Co., Ltd.
- Tokyo Electron Limited
Semiconductor Manufacturing Equipment Industry Developments
In January 2025, KASFAB Tools launched India's inaugural manufacturing and assembly facility, specialized in semiconductor equipment, tailored to meet the needs of international clients. This facility is set to enhance India's capabilities in semiconductor production, providing advanced tools and infrastructure essential for the growing global semiconductor industry.
In June 2024, Imec, engaged in nanoelectronics, and ASML, a supplier in lithography, announced the opening of the High NA EUV Lithography Lab in Veldhoven, the Netherlands, which will be jointly operated by both organizations.
Semiconductor Manufacturing Equipment Market Segmentation
By Product Type Outlook (Revenue – USD Billion, 2020–2034)
- Memory
- MPU
- Foundry
- Logic
- Discrete
- Others
By Front-End Equipment Outlook (Revenue – USD Billion, 2020–2034)
- Lithography
- DUV
- EUV
- Wafer Surface Conditioning Equipment
- Etching
- Chemical Mechanical Planarization
- Deposition
- PVD
- CVD
- Cleaning Process
- Single-Wafer Spray System
- Single-Wafer Cryogenic System
- Batch Immersion Cleaning System
- Batch Spray Cleaning System
- Scrubber
- Other Equipment
By Fab Facility Equipment Outlook (Revenue – USD Billion, 2020–2034)
- Automation
- Chemical Control Equipment
- Gas Control Equipment
- Others
By Back-End Equipment Outlook (Revenue – USD Billion, 2020–2034)
- Back-End Processes
- Assembly and Packaging
- Dicing Equipment
- Bonding Equipment
- Metrology Equipment
- Test Equipment
By Dimension Outlook (Revenue – USD Billion, 2020–2034)
- 2D ICs
- 2.5D ICs
- 3D ICs
By Supply Chain Process Outlook (Revenue – USD Billion, 2020–2034)
- IDM Firms
- OSAT Companies
- Foundries
By Regional Outlook (Revenue – USD Billion, 2020–2034)
- North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Netherlands
- Russia
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Malaysia
- South Korea
- Indonesia
- Australia
- Vietnam
- Rest of Asia Pacific
- Middle East & Africa
- Saudi Arabia
- UAE
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Mexico
- Brazil
- Argentina
- Rest of Latin America
Semiconductor Manufacturing Equipment Market Report Scope
|
Report Attributes |
Details |
|
Market Size Value in 2024 |
USD 101.78 billion |
|
Market Size Value in 2025 |
USD 109.26 billion |
|
Revenue Forecast in 2034 |
USD 211.24 billion |
|
CAGR |
7.6% from 2025 to 2034 |
|
Base Year |
2024 |
|
Historical Data |
2020–2023 |
|
Forecast Period |
2025–2034 |
|
Quantitative Units |
Revenue in USD billion, and CAGR from 2025 to 2034 |
|
Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
|
Segments Covered |
|
|
Regional Scope |
|
|
Competitive Landscape |
|
|
Report Format |
|
|
Customization |
Report customization as per your requirements with respect to countries, regions, and segmentation. |
FAQ's
The global market size was valued at USD 101.78 billion in 2024 and is projected to grow to USD 211.24 billion by 2034.
The global market is projected to grow at a CAGR of 7.6% during the forecast period.
In 2024, Asia Pacific held the largest market share due to the presence of an extensive, vertically integrated semiconductor supply chain anchored by countries such as Taiwan, South Korea, Japan, and China.
A few of the key players are Advantest Corporation, Applied Materials Inc., ASML, Cohu, Inc., Dainippon Screen Group, EV Group (EVG), KLA Corporation, Lam Research Corporation, SCREEN Semiconductor Solutions Co., Ltd., Tokyo Electron Limited.
In 2024, the logic segment accounted for the largest market share due to the surging demand for high-performance computing, artificial intelligence, and advanced data center operations.
In 2024, the 2D ICs segment accounted for the largest share due to the maturity of traditional fabrication processes and the extensive infrastructure supporting planar technologies.
© 2025 Polaris Market Research and Consulting. All rights reserved
