December 13, 2024
Semiconductor Equipment Market

Semiconductor Equipment to Witness Strong Growth in the Semiconductor Equipment Market

Semiconductor equipment consists of various tools required for designing, fabrication, and assembling of semiconductor devices and integrated circuits. Semiconductors are key components used in various electronic devices including computers, smartphones, automotive electronics, manufacturing equipment, medical devices, and telecommunication equipment among others. With growing demand for sophisticated electronic devices worldwide, demand for semiconductors is also increasing rapidly. This in turn is fueling the growth of the semiconductor equipment market.

The global Semiconductor Equipment Market is estimated to be valued at US$ 83.3 Bn in 2023 and is expected to exhibit a CAGR of 9.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
One of the key trends in the semiconductor equipment market is increasing miniaturization of semiconductor devices. With growing demand for portable and smart devices, component size reduction has become the need of the hour. Consequently, manufacturers are focusing on developing next-generation semiconductor fabrication equipment capable of producing much smaller circuits. Another major trend is growing adoption of 3D NAND technology. 3D NAND technology allows for stacking of multiple memory cells in three dimensions and provides greater storage capacity with smaller chip sizes. Equipment required for 3D NAND fabrication is seeing higher demand. Innovation in materials and upgraded manufacturing tools is also driving the equipment upgrades and replacement cycles in the industry.
Porter’s Analysis

Threat of new entrants: The threat of new entrants in the semiconductor equipment market is moderate. High initial investments required for R&D, manufacturing, and marketing acts as a significant barrier.

Bargaining power of buyers: The bargaining power of buyers in the semiconductor equipment market is high. Major semiconductor manufacturers have significant influence over equipment providers and negotiate hard on pricing and delivery terms.

Bargaining power of suppliers: The bargaining power of suppliers is moderate. Equipment providers have established global supply networks to source raw materials and components. Supplier switching costs are also moderate.

Threat of new substitutes: Threat of new substitutes is low. Equipment upgrades with advanced technologies ensure minimum threat from alternatives.

Competitive rivalry: Intense competition exists among large global players to gain market share through product innovation and expanding customer base.

Key Takeaways

The global Semiconductor Equipment Market Share is expected to witness high growth, exhibiting CAGR of 9.3% over the forecast period 2023 to 2030, due to increasing demand for semiconductor chips across various end-use industries like consumer electronics, automotive, and IoT devices.

The Asia Pacific region currently dominates the semiconductor equipment market, with China and Taiwan being the major markets. Growing fabless semiconductor industries in these countries drives the demand. Countries like South Korea and Japan are also significant contributors due to presence of leading foundries.

Key players operating in the semiconductor equipment market are Applied Materials, Inc., ASML Holding, Canon, Tokyo Electron, Lam Research, KLA-Tencor, Dainippon Screen, Advantest, Teradyne, and Hitachi High-Technologies. Players are focusing on developing new generations of equipment for advanced nodes below 10 nm to gain competitive advantage.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it

Ravina
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Ravina Pandya, a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals. 

Ravina Pandya

Ravina Pandya, a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals. 

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