According to a recent study from market research firm Global Market Insights, The adoption of technologies like AI and IoT in fabrication will significantly impact the semiconductor manufacturing equipment market forecast. Software companies are keen on implementing advanced solutions to cater to the rising demands of compact chipsets and growing production.
For instance, TCS in May 2020, developed an AI and cloud-based solution to detect errors in wafers besides improving the production and quality of semiconductors. Constant use of advanced chipsets in automotive and consumer electronics to offer advanced infrastructure and technical expertise have bolstered growth opportunities in OSAT companies. Reportedly, the global semiconductor manufacturing equipment market could reach an annual valuation of over USD 80 billion by 2026.
Based on dimensions, the semiconductor manufacturing equipment market, from the 2D segment, is believed to register a CAGR of 6% up to 2026 owing to its lower initial cost of architecture. The 2.5D technological framework is mainly deployed across high-performance computing devices as it offers high chip functionality. It is additionally used in front-end equipment and graphene electronics to attain cost efficiency in production.
Foundries brought in more than 25% of the annual revenues in 2019, pegged to rise at a CAGR of 4% over the coming years. A surge in the demand for power electronics and cryptocurrency has urged foundry suppliers to upgrade their IC production with newer nodes. For instance, Apple received a 5nm chipset from TSMC to integrate the A14 SoC into iPhone12, in April 2020. The continuous decline in the node size has elevated the requirements for new semiconductor manufacturing equipment in foundries.
The ongoing COVID-19 pandemic has affected the production activities of semiconductor components and chips among facilities and fabrication plants, hampering the semiconductor manufacturing equipment market outlook slightly. There is a lot of complexity associated with patterns in the chipsets as they require high accuracy in transferring data to chips and ICs. Undetected electrostatic discharge damages and particle contamination in the chips will lead to higher investments.
Various business strategies are being developed by major brands to enhance silicon wafer production. STMicroelectronics acquired Norstel AB, a Sweden-based Silicon Carbide wafer manufacturer, to boost the supply of wafers for diode and MOSFET used in industrial and automotive sectors.
In the lithography process in the front-end segment, various technical advancements will increase the need for semiconductor manufacturing devices in the next few years. For instance, EV Group launched the next generation lithography process “MLE” (Maskless Exposure) equipment for high-density PCB, MEMS, and biomedical applications.
The wafer manufacturing equipment segment recorded over 15% of the global market in 2019. It is likely to garner a CAGR of 5% in the next few years due to the growing consumption of silicon wafers. There is a higher requirement for wafer manufacturing equipment in fab facilities. As per the Semiconductor Equipment and Materials International (SEMI), global shipments for silicon wafers incremented by nearly 2.7% in terms of square inches in the first quarter of 2020 compared to the last quarter.
North America’s semiconductor manufacturing equipment market crossed over 10% of the global share in 2019. The government-imposed restrictions on the export of semiconductor chipsets from China and external chipmakers due to the ongoing trade war between the U.S. and China, influencing higher manufacturing in the North America region. Consistent technological developments in the telecom sector and augmented need for portable and smart electronic devices have resulted in increased investments in the semiconductor industries.
The Semiconductor Industry Association (SIA) invested more than USD 10 billion to expedite the production of semiconductors together with driving R&D initiatives in chip technology. Semiconductor manufacturing equipment companies are incorporating business strategies and planning product launches to deliver advanced products.
Key Companies covered in semiconductor manufacturing equipment market are ADVANTEST CORPORATION, Applied Materials, Inc, ASML, Cohu, Inc, EV Group (EVG), Hitachi High-Tech Corporation, KLA Corporation, LAM RESEARCH CORPORATION, Modutek Corporation, Nordson Corporation, Onto Innovation, Plasma-Therm, SCREEN Semiconductor Solutions Co., Ltd, Tokyo Electron Limited, Veeco Instruments Inc.