Europe Semiconductor Etch Equipment Market Size (2024 - 2029)

Europe Semiconductor Etch Equipment Market Analysis

Etching is an essential step in the semiconductor manufacturing process. This activity involves removing material from the semiconductor's surface to generate patterns that are unique to the application. The Semiconductor Etch Equipment Market in Europe is expected to grow at a CAGR of 4.42% during the forecast period.

• The Semiconductor Etch Equipment market in Europe is dependent on expanding the in-house semiconductor manufacturing to avoid the global supply chain gap. European Union is considering building advanced semiconductor factories in Europe to avoid relying on the U.S. and Asia to supply semiconductors and peripheral components. The EU explores how to produce semiconductors with features smaller than 10 nm and eventually down to 2 nm chips. For instance, the EU has announced a significant subsidy program for semiconductors and will contribute EURO 11 billion in public money for semiconductor research, design, and production under the EU Chips Act to mobilize EURO 43 billion in public and private investment by 2030.
• The region is witnessing high growth in 5G wireless systems, connected cars, and high-performance computing markets as a developed economy. Usage of semiconductors is essential for all the above-said markets, and thus the semiconductor etch equipment market is growing in the region indirectly. For instance, Samco, a leading provider of plasma processing equipment for the compound semiconductor industry, has announced the installation of a plasma etch system and a UV ozone cleaning system at Samco-ucp ltd in Liechtenstein.
• Industrial automation in Europe is also propelling the growth of semiconductor manufacturing in Europe. For instance, Intel has chosen Germany as the location for a massive new chipmaking complex, revealing the first details of a USD 88 billion investment drive throughout Europe to reduce reliance on imports and alleviate a supply shortage for manufacturers.
• Raw material and component providers are relocating outside the EU for various reasons, including avoiding complying with stringent environmental regulations such as REACH (restriction and authorization). Any migration of raw material processing factories and component manufacturing outside the EU destabilizes the established supply networks in a specific EU region. Creating a new supplier ecosystem increases chip makers' expenses of doing business and increases supplier uncertainty. Furthermore, the restrictions on using certain chemical compounds in the region may limit design flexibility and innovation potential. These are the challenges for the European Semiconductor Etch Equipment market to grow.
• COVID-19 has negatively influenced the European Semiconductor Etch Equipment market, causing supply chain and production disruptions in the semiconductor sector. The impact on semiconductor etch equipment manufacturers was particularly severe due to labor shortages. Companies in the semiconductor supply chain worldwide were forced to reduce or even discontinue operations during the pandemic. Because semiconductors are required for industries such as automobiles, the sector has been plagued by a significant deficit and rising demand, resulting in a massive supply chain gap in the region.

Europe Semiconductor Etch Equipment Industry Segmentation

Semiconductor etch equipment is a device that removes compounds off the surface of a silicon wafer substrate using various solvents. The etching process removes material off the surface of the semiconductor to create patterns for specific applications.

Europe Semiconductor Etch Equipment Market is Segmented By Product Type (High-density Etch Equipment, Low-density Etch Equipment), by Etching Type (Conductor Etching, Dielectric Etching, and Polysilicon Etching), by Applications (Logic and Memory, Power Devices, MEMS), and by Country (United Kingdom, Germany, France, Italy, Rest of Europe).