Semiconductor Etch Equipment Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Semiconductor Etch Equipment Market Analysis

The Semiconductor Etch Equipment Market size is estimated at USD 23.80 billion in 2024, and is expected to reach USD 34.32 billion by 2029, growing at a CAGR of 7.60% during the forecast period (2024-2029).

• Capital Spending Drives Semiconductor Etch Equipment Growth: The Semiconductor Etch Equipment Market is experiencing robust growth, fueled by increased capital spending on semiconductor processing. Global investments in the semiconductor industry have surged, with countries like France allocating USD 1.9 billion and Germany investing USD 12 billion into microelectronics projects. US firms dominate the market, controlling over 50% of major manufacturing process equipment categories, while Japan commands 90% of the photoresist processing market. This investment surge is propelling demand for advanced etching technologies, critical for producing smaller, thinner, and faster devices.
• China’s Investment: China announced plans to invest USD 1.4 trillion between 2020 and 2025, focusing on advanced technologies, including semiconductors.
• Joint Investment in Japan: TSMC and Sony Corp. jointly invested USD 7 billion in a new chip factory in Japan.
• EU's Digital Infrastructure Focus: The European Union allocated up to 20% of its USD 917 billion Covid recovery fund toward digital infrastructure, focusing on microelectronics.
• Intel's Mega Investment: Intel unveiled plans for a USD 88 billion investment across Europe, including a new "megafab" in Germany.
• Technological Advancements Reshape Market Landscape: Rapid technological advancements are reshaping the Semiconductor Etch Equipment Market, with a clear shift towards plasma etch systems, which consume fewer chemicals and are more suited for automating single wafer manufacturing. This evolution is driven by the growing demand for energy-efficient electronic devices with improved performance, spurring the development of miniature semiconductor integrated circuits (ICs).
• Selective Etching: Lam Research introduced selective etch devices in February 2022, employing innovative wafer fabrication techniques for gate-all-around (GAA) transistor architectures.
• Surface Preparation Tech: ClassOne Technology expanded its Solstice automated single-wafer platform with surface preparation (SP) technologies in July 2022.
• Thermal Processing Innovation: Plasma-Therm revamped its Heatpulse Rapid Thermal Processing (RTP) platform, securing multiple purchases from global chipmakers.
• FPD Equipment Development: Tokyo Electron continues to evolve its FPD production equipment, optimizing it for higher resolutions and ultra-low power consumption for TVs, smartphones, and other devices.
• Market Segmentation Reflects Diverse Applications: The Semiconductor Etch Equipment Market is segmented by product type, etching film type, and application. High-density etch equipment leads the market, with revenue expected to reach USD 19,289.61 million by 2027. The conductor etching segment is forecasted to grow at a CAGR of 4.55% from 2022 to 2027, reaching USD 12,554.46 million by the end of the forecast period.
• Key Growth Drivers: Foundries, MEMS, sensors, and power devices are key application areas driving market growth.
• Smart Devices and IoT: The adoption of IoT and growing demand for smart devices are increasing the need for miniature semiconductors, fueling the etch equipment market.
• Wet Etching for Solar Cells: Wet etching continues to find applications in solar cell manufacturing due to its high selectivity and material preservation properties.
• Investment Analysis Reveals Market Potential: Significant investments are pouring into the Semiconductor Etch Equipment Market, reflecting its potential for growth. Companies are scaling up manufacturing capacities and boosting R&D efforts to meet the rising demand for advanced semiconductor technologies.
• Lam Research's Expansion: Lam Research Corporation opened its largest facility in Malaysia in August 2021, enhancing its global manufacturing footprint.
• US Semiconductor Investment: The US government approved a USD 50 billion investment in the semiconductor industry, focusing on production, research, and design.
• India's Semiconductor Push: India greenlit a USD 10 billion investment in semiconductor manufacturing, aiming to establish a variety of fabrication plants.
• MIT.nano's R&D Expansion: MIT.nano acquired a new SAMCO inductively coupled plasma (ICP) reactive-ion etching (RIE) system in July 2021, boosting research into novel materials.

Semiconductor Etch Equipment Market Trends

High-Density Etch Equipment Segment Holds Significant Market Share

Semiconductor Etch Equipment Industry Segmentation

Semiconductor etch equipment is a device used to remove selective materials from the surface of the silicon wafer substrate by using various chemicals. The etching process removes the material from the surface of the semiconductor to create patterns according to its applications. It is being used in the semiconductor device fabrication process.

The Semiconductor Etch Equipment Market is segmented by product type (high-density etch equipment and low-density etch equipment), by etching film type (conductor etching, dielectric etching, and polysilicon etching), by application (foundries, MEMS, sensors, and power devices), and by geography (North America, Europe, Asia-Pacific, and the Rest of the World). The report offers the market size in value terms in USD for all the abovementioned segments.