Semiconductor Etch Equipment Market Size (2024 - 2029)

The semiconductor etch equipment market is projected to experience significant growth, driven by the expanding semiconductor wafer deposition and processing industries. This growth is influenced by the increasing demand for advanced semiconductor devices, propelled by technologies such as AI, 5G, and IoT. Major investments in the expansion of fabrication facilities are further contributing to the market's expansion. However, the market faces challenges due to the complex global supply chain and trade procedures, which can disrupt operations and create barriers. The COVID-19 pandemic exacerbated these issues, leading to a supply chain gap despite rising demand.

Market Size of Semiconductor Etch Equipment Industry

Semiconductor Etch Equipment Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 23.80 Billion
Market Size (2029) USD 34.32 Billion
CAGR (2024 - 2029) 7.60 %
Fastest Growing Market Asia-Pacific
Largest Market Asia-Pacific

Major Players

Semiconductor Etch Equipment Market Major Players

*Disclaimer: Major Players sorted in no particular order

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 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.

By Product Type
High-density Etch Equipment
Low-density Etch Equipment
By Etching Film Type
Conductor Etching
Dielectric Etching
Polysilicon Etching
By Application
Foundries
MEMS
Sensors
Power Devices
By Geography***
North America
Europe
Asia
Australia and New Zealand
Latin America
Middle East and Africa
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Semiconductor Etch Equipment Market Size Summary

The semiconductor etch equipment market is poised for significant growth, driven by the increasing complexity of semiconductor device manufacturing and the rising demand for advanced technologies such as AI, 5G, and IoT. Etching is a crucial process in semiconductor fabrication, essential for creating precise patterns on semiconductor wafers. The market's expansion is further supported by substantial investments from major industry players in the development of fabrication facilities, as seen in initiatives by companies like Bosch and Lam Research. However, the market faces challenges due to the intricate global supply chain of semiconductors, which can be disrupted by complex trade procedures and was notably impacted by the COVID-19 pandemic, leading to a global semiconductor shortage.

The Asia-Pacific region dominates the semiconductor foundry landscape, with countries like Taiwan, South Korea, Japan, and China holding significant market shares. China's aggressive investment in its semiconductor industry aims to enhance its competitiveness, while Japan is encouraging foreign investment in semiconductor manufacturing through financial incentives. The market is moderately competitive, with established players like Applied Materials, Hitachi High Technologies, Lam Research, and Tokyo Electron leading the way. These companies are focusing on innovation and strategic mergers and acquisitions to strengthen their market positions. Recent advancements include new etching technologies and methods that improve manufacturing efficiency and reduce resource consumption, highlighting the ongoing evolution and dynamism within the semiconductor etch equipment market.

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Semiconductor Etch Equipment Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Buyers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Threat of Substitute Products

      5. 1.2.5 Intensity of Competitive Rivalry

    3. 1.3 Assessment of the Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Product Type

      1. 2.1.1 High-density Etch Equipment

      2. 2.1.2 Low-density Etch Equipment

    2. 2.2 By Etching Film Type

      1. 2.2.1 Conductor Etching

      2. 2.2.2 Dielectric Etching

      3. 2.2.3 Polysilicon Etching

    3. 2.3 By Application

      1. 2.3.1 Foundries

      2. 2.3.2 MEMS

      3. 2.3.3 Sensors

      4. 2.3.4 Power Devices

    4. 2.4 By Geography***

      1. 2.4.1 North America

      2. 2.4.2 Europe

      3. 2.4.3 Asia

      4. 2.4.4 Australia and New Zealand

      5. 2.4.5 Latin America

      6. 2.4.6 Middle East and Africa

Semiconductor Etch Equipment Market Size FAQs

The Semiconductor Etch Equipment Market size is expected to reach USD 23.80 billion in 2024 and grow at a CAGR of 7.60% to reach USD 34.32 billion by 2029.

In 2024, the Semiconductor Etch Equipment Market size is expected to reach USD 23.80 billion.

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