Published on: May 2022
The predicted growth of Semiconductor Equipment market
The Semiconductor Manufacturing Equipment Market is expected to increase at a CAGR of over 8% from 2022 to 2027, surpassing USD 50 billion in 2020. The market is gaining pace due to a growing trend among Integrated Device Manufacturers (IDMs) and foundries to utilize improved packaging techniques. These companies may use advanced packaging technology to make technically advanced semiconductor wafers and chipsets with high performance, tiny footprints, and low power consumption. As the industry evolves toward the More than Moore technique, with frequent changes in wafer and transistor node size, the semiconductor manufacturing equipment industry is projected to grow at a quicker rate. Several industry participants are investing considerably in R&D in order to bring enhanced packaging technologies to consumers.
Impact of Covid-19 on the international Semiconductor Equipment market
Because of the temporary shutdown of manufacturing facilities in the first half of 2020, the COVID-19 pandemic has had a significant impact on semiconductor manufacturing equipment acceptance by the automotive, industrial, and consumer electronics industries. The semiconductor industry's supply chain was severely damaged in early 2020 as a result of lengthy lockdowns imposed by governments and regulatory organizations around the world. The market potential for semiconductor manufacturing equipment vendors has been significantly hampered as a result of this problem. Because of the growing work-from-home scenario, demand for desktop/PCs, laptops, tablets, and smartphones is expected to skyrocket in the second half of 2020. During the pandemic, a surge in demand for consumer electronic goods throughout North America and APAC economies is expected to assist semiconductor manufacturing equipment vendors' business growth.
What are the reasons behind the predicted growth of the international Semiconductor Equipment market?
The semiconductor manufacturing equipment market will grow as a result of technological breakthroughs in extreme ultraviolet (EUV) lithography.
In 2020, the front-end semiconductor production equipment category accounted for more than 60% of sales and is expected to expand at a rate of roughly 9% through 2027. Several high-end capabilities given by lithography front-end equipment, such as nano-imprinting, high accuracy, and quicker chipset-processing speed, are credited with the industry's growth, as they support semiconductor volume/mass manufacturing. These lithography systems are expensive pieces of equipment, costing up to USD 150 million per unit. The producers and providers of semiconductor production equipment benefit from substantial profit margins. Foundry firms and IDMs are the primary drivers of lithography equipment demand.
Key major players in the semiconductor manufacturing equipment market
To stay competitive, these leaders are putting a lot of emphasis on new product creation and innovation.
Summarizing the overview of the report
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