Wafer Processing Equipment Global Market Report 2024

The wafer processing equipment market size has grown strongly in recent years. It will grow from $143.62 billion in 2023 to $153.54 billion in 2024 at a compound annual growth rate (CAGR) of 6.9%. The expansion witnessed during the historical period can be linked to the increased presence of consumer electronics, the growth of industrial automation and the Internet of Things (IoT), and various economic factors.

The wafer processing equipment market size is expected to see strong growth in the next few years. It will grow to $195.16 billion in 2028 at a compound annual growth rate (CAGR) of 6.2%. Looking ahead to the forecast period, the growth can be ascribed to the adoption of 5G technology, the integration of artificial intelligence (AI), the rise of electric vehicles (EVs), concerns regarding environmental issues, and the impact of semiconductor shortages. Prominent trends anticipated in the forecast period encompass technological advancements, a focus on research and development, the integration of AI and machine learning, a drive towards miniaturization and changes in wafer size, as well as increased mergers and acquisitions within the industry.

The wafer processing equipment market is poised for growth, driven by the increasing demand for consumer electronic devices. With rising expectations for improved features in electronic products, consumers seek electronic devices with enhanced characteristics. Various consumer electronics and identity solutions, such as identification tags and smart cards, rely on integrated circuits manufactured from wafers, often utilizing RFIDs. To meet these demands, consumers increasingly require ultra-smooth surfaces and thinner wafers for seamless integration into electronic devices. For instance, in October 2022, Apple Inc., a leading US-based consumer electronics company, reported record revenue of $90.1 billion for the September 2022 quarter, marking an 8% year-over-year increase. Additionally, annual revenue for Apple reached $394.3 billion, reflecting an 8% year-over-year growth. Furthermore, the growing use and consumption of consumer electronic devices are expected to drive demand for semiconductors, ultimately boosting the wafer processing equipment market's revenues during the forecast period.

The primary categories of wafer processing equipment include oxidation systems, diffusion systems, epitaxial reactors, photolithography equipment, and various other equipment types. Oxidation systems in wafer processing equipment are employed to create silicon dioxide and involve exposure to oxidizing environments. These systems find applications in various fields, including MEMS, RFID, CMOS image sensors, and more, and serve end-users in sectors like medical, military, solar, industrial, and others.

The wafer processing equipment market research report is one of a series of new reports that provides wafer processing equipment market statistics, including wafer processing equipment industry global market size, regional shares, competitors with a wafer processing equipment market share, detailed wafer processing equipment market segments, market trends and opportunities, and any further data you may need to thrive in the wafer processing equipment industry. This wafer processing equipment market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The wafer processing equipment market is poised for growth, driven by the increasing demand for electric vehicles (EVs). Electric vehicles, powered by electricity and relying on rechargeable batteries, require semiconductor components for various functions, including battery management, power electronics, and control systems. These semiconductors are produced using wafer processing equipment. For example, according to the International Energy Agency in July 2023, global electric car sales surpassed 10 million units in 2022, indicating substantial growth in the electric vehicle market. The share of electric cars as a portion of total vehicle sales more than tripled in just three years, climbing from approximately 4% in 2020 to 14% in 2022. This surge in electric vehicle demand is expected to drive the growth of the wafer processing equipment market.

The substantial investment necessary for semiconductor manufacturing is anticipated to be a limiting factor for market growth. Establishing semiconductor fabrication units, also known as fab units, demands significant capital. The initial investment for setting up a semiconductor fab unit is approximately $8 billion, and this cost is expected to increase in the forecast period. Furthermore, the ongoing expenses associated with maintenance and continuous technological upgrades add to the overall operational costs, serving as a significant barrier for the establishment of semiconductor manufacturing facilities. This situation is expected to impede the demand for wafer processing equipment in the semiconductor industry.

The increasing demand for miniaturized wafers to enhance device performance is a prominent trend in the wafer processing equipment market. Semiconductor substrates like wafers are being engineered to achieve final thicknesses in the range of tens of micrometers (µm). For numerous semiconductor wafers used in applications such as memory, CIS (Complementary Metal-Oxide-Semiconductor Image Sensors), and power applications, the trend is to thin them down to 100 µm-200 µm. As the need arises to maximize memory capacity within single packages, improve data transfer rates, and manage power consumption, especially in mobile applications, there is a requirement for further thickness reduction. Traditional memory devices like 2D NAND/DRAM use silicon wafers that are typically thicker than 200 µm. By 2025, it is expected that the thickness of 3D stacked DRAM wafers will continue to decrease from 50 µm to as thin as 30 µm. Notably, backside-illuminated CIS wafers are currently the thinnest, with thicknesses falling below 10 µm. As a result, there is a growing preference for ultra-smooth surfaces and thinner wafers to integrate into devices in recent years.

Leading companies in the wafer processing equipment market are prioritizing the development of innovative technological solutions aimed at enhancing chip production yield, positioning themselves advantageously in the market. These solutions encompass a range of technologies, including digital supply chain and operations, bevel deposition technology, metrology solutions, data management, and analytics, all designed to improve chip production yield. For example, in June 2023, Lam Research Corp., a prominent semiconductor company based in the United States, introduced Coronus DX. This cutting-edge wafer processing equipment represents the world's first bevel deposition solution crafted to enhance chip production yield. The Coronus DX is employed in the semiconductor industry to address wafer edge deposition challenges, effectively reducing defects and damage frequently encountered in advanced semiconductor manufacturing processes. With the incorporation of integrated metrology, Coronus DX delivers unmatched precision in wafer centering and process control, ensuring consistent and reproducible manufacturing processes.

In December 2021, YES (Yield Engineering Systems, Inc), a manufacturing company based in the United States specializing in the provision of process equipment for advanced semiconductor packaging, acquired SPEC (Semiconductor Process Equipment Corporation) for an undisclosed sum. This acquisition is set to bolster YES's technological capabilities and expand its reach into markets associated with high-performance computing (HPC), artificial intelligence (AI) and machine learning, 5G technology, autonomous driving, augmented reality, and other computationally intensive applications. SPEC is a US-based manufacturing company, focuses on producing wet process equipment designed for tasks such as acid and solvent surface modification (including cleaning, etching, and stripping), as well as electroplating and electroless (chemical) plating.

Major companies operating in the wafer processing equipment market include Lam Research Corporation, Tokyo Electron Limited, Applied Materials Inc., SPTS Technologies Limited, Plasma-Therm LLC, Disco Corporation, Tokyo Seimitsu Co. Ltd., KLA-Tencor Corporation, Hitachi Kokusai Electronic Inc., Taiwan Semiconductor Manufacturing Company Limited, Nikon Corporation, Samsung Electronics Co. Ltd., SCREEN Semiconductor Solutions Co. Ltd., EV Group, Advantest Corporation, ASML Holding NV, KLA Corporation, Canon Inc., Axcelis Technologies Inc., Teradyne Inc., Kokusai Electric Corp., ASM International NV, ATS Automation Tooling Systems Inc., Tokyo Electron Limited, Screen Holdings Co. Ltd., Onto Innovation Inc., Veeco Instruments Inc., Mattson Technology Inc., Aixtron SE, Nordson Corporation

Asia-Pacific was the largest region in the wafer processing equipment market in 2023. Western Europe was the second-largest region in the wafer processing equipment market. The regions covered in the wafer processing equipment market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the wafer processing equipment market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada

The wafer processing equipment market consists of sales of simple diffusion, osmosis and facilitated diffusion. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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