Wafer Processing Equipment Market Report 2026

The wafer processing equipment market size has grown strongly in recent years. It will grow from $157.75 billion in 2025 to $166.13 billion in 2026 at a compound annual growth rate (CAGR) of 5.3%. The growth in the historic period can be attributed to growth in semiconductor manufacturing, expansion of consumer electronics production, demand for integrated circuits, advancement in microelectronics, increase in fab capacity investments.

The wafer processing equipment market size is expected to see strong growth in the next few years. It will grow to $210.24 billion in 2030 at a compound annual growth rate (CAGR) of 6.1%. The growth in the forecast period can be attributed to expansion of AI and HPC chips, growth in EV semiconductor demand, rise in MEMS applications, government semiconductor initiatives, increasing adoption of advanced nodes. Major trends in the forecast period include adoption of advanced photolithography systems, increasing demand for high precision wafer fabrication, expansion of epitaxial and deposition technologies, rising focus on yield enhancement and defect reduction, growth in equipment automation and process control.

The increasing demand for consumer electronic devices is expected to support the growth of the wafer processing equipment market. As the demand for electronic products rises, consumers increasingly expect enhanced performance and improved features in new devices. Various consumer electronics and identity solutions - such as identification tags, smart cards, and RFID-enabled products - rely on wafers for integrated circuit fabrication. This has led to growing demand for ultra-smooth surfaces and thinner wafers to enable seamless integration into compact electronic devices. For example, in May 2023, the Japan Electronics and Information Technology Industries Association, a Japan-based trade association, reported that consumer electronics production reached $204.67 million (¥32,099 million), reflecting a 127% increase compared with the previous year. Therefore, rising demand for consumer electronics is driving the wafer processing equipment market.

Major companies in the wafer processing equipment market are developing innovative technological solutions to increase chip production yield and strengthen competitiveness. These advancements include digital supply chain systems, bevel deposition technologies, metrology solutions, and enhanced data management and analytics. For instance, in June 2023, Lam Research Corp., a US-based semiconductor company, introduced Coronus DX, the world’s first bevel deposition solution designed to improve wafer processing yield. Coronus DX enables precise wafer edge deposition to minimize defects and damage encountered in advanced semiconductor manufacturing. With integrated metrology, the system ensures optimal wafer centering, consistent process control, and superior reproducibility.

In June 2023, Littelfuse Inc., a US-based industrial technology company, acquired a 200 mm wafer fabrication facility (the “Dortmund fab”) from Elmos Semiconductor SE for approximately $107.74 million (€93 million). The acquisition enhances Littelfuse’s in-house wafer processing capabilities, expanding its power semiconductor manufacturing capacity to meet rising demand across industrial, renewable energy, automation, and e-mobility sectors. Elmos Semiconductor SE is a Germany-based company specializing in wafer processing services.

Major companies operating in the wafer processing equipment market are Lam Research Corporation, Tokyo Electron Limited, Applied Materials Inc., SPTS Technologies Limited, Plasma-Therm LLC, Disco Corporation, Tokyo Seimitsu Co. Ltd., KLA Corporation, Hitachi Kokusai Electronic Inc., Kokusai Electric Corp., Nikon Corporation, SCREEN Semiconductor Solutions Co. Ltd., Screen Holdings Co. Ltd., EV Group, ASML Holding NV, Canon Inc., Axcelis Technologies Inc., ASM International NV, 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 2025. 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, South East Asia, 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, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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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