Semiconductor Capital Equipment Market Report 2026

The semiconductor capital equipment market size has grown strongly in recent years. It will grow from $88.69 billion in 2025 to $95.84 billion in 2026 at a compound annual growth rate (CAGR) of 8.1%. The growth in the historic period can be attributed to growth in consumer electronics demand, expansion of semiconductor fabrication facilities, increasing complexity of integrated circuits, rising investments in data centers, demand for higher chip performance.

The semiconductor capital equipment market size is expected to see strong growth in the next few years. It will grow to $130.84 billion in 2030 at a compound annual growth rate (CAGR) of 8.1%. The growth in the forecast period can be attributed to growth of AI and high performance computing, expansion of electric vehicle semiconductor demand, increasing adoption of advanced packaging technologies, rising investments in domestic semiconductor manufacturing, continued miniaturization of semiconductor nodes. Major trends in the forecast period include increasing adoption of advanced wafer fabrication equipment, rising demand for high precision lithography and etching tools, growing investment in automated assembly and packaging systems, expansion of advanced process control and metrology solutions, increasing focus on yield optimization and defect reduction.

The rapid deployment of 5G technology is anticipated to support the expansion of the semiconductor capital equipment market in the coming years. 5G technology represents the fifth generation of mobile network technology, delivering significantly faster data speeds, reduced latency, and improved connectivity compared to previous generations. Demand for 5G is rising due to its ability to support applications such as autonomous vehicles, smart cities, and augmented reality, all of which require high-speed data processing and low-latency communication. Semiconductor capital equipment plays a vital role in enabling 5G deployment by supporting the production of advanced chips and components essential for high-speed communication infrastructure. For example, in March 2024, 5G Americas, a US-based industry trade association, reported that global 5G connections reached 1.76 billion by the end of 2023, reflecting a 66% year-over-year increase with 700 million new connections added. Forecasts indicate this number will rise to 7.9 billion by 2028. Therefore, the rapid rollout of 5G technology is fueling growth in the semiconductor capital equipment market.

Major companies in the semiconductor capital equipment market are increasingly adopting heterogeneous chip integration and system-level packaging approaches, such as hybrid bonding, to boost performance, expand functionality, and meet rising demand for advanced, energy-efficient semiconductor solutions. Hybrid bonding links semiconductor chips by creating a direct bond between their surfaces, typically involving metallic and insulating layers. For example, in July 2023, Applied Materials, a US-based semiconductor equipment provider, introduced new materials, technologies, and systems that support chipmakers in integrating chiplets into advanced 2.5D and 3D packages using hybrid bonding and through-silicon vias (TSVs). These developments strengthen the company’s portfolio for heterogeneous integration (HI). HI enables semiconductor manufacturers to combine chiplets with different functions, technology nodes, and sizes into a unified, high-performing package. This method helps address industry challenges posed by the growing need for transistors in high-performance computing and artificial intelligence. As traditional 2D transistor scaling becomes more costly and less effective, HI presents a strategic path to improving chip performance, power efficiency, area cost, and time-to-market (PPACt).

In November 2025, Ardian Semiconductor, a Germany-based private equity investor specializing in semiconductor companies, acquired Centrotherm International AG for an undisclosed amount. This acquisition aims to broaden Ardian Semiconductor’s equipment portfolio and strengthen its role in the European power-semiconductor value chain through improved innovation capabilities and operational scaling. Centrotherm International AG is a Germany-based manufacturer focused on the design and production of power semiconductor manufacturing equipment.

Major companies operating in the semiconductor capital equipment market are Applied Materials, Inc., ASML Holding N.V., Lam Research Corporation, Tokyo Electron Limited, KLA Corporation, Nikon Corporation, Hitachi High-Technologies Corporation, Advantest Corporation, MKS Instruments, Inc., Teradyne, Inc., SCREEN Holdings Co., Ltd., Bruker Corporation, ASM International N.V., DISCO Corporation, Kulicke and Soffa Industries, Inc., Edwards Vacuum LLC, Cohu, Inc., Veeco Instruments, Inc., Rudolph Technologies, Inc., Mattson Technology, Inc., BE Semiconductor Industries N.V., AIXTRON SE.

North America was the largest region in the semiconductor capital equipment market in 2025. The regions covered in the semiconductor capital 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 semiconductor capital equipment market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The semiconductor capital equipment market consists of sales of inspection and metrology equipment, chemical mechanical planarization (CMP) equipment, and deposition equipment. 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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