Semiconductor Capital Equipment Market Report 2025

The semiconductor capital equipment market size has grown strongly in recent years. It will grow from $82.86 billion in 2024 to $90.13 billion in 2025 at a compound annual growth rate (CAGR) of 8.8%. The growth in the historic period can be attributed to technological advancements in semiconductor devices, growth in consumer electronics demand, expansion of data centers and cloud infrastructure, rise in automotive electronics, advancements in AI and ML technologies, economic cycles affecting demand, innovations in memory and storage, and a focus on sustainable manufacturing.

The semiconductor capital equipment market size is expected to see strong growth in the next few years. It will grow to $124.96 billion in 2029 at a compound annual growth rate (CAGR) of 8.5%. The growth in the forecast period can be attributed to 5G technology adoption, expansion of IoT devices, shift towards advanced packaging, complexity in semiconductor designs, demand for high-performance computing, supply chain resilience and security, and green technology investments. Major trends in the forecast period include the integration of AI in manufacturing, the development of new semiconductor materials, a focus on wafer-level packaging, advanced metrology and inspection techniques, Industry 4 adoption in fabs, Growth of equipment leasing models.

The rapid deployment of 5G technology is anticipated to drive growth in the semiconductor capital equipment market. As the fifth generation of mobile network technology, 5G offers significantly faster data speeds, lower latency, and enhanced connectivity compared to previous generations. The increasing demand for 5G is driven by its capability to support high-speed data processing and low latency, which are critical for emerging applications such as autonomous vehicles, smart cities, and augmented reality. Semiconductor capital equipment plays a vital role in the deployment of 5G technology, as it facilitates the production of advanced chips and components necessary for high-speed data processing and communication infrastructure. For example, in March 2024, 5G Americas reported that global 5G connections reached 1.76 billion by the end of 2023, reflecting a 66% year-over-year increase with an additional 700 million connections. The growth is expected to continue at an accelerated pace, with forecasts predicting 7.9 billion 5G connections by 2028. This rapid expansion in 5G technology is driving the semiconductor capital equipment market.

Leading companies in the semiconductor capital equipment sector are focusing on heterogeneous chip integration and system-level packaging, such as hybrid bonding, to improve performance, functionality, and meet the demand for advanced semiconductor solutions. Hybrid bonding involves creating a direct bond between chip surfaces, typically using a combination of metallic and insulating layers. For instance, in July 2023, Applied Materials, a US-based semiconductor equipment provider, introduced new materials, technologies, and systems designed to assist chipmakers in integrating chiplets into advanced 2.5D and 3D packages through hybrid bonding and through-silicon vias (TSVs). These innovations expand Applied's technology portfolio for heterogeneous integration (HI), which allows the combination of chiplets with different functions, technology nodes, and sizes into a single package. This approach addresses challenges in high-performance computing and artificial intelligence, offering a strategic solution as traditional 2D transistor scaling becomes increasingly costly and less effective. HI enhances chip performance, power efficiency, area cost, and time to market (PPACt).

In July 2022, Atlas Copco Group, a Sweden-based manufacturing company known for its innovative solutions in air compression, vacuum, industrial, and power techniques, acquired Ceres Technologies Inc. for an undisclosed amount. This acquisition is intended to bolster Atlas Copco Group's liquid chemical dispensing capabilities, strengthen its position in the semiconductor industry, and promote sustainability by enhancing gas recycling and resource efficiency. Ceres Technologies Inc. is a US-based manufacturer specializing in advanced semiconductor capital 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, United Microelectronics Corporation, Microchip Technology Inc., Semiconductor Manufacturing International Corporation (SMIC, 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 & Soffa Industries Inc., Edwards Vacuum, Cohu Inc., Veeco Instruments Inc., Rudolph Technologies Inc., Mattson Technology Inc., BE Semiconductor Industries N.V. (BESI), Aixtron SE.

North America was the largest region in the semiconductor capital equipment market in 2024. The regions covered in the semiconductor capital equipment market report are Asia-Pacific, 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, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Semiconductor capital equipment refers to the specialized machinery and tools used in the manufacturing of semiconductor devices and integrated circuits. This equipment is crucial for various stages of semiconductor production, including wafer fabrication, assembly, and testing.

The main types of semiconductor capital equipment are wafer manufacturing equipment, assembly and packaging equipment, test equipment, and others. Wafer manufacturing equipment is used to produce the foundational silicon wafers for microchips, involving processes such as crystal growth, slicing, and polishing. Applications include wafer processing, surface conditioning, chemical mechanical planarization, chemical vapor deposition, as well as assembly and packaging. These technologies serve industries such as consumer electronics, healthcare, automotive, information technology (IT), and telecommunications.

The semiconductor capital equipment market research report is one of a series of new reports that provides semiconductor capital equipment market statistics, including semiconductor capital equipment industry global market size, regional shares, competitors with an semiconductor capital equipment market share, detailed semiconductor capital equipment market segments, market trends and opportunities, and any further data you may need to thrive in the semiconductor capital equipment industry. This semiconductor capital 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 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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