Market Trends of Semiconductor Etch Equipment Industry
High-Density Etch Equipment Segment Holds Significant Market Share
- Dominant Market Share and Robust Growth: The high-density etch equipment segment holds the largest market share, comprising 63.59% of the semiconductor etch equipment market in 2021, valued at USD 12,544.1 million. Projections indicate that this segment will grow to USD 19,289.6 million by 2027, at a compound annual growth rate (CAGR) of 5.66%.
- Technological Advancements Driving Demand: As industries push for "smart everything," demand for smaller, more efficient devices is soaring. This trend is propelling semiconductor manufacturing technologies to deliver precision in high-temperature chemical processes, where cleanliness and precise chemical dosing are key.
- Shift to Advanced Etching Technologies: The industry has largely transitioned from traditional wet etching to plasma etch systems, which are more efficient and better suited for automating single wafer manufacturing. This shift is essential for the development of miniature semiconductor ICs, which power energy-efficient devices.
- Investment in Research and Development: Heavy R&D investment is critical in the semiconductor sector. The United States, for instance, has committed to doubling research investments in semiconductor-related fields, aiming to spur innovation in artificial intelligence, quantum computing, and advanced wireless technologies.
Industry Innovations:
- ClassOne's Solstice Expansion: ClassOne Technology incorporated new surface preparation technologies into its Solstice platform in July 2022.
- Plasma-Therm's RTP Platform: Plasma-Therm's flagship Heatpulse RTP platform saw multiple purchases from major global chipmakers after its recent overhaul.
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Asia-Pacific to Witness Significant Growth
- Market Leadership and Rapid Growth: Asia Pacific dominates the semiconductor etch equipment market with an 84.72% market share in 2021, valued at USD 16.71 billion. This region is projected to grow at a CAGR of 4.52%, reaching USD 23.80 billion by 2029.
- China's Push for Self-Reliance: China has made substantial progress towards self-reliance in 7nm chip production, developing tools and know-how for several semiconductor manufacturing segments. This drive for self-sufficiency is a major factor propelling investments and innovations in semiconductor etch equipment in the region.
- Strategic Investments and Collaborations: The region has attracted significant investment from both domestic and international players. For example, TSMC announced a USD 2.8 billion investment in China to ramp up automotive chip production. Similarly, India is making strides with ISMC鈥檚 planned USD 3 billion semiconductor manufacturing facility.
- Localization of Manufacturing: Global companies are increasingly localizing production in Asia Pacific. In February 2022, Lam Research started manufacturing next-generation core equipment in South Korea, strengthening its ties with Samsung Electronics' memory and system semiconductor production.
- Automotive Industry Driving Demand: The development of fully-autonomous vehicles is expected to significantly impact the semiconductor industry, particularly in Asia Pacific. As the automotive and semiconductor industries work to enhance technologies for autonomous driving, demand for semiconductor and etch equipment is expected to rise sharply.
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