Wafer Manufacturing Equipment Market - By Type (Wafer Slicing Equipment, Wafer Lapping & Polishing Equipment, Wafer Cleaning Equipment, Wafer Inspection Equipment, Wafer Testing Equipment, Wafer Dicing Equipment), By Wafer Size, By End-Use Industry & Forecast, 2023 – 2032

Wafer Manufacturing Equipment Market Size

Wafer Manufacturing Equipment Market was valued at over USD 16.1 billion in 2022 and is anticipated to grow at a CAGR of over 5% between 2023 and 2032. Governments worldwide are fostering semiconductor industry growth through strategic initiatives and R&D investments. By supporting domestic manufacturing capabilities, these efforts aim to bolster the market. These initiatives address the increasing demand for semiconductors, promoting technological self-sufficiency and ensuring a robust & competitive industry. For instance, in June 2023, the European Commission, under EU State aid rules, approved an Important Project of Common European Interest (IPCEI) to support research & innovation. The Member States will provide up to USD 8.5 billion in public funding, which is expected to unlock an additional USD 14.4 billion in private investments. This investment is expected to boost the wafer manufacturing equipment industry.
 

Wafer manufacturing equipment refers to machinery and tools used in the production of semiconductor wafers. These devices facilitate the fabrication of Integrated Circuits (ICs), microprocessors, and other semiconductor components. The equipment encompasses various processes including deposition, lithography, etching, and testing, ensuring the precise & efficient manufacturing of semiconductor materials for use in electronics and technology devices.
 

The semiconductor industry's cyclical nature, characterized by alternating periods of high demand and downturns, presents hurdles for the wafer manufacturing equipment market. During downturns in the sector, semiconductor firms frequently curtail capital expenditures, affecting the demand for new equipment. This cyclicality can cause market swings, making it difficult for wafer manufacturing equipment vendors to foresee and handle demand, negatively affecting revenue and growth prospects.
 

COVID-19 Impact

The COVID-19 outbreak hindered the wafer fabrication equipment industry. During lockdowns, supply chain interruptions, manufacturing closures, and decreased demand for electronics impacted output and sales. While the semiconductor industry recovered due to the rising demand for tech products, the market was hampered by continued uncertainty, logistical issues, and semiconductor shortages. The pandemic highlighted the necessity of supply chain resilience, encouraging changes and hastening digital transitions in the semiconductor production process.
 

Wafer Manufacturing Equipment Market Trends

The market for wafer manufacturing equipment is evolving in tandem with the growing need for cutting-edge semiconductor technologies such as IoT, 5G, and AI. The industry is moving toward larger wafer sizes, such as 300mm and 450mm, which improve production efficiency. The development of wafer manufacturing equipment that is compatible with Extreme Ultraviolet (EUV) lithography is credited to the increased popularity of this technique to obtain finer semiconductor feature sizes. These trends highlight the industry's drive for efficiency, sophistication, and technological innovation to satisfy the needs of changing semiconductor applications and boost the electronics sector.
 

The wafer manufacturing industry is undergoing dynamic changes owing to the higher R&D spending for improved capabilities. Production process optimization, error reduction, and elevation are being achieved through automation and Industry 4.0 integration. Eco-friendly wafer manufacturing equipment is gaining traction as a response to environmental concerns. The increasing popularity of foundry services is influencing the need for equipment in third-party semiconductor fabrication. Semiconductor businesses and equipment makers are forming strategic collaborations to promote innovations. AI and ML technologies are being integrated to improve operational efficiency and predictive maintenance in semiconductor production operations.
 

Wafer Manufacturing Equipment Market Analysis

Based on type, the market is segmented into wafer slicing equipment, wafer lapping & polishing equipment, wafer cleaning equipment, wafer inspection equipment, wafer testing equipment, and wafer dicing equipment. The wafer cleaning equipment segment led the global market with a share of over 25% in 2022.
 

• As semiconductor features shrink to advanced nodes including 7nm and 5nm, wafer cleaning equipment becomes vital. It ensures the removal of contaminants at a microscopic level, maintaining the precision required for smaller feature sizes and enhancing the overall manufacturing efficiency.
   
• The rise of EUV lithography demands ultra-clean wafers. Wafer cleaning equipment plays a pivotal role in eliminating particles and contaminants that could compromise the success of EUV processes.
   

Based on the wafer size, the market is divided into 100-200m, 200- 300mm, and above 300mm. The above 300mm is further categorized into products (hardware, software) and services. The above 300mm segment is anticipated to register a CAGR of over 5% through 2032.
 

• Larger wafer sizes above 300mm enhance semiconductor production efficiency by accommodating more chips per wafer, thereby reducing manufacturing costs and increasing the overall output. Larger wafers contribute to higher yield rates as they enable the large-scale manufacturing of semiconductor devices in a single batch, reducing defects and improving the overall productivity.
   
• Scaling up to above 300mm wafer sizes leads to cost savings as it optimizes material usage, reduces energy consumption, and improves facility utilization, resulting in a lower cost per unit of semiconductor devices.
   

Asia Pacific dominated the global market with a share of over 80% in 2022. Asia Pacific is positioned as a major growth hub owing to the rising electronics demand and significant expenditure in the infrastructure supporting semiconductor manufacturing. The industry has experienced significant growth with the support of countries, such as China, Taiwan, and South Korea, which have fostered technological developments and attracted major investments. The region's dominance in the wafer manufacturing equipment market is also attributed to a strong supply chain, a trained workforce, and supportive government regulations.
 

Wafer Manufacturing Equipment Market Share

Players operating in the industry focus on implementing different growth strategies to strengthen their offerings and expand their market reach. These strategies involve new product development & launches, partnerships & collaborations, mergers & acquisitions, and customer retention. These players also heavily invest in R&D to introduce innovative and technologically advanced solutions in the market. Some major players operating in the wafer manufacturing equipment industry are mentioned below:

• Applied Materials
• ASML
• Daitron Incorporated
• EV Group (EVG)
• Hitachi High-Tech Corporation
• KLA Corporation
• Lam Research Corporation
   

Wafer Manufacturing Equipment Industry News

• In September 2023, Intel Foundry Services (IFS) and Tower Semiconductor announced an agreement where Intel will provide foundry services and 300mm manufacturing capacity to help Tower serve customers globally. Under the agreement, Tower will utilize Intel’s advanced manufacturing facility in New Mexico. Tower invested up to USD 300 million in acquiring equipment & other fixed assets to be installed in the New Mexico facility. This initiative is expected to enhance New Mexico's global competitiveness in high-tech manufacturing, attracting further investments and expertise.
   
• In December 2022, SCREEN Semiconductor Solutions Co., Ltd. launched a new SU-3400 Single Wafer Cleaning System. It provides world-leading throughput combined with a range of unique cleaning technologies.
   

The wafer manufacturing equipment market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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Wafer Manufacturing Equipment Market, By Type

• Wafer slicing equipment
• Wafer lapping & polishing equipment
• Wafer cleaning equipment
• Wafer inspection equipment
• Wafer testing equipment
• Wafer dicing equipment

Wafer Manufacturing Equipment Market, By Wafer Size

• 100-200mm
• 200-300mm
• Above 300mm

Wafer Manufacturing Equipment Market, By End-use Industry

• Electronics manufacturing
• Healthcare & life sciences
• Automotive industry
• Telecommunications
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA