LONDON--(BUSINESS WIRE)--The global semiconductor etch equipment market is expected to grow at a CAGR of close to 4% during the period 2018-2022, according to a new market research study by Technavio.
The report categorizes the global semiconductor etch equipment market by end-user (foundries, memory manufacturers, and IDMs) and by type (high-density etch equipment and low-density etch equipment). The report also determines the geographic breakdown of the market in terms of detailed analysis and impact, which includes key geographies such as APAC, the Americas, and EMEA.
Save more with Technavio. Buy 2 reports and get the third for free: View Technavio’s latest discounts and promotions
Market driver: increase in capital spending
The global semiconductor industry, especially after the cyclical period in 2016, is expected to witness a rise in capital spending. The increase in capital spending is because foundries and memory manufacturers are planning to invest in new equipment that is in line with the latest technological developments in the industry. Some of the major factors leading to the increase in capital spending can be attributed to the decreasing linewidths on a chip, use of new materials, introduction of new complex structures, increasing chip design costs, need for integrated manufacturing processes, and identification of new applications.
According to a senior lead analyst at Technavio for semiconductor equipment research, “Foundries are allocating billions of dollars for various projects, which is expected to lead to significant growth of the semiconductor equipment market, which, in turn, will drive the sales of semiconductor etch equipment.”
Looking for more information on this market? Request a free sample report
Technavio’s sample reports are free of charge and contain multiple sections of the report including the market size and forecast, drivers, challenges, trends, and more.
Market trend: increase in wafer size
Due to rapid technological advances and transitions, such as the miniaturization of nodes and increase in wafer size, the semiconductor industry is continuously evolving. Equipment manufacturers have to develop new technologies that are in line with the changes in semiconductor IC architecture to sustain in the market due to which the R&D costs incurred is high.
The semiconductor industry has witnessed an increase in the size of silicon wafers from 100 mm wafers to 300 mm wafers. The cost of manufacturing semiconductor ICs is reduced by 20%-25% when shifted to larger diameter wafers. Currently, the semiconductor industry is primarily using 300 mm wafers for IC production. The 300-mm wafer size is expected to be the primary technology that will be utilized as the companies are investing billions of dollars to upgrade and construct new fabs. However, the market demand for 200 mm wafers will not decline during the forecast period because devices such as microcontrollers; image sensors; display drivers; and few MEMS-based products, including accelerometers, still use 200 mm wafers for manufacturing.
Market challenge: high inventory levels in supply chain
The cyclical nature of the semiconductor equipment industry due to severe downturns affects vendors' operating results. The dynamics of the market during this period consists of risks such as low demand, overcapacity, and price wars outline. Technological and changing customer requirements impact equipment manufacturers considerably. Overcapacity leads to production units performing below their full capacity. This compels semiconductor device manufacturers to reduce their capital expenditure, thereby impacting the demand for equipment, which results in reduced purchases, delay in delivery, or canceled orders. Such factors affect the market growth.
Is your business on track for a successful future? Learn how Technavio can help
Technavio helps businesses anticipate changes in their marketplace, make proactive adjustments, and develop effective strategies to optimize their market positions.
Some of the major contributors in the global semiconductor etch equipment market:
- Applied Materials
- Hitachi High-Technologies
- Lam Research
- Tokyo Electron
Big savings with Technavio this February!
Get 20% OFF on all Education Technology reports. This offer is valid only till the 28th of this month.
Celebrate winter sports with 23% OFF all reports in our Outdoor Gear library (Offer valid from Feb 9-25).
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 10,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
If you are interested in more information, please contact our media team at email@example.com.