Report Overview:

The global semiconductor market, after experiencing a period of downturn, began to show signs of recovery from 2023, entering a new upward cycle. Benefiting from the launch of new wafer fabrication projects and technological upgrades, the demand for semiconductor manufacturing equipment is also recovering, with both front-end and back-end equipment experiencing a rebound and continuous growth. Currently, China has become the largest segment market for front-end semiconductor manufacturing equipment.

Semiconductor Manufacturing Equipment (or Semiconductor Equipment) refers to the various specialized tools used in the semiconductor manufacturing process to transform a designed circuit diagram into a real semiconductor product. These equipment cover the entire production process from wafer manufacturing to chip packaging and testing, including but not limited to photolithography machines, etching machines, thin film deposition equipment, cleaning equipment, ion implantation machines, and testing equipment. These tools are indispensable in semiconductor manufacturing, and their technological sophistication and performance directly impact the level of manufacturing processes and product quality. As semiconductor technology continues to advance, semiconductor manufacturing equipment is evolving towards higher precision, larger capacities, and lower energy consumption to meet the market demand for high-performance chips. The following is the investment distribution for various manufacturing stages, where thin film deposition, photolithography, and etching/stripping are the highest areas of investment by manufacturers, accounting for over 60% in total.

According to data from Bossonresearch, the global semiconductor manufacturing equipment sales in 2024 are projected to reach $115.834 billion, a 10.25% year-on-year growth. From 2015 to 2024, the compound annual growth rate (CAGR) of global semiconductor manufacturing equipment sales is 13.82%, higher than the overall semiconductor sales CAGR of approximately 7.00% during the same period. By region, mainland China’s semiconductor manufacturing equipment sales in 2024 are expected to reach $49.54 billion, growing by 35.37% year-on-year, and its global market share will increase from 13.42% in 2015 to 42.29%. Bossonresearch forecasts that the global semiconductor manufacturing equipment market will achieve a compound growth rate of 6.12% from 2024 to 2033, primarily driven by capacity expansion in mainland China and the ongoing high demand for AI. The domestic rise of wafer fab construction projects in China and strong demand for the domestic replacement of various semiconductor manufacturing equipment categories are expected to drive the growth of China's semiconductor manufacturing equipment sales far above the global average, with a noticeable shift in industry value.

Semiconductor Manufacturing Equipment primarily benefits from the steady growth of global semiconductor industry product sales and investment in new projects. In an integrated circuit production line, the capital expenditure on equipment investment can account for 70%-80%, and its market scale increases in tandem with the global semiconductor market scale. In recent years, thanks to the rapid development and widespread adoption of emerging technologies such as AI, IoT, 5G, and automotive electronics—especially the surge in demand for AI chips and high-performance computing in data centers—the global semiconductor sales have steadily grown. According to the Semiconductor Industry Association (SIA), global semiconductor sales in 2024 are expected to reach $618.89 billion, a 19.09% year-on-year increase, and will surpass $600 billion for the first time. Among these, China’s semiconductor sales in 2024 will reach $182.24 billion, growing by 20.03%, and accounting for nearly 30% of global sales.

Industry Chain Analysis of Semiconductor Manufacturing Equipment

Upstream:

The upstream components of semiconductor manufacturing equipment are characterized by high precision, cleanliness, exceptional corrosion resistance, and high breakdown voltage tolerance. The production process encompasses precision mechanical processing, materials, and engineering design across multiple disciplines, presenting significant technological barriers. Precision semiconductor components account for more than 90% of the cost structure of semiconductor manufacturing equipment, with highly specialized and technology-intensive characteristics. The production process spans several fields and disciplines, creating extremely high technical barriers. In terms of market structure, the semiconductor manufacturing equipment parts industry is relatively fragmented, but in certain subfields, there is a monopoly with leading companies primarily from Europe, the United States, and Japan.

Midstream:

The midstream refers to the manufacturing phase of semiconductor manufacturing equipment. Semiconductor Manufacturing Equipment can be divided into front-end equipment and back-end equipment, with the former taking the largest market share. Corresponding to integrated circuit manufacturing processes, semiconductor manufacturing equipment is categorized as front-end and back-end equipment. Front-end process equipment focuses on semiconductor fabrication and processing, covering steps like oxidation/diffusion, photolithography, etching, cleaning, ion implantation, thin film growth, and polishing. Equipment types include photolithography machines, etching machines, CVD equipment, PVD equipment, ion implantation machines, and CMP polishing equipment. Back-end equipment is primarily used for packaging and performance testing of semiconductors, including testing machines, probe stations, and sorting machines. Generally, front-end equipment is more technologically challenging and involves more production steps, representing the most significant financial investment in chip production. In terms of sales, front-end equipment accounts for about 80% of the cost share in semiconductor-specific equipment (according to the International Semiconductor Industry Association), holding a dominant market share in the semiconductor manufacturing equipment sector.

Downstream:

The downstream refers to semiconductor manufacturing, which includes IC design, manufacturing, and packaging/testing processes. End-use applications span consumer electronics, automotive electronics, industrial control, communications, new energy, healthcare, and many other industries. In the semiconductor manufacturing sector, IDM companies like Intel and Samsung Electronics both design and manufacture chips, typically possessing advanced manufacturing processes and high research and development investment, resulting in high demand for photolithography machines, etching machines, and other equipment. Pure wafer foundries such as TSMC focus on manufacturing chips for other companies, possessing leading-edge processes and likewise procuring large quantities of high-end semiconductor manufacturing equipment. Packaging and testing companies are another major user of semiconductor manufacturing equipment. Packaging firms like ASE and JCET use packaging equipment, such as thinning machines and dicing machines, to encapsulate chips into integrated circuits, providing mechanical protection and electrical connections. Testing companies like Teradyne and Changchuan use testing machines and sorting machines to perform functionality and performance tests on chips to ensure products meet specifications. Additionally, semiconductor manufacturing equipment is widely used in research institutions, universities, emerging semiconductor companies, and semiconductor manufacturing equipment service providers.

Key Trends

(1) Growth in Demand for Advanced Process Equipment

As chip process nodes continue to shrink, the accuracy and performance requirements for semiconductor manufacturing equipment are becoming more stringent. For example, Extreme Ultraviolet (EUV) lithography technology has become key to achieving smaller process nodes. EUV lithography machines can reduce the light source wavelength to 13.5nm, making mass production of processes below 14nm feasible. TSMC, for instance, started mass production of 7nm+ chips using EUV lithography in 2019, and other major chip manufacturers have also adopted advanced processes below 14nm.

(2) Technological Competition Increases Equipment Market Demand

Advanced processes require advanced equipment, and breakthroughs in semiconductor processes lead to upgrades in the next-generation equipment. In the oligopoly market structure of semiconductor manufacturing, staying competitive requires continuous technological innovation to lead the industry. For this reason, manufacturers are driven to break through to new advanced technologies and increase their production capabilities. After the wafer size shifted to 12 inches around 2000, it is now progressing towards 18 inches. In 2020, international leaders used EUV to break through to 5nm technology, with others quickly following suit. Even if there is a risk of overcapacity, semiconductor manufacturers will continue investing in the short-to-medium term due to competitive pressures.

(3) Increased Process Steps Drive Equipment Parallel Demand

Advanced process chip manufacturing demands higher precision in processing. To meet these needs, multiple patterning processes are often employed, requiring repeated deposition and etching of wafers. While EUV lithography can significantly reduce the number of steps in the 7nm process, as process requirements continue to rise, the number of steps will increase. To maintain process stability and achieve assembly line production, wafer fabs typically purchase multiple machines, with each critical step assigned to a dedicated piece of equipment. For example, if four deposition or etching steps are required during production, manufacturers will buy four deposition machines and four etching machines, each set with fixed parameters and programs, rather than using one machine for each type of operation and transferring the wafer back and forth. This approach ensures high efficiency and stability in wafer processing.

(4) Refined Requirements Lead to Individual Processing Replacing Batch Processing

Advanced processes require higher precision in various processing techniques. Many processes that were previously batch-processed, such as furnace heat treatment and multi-wafer cleaning, will no longer meet the demands of advanced processes and will gradually be replaced by RTP (Rapid Thermal Processing) and single-wafer cleaning techniques. These devices can achieve higher yields in advanced processes, but they greatly increase the time costs of related processes. To ensure smooth production on the assembly line and match the speed of other processes, manufacturers are increasingly purchasing more equipment at once and improving efficiency through parallel processing, which further increases equipment demand.

(5) Increasing Technical Difficulty Raises Unit Prices

The thread count of advanced process chips has significantly shortened, which forces the manufacturing processes to become more refined. For nodes below 14nm, the processes have become so fine that they exceed the limits of standard ultraviolet wavelengths, requiring the shift to EUV technology. Additionally, the integration of advanced process chips has significantly increased in both horizontal and vertical directions, with more metal layers and the widespread use of advanced and complex FinFET (Fin Field-Effect Transistor) and GAA-FET (Gate-All-Around FET) technologies. As chips move from 2.5D to 3D, the technical requirements for semiconductor manufacturing equipment rise.

Currently, the technical complexity of the next-generation semiconductor manufacturing equipment has reached unprecedented levels, and the technological value is high. Furthermore, the extremely high technical barriers have strengthened product monopolies, leading to prices for next-generation equipment being far higher than before. For instance, the cost of a 12-inch 0.13-micron photolithography machine is about 100 million yuan, while a 12-inch 45nm immersion lithography machine costs around 400 million yuan, and a 12-inch 5nm EUV lithography machine exceeds 800 million yuan, which is more than the cost of an F-22 fighter jet.

(6) China’s Market Share is Rapidly Increasing

In the global semiconductor industry landscape, Chinese semiconductor manufacturing equipment manufacturers have accelerated the domestic substitution process, driven by both policy support and market demand. At the same time, Chinese manufacturers have made significant progress in multiple segments, covering etching equipment, thin-film deposition equipment, cleaning equipment, ion implantation equipment, and more, gradually breaking the monopoly of international manufacturers. For example, Zhongwei's dielectric etching machines have been widely applied in mainstream wafer fabs for production lines at 28nm and below and have also achieved breakthroughs in 5nm processes. Naura Technology has shown strong performance in silicon etching and metal etching, with its 55/65nm silicon etching machines becoming the baseline equipment for SMIC (Semiconductor Manufacturing International Corporation).

Global Semiconductor Manufacturing Equipment Market: Competitive Landscape

The report from Bossonresearch shows that in 2024, the total revenue of the top 10 global semiconductor manufacturing equipment manufacturers exceeded $110 billion, with a year-on-year growth of approximately 10%. Compared to 2023, the top five semiconductor manufacturing equipment manufacturers remained unchanged. ASML from the Netherlands maintained its top position with a monopoly in the high-end photolithography machine market, followed by American companies Applied Materials (AMAT), Lam Research (LAM), and KLA Corporation, ranked second, third, and fifth, respectively. Below is the list of the top 10 semiconductor manufacturing equipment companies for the first half of 2025:

The top 10 ranking remained the same as in 2024, with no change in the top five positions: ASML took the lead with around $17 billion in revenue, followed by Applied Materials (AMAT), Lam Research (LAM), Tokyo Electron (TEL), and KLA Corporation (KLA) in second to fifth positions. In terms of revenue, the top five manufacturers generated nearly $54 billion in semiconductor manufacturing equipment revenue, accounting for about 85% of the total revenue of the top 10. The U.S. remains the largest semiconductor manufacturing equipment manufacturing center, with Applied Materials (AMAT), Lam Research (LAM), and KLA Corporation (KLA) each ranking among the top five globally, maintaining a dominant position in the industry.

Among them,Naura Technology is the only Chinese company in the top 10. It first entered the list in 2023 and moved up to the sixth position in 2024. In the first half of 2025, it ranked seventh with a revenue of approximately $2.2 billion, a slight decrease from the previous year. Under the new international trade situation, the import costs of products from U.S.-based equipment manufacturers will significantly increase. Chinese equipment companies are expected to accelerate the domestic substitution process through technological advancements and market expansion.

Global Semiconductor Manufacturing Equipment Market: Market Segmentation Analysis

The research report includes specific segments by region (country), manufacturers, Type, and Application. Market segmentation creates subsets of a market based on product type, end-user or application, Geographic, and other factors. By understanding the market segments, the decision-maker can leverage this targeting in the product, sales, and marketing strategies. Market segments can power your product development cycles by informing how you create product offerings for different segments.

Key Company

ASML

Applied Materials

Lam Research

Tokyo Electron

KLA

NAURA

SCREEN Holdings

Advantest

ASM International

DISCO

Hitachi High-Tech

Teradyne

Nikon

Canon

AMEC

ACM Research

Kingsemi

Hwa Tsing Technology

CETC 45th Institute

SMEE

Shenyang Piotech

Kaston

Beijing Zhongkexin

Yitang Semiconductor

Shanghai Precision Measurement

Shanghai Rui Li

Zkfly

AccoTEST

Changchuan Technology

Market Segmentation (by Type)

Diffusion Equipment

Lithography Equipment

Etching Equipment

Cleaning Equipment

Ion Implantation Equipment

Thin-Film Deposition Equipment

Mechanical Polishing Equipment

Testing Equipment

Other

Market Segmentation (by Application)

Wafer Manufacturing

Testing

Packaging

Other

Geographic Segmentation

North America

Europe

Asia-Pacific

South America

Middle East and Africa

Key Benefits of This Market Research:

• Industry drivers, restraints, and opportunities covered in the study

• Neutral perspective on the market performance

• Recent industry trends and developments

• Competitive landscape & strategies of key players

• Potential & niche segments and regions exhibiting promising growth covered

• Historical, current, and projected market size, in terms of value

• In-depth analysis of the Semiconductor Manufacturing Equipment Market

• Overview of the regional outlook of the Semiconductor Manufacturing Equipment Market:

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• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market

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• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled

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Chapter Outline

Chapter 1 mainly introduces the statistical scope of the report, market division standards, and market research methods.

Chapter 2 is an executive summary of different market segments (by region, product type, application, etc), including the market size of each market segment, future development potential, and so on. It offers a high-level view of the current state of the Semiconductor Manufacturing Equipment Market and its likely evolution in the short to mid-term, and long term.

Chapter 3 makes a detailed analysis of the Market's Competitive Landscape of the market and provides the market share, capacity, output, price, latest development plan, merger, and acquisition information of the main manufacturers in the market.

Chapter 4 is the analysis of the whole market industrial chain, including the upstream and downstream of the industry, as well as Porter's five forces analysis.

Chapter 5 introduces the latest developments of the market, the driving factors and restrictive factors of the market, the challenges and risks faced by manufacturers in the industry, and the analysis of relevant policies in the industry.

Chapter 6 provides the analysis of various market segments according to product types, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different market segments.

Chapter 7 provides the analysis of various market segments according to application, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different downstream markets.

Chapter 8 provides a quantitative analysis of the market size and development potential of each region and its main countries and introduces the market development, future development prospects, market space, and capacity of each country in the world.

Chapter 9 details the production of products in major countries/regions and provides the production of major countries/regions.

Chapter 10 introduces the basic situation of the main companies in the market in detail, including product sales revenue, sales volume, price, gross profit margin, market share, product introduction, recent development, etc.

Chapter 11 provides a quantitative analysis of the market size and development potential of each region in the next five years.

Chapter 12 provides a quantitative analysis of the market size and development potential of each market segment (product type and application) in the next five years.

Chapter 13 is the main points and conclusions of the report.