Semiconductor Capital Equipment Market Outlook - Forecast Trends, Market Size, Share and Growth Analysis Report (2025-2034)

The global semiconductor capital equipment market size reached around USD 108.79 Billion in 2024. The market is projected to grow at a CAGR of 3.20% between 2025 and 2034 to reach nearly USD 149.07 Billion by 2034.

Global Semiconductor Capital Equipment Market Growth

In 2023, China dominated the global semiconductor equipment industry with a 34% market share as investments in semiconductor equipment manufacturing increased year-on-year by 29% to reach USD36.6 billion. Also, in 2023, wafer processing equipment sales rose by 1%, while the billings of other front-end segments surged by 10%.

As per the International Semiconductor Industry Association, the global sales of chip equipments is expected to surge to USD 109 billion, recording a year-on-year growth of 3.4%. Furthermore, sales are expected to reach USD 128 billion in 2025, thereby exhibiting a growth of 17%. Increasing investments in HBM and DRAM due to the emergence of AI computing is expected to lead to a 2.8% increase in the demand for wafer fab equipment in 2024 to reach USD 98 billion. As per the semiconductor capital equipment market analysis, by 2025, the rising demand for semiconductors in advanced logic applications is expected to lead to a 14.7% year-on-year growth in the demand, to reach nearly USD 113 billion.

Moreover, in 2024, the demand for front-end chip production equipment is expected to record year-on-year growth of 5% to reach nearly USD 100 billion. With the increasing demand for smartphones and personal computers, the demand for wafer fab equipment is expected to record a growth of 10% during 2025-26 from 2024-25. This is expected to accelerate the semiconductor capital equipment market development.

The smallest structures in chips, which are 5 nm and 3 nm in size, confer important benefits within select market segments and application areas, including data centers, 5G smartphones, edge computing, and machine learning. Semiconductor customers in these segments will pay a premium for leading-edge chips since they need a combination of strong performance and low power requirements to win their markets. The resulting sales boost will more than compensate for higher chip costs, thereby favouring the growth of the market.

Key Trends and Developments

Growing demand for semiconductors; rising use of intelligent semiconductors; increasing AI adoption in semiconductor equipment manufacturing; and increasing government investments are trends impacting the semiconductor capital equipment market growth.

June 2024

Shin-Etsu Chemical Co., Ltd. developed high-performance processing equipment for manufacturing semiconductor package substrates using new manufacturing methods. The equipment uses excimer laser and sophisticated microfabrication technology, enabling microfabrication, eliminating the requirement for interposer, and reducing capital investments and costs. This is expected to drive the semiconductor capital equipment market development over the forecast period.

May 2024

Yamaha Motor Co., Ltd., together with 14 companies, established the Semiconductor Assembly Test Automation and Standardization Research Association (SATAS) to transform and automate the assembly, packaging, and testing of manufacturing processes. SATAS also aims to develop open industrial standards and technical specifications for developing, testing, and implementing equipment used in semiconductor manufacturing. This is one of the key market trends which is creating a favourable semiconductor capital equipment market outlook.

January 2024

Moov unveiled its Equipment Management Software (EMS) for semiconductor manufacturers. The software is intended to support manufacturers understand and track the conditions of equipment assets and their resale value and help them gain a unified view of equipment across fabs.

January 2022

Shengmei Semiconductor equipment launched a series of integrated equipment for supporting compound semiconductor manufacturing. The 150mm compatible system offers advanced wafer level packaging and extended wet series of front integrated circuits for supporting applications in compound semiconductors, including gallium nitride (GaN), gallium nitride (GaAs), and silicon carbide (SiC) processes. This is expected to drive the semiconductor capital equipment market expansion.

Growing Demand for Semiconductors

The growing demand for semiconductors in major sectors, ranging from automotive to medical, is boosting the demand for affordable and dependable capital equipment.

Rising Use of Intelligent Semiconductors

The thriving sectors like 5G, IoT, and autonomous vehicles and the growing usage of memory-intensive and intelligent semiconductors are prompting manufacturers to expand their semiconductor production facilities. This is boosting the demand for advanced semiconductor capital equipment that can manufacture semiconductors with high circuit density, minimised feature sizes, and improved energy-efficiency. This trend is favourably shaping the semiconductor capital equipment market dynamics.

Increasing AI Adoption in Semiconductor Equipment Manufacturing

This is enabling the industry to meet evolving technological challenges while improving its agility and responsiveness. AI is facilitating the engineering and design of advanced semiconductor manufacturing equipment, aided by virtual simulations. Moreover, AI has also improved supply chain management by optimising inventory levels.

Increasing Government Investments

With growing concerns surrounding e-waste, major market players are focusing on sustainable production of semiconductor capital equipment, with the help of government investments. This is expected to aid the market expansion.

Global Semiconductor Capital Equipment Market Trends

The semiconductor capital equipment industry is increasingly adopting AI-based tools for enhancing their efficiency. AI-driven solutions enable them to reduce downtime, improve yield rates, and optimise production processes. High-quality products are being manufactured through advanced machine learning algorithms, which are enabling organisations to better categorise product defects and make real time adjustments. This is expected to increase the semiconductor capital equipment market value over the forecast period.

Global Semiconductor Capital Equipment Industry Segmentation

The EMR’s report titled “Global Semiconductor Capital Equipment Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type:

• Assembly Equipment
• Automated Test Equipment
• Wafer-Level Manufacturing Equipment

Market Breakup by Application:

• Wafer Processing
• Surface Conditioning
• Chemical Mechanical Planarization
• Chemical Vapor Deposition
• Assembly and Packaging Equipment

Market Breakup by Industry Vertical:

• Consumer Electronics
• Healthcare
• Automotive
• IT and Telecommunication

Market Breakup by Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Global Semiconductor Capital Equipment Market Share

Based on region, the market is segmented into North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa. Over the forecast period of 2025-2034, the Asia Pacific is expected to grow at a CAGR of 3.6% because of increasing technological advancements in the consumer electronics industry that necessitate the production of advanced semiconductors created using modern manufacturing techniques.

Leading Companies in the Global Semiconductor Capital Equipment Market

Major players are integrating powerful AI processors into an increasing number of electronic devices, which is driving the demand for semiconductor capital equipment market.

Hitachi, Ltd.

Hitachi, Ltd. was founded in February 1920 and is headquartered in Tokyo, Japan. It is engaged in the engineering, construction, and procurement of fossil fuel-based electricity generation stations.

Tokyo Electron Limited

Tokyo Electron Limited was founded in 1963 and is headquartered in Tokyo, Japan. It is engaged in manufacturing semiconductor production equipment, and PV production equipment, among others.

ASM International N.V.

ASM International N.V. was founded in 1968 and is headquartered in Flevoland, Netherlands. As per semiconductor capital equipment market analysis, it has 15 different semiconductor production hubs worldwide, and its specialises in the production of wafer-level manufacturing equipment.

Lam Research Corporation

Lam Research Corporation was founded in 1980 and is headquartered in California, United States. It is involved in supplying semiconductor manufacturing equipment, fabrication technologies, chipmaker solutions, and microprocessors to businesses worldwide.

Other players included in the semiconductor capital equipment market report are SCREEN Holdings Co., Ltd.,Applied Materials, Inc., KLA Corporation, Plasma-Therm LLC, Advantest Corporation, and ASML Holding N.V., among others.