Global Back End of the Line Semiconductor Equipment Market 2016-2020
About Semiconductor Equipment Industry
The semiconductor equipment industry is an important part of the overall semiconductor market, with semiconductor chip makers investing 20% of their sales toward obtaining manufacturing equipment. The equipment manufacturing companies are leading the development of most core process technologies in the semiconductor market. The semiconductor production equipment industry is divided into front-end and back-end process equipment.
Technavio’s analysts forecast the global back end of the line semiconductor equipment market to grow at a CAGR of 1.41% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global back end of the line semiconductor equipment market for 2016-2020. To calculate the market size, the report considers the revenue generated from the sales of BEOL semiconductor equipment.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Back End of the Line Semiconductor Equipment Market 2016-2020
Technavio recognizes the following companies as the key players in the global back end of the line semiconductor equipment market: Applied Materials, ASML, KLA-Tencor, Lam Research, and TEL.
Other Prominent Vendors in the market are: Dainippon Screen Manufacturing, Hitachi High-Technologies, Hitachi Kokusai Electric, and Nikon.
Commenting on the report, an analyst from Technavio’s team said: “Increase in the number of fabless semiconductor companies will be a key trend for market growth. Semiconductor companies are going fabless in order to minimize overhead costs related to operations and maintenance of foundries. The majority of semiconductor companies are more intent on the design and development of their solutions, thereby outsourcing fabrication and other foundry-related activities to companies specializing in manufacturing, assembly, and testing of semiconductor ICs. This has affected the ratio of foundries and fabless companies, which stood at 1:11 in 2015 in the global semiconductor market. The rising number of fabless manufacturers will lead to an increase in the net aggregate demand for semiconductor ICs, thus generating demand for BEOL semiconductor equipment.”
According to the report, advanced transformation requires constant upgrades in consumer offerings. Capital investments play a key role in ensuring that R&D activities never suffer a cash crunch. Therefore, the proliferation of advanced consumer electronics will only induce more capital investments and hence is a key driver.
Further, the report states that high investment will be a challenge for the market. The increase in demand for compact ICs and the emergence of new 3D packaging solutions like TSV, stacked packaging, flip chip packaging, and MEMS packaging have led to a change in the manufacturing process of semiconductor ICs. Manufacturers are required to invest heavily in manufacturing equipment to produce compact ICs. Furthermore, the manufacturing process is complex, requires more time, and have a high probability of defects, thereby increasing the cost of manufacturing. The rapid technological changes in the semiconductor industry compel vendors to upgrade and maintain their equipment, which increases the cost of ownership of the equipment. Therefore, companies are going fabless, which is reducing the number of potential customers for semiconductor BEOL semiconductor equipment vendors.
Applied Materials, ASML, KLA-Tencor, Lam Research, TEL, Dainippon Screen Manufacturing, Hitachi High-Technologies, Hitachi Kokusai Electric, and Nikon.