About Semiconductor Capital Equipment
Semiconductor capital equipment is machinery used in the production of semiconductor devices. Equipment for manufacturing semiconductor devices is classified as front-end or back-end based on the processes used. Front-end includes wafer fabrication along with other functions such as lithography, deposition, etching, cleaning, and chemical and mechanical polishing to name a few. Back-end encompasses assembly, packaging, and testing of ICs. Semiconductors are the building blocks for electronics. They form the crucial core of any electronic component. Semiconductor capital spending essentially refers to the capital investments by vendors in the semiconductor domain.
Technavio’s analysts forecast the global semiconductor capital equipment market to grow at a CAGR of 6.36 % during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global semiconductor capital equipment market for 2017-2021. To calculate the market size, the report considers the sale of semiconductor capital equipment to end-user segments.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Semiconductor Capital Equipment Market 2017-2021
Technavio recognizes the following companies as the key players in the global semiconductor capital equipment market: Applied Materials, ASML, KLA-Tencor, Lam Research, and Tokyo Electron.
Other Prominent Vendors in the market are: ASM International, ADVANTEST, Hitachi High-Technologies, Kulicke & Soffa, Nikon, Planar, Rudolph Technologies, SCREEN Semiconductor Solutions (SCREEN Holdings), Teradyne, TOKYO SEIMITSU, and Veeco Instruments.
Commenting on the report, an analyst from Technavio’s team said: “The latest trend gaining momentum in the market is Rapid changes in technology driving equipment orders. The semiconductor manufacturing industry is a continuously evolving industry with the introduction of new processes and technologies. The industry is continuously witnessing rapid technological advances and transitions such as the miniaturization of nodes and the increase in the wafer sizes in the ultra-large-scale integration (ULSI) fabrication technology. Hence, to sustain the competition in the market, semiconductor equipment manufacturers have to develop new technologies that are in line with the changes in semiconductor IC architecture. As a result, they incur high costs on R&D. Hence, the requirement of capital funding and commercialization of new products at the right time becomes crucial for semiconductor equipment manufacturers to provide services for the next-generation semiconductor ICs.”
According to the report, one of the major drivers for this market is Integration of semiconductor devices across industrial sectors. Electronic device manufacturers are facing demands for high-powered, efficient, and smart electronic devices from consumers. The last decade witnessed a growth in the smart appliance and digital home market due to the significant advances in device technology along with the development of system-on-chip (SoC) technology, integrating billions of transistors on a single chip. The demand for semiconductor devices such as processors, sensors, memory, and RFICs has grown significantly over the last few years. These devices offer high processing capability, making it possible to adhere to the demand for embedded graphics and multicore technologies.
Further, the report states that one of the major factors hindering the growth of this market is High inventory levels in supply chain. The cyclical nature of the semiconductor equipment industry affects the operating results due to severe downturns. Risks such as low demand, overcapacity, and price wars define the market environment during this period. Advances in technology have changed the customer requirements (IDMs, foundries, and OSATs), impacting the equipment manufacturers considerably. The capital expenditure of semiconductor device manufacturers has a major impact on the equipment vendors. During periods of overcapacity, production units do not perform at their full capacity, forcing semiconductor device manufacturers to reduce capital expenditure, thereby impacting the demand for semiconductor capital equipment.
Applied Materials, ASML, KLA-Tencor, Lam Research, and Tokyo Electron.ASM International, ADVANTEST, Hitachi High-Technologies, Kulicke & Soffa, Nikon, Planar, Rudolph Technologies, SCREEN Semiconductor Solutions (SCREEN Holdings), Teradyne, TOKYO SEIMITSU, and Veeco Instruments.
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