Plasma Etching Equipment Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

Global Plasma Etching Equipment Market Trends and Insights

Expansion of EUV Lithography Driving High Aspect-Ratio Etch Requirements

Extreme ultraviolet lithography transitioned from pilot lines to high-volume manufacturing at the 3 nm node in 2025 and is slated for adoption at the 2 nm node by 2027. Each EUV step increases etch intensity because contact holes, vias, and gate spacers now require aspect ratios exceeding 120:1, with critical dimensions below 10 nm.^{[1]ASML, “Q1 2025 Results,” asml.com} ASML shipped 20 EUV scanners in Q1 2025, a 33% year-over-year increase, and every scanner is paired with multiple inductively coupled plasma chambers. IBM validated nanosheet transistors that require 14 separate etch steps per gate stack, doubling complexity over finFET nodes.^{[2]IBM Research, “2 nm Chip Technology,” ibm.com} Capital outlays for etch tools consequently rose to 18-22% of total fab spending in 2025. Tool makers are embedding real-time endpoint spectroscopy to suppress micro-trenching, and fabs are revising recipe libraries to execute ultra-low bias processes that cut sidewall bowing to within 1 degree.

Proliferation of 3D NAND and DRAM Node Shrinks

Samsung disclosed a 286-layer vertical NAND product in 2024 that necessitates etch depths exceeding 15 µm with sub-2-degree taper, magnifying demand for deep reactive ion equipment calibrated to mitigate aspect-ratio-dependent lag.^{[3]Samsung Electronics, “286-Layer V-NAND Announcement,” samsung.com} SK Hynix adopted atomic layer etching to protect high-k dielectrics in its 1-alpha-nm DRAM, launched in 2025. Meanwhile, cryogenic processes cooled below 0 °C are being qualified to improve selectivity between silicon oxide and nitride. SEMI estimated memory companies spent USD 45 billion on capital equipment in 2025, 20% of which was devoted to etch platforms.^{[4]SEMI, “World Fab Forecast 2025,” semi.org} High layer counts in 3D NAND and shrinking capacitor pitches in DRAM will keep etch process steps rising each year through 2031.

Growing Demand for Compound-Semiconductor Power Devices

Silicon carbide and gallium nitride power devices migrated to 200 mm and 300 mm wafers in 2025, driving a new wave of equipment capable of handling chemically inert substrates at temperatures exceeding 400 °C. Infineon ramped a 300 mm silicon carbide line in Malaysia with goals to halve cost per ampere by 2027. Onsemi announced a 300 mm silicon carbide fab in the Czech Republic to enter volume production in late 2026, further broadening the customer base for high-temperature plasma chambers. Electric vehicles are forecast to incorporate USD 1,200 of semiconductor content per unit by 2030, with power devices accounting for approximately 30% of that value, thereby elevating compound substrates as a growth engine.

Government-Backed Chip Sovereignty Programs

The United States CHIPS and Science Act, the EU Chips Act, and analogous incentives in Japan and South Korea collectively exceed USD 100 billion and are compressing fab construction timelines. Intel’s Ohio site broke ground in September 2024 following USD 8.5 billion in U.S. grants, and etch tool move-in is scheduled for the second half of 2026. Taiwan Semiconductor Manufacturing Company’s Arizona project secured USD 6.6 billion in direct funding and advanced its second fab start date to 2027. The European Union allocated EUR 43 billion (USD 46.7 billion) with the aim of doubling regional chip output by 2030. These incentives guarantee near-term tool orders and require domestic service hubs, prompting Applied Materials and Lam Research to expand spare-parts depots in Arizona and Saxony.

Plasma-Induced Damage in Sub-5 nm Structures

Lattice defects, charge accumulation, and interface roughness caused by ion bombardment during etch steps cut drive current and shift threshold voltage when the gate oxide thickness approaches 1 nm. Atomic layer etching reduces damage but triples the cycle time, thereby increasing the cost per wafer. Tokyo Electron’s latest atomic layer platform removes 0.5 nm per cycle but requires approximately 200 cycles to clear a 10 nm trench, compared to 30 seconds for a continuous plasma etch. Fabs are therefore limiting atomic layer methods to the most sensitive layers while accepting controlled damage in less critical regions.

Rising Clean-Room Construction and Utility Costs

Leading-edge fabs in the United States and Europe cost USD 20 billion or more, roughly double Asia-Pacific equivalents, driven by labor scarcity, environmental permitting, and higher energy tariffs. Intel’s Ohio investment estimate rose from USD 20 billion to USD 28 billion by mid-2025 as steel and specialized clean-room material prices climbed. Utility costs, especially electricity, remain 40-60% higher than in Taiwan or South Korea, extending payback periods from five to seven years and pushing some integrated device manufacturers to slow expansion schedules.

Segment Analysis

By Type: Inductively Coupled Plasma Leads While Deep Reactive Ion Accelerates

Inductively coupled plasma platforms generated the largest plasma etching equipment market size contribution at 46.83% in 2025. Their capacity to decouple ion energy from plasma density lets fabs fine-tune anisotropy and protect fragile fins and nanosheets. Deep reactive ion equipment, projected to grow at a 7.99% CAGR through 2031, is key for through-silicon vias and wafer-level packaging that require depths of 50-100 µm at aspect ratios of greater than 20:1, thereby expanding the plasma etching equipment market share held by this segment. Conventional reactive ion tools remain in demand at mature nodes but are gradually migrating toward trailing-edge foundry lines. 

Lam Research’s Sense.i platform employs machine learning for real-time bias adjustments that have raised yield by roughly 3 percentage points in contact-hole etch since 2025. Applied Materials added in-situ metrology to its Centris Sym3 to cut chamber-to-chamber variation below 0.3 nm, a necessity for 2 nm gate-all-around transistors. This convergence of plasma and data science is blurring legacy boundaries between tool categories and intensifying supplier competition.

Note: Segment shares of all individual segments available upon report purchase

By Wafer Size: 300 mm Stays Core, Above-450 mm Gains Momentum

The 300 mm format accounted for 51.73% of 2025 demand, anchoring the plasma etching equipment market size because Taiwan Semiconductor Manufacturing Company, Samsung, and Intel collectively ran more than 50 fabs on this diameter. Above-450 mm pilot work is picking up, and the segment is predicted to grow at 8.33% through 2031 as industry consortia revisit economies of scale. Intel restarted limited 450 mm pathfinding in 2024, seeking a 40% die-count boost per wafer to justify a projected USD 15 billion retrofit. 

Compound-semiconductor makers are shifting from 150 mm and 200 mm to 300 mm lines to cut cost per die in silicon carbide and gallium nitride devices, further enlarging 300 mm tool requirements. SEMI released updated standards in June 2025 to certify etch uniformity and defect specifications for compound wafers, guiding suppliers in redesigning chamber materials for corrosive chemistries.

By Material: Silicon Dominates While Compound Substrates Surge

Silicon substrates captured 64.63% revenue in 2025, reflecting their decades-long role as the workhorse of logic and memory. Compound materials are forecast to expand 8.56% annually, widening the plasma etching equipment market share attributed to silicon carbide power devices and gallium nitride radio-frequency amplifiers. Silicon carbide’s thermal conductivity triples that of silicon, enabling junction temperatures over 200 °C in traction inverters, while gallium nitride’s electron mobility multiplies by ten, supporting amplifier power densities above 10 W per mm at millimeter-wave frequencies. 

Wolfspeed demonstrated within-wafer etch variation below 3% across 200 mm silicon carbide substrates at its North Carolina fab, a threshold required for automotive qualification. Selective chemistries employing chlorine-based gases and pulsed bias waveforms now deliver 50:1 selectivity between gallium nitride and underlying silicon, illustrating tool makers’ progress in extending inductively coupled plasma platforms to tough materials.

Note: Segment shares of all individual segments available upon report purchase

By Application: Consumer Electronics Leads, Automotive Accelerates

Consumer electronics accounted for 38.61% of 2025 demand, maintaining their top spot in the plasma etching equipment market despite smartphone saturation. Automotive electronics, projected to advance at a 7.88% CAGR, is boosting the plasma etching equipment market size due to the increasing penetration of electric vehicles and the adoption of advanced driver assistance systems. Each battery electric vehicle contains two to three times more semiconductors than an internal-combustion model, with power devices and image sensors driving incremental content. 

Tesla cut inverter cost 20% by vertically integrating silicon carbide devices across its vehicle lineup, prompting General Motors and others to lock in long-term deals with compound wafer suppliers. Industrial automation, medical devices, and aerospace form diverse tail segments, each valuing plasma etch precision but contributing lower aggregate volumes.

By End User: Foundries Continue to Expand, Integrated Device Manufacturers Stabilize

Foundries accounted for 57.94% of 2025 spending and are poised for an 8.51% CAGR to 2031 as fabless design houses such as NVIDIA, AMD, and Qualcomm amplify outsourcing. Taiwan Semiconductor Manufacturing Company allocated roughly USD 5.8 billion to etch tools in its USD 32 billion 2025 capex plan. Samsung installed nearly 120 new chambers in Hwaseong to enable gate-all-around production. Integrated device manufacturers, such as Intel, Micron, and SK Hynix, balance internal and external capacity, while university cleanrooms drive atomic layer etch research into emerging materials. 

The outsourcing trend reflects rising fab construction costs that now exceed USD 20 billion per site, allowing only a handful of corporations to finance leading-edge capacity. Foundry share therefore remains on a steady upward trend, reinforcing the central role of their equipment roadmaps in shaping supplier revenue.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

The Asia-Pacific region generated 55.72% of the revenue in 2025 and is projected to achieve an 8.66% CAGR, ensuring it continues to dominate the plasma etching equipment market. Taiwan’s cluster yielded USD 160 billion output in 2025, 65% of global foundry revenue. South Korea produced 70% of DRAM and 45% of NAND that year, cementing its position as the memory hub. China, constrained by export controls, accelerated the uptake of domestic tools, with Semiconductor Manufacturing International Corporation and Hua Hong Semiconductor qualifying NAURA and Advanced Micro-Fabrication Equipment systems for 14 nm and 28 nm flows. Japan reignited investment by allocating JPY 2 trillion (USD 13.5 billion) for local capacity, attracting Taiwan Semiconductor Manufacturing Company, Micron, and Western Digital. 

North America represented roughly 25% of 2025 demand and is projected to grow 7.8% as CHIPS Act funds underwrite fabs in Arizona, Ohio, New York, and Texas. Intel’s two-fab Ohio campus alone is expected to need more than 200 etch chambers by 2028. Taiwan Semiconductor Manufacturing Company’s Arizona complex will host three fabs with combined capacity of 600,000 wafer starts per year by 2030, all equipped with leading-edge plasma tools. 

Europe held about 10% share in 2025 but is aiming to capture 20% of global chip output by 2030 under the EUR 43 billion EU Chips Act allocation. Intel’s Magdeburg project, STMicroelectronics-GlobalFoundries’ French joint facility, and Infineon’s Dresden expansion represent more than EUR 80 billion (USD 87 billion) in announced investments. Middle East and Africa remain in the exploratory phase, with Abu Dhabi and Riyadh pursuing design and packaging hubs. South America’s activity is limited to assembly initiatives in Brazil and Argentina, while Australia and New Zealand contribute research but not large-scale fabrication.