Semiconductor Etch Equipment Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Semiconductor Etch Equipment Market is segmented by Product Type (High-density Etch Equipment, Low-density Etch Equipment), Etching Film Type (Conductor Etching, Dielectric Etching, Polysilicon Etching), and Geography.

Market Snapshot

Market Growth_Semiconductor Etch Equipment Market
Study Period: 2020-2027
Base Year: 2021
CAGR: 4.42 %

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Market Overview

The semiconductor etch equipment market was valued at USD 14,092.7 million in 2021. It is projected to be worth USD 18,748.1 million by 2027, registering a CAGR of 4.42% between 2022 and 2027. The etching is one of the essential processes in the semiconductor fabrication cycle. The etching process removes the material from the surface of the semiconductor to create patterns according to its applications.

  • The semiconductor manufacturing equipment market is rising due to its rapidly increasing smartphone applications and various other consumer goods. The manufacturers are also growing their investment in process equipment to gain a competitive edge.
  • This is one of the major driving factors for the semiconductor etching equipment market growth. Moreover, industrial automation, the continuous advancements in consumer electronics, and the usage of sensors in automotive are increasing the applications of semiconductors and their demand in almost all the industry verticals. One of the primary elements driving market expansion is an increasing emphasis on consumer electronics.
  • Another element acquiring a competitive advantage over others is the increased use of cellphones and other consumer goods. The manufacturers are also increasing their spending on the process equipment to gain a competitive edge over others.
  • Moreover, the continuous advancements in consumer electronics, industrial automation, and the use of sensors in automotive are proliferating the applications of semiconductors and their demand across almost all the industry sectors.
  • Many major players are investing in its fabrication expansions plans. In March 2021, the semiconductor behemoth was in desperate need of a bold, new strategy, which Gelsinger provided. Intel (INTC) announced several substantial efforts to reassert its position as the undisputed semiconductor industry leader, including a USD 20 billion investment in two novel US chipmaking facilities. Such expansion plans are fueling the growth of the semiconductor etching equipment market.
  • Despite the effects of the pandemic, the global semiconductor market observed robust growth in 2020, which continued in 2021 as well. The industry was riddled with a high deficit and increasing demand, which led to a significant supply chain gap that has been primarily attributed to the COVID-19 pandemic. The initial spread of the virus led to the shutting down or the reduction of foundry capacity utilization, fearing the decreasing demand for the chips across major sectors, like automotive. The diminished output led to a global shortage of semiconductors as the demand increased despite the initial estimates by semiconductor foundries.

Scope of the Report

Semiconductor Etch equipment is a device used to remove selective materials from the surface of the silicon wafer substrate by using various chemicals. The etching process removes the material from the surface of the semiconductor to create patterns according to its applications. It is being used in the semiconductor device fabrication process.

The Semiconductor Etch Equipment Market is segmented by Product Type (High-density Etch Equipment, Low-density Etch Equipment), Etching Film Type (Conductor Etching, Dielectric Etching, Polysilicon Etching), and Geography.

By Product Type
High-density Etch Equipment
Low-density Etch Equipment
By Etching Film Type
Conductor Etching
Dielectric Etching
Polysilicon Etching
By Geography
North America
Europe
China
Japan
Taiwan
Rest of the World

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Key Market Trends

Conductor Etching to Hold the Largest Market Share

  • Conductor etching equipment is used widely to shape the electrically activated materials used in different parts of the semiconductor device. Even a minimal variation in these small semiconductor structures can lead to an electrical fault impacting the device's performance.
  • Increasing demand for energy-efficient, compressed, and high-performing electronic devices across different parts of the globe activate the requirement for miniaturization in semiconductor circuits. The shrinking of semiconductor circuits experiences other wafer fabrication methods through conducting etching equipment.
  • Therefore, the growing need for miniaturizing semiconductor circuits is anticipated to catalyze the ever-increasing demand for different conduct etching equipment, along with the need for high production of multi-film stacks with the minor fault during the forecasted period.
  • In addition, rapid technological advancement in IoT applications and cloud computing to provide advanced smart devices to various consumers is also anticipated to increase the demand for advanced semiconductors. These significant factors boost the demand for dielectric etching and help the market grow.
  • The growing demand for aluminum etch tools for the dynamic RAM in flash and different types of memory devices will create a significant opportunity for conducting etching in the coming years. Apart from that, the growth of usage of conductor etching in Metal Insulator Metal(MIM)capacitors also acts as an opportunity factor for Conductor Etching.
Semiconductor Sales Worldwide

China to Witness Fastest Growth

  • The innovations, investments, development, and number of company activities account for the growth of the semiconductor etch equipment market in China.
  • China is one of the largest mobile device producers. With the boost of the internet, Chinese mobile devices have witnessed substantial growth. The number of mobile internet users in China grew from 828.5 million in 2018 to 1031.95 in 2021.
  • Also, the advanced packaging market in the region is mainly driven by the policy framework released by the State Council of the People’s Republic of China in June 2014. This policy aims to make advanced packaging a technology priority across the semiconductor industry.
  • The number of newly registered chip-related companies in China more than tripled in the first five months of the year from the same period in 2020 in a new sign that China is sparing no effort in its pursuit of self-sufficiency in semiconductors, for which the country relies heavily on imports and US technologies to satisfy domestic demand. According to Qichacha, from January through May 2021, China saw 15,700 new companies involved in everything from designing to manufacturing chips.
  • Further, the increasing population and demand for smart devices, including smartphones, tablets, computers, smart televisions, and smart refrigerators, are fueling the growth of the semiconductor etch equipment market in the region.
Semiconductor Etch Equipment Market

Competitive Landscape

The trend in the semiconductor etch equipment market is consolidated with the presence of a few players dominating the market. As the barrier for the new entrants is high in the market due to the high capital is incorporated, major players are adopting mergers and acquisition strategies to gain more market share.

  • March 2022 - Intel revealed plans for a second new "megafab," a chipmaking site in Magdeburg, Germany, with an expected USD 88 billion in investments across several European countries.
  • December 2021 - Tokyo Electron launched Impressio 2400 PICP Pro, a plasma etch system for processing 8th generation (G8)* glass substrates featuring the new PICP Pro chamber for high-resolution processes. The manufacture of G8 displays, which are mainly used for large TVs and IT products, requires the etch process of a large substrate area by means of high-density uniform plasma.

Recent Development

  • August 2021 - Lam Research Corporation announced the expansion of its global manufacturing capacity with the opening of the company's largest facility in Batu Kawan, Malaysia. This new manufacturing site will allow Lam to work closely with key customers and supply chain partners in the region while fortifying the resiliency of the company's manufacturing network and supporting growth amid rising demand for semiconductor technology.
  • January 2021 - ULVAC, Inc. announced the launch of uGmni Series cluster system combining deposition and etch modules' which enables our customers to equip a variety of different process modules, including sputter, etch, CVD, and others on the same transfer core. The company has begun selling production systems using this new platform.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Research Framework

    2. 2.2 Secondary Research

    3. 2.3 Primary Research

    4. 2.4 Data Triangulation And Insight Generation

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Buyers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Assessment of the Impact of COVID-19 on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Increase in Capital Spending on Semiconductor Processing

      2. 5.1.2 Rapid Technological Advances and Transition

    2. 5.2 Market Restraints

      1. 5.2.1 Trade Uncertainties & Semiconductor Memory Markets

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Product Type

      1. 6.1.1 High-density Etch Equipment

      2. 6.1.2 Low-density Etch Equipment

    2. 6.2 By Etching Film Type

      1. 6.2.1 Conductor Etching

      2. 6.2.2 Dielectric Etching

      3. 6.2.3 Polysilicon Etching

    3. 6.3 By Geography

      1. 6.3.1 North America

      2. 6.3.2 Europe

      3. 6.3.3 China

      4. 6.3.4 Japan

      5. 6.3.5 Taiwan

      6. 6.3.6 Rest of the World

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 Applied Materials Inc.

      2. 7.1.2 Hitachi High Technologies America, Inc.

      3. 7.1.3 Lam Research Corporation

      4. 7.1.4 Tokyo Electron Limited

      5. 7.1.5 Plasma-Therm LLC

      6. 7.1.6 Panasonic Corporation

      7. 7.1.7 SPTS Technologies Limited (Orbotech)

      8. 7.1.8 Suzhou Delphi Laser Co., Ltd

      9. 7.1.9 ULVAC Inc.

    2. *List Not Exhaustive
  8. 8. INVESTMENT ANALYSIS

  9. 9. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Semiconductor Etch Equipment Market market is studied from 2020 - 2027.

The Semiconductor Etch Equipment Market is growing at a CAGR of 4.42% over the next 5 years.

Applied Materials Inc., Hitachi High Technologies America, Inc., Lam Research Corporation, Tokyo Electron Limited, Plasma-Therm LLC are the major companies operating in Semiconductor Etch Equipment Market.

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