Market Size of Semiconductor Etch Equipment Industry
| Study Period | 2018 - 2028 |
| Market Size (2023) | USD 22.12 Billion |
| Market Size (2028) | USD 31.90 Billion |
| CAGR (2023 - 2028) | 7.60 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
Major Players.webp)
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Semiconductor Etch Equipment Market Analysis
The Semiconductor Etch Equipment Market size is expected to grow from USD 22.12 billion in 2023 to USD 31.90 billion by 2028, at a CAGR of 7.60% during the forecast period (2023-2028).
- Etching is one of the vital processes in a semiconductor fabrication cycle. This process eliminates the material from the surface of the semiconductor to generate patterns based on its applications. The growth of the semiconductor etch equipment market is highly dependent on the development of the semiconductor wafer deposition and wafer processing industry.
- As per Lam Research, there is a strong demand for etch and other fab equipment owing to several factors, the first being the strengthening of secular tailwinds such as AI, 5G, and IoT. Also, the complexity of manufacturing advanced semiconductor devices continues to increase at a rapid rate, as per the organization, leading to a rise in equipment capacity across all market segments.
- Many major players are investing in the expansion of their fabrication plants. In February 2022, Bosch disclosed its intention to increase the size of its wafer production facility in Reutlingen, Germany. It plans to spend more than EUR 250 million (USD 278.2 million) by 2025 to build expanded production space and the necessary clean-room amenities. Such expansion plans are fueling the growth of the semiconductor etching equipment market.
- However, semiconductors are a widely traded commodity with a complicated manufacturing supply chain. Overly complex customs and trade procedures, requirements, and practices can dramatically disrupt semiconductor supply chains, causing costly barriers that harm businesses and consumers.
- Owing to the outbreak of COVID-19, the industry was riddled with a high deficit and increasing demand, which has led to a significant supply chain gap. 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.
