Market Trends of Semiconductor Metrology And Inspection Equipment Industry
Wafer Inspection to Witness Significant Growth
- One of the prime factors expected to boost the demand for wafer inspection in the coming years is the growing demand for three-dimensional integrated circuits, widely used in miniature semiconductor devices, such as memory cards, smartphones, smart cards, and various computing devices. Three-dimensional circuits are becoming more popular in multiple space-constrained applications, such as portable consumer electronics, sensors, MEMS, and industrial products, as they improve overall product performance in speed, durability, low power consumption, and lightweight memory.
- Due to the broad availability of affordable cloud computing solutions, the demand for logic devices like microprocessors and digital signal processors is projected to increase as businesses and sectors increasingly use server and data center systems. Additionally, more microprocessors are being used since more connected devices have IoT capabilities. Thin wafers are used more frequently in these devices to enable efficient temperature control and improve performance. All these reasons assist in the expansion of the wafer inspection market.
- The exponential usage of 300 mm wafers in LED applications propels the expansion of the thin wafer inspection market worldwide due to the higher yield afforded by these wafers. The potential to attain economies of scale and boost profitability, which these wafers provide, has become critical for LED makers. A significant increase in the demand for 300 mm wafers is also expected as the number of operating 300 mm wafer production facilities grows.
- India is making significant strides in bridging the digital payments divide. The current directive from the Finance Ministry advising banks to issue near-field communication-enabled contactless credit and debit cards is expected to be a catalyst in the right direction. These factors are driving the use of wireless technology, such as RFID, in smart cards, creating a need for thin wafers, which is expected to drive the market studied.
- The rise in the expansion of the wafer production plants will create an opportunity for the local and international wafer inspection players to develop new products according to the customer's requirements. For instance, according to SEMI, in 2022, the silicon wafer area shipments worldwide amounted to 14.71 billion square inches, which increased from 14.16 billion square inches in 2021. Silicon wafers are a vital building material for semiconductors, which indicates the usage of high-performance semiconductors in connected devices and driving the market. Further, in 2022, the total revenue from silicon wafers worldwide amounted to USD 13.8 billion, which increased from USD 12.6 billion, further indicating the market's growth.
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Asia-Pacific to Dominate the Market
- The Asia-Pacific is one of the prominent regions for the semiconductor industry concerning manufacturing and consumption. According to SIA, Asia-Pacific is the largest regional semiconductor market, and China accounts for the most significant share in the region.
- Many regional companies are entering collaborations and partnerships in the semiconductor metrology/inspection equipment market. For instance, Shenzhen JT Automation Equipment, a chip production tool manufacturer in China, announced a legally binding five-year (2021-2025) memorandum of understanding with Huawei's HiSilicon Technologies business, China's largest chip developer. Both firms aim to extend their partnership for the development of semiconductor packaging tools, creating a self-sufficient and regulated industry.
- Asia-Pacific has been a growing market for semiconductor equipment over the last few years. For instance, according to SEMI, in 2022, China remained the leading spender on semiconductor equipment with USD 28.3 billion in billings. However, trade issues between the United States and China have presented uncertainty in the semiconductor metrology and inspection equipment market. Domestic semiconductor companies have been spending significantly to maintain their current market position by increasing their capacity and transitioning between technology nodes and wafer sizes. In the future, the demand is expected to be witnessed from the foundry in the region.
- The regional government's initiatives to develop the local semiconductor industry also creates a favorable outlook for the growth of the studied market. For instance, China's State Council's "National Integrated Circuit Industry Development Guidelines" aims to make the country a global leader in all the segments of the semiconductor industry by 2030. Additionally, the Made in China 2025 initiative maintains achieving knowledge concerning advanced semiconductor manufacturing as a vital component of China's future economy. It is highly focused on building the strategy for a strong manufacturing nationwide.
- The initiative is also expected to encourage local and foreign companies to invest in various segments of semiconductor manufacturing including integrated circuits. The initiative prompts the government bodies to boost research and development activities so that China can rely on its own companies for core technologies rather than overseas ones. This is set to propel innovation in the semiconductor manufacturing industry.
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