Semiconductor Metrology & Inspection Equipment Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 10.47 Billion |
| Market Size (2029) | USD 13.49 Billion |
| CAGR (2024 - 2029) | 5.20 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Semiconductor Metrology & Inspection Equipment Market Analysis
The Semiconductor Metrology And Inspection Equipment Market size is estimated at USD 10.47 billion in 2024, and is expected to reach USD 13.49 billion by 2029, growing at a CAGR of 5.20% during the forecast period (2024-2029).
- Semiconductor metrology and inspection are essential for managing the semiconductor manufacturing process. There are about 400 to 600 steps in the manufacturing process of semiconductor wafers, which are undertaken in one to two months. If deficiencies occur early in the process, all the work undertaken in the subsequent steps will be wasted. Metrology and inspection processes are established at critical points of the semiconductor manufacturing process to ensure that a specific yield can be confirmed and maintained.
- Smartphones and other applications across consumer electronics and automotive applications are driving the demand for high-performance, low-cost semiconductor materials. Technology transitions, such as wireless technologies (5G) and Artificial Intelligence, inspire these industries. Also, the trend of increasing Internet of Things (IoT) devices is expected to encourage the semiconductor industry to invest in this equipment to attain smart products.
- The growing trend of adoption of connected IoT devices in industrial and residential sectors augments the demand for high-performance semiconductors, which in turn is creating a favorable outlook for the growth of the studied market. According to Ericsson, the number of devices connected IoT technologies NB-IoT and Cat-M reached almost 500 million at the end of 2022. Furthermore, in 2022, broadband IoT (4G/5G) connections reached 1.3 billion and is anticipated to capture about 60 percent of all cellular IoT connections by 2028.
- However, factors like high setup costs and lack of expertise in handling metrology systems are expected to hinder the market's growth during the forecast period efficiently. To handle such challenges, the metrology services are being provided on-demand by service-oriented players and made available to provide a professional extension in the specialized field of precision dimensional metrology.
- Furthermore, macroeconomic factors such as the current US-China trade dispute also challenges the growth of the studied market as the United States has placed several sanctions on China which prevents the country from getting advanced semiconductor equipment. As China is among the leading regions in the studied market's supply chain, such trends hampers the studied market's growth.
Semiconductor Metrology & Inspection Equipment Market Trends
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.
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.
Semiconductor Metrology & Inspection Equipment Industry Overview
The semiconductor metrology and inspection equipment market comprises prominent players such as Applied Materials Inc., Nikon Metrology NV, and KLA Corporation. These firms have continuously expanded their operation scales by focusing on market expansions and acquisitions. Acquisition activities effectively set the ball rolling regarding the overall market's growth in the market studied. Large companies have also been expending significant resources on R&D operations to protect their market position and drive innovation in the studied market shortly. Overall, the degree of competition remains high, primarily driven by the strong presence of prominent players involved in the market studied.
- July 2023: Applied Materials Inc. introduced materials, technologies, and systems that help chipmakers integrate chiplets into advanced 2.5D and 3D packages using hybrid bonding and through-silicon vias (TSVs). The new solutions will extend the company’s industry-leading breadth of technologies for heterogeneous integration (HI). The company is the largest supplier of technologies for HI with optimized chipmaking systems spanning etch, physical and chemical vapor deposition (PVD), electroplating, chemical mechanical polishing (CMP), annealing, and surface treatments.
- May 2023: KLA Corporation announced a strategic partnership with imec to develop the talent base and infrastructure to accelerate the advanced semiconductor applications for autonomous mobility, electrification and move the automotive industry forward. Through this partnership, both partners plan to bring relevant expertise to identify and manage programs for automotive industry, as well as talent development and recruitment.
Semiconductor Metrology & Inspection Equipment Market Leaders
KLA Corporation
Applied Materials Inc.
Onto Innovation Inc.
Thermo Fisher Scientific Inc.
Hitachi Hi-Technologies Corporation (Hitachi Limited)
*Disclaimer: Major Players sorted in no particular order
Semiconductor Metrology & Inspection Equipment Market News
- June 2023: Applied Materials Inc. announced the establishment of a collaborative engineering center in Banglore, India, focusing on developing and commercializing technologies for semiconductor manufacturing equipment. Through this center, the company aims to catalyze the training and development of future semiconductor industry talent and open new opportunities for India to play an expanded role in the global chip ecosystem.
- June 2023: ThermoFisher Scientific Inc. announced the introduction of a new generation, fully automated (S)TEM metrology solution for increased productivity and data quality assurance in semiconductor manufacturing. This solution is designed to meet an industry need for faster access to large-volume and high-quality data, and it aims to optimize performance and reduce operating expenses.
Semiconductor Metrology & Inspection Equipment Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Degree of Competition
4.3 An Assessment of the Impact of Key Macro Trends
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Demand for High-performance, Low-cost Semiconductors
5.1.2 Increasing Demand for Semiconductor Wafers in Consumer Electronics
5.2 Market Restraints
5.2.1 High Setup Cost and Lack of Expertise in Handling Metrology Systems Efficiently
5.2.2 High Raw Material and Fabrication Costs
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Lithography Metrology
6.1.1.1 Overlay
6.1.1.2 Dimension Equipment
6.1.1.3 Mask Inspection and Metrology
6.1.2 Wafer Inspection
6.1.3 Thin Film Metrology
6.1.4 Other Process Control Systems
6.2 By Geography
6.2.1 North America
6.2.2 Europe
6.2.3 Asia-Pacific
6.2.4 Rest of the World
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 KLA Corporation
7.1.2 Applied Materials Inc.
7.1.3 Onto Innovation Inc.
7.1.4 Thermo Fisher Scientific Inc.
7.1.5 Hitachi Hi-Technologies Corporation (Hitachi Limited)
7.1.6 Nova Measuring Instruments Ltd
7.1.7 ASML Holding NV
7.1.8 Lasertec CorporatioN
7.1.9 JEOL Ltd
7.1.10 Nikon Metrology NV (Nikon Group)
7.1.11 Camtek Limited
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Semiconductor Metrology & Inspection Equipment Industry Segmentation
Semiconductor metrology and inspection are essential for the management of the semiconductor manufacturing process. There are hundreds of steps in the semiconductor wafer manufacturing process that are undertaken in months. Considering it to be a time-consuming process, if defects occur early in the process, it will waste the work undertaken in the subsequent steps. Hence, Metrology and inspection processes are established at critical points of the semiconductor manufacturing process chain to maintain a specific yield
The semiconductor metrology and inspection equipment market is segmented by type (Lithography Metrology (Overlay, Dimension Equipment, Mask Inspection, and Metrology), Wafer Inspection, and Thin Film Metrology), and geography. The competitive landscape has been taken to calculate the penetration of semiconductor metrology and inspection equipment and how players involve themselves in organic and inorganic growth strategies. Companies continuously innovate their products to increase their market share and profitability. Furthermore, the market study focuses on the impact of key macro trends on the market ecosystem.
The market sizes and forecasts are provided in terms of value in (USD)for all the above segments.
| By Type | |||||
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| Wafer Inspection | |||||
| Thin Film Metrology | |||||
| Other Process Control Systems |
| By Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| Rest of the World |
Semiconductor Metrology & Inspection Equipment Market Research FAQs
How big is the Semiconductor Metrology And Inspection Equipment Market?
The Semiconductor Metrology And Inspection Equipment Market size is expected to reach USD 10.47 billion in 2024 and grow at a CAGR of 5.20% to reach USD 13.49 billion by 2029.
What is the current Semiconductor Metrology And Inspection Equipment Market size?
In 2024, the Semiconductor Metrology And Inspection Equipment Market size is expected to reach USD 10.47 billion.
Who are the key players in Semiconductor Metrology And Inspection Equipment Market?
KLA Corporation, Applied Materials Inc., Onto Innovation Inc. , Thermo Fisher Scientific Inc. and Hitachi Hi-Technologies Corporation (Hitachi Limited) are the major companies operating in the Semiconductor Metrology And Inspection Equipment Market.
Which is the fastest growing region in Semiconductor Metrology And Inspection Equipment Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Semiconductor Metrology And Inspection Equipment Market?
In 2024, the Asia Pacific accounts for the largest market share in Semiconductor Metrology And Inspection Equipment Market.
What years does this Semiconductor Metrology And Inspection Equipment Market cover, and what was the market size in 2023?
In 2023, the Semiconductor Metrology And Inspection Equipment Market size was estimated at USD 9.95 billion. The report covers the Semiconductor Metrology And Inspection Equipment Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Semiconductor Metrology And Inspection Equipment Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Semiconductor Metrology & Inspection Industry Report
Statistics for the 2024 Semiconductor Metrology & Inspection market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Semiconductor Metrology & Inspection analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
