Global Semiconductor Etch Equipment Market worth USD 33.10 Billion with a CAGR of 4.25%

Introduction

The equipment used for removing specific materials from the surface of a silicon wafer substrate via wet or dry etching is known as semiconductor etch equipment. The wet etch technique uses a chemical to remove selective material from a silicon wafer substrate. Historically, etching patterns required the use of wet chemical techniques. As system component size decreased and the significance of interface topographies increased, dry etching techniques displaced wet chemical etching. The structures' sizes fluctuate because water etching eliminates material from every dimension. Dry etching can remove material through physical processes such as ion impact followed by material expulsion from the surface or chemical processes that convert the surface into reactive gaseous species that are then blasted away. Every dry etching technique is carried out in a vacuum, where pressure influences the etching phenomenon to some degree.

Market Dynamics

Increase in Capital Spending on Semiconductor Processing Drives the Global Market

Significant investment and international cooperation have enabled the development of semiconductors by Moore's law and the industry's consistent growth. Continued investment will likely propel the industry's expansion. The government's expanding involvement in the semiconductor industry significantly influences the demand for semiconductor etching equipment. For example, China's government assists the chip industry and has budgeted over USD 150 billion by 2030 to jumpstart semiconductor production. As the global chip shortage persists, semiconductor companies around the globe are preparing to make substantial investments in their R&D facilities to meet rising demand. Numerous major stakeholders are investing in the expansion of their fabrication facilities. These growth initiatives stimulate the semiconductor etching equipment market.

Rapid Technological Advancements and Transitions Create Tremendous Opportunities

Big data and artificial intelligence accelerate this growth and necessitate smaller, more potent processors, necessitating technological advancements for their fabrication. This has resulted in the introduction of innovative new products onto the market. For instance, in February 2022, Lam Research introduced a new line of selective etch devices that use innovative wafer fabrication techniques and novel chemistries to aid chipmakers in constructing gate-all-around (GAA) transistor architectures. Lam's selective etch portfolio, which consists of three new products: Argos, PrevosTM, and Selis, provides a substantial advantage in the design and fabrication of sophisticated logic and memory semiconductor systems. Therefore, the factors above provide opportunities to expand the global market.

Regional Analysis

Asia-Pacific is the most significant global semiconductor etch equipment market shareholder and is anticipated to exhibit a CAGR of 4.32% during the forecast period. The Asia-Pacific region is home to most of the world's largest semiconductor foundries, including TSMC, Samsung Electronics, etc. China has an aggressive strategy for semiconductors. The country intends to produce more circuits and is developing its domestic IC industry with 150 billion dollars in funding. Greater China, which consists of Hong Kong, China, and Taiwan, represents a geopolitical flashpoint. Due to the US-China trade conflict aggravating tensions in a region with the most advanced process technology, many Chinese companies are compelled to invest in their semiconductor foundries. In addition, India has become one of the world's economies with the quickest expansion rate due to its large population. According to projections, the country's automotive semiconductors market will expand significantly in the next few years.

North America is estimated to exhibit a CAGR of 3.84% over the forecast period. The United States government has requested funding of USD 150 billion in 2021 to support domestic semiconductor manufacturing. Arizona is home to chip manufacturing facilities, and TSMC is contemplating investing tens of billions more there than originally planned. The high likelihood of TSMC competing with Intel Corp. and Samsung Electronics Co. Ltd. due to US government subsidies for constructing TSMC's plant is high.

In addition, Canada is witnessing substantial partnership activities on the market. For example, in October 2020, ventureLAB announced a new partnership with TSMC to expand the reach of the Hardware Catalyst Initiative and provide additional support for innovative Canadian technology companies. Recently, the supply of semiconductor processors, which are used to produce a variety of products, including automobiles, has begun to fall short of global demand. Further, as semiconductor scarcity continues to hinder the automotive and other electrically intensive industries, chip manufacturers are incorporating the robust demand for their products into their future projections.

Key Highlights

• The global semiconductor etch equipment market was valued at USD 22,687.41 million in 2022. It is estimated to reach USD 33,106.14 million by 2031, growing at a CAGR of 4.25% during the forecast period (2023–2031).
• Based on product type, the global semiconductor etch equipment market is divided into high-density etch equipment and low-density etch equipment. The high-density etch equipment segment is responsible for the highest market share and is anticipated to exhibit a CAGR of 5.46% over the forecast period.
• Based on etching film type, the global semiconductor etch equipment market is divided into conductor etching, dielectric etching, and polysilicon etching. The conductor etching segment owns the highest market share and is estimated to grow at a CAGR of 4.35% over the forecast period.
• Based on application, the global semiconductor etch equipment market is segmented into foundries, MEMS, sensors, and power devices.
• Asia-Pacific is the most significant global semiconductor etch equipment market shareholder and is anticipated to exhibit a CAGR of 4.32% during the forecast period.

Competitive Players

Competitive Players

The key players in the global semiconductor etch equipment market are Applied Materials Inc., Tokyo Electron Limited, Hitachi High Technologies America Inc., Lam Research Corporation, Plasma-Therm LLC, SPTS Technologies Limited (Orbotech), Panasonic Corporation, Suzhou Delphi Laser Co. Ltd, and ULVAC Inc.

Recent Developments

Market News

• In July 2022, Lam Research, Entegris, and Gelest collaborated to advance the EUV Dry Resist Technology Ecosystem. The companies collaborated to expedite the future development of cost-effective dry-resist solutions. The reduced depth of focus requirements of high-NA EUV are met by dry resist's high etch resistance and tunable deposition and growth thickness scaling.
• In June 2022, AlixLab developed a novel, innovative method for producing semiconductor parts with a high degree of packing, eliminating some steps in the production process - Atomic Layer Etch Pitch Splitting (APS). According to the business, the technique reduces the cost and resource requirements of the components. Additionally, the business disclosed that the equipment hook-up for Atomic Layer Etch (ALE) in its clean room at ProNano RISE in Lund, Sweden, had been finished.

Segmentation

Global Semiconductor Etch Equipment Market: Segmentation

By Product Type

• High-density Etch Equipment
• Low-density Etch Equipment

By Etching Type

• Conductor Etching
• Dielectric Etching
• Polysilicon Etching

By Applications

• Foundries
• MEMS
• Sensors
• Power Devices

By Regions

• North America
• Europe
• Asia-Pacific
• Rest of the World