North America Semiconductor Manufacturing Equipment Market Size & Outlook, 2025-2032

North America Semiconductor Manufacturing Equipment Market Size

The global North America semiconductor manufacturing equipment market size was valued at USD 14,542.47 million in 2024 and is projected to reach from USD 14,943.22 million in 2025 to USD 18,865.33 million by 2033, growing at a CAGR of 3.0% during the forecast period (2025-2033).

This growth is primarily driven by increasing demand for advanced technologies such as artificial intelligence (AI), 5G, and electric vehicles (EVs), which require sophisticated semiconductor components. Furthermore, government initiatives, such as the CHIPS Act, aimed at bolstering domestic semiconductor production, are expected to significantly enhance the market in North America.

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Market Growth Factor

Technological Advancements and Federal Support

Rapid technological advancements and significant federal support primarily drive the North American semiconductor manufacturing equipment market. With AI, 5G, and the Internet of Things (IoT) transforming industries, the semiconductor demand continues to soar.

• For instance, by 2024, over 20% of North American enterprises are expected to integrate AI technologies, driving the need for more advanced semiconductor components. Federal investments, mainly through the CHIPS and Science Act of 2022, have further fueled growth, with over USD 52 billion allocated to boost domestic production. These initiatives aim to reduce dependency on foreign imports and increase the local production of high-performance semiconductors, thus propelling the demand for manufacturing equipment.

Market Restraint

Supply Chain Challenges and Skilled Labor Shortage

Despite solid growth projections, the North American semiconductor manufacturing equipment market faces notable challenges related to supply chain disruptions and a shortage of skilled labor. The global semiconductor supply chain remains highly dependent on critical raw materials from other regions, particularly East Asia. For example, over 65% of the U.S.’s semiconductor components are imported from countries like Taiwan and South Korea. Geopolitical tensions or natural disasters can significantly disrupt supply chains, causing delays in manufacturing processes. Additionally, the skilled labor shortage in the semiconductor industry is a growing concern. According to a 2024 report by SEMI (Semiconductor Equipment and Materials International), the U.S. will face a shortage of 80,000 semiconductor professionals by 2030, hampering manufacturing expansion and innovation.

Market Opportunity

Expansion of the Electric Vehicle (ev) Industry

The growing adoption of electric vehicles (EVs) presents a significant opportunity for North America's semiconductor manufacturing equipment market. As EV manufacturers increasingly depend on semiconductors for power management and autonomous driving systems, the demand for advanced wafer manufacturing equipment is expected to surge. In 2025, the U.S. EV market is projected to grow by 18%, driven by government initiatives promoting green energy and transportation electrification.

• For instance, the Biden administration’s push for 50% EV sales by 2030 is anticipated to accelerate semiconductor demand for vehicle electronics, creating a lucrative market for semiconductor equipment manufacturers. This shift towards electrification aligns with North America’s broader sustainability goals, positioning semiconductor manufacturing as a critical player in the EV supply chain.

Regional Insights

The North America semiconductor manufacturing equipment market is characterized by notable regional growth across several cities, driven by investments in technology, infrastructure, and semiconductor innovation.

Silicon Valley, as a global tech hub, continues to dominate the North American semiconductor market. The region is home to major semiconductor companies like Intel, Nvidia, and AMD. In 2024, Silicon Valley’s semiconductor investments were valued at over USD 4 billion, focusing on AI chip production and 5G technologies. The growing demand for cutting-edge wafer processing and fabrication technology, coupled with government support, positions California as a leader in the industry.

Austin has emerged as a significant player in the semiconductor manufacturing landscape, with companies like Samsung and Texas Instruments expanding their facilities. In 2025, Samsung’s investment in a new foundry in Texas exceeded USD 17 billion to increase production capacity for advanced semiconductors. Austin's favorable business environment and strong tech infrastructure have made it a key market for semiconductor equipment manufacturers.

Phoenix is rapidly becoming a semiconductor hub, driven by significant investments from Taiwan Semiconductor Manufacturing Company (TSMC). In 2025, TSMC’s USD 12 billion investment in a new Phoenix fabrication plant will significantly boost local semiconductor manufacturing capacity. The city’s focus on advanced chip production for AI and 5G applications is a key growth driver, with increasing demand for state-of-the-art wafer processing technology.

New York has positioned itself as an emerging semiconductor center with significant investments in research and development. The state announced a USD 1.2 billion investment in semiconductor research in 2024, aimed at fostering innovation in chip manufacturing. Albany’s focus on developing next-generation semiconductors for defense and aerospace applications is expected to drive demand for advanced manufacturing equipment.

Portland’s semiconductor industry is anchored by Intel’s manufacturing facilities, which are among North America's largest and most advanced manufacturing facilities. The region is investing heavily in wafer processing and assembly equipment to meet the growing demand for high-performance chips. Portland’s proximity to skilled labor and research institutions further supports the city’s growth as a semiconductor manufacturing hub.

Dallas continues to expand its semiconductor manufacturing capabilities, which are supported by investments from Texas Instruments and other significant players. The region’s focus on producing semiconductors for industrial and automotive applications drives demand for specialized manufacturing equipment. In 2024, Dallas announced plans to invest over USD 1 billion in semiconductor infrastructure to enhance production capacity and reduce reliance on foreign imports.

Type Insights

Wafer Processing/Wafer Manufacturing dominates the type segment and is expected to grow at a CAGR of 2.8% over the forecast period. In North America, the market is driven by rising demand for advanced integrated circuits (ICs) in sectors like telecommunications, automotive, and AI. As manufacturers shift toward smaller, more complex chips, wafer processing technology, such as photolithography and etching, is becoming more advanced. The region's strong industrial base, combined with federal investments like the CHIPS Act, supports growth in this segment.

Application Insights

Fabrication Plant/Foundry dominates the application segment and is expected to grow at a CAGR of 2.8% during the forecast period. North America’s demand for fabrication plant equipment is fueled by large-scale investments in new foundries and the expansion of existing facilities. Companies like Intel and TSMC are ramping up regional investments to reduce dependency on Asian imports, driving equipment growth tailored for foundry operations. Federal incentives to boost domestic semiconductor manufacturing and increase production capacity further support this segment's growth.

Dimension Insights

The 2D segment dominates the dimension segment and is expected to grow at a CAGR of 2.5% over the forecast period. The segment is experiencing steady growth in North America, primarily driven by its continued use in legacy electronics and essential consumer devices. This segment also benefits from the demand for standard ICs used in everyday products such as smartphones, IoT devices, and automotive systems. North America's robust R&D ecosystem, which optimizes traditional 2D manufacturing methods, ensures that this segment will remain relevant and profitable over the forecast period.

List of key players in North America Semiconductor Manufacturing Equipment Market

1. ASML Holding N.V.
2. Applied Materials Inc.
3. KLA-Tencor Corporation
4. Lam Research Corporation
5. Canon Inc.
6. Nikon Corporation
7. Hitachi Ltd.
8. Advantest Corporation
9. Teradyne Inc.
10. Screen Holdings Co. Ltd.
11. Tokyo Electron Limited

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Analyst Perspective

As per our analyst, the North America semiconductor manufacturing equipment market is poised for rapid expansion in the coming years.This growth is largely driven by technological advancements in AI, 5G, electric vehicles, and strong federal support for domestic semiconductor production. The CHIPS and Science Act and increasing investments from tech giants and automotive manufacturers have created a favorable environment for developing semiconductor manufacturing equipment in North America. Furthermore, the region’s focus on sustainability and the adoption of electric vehicles will increase the demand for semiconductors, particularly in the automotive sector. However, supply chain disruptions and labor shortages must be addressed to capitalize on the market’s growth potential fully. Overall, North America’s semiconductor manufacturing equipment market is expected to thrive, driven by innovation, federal initiatives, and a growing emphasis on technological leadership.