Semiconductor Etch Equipment Market Expected to Reach $46.4 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Semiconductor Etch Equipment Market," The semiconductor etch equipment market size was valued at $20.5 billion in 2021, and is estimated to reach $46.4 billion by 2031, growing at a CAGR of 8.3% from 2022 to 2031.

Semiconductor etching equipment is a machinery used to remove selective materials from the surface of silicon wafer substrates using wet or dry etching methods. Wet etching processes use chemicals to selectively remove material from silicon wafer substrates. Dry etching processes use plasma ions to remove selective material from silicon wafer substrates. Etching processes remove material from the surface of a semiconductor to create a pattern suitable for an application.

The rapid growth of the semiconductor industry is the major driver of the market. A semiconductor manufacturing facility is one of the most critical requirements in the global electronics industry. U.S. Army researchers are developing new ways to integrate silicon carbide (SiC)-fueled semiconductors into modern weapons and equipment.

Moreover, rising consumer demand for electronic devices is stimulating the demand for chips, which is expected to indirectly boost the demand for semiconductor etching equipment throughout the forecast period. The demand for semiconductor chips is increasing due to the surge in demand for hybrid circuits in medical devices due to the increasing number of patients. For example, the United Nations estimates that the region's elderly population aged 60 and over could reach about 806.55 million by 2024.  

Changes in demand for consumer electronics are expected to boost the market for electrical printed circuit boards, which lead to dynamic demand for semiconductor etching equipment. Such cases are expected to boost the growth of the market. Fluctuations in material prices can slow market growth. Semiconductor etching equipment is mainly composed of raw materials such as metal and silicon. Over the years, the prices of these commodities have fluctuated due to many economic and speculative factors. Stringent government-mandated laws, tariffs, and regulations on deforestation, metals, and other materials used in semiconductor etching systems have resulted in significant decline in manufacturers' revenues and profits. Therefore, all these factors are expected to hinder the semiconductor etch equipment market growth.

In addition, the outbreak of COVID-19 has led to halt in logistic and manufacturing activities across the globe, which, in turn, has led to interruption of supply chain, thereby hindering growth of the semiconductor etch equipment industry. However, this situation is expected to improve as government is relaxing norms around the world for resuming business activities.

Government investment in the semiconductor industry is expected to drive the semiconductor etch equipment market. For example, the Chinese government is focused on supporting the chip industry and plans to invest more than US$150 billion by 2030 to boost semiconductor production. Such factors increase the demand for semiconductors, which in turn fosters the demand for semiconductor etching equipment, providing many opportunities for market growth.

Key companies profiled in the semiconductor etch equipment market forecast report include Applied Materials, Inc., ASML technology, EV Group, Hitachi High-Technologies Corporation, Panasonic Corporation, SAMCO INC., Shenzhen Delphi Laser & Robot Co., Ltd., Suzhou, Delphi Laser Co. Ltd., Tokyo Electron Ltd., And ULVAC Technologies.

Key Findings of the Study 

• By type, the dry etch equipment segment held the largest semiconductor etch equipment market share and is estimated to reach $26,519.7 million by 2031, with a CAGR of 8.2%. However, the wet etch equipment segment is estimated to be the fastest-growing segment with a CAGR of 8.5% during the forecast period.
• By process, the conductor etch segment dominated the global market. However, the dielectric etch segment is expected to be the fastest-growing segment with a CAGR of 8.6% during the forecast period.
• Based on end user, the integrated device manufacturers segment was the highest revenue contributor to the market with a CAGR of 7.9% during the forecast period.
• Based on region, Asia-Pacific garnered the largest revenue share in 2021, whereas North America is anticipated to grow at the highest CAGR of 8.9% during the forecast period.
• The report provides an extensive semiconductor etch equipment market analysis of the current trends and future estimations.
• The semiconductor etch equipment market overview provides key insights such as key product positioning and monitoring of the top competitors within the market framework.