Semiconductor Manufacturing Equipment Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Semiconductor Manufacturing Equipment Market is projected to expand from USD 119.43 Billion in 2025 to USD 184.01 Billion by 2031, registering a compound annual growth rate of 7.47%. This sector includes the specialized tools and machinery required for the fabrication, assembly, packaging, and testing of microchips and integrated circuits. Market growth is primarily underpinned by the intensifying demand for artificial intelligence infrastructure, automotive electronics, and high-performance computing, all of which necessitate the large-scale production of advanced memory and logic devices. According to SEMI forecasts, total global sales of semiconductor manufacturing equipment are expected to hit a record $133 billion in 2025, marking a 13.7% increase compared to the previous year.

Despite these favorable growth prospects, the industry confronts significant hurdles stemming from geopolitical tensions and shifting trade regulations. Heightened export controls and restrictions on cross-border technology transfers are generating considerable supply chain difficulties and limiting market access for manufacturers. These regulatory barriers force companies to reorganize their operational strategies and threaten the smooth global distribution of essential manufacturing technologies, thereby hindering broader market expansion.

Market Drivers

The escalating demand for High-Bandwidth Memory (HBM) to sustain generative AI workloads is fundamentally transforming the semiconductor equipment sector. Because AI models demand greater computational density, manufacturers are rapidly scaling up production of advanced memory architectures such as HBM3E, a shift that requires specialized tools for wafer fabrication and advanced packaging. This technological transition is driving significant capital expenditure, particularly for deep silicon etch and hybrid bonding machinery needed for 3D stacking. A November 2024 SEMI report highlights that memory-related capital spending jumped 67% year-on-year in the third quarter of 2024, underscoring the urgency to boost capacity for high-performance components; this investment wave is structurally linked to long-term AI data center infrastructure rather than traditional memory cycles.

Simultaneously, the growth of domestic fab capacity, spurred by the US CHIPS Act and international sovereign incentives, is triggering a substantial surge in equipment procurement. Governments around the globe are subsidizing local manufacturing hubs to reduce geopolitical supply chain risks, prompting foundries and integrated device manufacturers to speed up facility construction. According to a September 2024 report by the Semiconductor Industry Association (SIA), over 90 new manufacturing projects totaling nearly $450 billion in private investments have been announced in the United States since the CHIPS Act's inception. This policy-led expansion extends beyond the West, fueling a global spending race; for example, SEMI reported in September 2024 that China's semiconductor equipment spending hit $25 billion in the first half of 2024, surpassing the combined investments of the United States, South Korea, and Taiwan.

Market Challenges

Geopolitical friction and changing trade regulations constitute a major barrier to the expansion of the global semiconductor manufacturing equipment industry. Rigorous export controls and restrictions on technology transfer limit entry into crucial international markets, effectively shrinking the customer base for advanced fabrication tools. Manufacturers face growing operational complexities as they are forced to realign supply chains to adhere to differing regional policies, resulting in shipment delays and increased logistical expenses. This regulatory fragmentation undermines the efficiency of global distribution networks and restricts companies' ability to fully capitalize on increasing demand within specific economic regions.

The negative financial impact of these current market conditions is evident in recent industry performance metrics. Data from SEMI indicates that worldwide semiconductor equipment billings contracted by 2% year-over-year to $26.4 billion in the first quarter of 2024. This decrease highlights a direct link between intensified trade barriers and the suppression of revenue growth, as manufacturers struggle to sustain sales momentum within a trading environment that is both restricted and politically sensitive.

Market Trends

The widespread adoption of chiplet-based heterogeneous integration is fundamentally altering equipment needs, moving substantial value from front-end fabrication to back-end assembly operations. Because monolithic scaling has become cost-prohibitive for large logic dies, manufacturers are shifting to disaggregated architectures that integrate various functional blocks - such as logic, I/O, and memory - onto advanced interposers. This structural change demands a new category of high-precision bonding and die-attach tools with sub-micron accuracy to guarantee reliable die interconnects. According to an April 2025 SEMI report, global sales of assembly and packaging equipment rose by 25% year-over-year in 2024, a growth rate significantly exceeding other segments that is driven by the growing complexity of packaging multi-die systems for high-performance computing.

Concurrently, the deployment of High-Numerical Aperture (High-NA) EUV lithography systems is creating a new standard for defining angstrom-scale features. By increasing the projection optics' numerical aperture to 0.55, these next-generation machines allow for the printing of 2nm and smaller geometries in a single exposure, removing the need for expensive and slow multi-patterning techniques. However, this technological advancement requires massive capital investment and significant modifications to fab infrastructure to handle the equipment's larger size. A May 2025 CNBC report notes that the cost of a single High-NA EUV system is approximately $400 million, with ASML planning to deliver at least five such units in 2025 to support the development roadmaps of leading-edge logic foundries.

Key Players Profiled in the Semiconductor Manufacturing Equipment Market

• Applied Materials, Inc.
• Lam Research Corporation
• ASML Holding N.V.
• KLA Corporation
• Tokyo Electron Limited
• Advantest Corporation
• SCREEN Semiconductor Solutions Co., Ltd.
• Nikon Corporation
• Ushio Inc.
• Hitachi High-Tech Corporation

Report Scope

In this report, the Global Semiconductor Manufacturing Equipment Market has been segmented into the following categories:

Semiconductor Manufacturing Equipment Market, by Equipment Type:

• Front-end Equipment
• Back-end Equipment

Semiconductor Manufacturing Equipment Market, by Dimension:

• 2D
• 2.5D
• 3D

Semiconductor Manufacturing Equipment Market, by Supply Chain Process:

• Outsourced Semiconductor Assembly and Test (OSAT)
• Integrated Device Manufacturer (IDM)
• Foundry

Semiconductor Manufacturing Equipment Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Semiconductor Manufacturing Equipment Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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