Wafer Fab Equipment Global Market Report 2025

The wafer fab equipment market size has grown strongly in recent years. It will grow from $76.62 billion in 2024 to $84.23 billion in 2025 at a compound annual growth rate (CAGR) of 9.9%. The growth during the historic period resulted from increasing demand for electric vehicles, rising use of artificial intelligence applications, growing adoption of internet of things devices, increasing need for data center expansion, and rising demand for next-generation memory chips.

The wafer fab equipment market size is expected to see strong growth in the next few years. It will grow to $121.4 billion in 2029 at a compound annual growth rate (CAGR) of 9.6%. The growth in the forecast period is driven by increasing demand for advanced semiconductors, rising adoption of 5G networks, growing need for high-performance electronics, increasing demand for wearable devices, and rising consumption of semiconductors in the automotive sector. Key trends in the forecast period include advancement in energy-efficient wafer fabrication processes, innovation in high-precision etching and lithography, development of automated production systems, innovation in next-generation memory chip manufacturing, and integration of artificial intelligence in semiconductor fabrication.

The increasing demand for advanced semiconductors is expected to drive the growth of the wafer fab equipment market. Advanced semiconductors are highly specialized electronic components designed to deliver high speed, efficiency, and reliability for complex functions, and they are critical in technologies such as artificial intelligence, 5G communications, high-performance computing, and next-generation consumer electronics. This growing demand is driven by the need for faster, more efficient processing in modern devices, enabling better performance and energy efficiency. Wafer fab equipment plays a key role in the production of advanced semiconductors by providing the precise tools and machinery necessary to manufacture high-performance chips with accuracy. For instance, according to the Semiconductor Industry Association (SIA), global semiconductor industry revenue is projected to rise from $588.4 billion in 2024 to $654.7 billion in 2025, reflecting the increasing demand for advanced chips. As a result, the growing need for advanced semiconductors is fueling the growth of the wafer fab equipment market.

Leading companies in the wafer fab equipment market are focusing on developing advanced solutions such as high-sensitivity inspection systems to enhance semiconductor manufacturing quality and reliability. High-sensitivity inspection systems are sophisticated tools that detect tiny defects or irregularities on wafers and chips, improving product quality, increasing yield, and reducing the risk of device failures. For example, in December 2023, Hitachi High-Tech Corporation, a Japan-based manufacturer of advanced technologies, launched the GT2000 high-precision electron beam metrology system. Leveraging Hitachi’s expertise in CD-SEM technology, this system is designed to meet the rigorous needs of semiconductor device development and mass production in the High-NA EUV generation. It features ultra-low acceleration voltage and high-speed multi-point measurement capabilities, minimizing resist damage and enabling precise, high-speed inspection of advanced 3D semiconductor devices, including those with GAA and CFET structures. This system aims to improve yield and measurement accuracy, supporting both research and development as well as mass production.

In December 2024, Littelfuse, Inc., a US-based industrial technology manufacturing company, acquired a 200 mm wafer fab located in Dortmund, Germany, from Elmos Semiconductor SE for an undisclosed amount. The acquisition is intended to expand Littelfuse’s power semiconductor capabilities and technology portfolio, strengthen its manufacturing capacity in high-growth industrial markets, and leverage a skilled workforce to support growth in power conversion applications across various sectors. This move also aims to enhance competitiveness and innovation in industries such as energy storage, automation, and renewables. Elmos Semiconductor SE, based in Germany, is involved in wafer fabrication equipment (WFE) through its semiconductor manufacturing facility.

Major players in the wafer fab equipment market are Hitachi Ltd., ASML Holding N.V., Canon Inc., Applied Materials Inc., Komatsu Ltd., Texas Instruments Incorporated, Lam Research Corporation, Tokyo Electron Ltd., KLA Corporation, Ebara Corporation, Nikon Corporation, Advantest Corporation, SCREEN Holdings Co. Ltd., ASM International N.V., Teradyne Inc., ULVAC Inc., SUSS MicroTec SE, EV Group, Advanced Micro-Fabrication Equipment Inc. China, Veeco Instruments Inc., Brooks Instrument LLC, Modutek Corporation.

North America was the largest region in the wafer fab equipment market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in wafer fab equipment report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid rise in U.S. tariffs and the subsequent trade frictions in spring 2025 are having a major impact on the electrical and electronics sector, with semiconductors, display panels, and rare-earth metals (essential for batteries and motors) subject to steep duties. Consumer electronics brands face profit erosion, as competitive markets limit their ability to pass costs to buyers. Industrial electronics manufacturers, meanwhile, grapple with delayed projects due to shortages of tariff-impacted components like printed circuit boards. Companies are responding by relocating assembly to tariff-exempt countries, increasing inventory buffers, and redesigning products to reduce dependency on restricted materials.

The wafer fab equipment market research report is one of a series of new reports that provides wafer fab equipment market statistics, including wafer fab equipment industry global market size, regional shares, competitors with a wafer fab equipment market share, detailed wafer fab equipment market segments, market trends and opportunities, and any further data you may need to thrive in the wafer fab equipment industry. The wafer fab equipment market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

Wafer Fab Equipment (WFE) refers to the specialized machinery and tools employed in the semiconductor manufacturing process to fabricate integrated circuits on silicon wafers. These tools carry out precise physical and chemical processes that layer, pattern, and modify materials on the wafer to form microscopic electronic structures.

The main categories of wafer fab equipment include photolithography equipment, epitaxy equipment, etching equipment, deposition equipment, ion implantation equipment, chemical mechanical planarization (CMP) equipment, testing equipment, and metrology equipment. Photolithography equipment transfers intricate circuit patterns onto semiconductor wafers, enabling precise chip fabrication. Fabrication processes cover front-end-of-line processing and back-end-of-line processing, with equipment serving multiple functions such as production, research and development, maintenance, and quality control. WFE is used across a variety of application sectors, including integrated circuits, micro-electro-mechanical systems, light-emitting diodes, power devices, radio frequency devices, and optoelectronics. Key end-users comprise semiconductor manufacturers, foundries, fabless companies, research institutions, and academic institutions.

The countries covered in the wafer fab equipment market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The wafer fab equipment market consists of sales of cleaning equipment, annealing equipment, wafer handling equipment, and reticle equipment. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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