Back End of the Line Semiconductor Equipment Market 2016-2020

This industry research report identifies Applied Materials, ASML, KLA-Tencor, Lam Research, and Tokyo Electron Limited as the key vendors in the global back end of the line semiconductor equipment market. This industry research report also presents a competitive analysis of the market by product (CVD, CMP, coater developer, PVD, metal etching, stepper, and wet station), by end-user (foundry, memory, and IDM), and by geography (the Americas, APAC, and EMEA).

Overview of the global back end of the line semiconductor equipment market

Market research analysts at Technavio have predicted that the global back end of the line (BEOL) semiconductor equipment market will grow moderately during the predicted period and will post a revenue of more than USD 13 billion by 2020. This market research analysis identifies the miniaturization of electronic devices as one of the primary growth factors for this market. The recent years have seen an increasing demand for compact electronic devices from several sectors such as communication, automotive, industrial manufacturing, and healthcare. This has induced the semiconductor manufacturers to invest in their R&D to reduce the size and increase the performance of ICs, which, in turn, has led to the emergence of micro-electro-mechanical systems (MEMS) and 3D chip packaging. Also, the increasing number of interconnects and transistors in the existing space on the ICs requires finer deposition, which in turn, will create the demand for BEOL semiconductor equipment.

Analysts have predicted that APAC will be the major revenue contributor to the region during the forecast period and will account for more than 73% of the total market shares by 2020. The presence of a number of semiconductor foundries in the region and the constantly increasing demand for semiconductor equipment from countries such as Taiwan, South Korea, China, and Japan will fuel the growth of the market in this region.

Competitive landscape and key vendors

The market has a great market potential due to the growing semiconductor industry. Owing to the requirement of a significant amount of investment and a good level of skilled personnel, the competitive environment among existing semiconductor equipment manufacturers is intense. Also, the prominent vendors account for a majority share of the market and as a result, the market appears to be highly consolidated. The coming years will witness the vendors investing heavily in their R&D to develop next-generation manufacturing equipment and to develop 10 nm pilot lines and 20 nm DRAM conversions. To increase their product portfolio and maximize their share of the market, semiconductor equipment companies will also start offering products that are capable of manufacturing advanced design ICs, such as FinFET, 3D NAND, and 450 mm wafer.

The key vendors in the market are -

• Applied Materials
• ASML
• KLA-Tencor
• Lam Research
• Tokyo Electron Limited (TEL)

The other prominent vendors in the market are Dainippon Screen Manufacturing, Hitachi High-Technologies, Nikon, and Hitachi Kokusai Electric.

Segmentation by product and analysis of the BEOL semiconductor equipment market

• CVD
• CMP
• Coater developer
• PVD
• Metal etching
• Stepper
• Wet station

Accounting for more than 42% of the total share of the market, the stepper segment dominated the market during 2015. Analysts predict that the increasing customer shift toward advanced technologies will lead to a rise in the demand for stepper systems. The miniaturization of electronic products has resulted in the front-end process becoming complex, which will, in turn, call for the adoption of new technologies such as through-silicon via (TSV) to ease the wiring process. The adoption of such advanced technologies will subsequently lead to the adoption of stepper devices and this segment will continue its dominance during the forecast period as well.

Segmentation by end-user and analysis of the BEOL semiconductor equipment market

• Foundry
• Memory
• IDM (integrated device manufacturers)

This market study estimates that in terms of end-users, the foundry segment will dominate the market throughout the predicted period and will account for almost 63% of the total market shares by 2020. The increase in fab construction, the rise in demand for advanced mobile chips, and the increasing number of technological functionalities in mobile devices are major factors that will drive the growth of this market segment during the next four years.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the global back end of the line semiconductor equipment market?
• What are the key market trends impacting the growth of the global back end of the line semiconductor equipment market?
• What are the challenges to market growth?
• Who are the key vendors in the global back end of the line semiconductor equipment market?
• What are the market opportunities and threats faced by the vendors in the global back end of the line semiconductor equipment market?
• Trending factors influencing the market shares of the Americas, APAC, and EMEA.
• What are the key outcomes of the five forces analysis of the global back end of the line semiconductor equipment market?

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