Enjoy complimentary customisation on priority with our Enterprise License!
The US - semiconductor capital spending market size is estimated to grow at a CAGR of 5.31% between 2023 and 2028. The market size is forecast to increase by USD 10,664 million. The market's growth depends on several factors, including the growing investments in fabs, surge in demand for consumer electronics and smart electronic devices, and the miniaturization of electronic devices. Semiconductor capital spending refers to the capital investments by vendors in the semiconductor domain. The US semiconductor capital spending market comprises capital equipment assets and other assets. These other assets include land, buildings, and other infrastructure essential for the semiconductor industry.
This US semiconductor capital spending market report extensively covers market segmentation by application (wafer fab equipment, automated test equipment, wafer-level packaging and assembly equipment, die-level packaging and assembly equipment, and others), and end-user (automotive, consumer electronics, telecommunication, and others). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from the historic period 2018-2022.
To learn more about this report, View Report Sample
The surge in demand for consumer electronics and smart electronic devices is the key factor driving market growth. The demand for ICs which are incorporated in these products is also being driven by an increase in the sales of smart goods, e.g. wristwatches, mobile phones, and wireless bands all over the country. Other important applications in the area of integrated circuits and semiconductors are tablets and smartphones. The increase in demand for such products has been driving the demand for semiconductor components, which has been fueling the flow of capital spending into the semiconductor industry.
Furthermore, wire bonding and flip-chip packaging are mainly used in smart devices with a dense number of electronic components. The surge in demand for consumer electronics and smart electrical devices in the US is expected to drive the growth of the US semiconductor capital spending market during the forecast period.
Advances in wafer size are the primary trend shaping market growth. The semiconductor industry has emigrated to larger diameter wafers to cut costs by nearly 20%-25%. Nowadays, the industry is broadly using 300-mm wafers for manufacturing ICs. This trend is anticipated to continue with companies funding significant amounts in the construction and advancement of such fabs. For example, in May 2020, Taiwan Semiconductor Manufacturing Company (TSMC) announced plans to build a fab in Arizona, US.
Moreover, the US - semiconductor capital spending market will continue to witness demand for 200-mm wafers as well in the next five years. Nowadays, many manufacturers of semiconductor components are focusing on 450-mm wafer technology. The changes in wafer sizes will create the need for assembly and packaging equipment in the US semiconductor industry. This is expected to drive the growth of the market during the forecast period.
The cyclic nature of the semiconductor industry is a challenge that affects market growth. The semiconductor sector is very volatile due to its cyclical nature. An overcapacity in production, outdated products, and rapidly falling prices for integrated circuits are some of the circumstances that may cause market downturns or have a significant impact. Wide fluctuations can often lead to excess inventory levels in times of low demand and low inventory levels in times of high demand.
Moreover, the fluctuations in demand for these products are attributed to factors such as technological developments or advances in the product, which make the previous versions obsolete and hence less preferred in the market, as well as the excess production of semiconductor components. Fluctuations in demand may impede the growth of the US semiconductor capital spending market during the forecast period.
The market share growth by the wafer fab equipment segment will be significant during the forecast period. Wafer production equipment comprises processes for the manufacture of front-end semiconductors, such as deposition, lithography photolithography, and etching. The manufacturing equipment required for these processes takes care of wafer processing to achieve the required level of purity of silicon wafers, thus ensuring the production of high-quality ICs.
Get a glance at the market contribution of various segments View Free PDF Sample
The wafer fab equipment segment showed a gradual increase in the market share of USD 13,166.90 million in 2018. Furthermore, the equipment used during the different production processes, including deposition, etching, and photo masking, is upgraded with advanced technology to ensure a high production yield. All these factors contribute to the increasing adoption of wafer-fab equipment in the US, thereby driving the growth of the US - semiconductor capital spending market during the forecast period.
The automotive industry has a major impact on the semiconductors sector. In the past few years, there has been an unprecedented shift from cars to electrical vehicles and improvements in connectivity that have led to a boom in demand for advanced semiconductor technologies. Additionally, it is anticipated that automotive applications will continue to be a major factor in the US market's growing semiconductor capital spending as 5G and the Internet of Things (IoT) advance. Hence, the demand for semiconductors is expected to increase from the automotive sector in the US, thereby driving the growth of the US - semiconductor capital spending market during the forecast period.
The US Semiconductor Capital Spending Market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
US Semiconductor Capital Spending Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The US semiconductor capital spending market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Semiconductor Capital Spending Market In US Scope |
|
Report Coverage |
Details |
Page number |
148 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.31% |
Market growth 2024-2028 |
USD 10,664 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.85 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Advantest Corp., Amtech Systems Inc., Applied Materials Inc., ASM International NV, Carl Zeiss AG, Dow Chemical Co., Hitachi Ltd., Intel Corp., KLA Corp., KYOCERA Corp., Nichia Corp., Nova Measuring Instruments Ltd., Onto Innovation Inc., Samsung Electronics Co. Ltd., Screen Holdings Co. Ltd., Sumitomo Heavy Industries Ltd., Teradyne Inc., Tokyo Electron Ltd., Veeco Instruments Inc., and Henkel AG and Co. KGaA |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.