US - Semiconductor Capital Spending Market by Application, and End-user - Forecast and Analysis 2024-2028

Published: Oct 2023

Pages: 148

SKU: IRTNTR70572

Snapshot

US - Semiconductor Capital Spending Market 2024-2028

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.

What will be the size of the US Semiconductor Capital Spending Market During the Forecast Period?

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US Semiconductor Capital Spending Market Overview

Driver

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.

Trends

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.

Restrain

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.

US Semiconductor Capital Spending Market Segmentation By Application

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.

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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.

US Semiconductor Capital Spending Market Segmentation By End-user

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.

US Semiconductor Capital Spending Market Customer Landscape

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

Who are the Major US Semiconductor Capital Spending Market Companies?

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.

Advantest Corp.: The company offers different types of semiconductor capital spending products including SoC Test Systems, Memory Test Systems, Test Handler, Device Interface, SEM Metrology or Review, SSD Test Systems, Terahertz Systems, Electronic Measuring Instruments, System Level Test Systems, Leading Edge Products, Test Cell and Automation Solutions and CloudTesting Service.
Applied Materials Inc.: The company offers different types of semiconductor capital spending products under semi conductors product line.
ASM International NV: The company offers semiconductor capital spending products including Atomic Layer Deposition products, Low Pressure Chemical Vapor Deposition and Diffusion products, Epitaxy products, Plasma Enhanced Chemical Vapor Deposition and Plasma Enhanced AL

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.

Segment Overview

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.

Application Outlook (USD Million, 2018 - 2028)
- Wafer fab equipment
- Automated test equipment
- Wafer-level packaging and assembly equipment
- Die-level packaging and assembly equipment|Others

End-User Outlook (USD Million, 2018 - 2028)
- Automotive
- Consumer electronics
- Telecommunication
- Others

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.

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What are the Key Data Covered in this US Semiconductor Capital Spending Market Report?

CAGR of the market during the forecast period
Detailed information on factors that will drive the growth of the market between 2024 and 2028
Precise estimation of the market size and its contribution of the focus to the parent market
Accurate predictions about upcoming trends and changes in consumer behavior
Growth of the market industry across the US
A thorough analysis of the market’s competitive landscape and detailed information about companies
Comprehensive analysis of factors that will challenge the growth of market companies

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Table of Contents

1 Executive Summary

1.1 Market overview
- Exhibit 01: Executive Summary – Chart on Market Overview
- Exhibit 02: Executive Summary – Data Table on Market Overview
- Exhibit 03: Executive Summary – Chart on Country Market Characteristics
- Exhibit 04: Executive Summary – Chart on Market Segmentation by Application
- Exhibit 05: Executive Summary – Chart on Market Segmentation by End-user
- Exhibit 06: Executive Summary – Chart on Vendor Market Positioning

2 Market Landscape

2.1 Market ecosystem
- Exhibit 07: Parent market
- Exhibit 08: Market Characteristics

3 Market Sizing

3.1 Market definition
- Exhibit 09: Offerings of vendors included in the market definition

3.2 Market segment analysis
- Exhibit 10: Market segments

3.3 Market size 2023

3.4 Market outlook: Forecast for 2023-2028
- Exhibit 11: Chart on US - Market size and forecast 2023-2028 ($ million)
- Exhibit 12: Data Table on US - Market size and forecast 2023-2028 ($ million)
- Exhibit 13: Chart on US: Year-over-year growth 2023-2028 (%)
- Exhibit 14: Data Table on US: Year-over-year growth 2023-2028 (%)

4 Historic Market Size

4.1 Semiconductor capital spending market in US 2018 - 2022
- Exhibit 15: Historic Market Size – Data Table on semiconductor capital spending market in US 2018 - 2022 ($ million)

4.2 Application Segment Analysis 2018 - 2022
- Exhibit 16: Historic Market Size – Application Segment 2018 - 2022 ($ million)

4.3 End-user Segment Analysis 2018 - 2022
- Exhibit 17: Historic Market Size – End-user Segment 2018 - 2022 ($ million)

5 Five Forces Analysis

5.1 Five forces summary
- Exhibit 18: Five forces analysis - Comparison between 2023 and 2028

5.2 Bargaining power of buyers
- Exhibit 19: Chart on Bargaining power of buyers – Impact of key factors 2023 and 2028

5.3 Bargaining power of suppliers
- Exhibit 20: Bargaining power of suppliers – Impact of key factors in 2023 and 2028

5.4 Threat of new entrants
- Exhibit 21: Threat of new entrants – Impact of key factors in 2023 and 2028

5.5 Threat of substitutes
- Exhibit 22: Threat of substitutes – Impact of key factors in 2023 and 2028

5.6 Threat of rivalry
- Exhibit 23: Threat of rivalry – Impact of key factors in 2023 and 2028

5.7 Market condition
- Exhibit 24: Chart on Market condition - Five forces 2023 and 2028

6 Market Segmentation by Application

6.1 Market segments
- Exhibit 25: Chart on Application - Market share 2023-2028 (%)
- Exhibit 26: Data Table on Application - Market share 2023-2028 (%)

6.2 Comparison by Application
- Exhibit 27: Chart on Comparison by Application
- Exhibit 28: Data Table on Comparison by Application

6.3 Wafer fab equipment - Market size and forecast 2023-2028
- Exhibit 29: Chart on Wafer fab equipment - Market size and forecast 2023-2028 ($ million)
- Exhibit 30: Data Table on Wafer fab equipment - Market size and forecast 2023-2028 ($ million)
- Exhibit 31: Chart on Wafer fab equipment - Year-over-year growth 2023-2028 (%)
- Exhibit 32: Data Table on Wafer fab equipment - Year-over-year growth 2023-2028 (%)

6.4 Automated test equipment - Market size and forecast 2023-2028
- Exhibit 33: Chart on Automated test equipment - Market size and forecast 2023-2028 ($ million)
- Exhibit 34: Data Table on Automated test equipment - Market size and forecast 2023-2028 ($ million)
- Exhibit 35: Chart on Automated test equipment - Year-over-year growth 2023-2028 (%)
- Exhibit 36: Data Table on Automated test equipment - Year-over-year growth 2023-2028 (%)

6.5 Wafer-level packaging and assembly equipment - Market size and forecast 2023-2028
- Exhibit 37: Chart on Wafer-level packaging and assembly equipment - Market size and forecast 2023-2028 ($ million)
- Exhibit 38: Data Table on Wafer-level packaging and assembly equipment - Market size and forecast 2023-2028 ($ million)
- Exhibit 39: Chart on Wafer-level packaging and assembly equipment - Year-over-year growth 2023-2028 (%)
- Exhibit 40: Data Table on Wafer-level packaging and assembly equipment - Year-over-year growth 2023-2028 (%)

6.6 Die-level packaging and assembly equipment - Market size and forecast 2023-2028
- Exhibit 41: Chart on Die-level packaging and assembly equipment - Market size and forecast 2023-2028 ($ million)
- Exhibit 42: Data Table on Die-level packaging and assembly equipment - Market size and forecast 2023-2028 ($ million)
- Exhibit 43: Chart on Die-level packaging and assembly equipment - Year-over-year growth 2023-2028 (%)
- Exhibit 44: Data Table on Die-level packaging and assembly equipment - Year-over-year growth 2023-2028 (%)

6.7 Others - Market size and forecast 2023-2028
- Exhibit 45: Chart on Others - Market size and forecast 2023-2028 ($ million)
- Exhibit 46: Data Table on Others - Market size and forecast 2023-2028 ($ million)
- Exhibit 47: Chart on Others - Year-over-year growth 2023-2028 (%)
- Exhibit 48: Data Table on Others - Year-over-year growth 2023-2028 (%)

6.8 Market opportunity by Application
- Exhibit 49: Market opportunity by Application ($ million)
- Exhibit 50: Data Table on Market opportunity by Application ($ million)

7 Market Segmentation by End-user

7.1 Market segments
- Exhibit 51: Chart on End-user - Market share 2023-2028 (%)
- Exhibit 52: Data Table on End-user - Market share 2023-2028 (%)

7.2 Comparison by End-user
- Exhibit 53: Chart on Comparison by End-user
- Exhibit 54: Data Table on Comparison by End-user

7.3 Automotive - Market size and forecast 2023-2028
- Exhibit 55: Chart on Automotive - Market size and forecast 2023-2028 ($ million)
- Exhibit 56: Data Table on Automotive - Market size and forecast 2023-2028 ($ million)
- Exhibit 57: Chart on Automotive - Year-over-year growth 2023-2028 (%)
- Exhibit 58: Data Table on Automotive - Year-over-year growth 2023-2028 (%)

7.4 Consumer electronics - Market size and forecast 2023-2028
- Exhibit 59: Chart on Consumer electronics - Market size and forecast 2023-2028 ($ million)
- Exhibit 60: Data Table on Consumer electronics - Market size and forecast 2023-2028 ($ million)
- Exhibit 61: Chart on Consumer electronics - Year-over-year growth 2023-2028 (%)
- Exhibit 62: Data Table on Consumer electronics - Year-over-year growth 2023-2028 (%)

7.5 Telecommunication - Market size and forecast 2023-2028
- Exhibit 63: Chart on Telecommunication - Market size and forecast 2023-2028 ($ million)
- Exhibit 64: Data Table on Telecommunication - Market size and forecast 2023-2028 ($ million)
- Exhibit 65: Chart on Telecommunication - Year-over-year growth 2023-2028 (%)
- Exhibit 66: Data Table on Telecommunication - Year-over-year growth 2023-2028 (%)

7.6 Others - Market size and forecast 2023-2028
- Exhibit 67: Chart on Others - Market size and forecast 2023-2028 ($ million)
- Exhibit 68: Data Table on Others - Market size and forecast 2023-2028 ($ million)
- Exhibit 69: Chart on Others - Year-over-year growth 2023-2028 (%)
- Exhibit 70: Data Table on Others - Year-over-year growth 2023-2028 (%)

7.7 Market opportunity by End-user
- Exhibit 71: Market opportunity by End-user ($ million)
- Exhibit 72: Data Table on Market opportunity by End-user ($ million)

8 Customer Landscape

8.1 Customer landscape overview
- Exhibit 73: Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria

9 Drivers, Challenges, and Trends

9.1 Market drivers

9.2 Market challenges

9.3 Impact of drivers and challenges
- Exhibit 74: Impact of drivers and challenges in 2023 and 2028

9.4 Market trends

10 Vendor Landscape

10.1 Overview

10.2 Vendor landscape
- Exhibit 75: Overview on Criticality of inputs and Factors of differentiation

10.3 Landscape disruption
- Exhibit 76: Overview on factors of disruption

10.4 Industry risks
- Exhibit 77: Impact of key risks on business

11 Vendor Analysis

11.1 Vendors covered
- Exhibit 78: Vendors covered

11.2 Market positioning of vendors
- Exhibit 79: Matrix on vendor position and classification

11.3 Advantest Corp.
- Exhibit 80: Advantest Corp. - Overview
- Exhibit 81: Advantest Corp. - Business segments
- Exhibit 82: Advantest Corp. - Key offerings
- Exhibit 83: Advantest Corp. - Segment focus

11.4 Applied Materials Inc.
- Exhibit 84: Applied Materials Inc. - Overview
- Exhibit 85: Applied Materials Inc. - Business segments
- Exhibit 86: Applied Materials Inc. - Key offerings
- Exhibit 87: Applied Materials Inc. - Segment focus

11.5 ASM International NV
- Exhibit 88: ASM International NV - Overview
- Exhibit 89: ASM International NV - Product / Service
- Exhibit 90: ASM International NV - Key offerings

11.6 Dow Chemical Co.
- Exhibit 91: Dow Chemical Co. - Overview
- Exhibit 92: Dow Chemical Co. - Business segments
- Exhibit 93: Dow Chemical Co. - Key news
- Exhibit 94: Dow Chemical Co. - Key offerings
- Exhibit 95: Dow Chemical Co. - Segment focus

11.7 Henkel AG and Co. KGaA
- Exhibit 96: Henkel AG and Co. KGaA - Overview
- Exhibit 97: Henkel AG and Co. KGaA - Business segments
- Exhibit 98: Henkel AG and Co. KGaA - Key news
- Exhibit 99: Henkel AG and Co. KGaA - Key offerings
- Exhibit 100: Henkel AG and Co. KGaA - Segment focus

11.8 Hitachi Ltd.
- Exhibit 101: Hitachi Ltd. - Overview
- Exhibit 102: Hitachi Ltd. - Business segments
- Exhibit 103: Hitachi Ltd. - Key news
- Exhibit 104: Hitachi Ltd. - Key offerings
- Exhibit 105: Hitachi Ltd. - Segment focus

11.9 Intel Corp.
- Exhibit 106: Intel Corp. - Overview
- Exhibit 107: Intel Corp. - Business segments
- Exhibit 108: Intel Corp. - Key news
- Exhibit 109: Intel Corp. - Key offerings
- Exhibit 110: Intel Corp. - Segment focus

11.10 KLA Corp.
- Exhibit 111: KLA Corp. - Overview
- Exhibit 112: KLA Corp. - Business segments
- Exhibit 113: KLA Corp. - Key offerings
- Exhibit 114: KLA Corp. - Segment focus

11.11 KYOCERA Corp.
- Exhibit 115: KYOCERA Corp. - Overview
- Exhibit 116: KYOCERA Corp. - Business segments
- Exhibit 117: KYOCERA Corp. - Key news
- Exhibit 118: KYOCERA Corp. - Key offerings
- Exhibit 119: KYOCERA Corp. - Segment focus

11.12 Nichia Corp.
- Exhibit 120: Nichia Corp. - Overview
- Exhibit 121: Nichia Corp. - Product / Service
- Exhibit 122: Nichia Corp. - Key offerings

11.13 Onto Innovation Inc.
- Exhibit 123: Onto Innovation Inc. - Overview
- Exhibit 124: Onto Innovation Inc. - Product / Service
- Exhibit 125: Onto Innovation Inc. - Key offerings

11.14 Samsung Electronics Co. Ltd.
- Exhibit 126: Samsung Electronics Co. Ltd. - Overview
- Exhibit 127: Samsung Electronics Co. Ltd. - Business segments
- Exhibit 128: Samsung Electronics Co. Ltd. - Key news
- Exhibit 129: Samsung Electronics Co. Ltd. - Key offerings
- Exhibit 130: Samsung Electronics Co. Ltd. - Segment focus

11.15 Sumitomo Heavy Industries Ltd.
- Exhibit 131: Sumitomo Heavy Industries Ltd. - Overview
- Exhibit 132: Sumitomo Heavy Industries Ltd. - Product / Service
- Exhibit 133: Sumitomo Heavy Industries Ltd. - Key offerings

11.16 Teradyne Inc.
- Exhibit 134: Teradyne Inc. - Overview
- Exhibit 135: Teradyne Inc. - Business segments
- Exhibit 136: Teradyne Inc. - Key news
- Exhibit 137: Teradyne Inc. - Key offerings
- Exhibit 138: Teradyne Inc. - Segment focus

11.17 Tokyo Electron Ltd.
- Exhibit 139: Tokyo Electron Ltd. - Overview
- Exhibit 140: Tokyo Electron Ltd. - Business segments
- Exhibit 141: Tokyo Electron Ltd. - Key offerings
- Exhibit 142: Tokyo Electron Ltd. - Segment focus

12 Appendix

12.1 Scope of the report

12.2 Inclusions and exclusions checklist
- Exhibit 143: Inclusions checklist
- Exhibit 144: Exclusions checklist

12.3 Currency conversion rates for US$
- Exhibit 145: Currency conversion rates for US$

12.4 Research methodology
- Exhibit 146: Research methodology
- Exhibit 147: Validation techniques employed for market sizing
- Exhibit 148: Information sources

12.5 List of abbreviations
- Exhibit 149: List of abbreviations

Methodology

Research Framework

Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.

INFORMATION SOURCES

Primary sources

Manufacturers and suppliers
Channel partners
Industry experts
Strategic decision makers

Secondary sources

Industry journals and periodicals
Government data
Financial reports of key industry players
Historical data
Press releases

DATA ANALYSIS

Data Synthesis

Collation of data
Estimation of key figures
Analysis of derived insights

Data Validation

Triangulation with data models
Reference against proprietary databases
Corroboration with industry experts

REPORT WRITING

Qualitative

Market drivers
Market challenges
Market trends
Five forces analysis

Quantitative

Market size and forecast
Market segmentation
Geographical insights
Competitive landscape

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Key Questions Answered

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What are the variables influencing the market growth in the primary regions?
What are the factors influencing the growth of the parent market?

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