Semiconductor Wafer Inspection Equipment Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, China, Taiwan, South Korea, Germany - Size and Forecast 2024-2028

Semiconductor Wafer Inspection Equipment Market Forecast 2024-2028 

The semiconductor wafer inspection equipment market size is projected to increase by USD 3.42 billion, at a CAGR of 8.76% between 2023 and 2028. The growth rate of the market depends on several factors, including growing demand for IoT devices, growth in adoption of in-vehicle electronics and increasing number of data centers. Semiconductor wafer inspection equipment refers to specialized tools and systems used in the semiconductor manufacturing industry to detect and analyze defects, particles, and other irregularities on the surface or within semiconductor wafers. This inspection equipment employs various techniques such as optical inspection, electron microscopy, focused ion beam, and automated detect review to ensure the quality and reliability of the wafers. Semiconductor wafer inspection equipment plays a crucial role in maintaining high manufacturing yields and achieving optimal performance in semiconductor devices.

The market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about 20 market companies, including Applied Materials Inc., ASML, Bruker Corp., Camtek Ltd., Carl Zeiss AG, Cognex Corp., Hitachi Ltd., JEOL Ltd., KLA Corp., Lam Research Corp., Lasertec Corp, Nanometrics Inc., Nikon Corp., Nova Measuring Instruments Ltd., NXP Semiconductors NV, Onto Innovation Inc., Synopsys Inc., Teradyne Inc., Toray Industries Inc., and TSI Inc. . Additionally, Applied Materials Inc. distinguishes itself through its comprehensive company offerings, including semiconductor wafer inspection equipment. Notably, the Vericell solar wafer inspection system stands out as an advanced and fully automated bare wafer inspection tool designed specifically for crystalline silicon PV wafer and cell production.

What will be the Size of the Market During the Forecast Period?

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Market Overview

Market  Growth Analysis Driver

Increasing number of data centers is notavbly driving the market growth. A data center comprises a large number of networked computer servers, which are used by organizations for remote distribution, processing, and storage of large amounts of data. With the commencement of the Smart Revolution, which includes a focus on the development of smart cities, smart grids, and smart homes, large amounts of data are being created. Processing these data has become a priority, which has increased the number of data centers. The development of cloud computing platforms has been one of the key reasons driving the need for a rise in the number of data centers. With an increasing number of data centers, the demand for semiconductor components has been rising. 

Moreover, with an increase in the demand for memory, graphics, and processing systems in data centers, the demand for semiconductor components for data centers will rise. Therefore, semiconductor IC manufacturers are developing products specifically designed for data centers. Thus, the accelerating demand for semiconductors for data centers will drive investments in semiconductor manufacturing fabs in the coming years. This will lead to a high demand for semiconductor manufacturing equipment, including semiconductor wafer polishing and grinding equipment, which plays a critical role in refining the surface quality and flatness of semiconductor wafers. This equipment is essential for achieving the precision required in semiconductor fabrication processes, ensuring optimal performance and reliability of integrated circuits used in data center applications. As such, the growth of the semiconductor wafer polishing and grinding equipment market is expected to parallel the expansion of semiconductor manufacturing capabilities aimed at meeting data center demands.

Market Growth and Trends

Increasing focus on large-diameter wafer size is an emerging trend shaping marketing development. Wafer sizes were initially only 23 mm in 1960, and presently, there are 300 mm wafer sizes. A large-diameter wafer will have a larger surface area, which indicates a high number of chips can be manufactured at low manufacturing costs. Increasing the wafer size reduces manufacturing costs by 30% and device costs by 20%-50%. Several foundries are opting to make changes to their present 300 mm wafer fabs, which will help in the optimization of IC production. Major memory manufacturers, such as SAMSUNG, Micron Technology, and SK HYNIX, have been developing memory ICs built on 300 mm wafers and are the major consumers of these wafers.

Moreover, some other firms that include pure-play foundries, such as Taiwan Semiconductor Manufacturing Company, GLOBALFOUNDRIES, United Microelectronics, and SMIC, are developing ICs that are best suited for the development of 300-mm wafers. Therefore, it is expected that the increasing demand for semiconductor wafers will have a positive impact on the growth of the market during the forecast period.

Market Restrain

Adverse macroeconomic and regulatory market conditions are a significant challenge hindering market growth. The semiconductor market is a cyclic market with periods of high and low demand. This leads to a highly volatile market situation for various vendors operating in the market, which translates into a fluctuating demand for semiconductor manufacturing equipment, including wafer inspection equipment. However, the market dynamics get further aggravated due to various macroeconomic and regulatory factors such as trade wars, raw material shortages, and supply chain disruption. For instance, in July 2018, the US government imposed an additional 10% tariff on USD 200 billion in Chinese imports, effective from September 2018; this was apart from the previously announced USD 50 billion tariffs on Chinese goods. This tariff will be increased to 25% in January 2019.

Additionally, China, on the other hand, can delay deal approvals for US-based companies and impose additional regulations as retaliatory measures for the ongoing trade war with the US. These factors will lead to the imposition of additional duties on semiconductor manufacturers. Thus, the global semiconductor industry will be impacted by macroeconomic and regulatory conditions, leading to fluctuating demand for semiconductor manufacturing equipment. This is expected to negatively affect the demand for semiconductor wafer inspection equipment and, in turn, will hamper the growth of the market during the forecast period.

Market Segmentation By End-user

The market share growth by the foundries segment will be significant during the forecast period. The market will see a positive growth rate during the forecast timeframe. The foundries segment will gain momentum due to the increasing fab construction activities. The increasing capital expenditure by foundries is primarily driven by the demand for advanced mobile phone chips. 

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The foundries segment was the largest and was valued at USD 3.21 billion in 2018. In semiconductor foundries, all chips require wafer inspection. Chipmakers use various wafer inspection systems to find defects in planar devices. Semiconductor foundries have taken two approaches with these new e-beam inspection systems. The traditional approach uses a single-beam e-beam system. The other approach is the multi-beam systems, which are faster and offer better resolution, but they are more expensive. Expansion plans for various foundries are influencing the market. For instance, in May 2020, Samsung Electronics Co. Ltd. (Samsung) announced that it had started the construction of a 5-nanometer fabrication facility in Pyeongtaek, south of Seoul, South Korea, dedicated to its made-to-order foundry business. In May 2020, Intel announced its plan to build a semiconductor foundry in the US. Such expansions can increase the demand for e-beam wafer inspection systems in foundries and, in turn, accelerate the growth momentum of the market in the foundries segment during the forecast period.

Market Segmentation By Technology

Optical wafer inspection technology is the most widely adopted wafer inspection technology in the semiconductor manufacturing industry. This method performs wafer inspection based on the wavelength of light reflected from the patterned and un-patterned regions on the wafer. Optical wafer inspection can be classified into two types: Brightfield inspection: This type of wafer inspection is performed by using light sources of 193 nm wavelength. Furthermore, with advances in technology, the sensitivity of optical wafer inspection equipment has increased over the years. Therefore, optical wafer inspection technology is the widely adopted wafer inspection method across all semiconductor manufacturing facilities, such as foundries and IDMs. Thus, with an increase in the number of semiconductor fabs, the demand for optical wafer inspection equipment will also increase, which in turn will boost the growth of the market through the optical wafer inspection segment during the forecast period.

Regional Overview

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APAC is estimated to contribute 75% to the growth of the global market during the forecast period. Technavio's analysts have provided extensive insight into the market forecast, detailing the regional market trends and analysis, and drivers influencing the market's trajectory throughout the forecast period. APAC dominated the market in 2020 and is expected to remain the highest revenue contributor during the forecast period. One of the major reasons for this is the high concentration of foundries, semiconductor wafer manufacturers, semiconductor manufacturers, original equipment manufacturers (OEMs), and original design manufacturers (ODMs) in the region. The major revenue-contributing countries in the region include China, Taiwan, South Korea, and Japan. Furthermore, APAC is the largest consumer of semiconductor devices and contributes a significant share of the total revenue of the semiconductor industry due to the presence of dominant players in the consumer electronics and mobile devices industries, such as market Samsung, Sony, LG, Toshiba, and Panasonic.

In addition, the demand for ICs from several end-user industries, such as the aerospace and defense, automotive, consumer, and healthcare, is increasing, primarily because of advances in wired and wireless technologies, growing implementation of IoT, increasing automation across industries, and investments in human-machine interface (HMI) technologies. This has resulted in an increased demand for multifunctional ICs, which are capable of handling advanced applications. The increase in the semiconductor market will lead to the need for such equipment in this region during the forecast period. 

Market Customer Landscape

The market forecasting report includes the adoption lifecycle of the market research and growth, 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 also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.

Global Market Customer Landscape

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.

ASML - The company offers semiconductor wafer inspection equipment such as Yieldstar 1375F, Yieldstar 1385, and Yieldstar 500.

Market analysis and report of 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.

Market Analyst Overview

The market is pivotal in the semiconductor manufacturing process, ensuring the quality and performance of semiconductor materials used in various applications, including smartphones and automotive applications. The demand for high-performance and low-cost semiconductor materials is escalating, driven by advancements in technologies like Artificial Intelligence and the Internet of Things (IoT), impacting both the industrial and residential sectors. The rise of NB-IoT, Cat-M, and broadband IoT contributes to the increasing cellular IoT connections, yet challenges persist, such as setup costs and a lack of expertise. Metrology systems and services play a crucial role in addressing deficiencies, guided by macroeconomic factors. The market embraces advanced semiconductor equipment, enabling innovations like three-dimensional integrated circuits for memory cards, smart cards, computing devices, and portable consumer electronics. These innovations prioritize speed, durability, low power consumption, and lightweight memory.

Moreover, the market's evolution aligns with cloud computing solutions, influencing logic devices, microprocessors, and digital signal processors for server and data center systems, ultimately contributing to the growth of connected devices with IoT capabilities. Thin wafer technology, temperature control, and LED applications drive the market, benefiting LED makers and leveraging economies of scale for enhanced profitability. The market extends its influence to digital payments, with near-field communication-enabled contactless credit and debit cards, wireless technology, RFID, and wafer production plants driving silicon wafer area shipments in square inches, making silicon wafers a critical building material. 

Segment Overview

The market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• End-user Outlook
  • Foundries
  • IDMs

• Technology Outlook
  • Optical wafer inspection
  • E-beam wafer inspection

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile
    • Brazil
    • Argentina 
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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What are the Key Data Covered in this Semiconductor Wafer Inspection Equipment Market Research Report?

• CAGR of the market report forecast 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 market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across APAC, North America, Europe, South America, and Middle East and Africa
• Thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of Industry companies

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