Enjoy complimentary customisation on priority with our Enterprise License!
The wafer-level manufacturing equipment market size is projected to increase by USD 51.11 billion, at a CAGR of 8.73% between 2023 and 2028. The growth of the market depends on several factors, including growing demand for IoT devices, an increase in 5G investments and increasing investments in semiconductor manufacturing. The production of semiconductor wafers uses wafer-level manufacturing equipment, which includes steps and processes such as etching, lithography, stripping, inspection, and packaging. The market is driven by an increase in the number of applications for semiconductor ICs in various end-user industries.
The report includes a comprehensive outlook on the market offering forecasts for the industry segmented by End-user, which comprises foundry, memory, and IDM. Additionally, it categorizes Product into wafer fab equipment and wafer level packaging and covers Region, including North America, APAC, Europe, Middle East and Africa, and South America. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
For More Highlights About this Report, Download Free Sample in a Minute
An increase in 5G investments is notably driving market growth. 5G is the next generation of communication technology, following 4G, and on commercialization, 5G will support data download speeds of 10,000 Mbps. There have been numerous investments in 5G globally. Worldwide 5G network infrastructure revenue grew 39% to a total of USD 19.1 billion in 2021, up from USD 13.7 billion in 2020. The increasing investments in 5G are increasing the demand for 5G network infrastructure.
However, semiconductor components that support 5G are utilized to cater to a wide range of application segments to take advantage of the increasing investments in 5G. Thus, an increase in investments in 5G will propel the adoption of semiconductor wafers, which will drive the growth of the market during the forecast period.
The rising number of strategic partnerships and acquisitions by market companies is an emerging trend influencing market growth. Companies in the market are forming strategic partnerships with market participants, such as technology providers, certification companies, and software providers, to expand their geographical presence, product development, access to new technologies, and resource sharing. They are also acquiring companies in related markets to access new technologies and software for product development.
For instance, in November 2021, Advantest acquired R&D Altanova, Inc., a leading supplier of consumable test interface boards, substrates, and interconnects for high-end applications. Advantest wanted to increase the scope of its test and measurement offerings across the dynamic semiconductor value chain. Similarly, in November 2020, ASML acquired Berliner Glas Group, including all subsidiaries. All these factors are expected to positively impact the growth of the market during the forecast period.
The increasing complexity of semiconductor IC designs is a significant challenge hindering the market growth. The growing functionalities of consumer electronic devices have increased the demand for multifunctional ICs. This has propelled semiconductor manufacturers to develop new and more complex architecture and design of semiconductor ICs. Based on these designs, the manufacturing process of semiconductor ICs is becoming complex. This has increased the demand for sophisticated WLP solutions. Increasing complexity in IC design due to emerging technologies makes it difficult for IC vendors to provide robust ICs.
Furthermore, the increasing complexity of semiconductor wafer design will moderately impact wafer-level manufacturing equipment manufacturers, as they have to invest a huge amount in maintaining the performance of semiconductor ICs. Such factors will limit the growth of the market during the forecast period.
The market share growth by the foundry segment will be significant during the forecast period. Wafer level manufacturing equipment is used in the foundry to design the chips according to consumer needs. As every industry requirement is different, wafer level manufacturing equipment helps to develop chips according to the device. Semiconductor foundries manufacture semiconductor ICs on behalf of other companies. The number of orders placed by various clients in industries, including the aerospace and defense, automotive, communication, healthcare, and telecommunication sectors, is expected to increase.
Get a glance at the market contribution of various segments Download the PDF Sample
The foundry segment was the largest and was valued at USD 45.73 billion in 2018. Expansion plans for various foundries are positively impacting the growth of the wafer-level manufacturing equipment market. For instance, in May 2020, Samsung Electronics 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 Corp. (Intel) announced its plan to build a semiconductor foundry in the US. Such expansions can increase the demand for wafer-level manufacturing equipment in foundries and, in turn, accelerate the growth of the market during the forecast period.
Wafer fab equipment is becoming more and more important as the need for building circuits for electronic and electrical devices increases. Round silicon wafers are processed with wafer fabrication equipment using chemical and physical techniques to create tiny, multi-layer circuitry. In addition, the adoption of Internet-connected gadgets such as smart homes and driverless vehicles is significantly changing the global semiconductor industry. The requirement for additional semiconductor wafers is growing due to the necessity for semiconductors in a variety of cloud integration and connectivity solutions, which ultimately increases the demand for wafer fab equipment. This trend is expected to fuel the demand for wafer fab equipment during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
APAC is estimated to contribute 76% 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. One of the major reasons for the growth of the wafer-level manufacturing equipment market in APAC is the high concentration of consumer electronics, automotive, telecommunication equipment, and enterprise networking equipment original equipment manufacturers (OEMs) in the region. APAC is home to major consumer electronic devices OEMs such as Acer Inc. (Acer), ASUSTeK Computer Inc. (ASUSTeK Computer), Seiko Epson Corp. (Seiko Epson), and Panasonic Corp. (Panasonic). Another major reason for the growth of the market is the increasing automobile production rise in investments in communication network infrastructure in APAC.
Furthermore, the automotive OEMs in the region are forming strategic partnerships with technology providers and chip manufacturers to integrate advanced electronics into their product offerings to compete with international players. The advent of the fourth generation (4G) and 5G technologies and the launch of services such as voice over long-term evolution (VoLTE) for better voice quality have been fueling the demand for better telecom infrastructure and network services in APAC. Such factors will fuel the regional market growth during the forecast period.
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
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 wafer level manufacturing equipment such as T5822 system, designed to provide manufacturers of multiple memory devices with cost efficiency and optimal functionality.
Applied Materials Inc. - The company offers wafer level manufacturing equipment such as vistara wafer manufacturing platform, designed to provide chipmakers with the flexibility, intelligence and sustainability needed to tackle growing chipmaking challenges.
ASM International NV - The company offers wafer level manufacturing equipment such as epitaxy, atomic layer deposition and PECVD.
The Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
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.
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.
Wafer-level Manufacturing Equipment Market Scope |
|
Report Coverage |
Details |
Page number |
164 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.73% |
Market Growth 2024-2028 |
USD 51.11 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
8.26 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 76% |
Key countries |
US, China, South Korea, Taiwan, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Advantest Corp., Applied Materials Inc., ASM International NV, ASML, Canon Inc., DISCO Corp., EV Group, Ferrotec Holdings Corp., Hitachi Ltd., Intel Corp., JEOL Ltd., KLA Corp., Kulicke and Soffa Industries Inc., Lam Research Corp., Plasma-Therm, Screen Holdings Co. Ltd., Tokyo Electron Ltd., ULVAC Inc., Veeco Instruments Inc., and BE Semiconductor Industries NV |
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 the 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 in touch
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.