Wafer Processing Equipment Global Market Report 2021: COVID 19 Impact and Recovery to 2030

Wafer Processing Equipment Global Market Report 2021: COVID 19 Impact and Recovery to 2030

  • May 2021 •
  • 175 pages •
  • Report ID: 6071886 •
  • Format: PDF
Major players in the wafer processing equipment market are Lam Research Corporation, Tokyo Electron Limited, Applied Materials Inc, SPTS Technologies Limited, Plasma-Therm LLC, Hitachi Kokusai Electronic Inc, and Taiwan Semiconductor Manufacturing Company Limited.

The global wafer processing equipment market is expected to grow from $175.21 billion in 2020 to $189.78 billion in 2021 at a compound annual growth rate (CAGR) of 8.3%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $257.5 billion in 2025 at a CAGR of 7.9%.

The wafer processing equipment market consists of sales of wafer processing equipment by entities (organizations, sole traders, or partnerships) that are engaged in manufacturing wafer processing equipment used for processing wafer, which is a thin slice of semiconductor, such as crystalline silicon (c-Si), used for the fabrication of integrated circuits and, in photovoltaics, to manufacture solar cells. Only goods and services traded between entities or sold to end consumers are included.

Growing demand for miniaturized wafers with the improved performance of devices is a leading trend in the wafer processing equipment market.Semiconductor substrates such as wafers are thinned down to final thicknesses of tens of µm.

Most of the semiconductor wafers such as those used in memory, CIS, and power applications are thinned down to 100 µm-200 µm.Further thickness reduction with the necessity to maximize memory capacity of single packages, improved data transfer rates, power consumption mostly fuelled by mobile applications is required in the case of memory devices.

Standard memory devices such as 2D NAND/DRAM use silicon wafers that are thicker than 200 µm.By 2025, 3D stacked DRAM thickness is expected to keep reducing from 50 µm - 30 µm thick silicon substrates.

Currently, BSI CIS wafers are the thinnest wafers across all applications with a thickness below 10 µm. Thus, ultra-smooth surfaces and thinner wafers for incorporation into the devices are continuously gaining popularity in recent years.

The wafer processing equipment market covered in this report is segmented by equipment type into oxidation systems, diffusion systems, epitaxial reactors, photolithography equipment, others, by end-use into medical, military, solar, industrial, others.

In 2019, Applied Materials, Inc. a USA-based provider of equipment, services, and software for the manufacturing of semiconductors acquired Kokusai Electric Corporation for $2.2 billion. With the acquisition of Kokusai Electric Corporation, Applied Materials, Inc. plans to expand the company’s portfolio in single-wafer processing systems, with technology and manufacturing centers in Tokyo, Cheonan, Korea, Toyama, and Japan. Kokusai Electric Corporation, a Japan-based manufacturer of semiconductor equipment and is engaged in providing services for memory, foundry, and logic customers.

Increasing demand for consumer electronic devices is expected to boost the growth of the wafer processing equipment market.An increase in the demand for electronic products has raised customer expectations regarding improved characteristics of new electronic devices.

Several consumer electronics and identity solutions including identification tags, smart cards, and more are combined with RFIDs and use wafers for the fabrication of integrated circuits.There is an increasing demand for these ultra-smooth surfaces and thinner wafers by customers for smooth incorporation into electronic devices.

According to the India Brand Equity Foundation, the Indian appliance and consumer electronics (ACE) market value was $ 10.93 billion in 2019 and is predicted to double to reach $21.18 billion by the end of 2025. In addition to this, rising utilization and consumption of consumer electronic devices are likely to fuel the demand for semiconductors which in turn is expected to propel the revenues for the wafer processing equipment market during the forecast period.

Huge investment requirements for semiconductor manufacturing are expected to limit the market growth.High investment need is the biggest challenge in setting up semiconductor fab units.

The initial investment for setting up a semiconductor fabs unit is around $8 billion and is likely to grow further in the coming years.Moreover, high maintenance and continuous technology up-gradation add to the extra cost, acting as a major constraint for setting up the semiconductor manufacturing facilities.

This scenario is anticipated to hinder the demand for wafer processing equipment from the semiconductor industry.