According to specialists, the global semiconductor equipment sales are expected to hit a record high of US$108.5bil in 2022, as predicted by The Semiconductor Equipment Manufacturers Industry, based in the US. This prediction exceeds the previous industry high of US$102.5 billion in 2021 by 5.9%, and marks the end of three years of record revenue, as stated by SEMI. The front-end and back-end categories will likely drive growth in both 2024 and 2026, while the global market for all semiconductor manufacturing equipment is predicted to decline to US$91.2 billion next year.
SEMI president and CEO Ajit Manocha said in a statement that “record fab constructions have driven overall semiconductor manufacturing equipment sales to reach the US$100bil milestone for a second straight year.” This growth is anticipated to continue, as the semiconductor business is to grow significantly over the next ten years, driven by emerging applications in numerous sectors, which will require further expenditures to increase production capacity. The Semiconductor Equipment Manufacturers Industry Predicts that this growth will be driven by various segments, including the wafer fab equipment segment, which includes wafer processing, fab facilities, and mask/reticle equipment.
Segment Growth and Decline
The wafer fab equipment segment is expected to grow by 8.3% to a new industry record of US$94.8 billion in 2022, Then contract by 16.8% to US$78.8 billion in 2023, before increasing by 17.2% to US$92.4 billion in 2024. Given the continued high demand for both leading-edge and mature nodes, equipment sales in the foundry and logic segment, Which account for more than half of all wafer fab equipment revenues, are Anticipated to increase 16% annually to US$53bil in 2022. However, Investments in logic and foundries are anticipated to decline in 2023, Which result in a 9% decline in category revenues.
Sales of DRAM equipment are about to Reduce By 10% to an estimated US$14.3 billion in 2022 and 25% to US$10.8 billion in 2023, as enterprise and consumer demand for memory and storage declines. While sales of NAND equipment are about to Fall Upto 4% to US$19 billion in 2022 and 36% in 2023, following strong 30% growth in 2021. Sales of assembly and packing equipment are about to Decline by 14.9% to US$6.1 billion in 2022 and by 13.3% to US$5.3 billion in 2023, Following an increase of 87% in 2021.
Future Outlook
In 2024, back-end equipment spending is about to Increase by 15.8% and 24.1%, respectively, in the sectors of test equipment and assembly and packing equipment. According to SEMI, the semiconductor business is expected to continue growing, driven by emerging applications in numerous sectors. As a result, The Semiconductor Equipment Manufacturers Industry Predicts that global sales of all semiconductor manufacturing equipment by original equipment manufacturers will continue to be driven by the front-end and back-end categories.
Conclusion and Future Developments
As the semiconductor industry continues to evolve, it is essential to watch for future developments and trends. The Semiconductor Equipment Manufacturers Industry, based in the US, will likely continue to play a crucial role in shaping the industry’s growth. PETALING JAYA, the location of this report, will be an essential area to monitor for future updates on the semiconductor equipment sales. According to CEO Ajit Manocha, the record fab constructions have driven overall semiconductor manufacturing equipment sales to reach the US$100bil milestone for a second straight year. Therefore, it is crucial to keep an eye on the sales of DRAM and NAND equipment, as well as the investments in logic and foundries, to anticipate the future growth of the semiconductor industry. Which will be driven by the continued high demand for both leading-edge and mature nodes, and the emerging applications in numerous sectors, as stated by SEMI.
Looking ahead, it will be interesting to see how the semiconductor equipment sales will unfold in the coming years. Will the industry continue to grow, or will it experience a decline? The answer to this question will depend on various factors, including the demand for semiconductor manufacturing equipment, the investments in logic and foundries, and the emerging applications in numerous sectors. As the industry continues to evolve, it is essential to stay informed about the latest developments and trends. The Semiconductor Equipment Manufacturers Industry, based in the US, will likely provide valuable insights and predictions about the future of the semiconductor equipment sales. Therefore, it is crucial to watch for future updates from SEMI, and to monitor the sales of semiconductor manufacturing equipment, to anticipate the future growth of the industry.
