The lives of people in PETALING JAYA and beyond are being changed by the rapid growth of the semiconductor industry, with communities affected by the increasing demand for semiconductor manufacturing equipment. The Semiconductor Equipment Manufacturers Industry, based in the US, Predicts that global sales of all semiconductor manufacturing equipment by original equipment manufacturers would hit a new high of US$108.5bil in 2022, according to SEMI. This prediction exceeds the previous industry high of US$102.5 billion in 2021 by 5.9%, marking a significant milestone for the industry.
According to SEMI, the record high ends three years of record revenue, driven by the growing demand for semiconductor manufacturing equipment. The front-end and back-end categories will likely drive growth in both 2024 and 2026, with the global market for all semiconductor manufacturing equipment 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 expected to have a significant impact on the industry, with the semiconductor business anticipated to grow significantly over the next ten years.
Industry Growth and Predictions
The growth of the semiconductor industry is driven by emerging applications in numerous sectors, which will require further expenditures to increase production capacity. According to SEMI, the wafer fab equipment segment, which includes wafer processing, fab facilities, and mask/reticle equipment, is expected to grow by 8.3% to a new industry record of US$94.8 billion in 2022. Then, it is expected to 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. 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. The Semiconductor Equipment Manufacturers Industry, based in the US, Predicts that this growth will continue, driven by the increasing demand for semiconductor manufacturing equipment. As the industry continues to evolve, it is likely that we will see significant Investments in new technologies and manufacturing capacity, driving growth and innovation in the sector. According to SEMI, the semiconductor business is to grow significantly over the next ten years, with emerging applications in numerous sectors driving demand for semiconductor manufacturing equipment.
What to Watch Next
As the semiconductor industry continues to grow and evolve, it will be important to watch for key trends and developments, including the growth of the wafer fab equipment segment, the decline of DRAM and NAND equipment sales, and the increase in back-end equipment spending. The predictions made by SEMI, including the anticipated decline in global sales of all semiconductor manufacturing equipment to US$91.2 billion next year, will also be important to monitor. Additionally, the impact of emerging applications in numerous sectors on the demand for semiconductor manufacturing equipment will be a key area to watch. With the industry anticipated to grow significantly over the next ten years, it will be exciting to see how The Semiconductor Equipment Manufacturers Industry, based in the US, and companies like SEMI, led by CEO Ajit Manocha, navigate this growth and continue to drive innovation in the sector. Then, we can expect to see significant developments in the industry, Given the continued high demand for semiconductor manufacturing equipment, Which will be driven by the growing demand for leading-edge and mature nodes, and Anticipated to Increase in the coming years.
