Semiconductor Manufacturing Equipment Market - Databook 2025 to 2034

The global semiconductor manufacturing equipment market size surpassed USD 92.47 billion in 2024 and is predicted to reach around USD 192.36 billion by 2034, registering a CAGR of 7.6% from 2025 to 2034.

Highlights of the Semiconductor Manufacturing Equipment Market

• Asia-Pacific dominated the semiconductor manufacturing equipment market in 2024.
• Europe is expected to show the fastest growth in the forecasted period of 2025-2034.
• By equipment, the front-end equipment segment accounted for a considerable market share in 2024.
• By equipment, the back-end equipment segment is expected to grow at the fastest rate in the market during the forecast period of 2025 to 2034.
• By dimension, the 3D segment registered its dominance over the market in 2024.
• By dimension, the 2D and 2.5D segment is projected to experience the highest growth rate in the market between 2025 and 2034

Industry Valuation and Growth Rate Projection

Semiconductor manufacturing equipment involves machines, tools, and equipment that produce semiconductor chips on silicon wafers. These machines, which fabricate high-performance chips, are referred to as fabs. The global semiconductor manufacturing equipment market is experiencing rapid growth with increased demand for consumer electronics, automotive, and electric vehicles.

Additionally, the increasing use of artificial intelligence, cloud computing, server hosting, and other related technologies is leading to high demand in the industry. The rising adoption of 5G networking is also leading to massive growth in demand for semiconductors and, in turn, manufacturing equipment.

Semiconductor Manufacturing Equipment Market: Stats and Figures

• According to a 2021 McKinsey report, only 30% of companies are currently seeing value from AI/ML (artificial intelligence/ machine learning) at a contribution of $5 billion to $8 billion in the semiconductor manufacturing equipment market.

How AI has Benefited the Semiconductor Manufacturing Equipment Market

• Artificial intelligence (AI) helps companies operate more efficiently by optimizing resource allocation, automating repetitive tasks, thus reducing costs and increasing revenue.
• AI is currently being used to aid manufacturing companies in automating large parts of the manufacturing processes and identifying and analyzing defects in the wafers to increase efficiency.
• AI and machine learning determine the optimal process required for semiconductor manufacturing equipment to reduce manufacturing defects and increase productivity.

Industry Leader Announcements

• Luc Van den Hove, President and CEO at imec:

“We are excited to continue our longstanding, unique partnership with ASML, offering the industry access to the most advanced patterning solutions for over 30 years. The inclusion of ASML’s full product portfolio will allow us to expand and further mature the capabilities of our pilot line, providing the entire semiconductor ecosystem with the most advanced R&D to tackle the challenges of AI-driven technological advancements. Since imec strongly focuses on sustainable innovation, including this in our partnership is a great addition.”

• Sesha Varadarajan, senior vice president and general manager of the Global Products Group at Lam Research:

"Building on Lam's deep metallization expertise, ALTUS Halo is the most significant breakthrough in atomic layer deposition in over 20 years, It brings together Lam's quad station module architecture and new advancements in ALD technology to provide engineered, low-resistivity molybdenum deposition for high-volume manufacturing a critical requirement for emerging and future chip inflections, including 1,000-layer 3D NAND, 4F2 DRAM and advanced gate-all-around logic."

Geographical Insights

APAC

Asia-Pacific dominated the market in 2024 due to the presence of prominent players in the market, mainly from China and Japan. As per the reports by Safeguard Global, China and Japan were among the top 5 manufacturing exporters globally. The companies from these regions invest heavily in manufacturing units to increase the supply for export, thus growing the economy as well. Furthermore, government investments to boost exports from this region also contribute to the semiconductor manufacturing equipment market growth.

Europe

Europe is anticipated to be the fastest-growing market in the forecasted period of 2025-2034. The rise in investments in semiconductor manufacturing equipment in the region is the primary reason for market growth. Furthermore, the region exhibits good trade relations with other countries beyond Europe, which drives the growth in exports for manufacturing equipment. Additionally, the increase in demand for consumer electronics, automotive, and government support in strengthening the supply chain also plays a vital role in the market growth.

Recent Developments

• In March 2025, ASML Holding N.V. (ASML) and Imec agreed to enter a strategic partnership to support European semiconductor research in innovation. This partnership was agreed for 5 years to develop solutions to advance the semiconductor industry and development for sustainable innovation.
• In March 2025, Hitachi High-Tech Corporation announced the completion of its new production facility for semiconductor manufacturing equipment in the Kasado area, Japan. The aim is to increase production capacity through automated and digitized production lines.
• In February 2025, Lam Research Corp introduced ALTUS® Halo, the world's first atomic layer deposition (ALD) tool. It is used to harness the capabilities of metal molybdenum in manufacturing cutting-edge semiconductors.

Competitive Landscape

The semiconductor manufacturing equipment market is highly competitive, with companies designing much smaller and powerful chips. Some of the leading companies in the market are Applied Materials Inc., Tokyo Electron Limited, Lam Research Corporation, ASML, KLA Corporation, Dainippon Screen Group, Hitachi High Technologies Corporation, ASM International, Ferrotec Holdings Corporation, and Canon Machinery Inc.

Several companies dominate the semiconductor manufacturing equipment market, but the companies that are renowned for their contribution to the market are listed below:

• Company Name: ASML
• Year of Incorporation: 1984
• Headquarters: Veldhoven, the Netherlands

ASML is a global leader in manufacturing in the semiconductor industry. The company provides services for manufacturing complex integrated circuits, designing, and developing. The company recorded an annual revenue of US$ 30,583 million in 2024.

• Company Name: Applied Materials Inc.
• Year of Incorporation: 1967
• Headquarters: California, USA

Applied Materials Inc. is a leading global company providing manufacturing equipment, services, and software to the semiconductor industry. The company recorded an annual revenue of US$ 27,176 million in 2024.

• Company Name: Lam Research Corporation
• Year of Incorporation: 1980
• Headquarters: California, U.S.

Lam Research Corporation is a leading global supplier of services for the semiconductor market, headquartered in California, USA. The company aims to drive semiconductor breakthroughs that define the next generation. The company recorded a revenue of US$ 14,305 million for the year 2024.