Etch Equipment Market Research Report: Information by Type (Wet Etch Equipment, Dry Etch Equipment), by Process (Conductor Etch, Dielectric Etch), by End User (Integrated Device Manufacturers, Foundry, Memory Manufacturers) And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) –Industry Size, Share and Forecast Till 2032

Global Etch Equipment Market Overview

Etch Equipment Market Size was valued at USD 22.5 Billion in 2022. The Etch Equipment market industry is projected to grow from USD 24.50 Billion in 2023 to USD 48.46 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.90% during the forecast period (2023 - 2032). The growing demand for miniaturized electronic devices and the rapid expansion of the semiconductor industry are the key market drivers fueling the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Etch Equipment Market Trends

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  Increasing demand for miniaturized electronic devices is driving the market growth

  
  

Market CAGR for Etch Equipment is being driven by escalating demand for miniaturized electronic devices. As technological advancements continue to drive innovation in various industries, there is a pervasive trend towards smaller, more efficient electronic components. From smartphones and wearables to automotive sensors and medical devices, the need for compact, high-performance electronic devices is on the rise. This demand is pushing semiconductor manufacturers to develop increasingly intricate and smaller components, driving the adoption of advanced etch equipment.

There has been an increase in the integration of electronics in various applications and the development of emerging technologies such as artificial intelligence, 5G, and the Internet of Things (IoT). As these technologies become more prevalent, there is a surge in demand for advanced semiconductor devices, driving the expansion of the semiconductor manufacturing sector. Etch equipment plays a pivotal role in the fabrication of semiconductor devices, influencing the performance and reliability of the final products.

Additionally, continuous innovation in etch equipment technology is a significant driver shaping the market. Manufacturers are continually developing and introducing new etch equipment with enhanced capabilities, improved precision, and greater efficiency. Technological advancements are aimed at addressing the evolving requirements of semiconductor fabrication processes, such as the need for finer feature sizes, increased throughput, and reduced process variability.

Investments in semiconductor manufacturing facilities are indicative of the industry's growth. For instance, Taiwan Semiconductor Manufacturing Company (TSMC), a leading semiconductor foundry, announced plans to invest $100 billion over the next three years to expand production capacity. Such investments signal the industry's commitment to meeting the growing demand for advanced semiconductor devices, thereby driving the need for cutting-edge etch equipment and consequently Etch Equipment market revenue.

Etch Equipment Market Segment Insights

Etch Equipment Type Insights

The Etch Equipment Market segmentation, based on Type includes Wet Etch Equipment and Dry Etch Equipment. The Dry Etch Equipment segment dominated the market, accounting for more than half of market revenu. This is linked to several advantages associated with dry etching processes. Dry etching, including techniques like plasma etching, offers higher precision, better selectivity, and the ability to achieve finer feature sizes compared to wet etching.

Etch Equipment Process Insights

The Etch Equipment Market segmentation, based on Process includes Conductor Etch and Dielectric Etch. The Conductor Etch segment dominated the market, accounting for more than half of market revenue. The growth of applications like 5G, AI, and IoT intensifies the demand for high-performance semiconductor devices, wherein conductor etch processes play a vital role in defining the conductivity and performance of the circuits. Consequently, conductor etch is likely to be the dominating process segment.

Etch Equipment End User Insights

The Etch Equipment Market segmentation, based on End Users includes Integrated Device Manufacturers, Foundry, and Memory Manufacturers. The Foundry segment dominated the market, accounting for above one-third of market revenue. Foundries specialize in manufacturing semiconductor devices for various fabless semiconductor companies that design integrated circuits but do not have their own manufacturing facilities. The increasing trend of outsourcing semiconductor manufacturing to foundries contributes to the dominance of this segment.

 Figure 1: Etch Equipment Market, by End User, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Etch Equipment Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The North American Etch Equipment market area will dominate this market due to its concentration of leading semiconductor manufacturers, research institutions, and technological innovation hubs. Silicon Valley in the United States, for example, is a global center for semiconductor research and development, housing many key players in the industry.

Further, the major countries studied in the market report are The US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: ETCH EQUIPMENT MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Etch Equipment market accounts for the second-largest market share due to the presence of well-established semiconductor manufacturing facilities and a focus on innovation in the electronics industry. Countries like Germany and the Netherlands are home to major semiconductor companies and research institutions that contribute significantly to technological advancements in semiconductor manufacturing. Further, the German Etch Equipment market held the largest market share, and the UK Etch Equipment market was the fastest-growing market in the European region

The Asia-Pacific Etch Equipment Market is expected to grow at the fastest CAGR from 2023 to 2032 due to the extensive manufacturing activities in the semiconductor industry concentrated in countries like China, Taiwan, South Korea, and Japan. These countries are major hubs for semiconductor fabrication, with a significant number of integrated device manufacturers (IDMs) and foundries Moreover, China’s Etch Equipment market held the largest market share, and the Indian Etch Equipment market was the fastest growing market in the Asia-Pacific region.

Etch Equipment Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to enhance their etch equipment technologies. Innovations such as atomic layer etching (ALE), improved selectivity, and increased throughput contribute to the development of cutting-edge equipment that meets the evolving needs of semiconductor manufacturers. Market participants are also opting a variety of strategic activities to increase their global presence, with important market developments including new product launches, Integration of Smart Technologies, contractual agreements, mergers and acquisitions, higher investments, After-Sales Support, and collaboration with other market players. To grow and survive in a more competitive and rising market climate, Etch Equipment industry must offer customized solutions.

Manufacturing locally to reduce operational costs is one of the key business tactics used by manufacturers in the global Etch Equipment industry to benefit clients and increase the market share. In recent years, the Etch Equipment industry has offered some of the most significant advantages to Consumers. Major players in the Etch Equipment market, including Samco Inc., Applied Materials, Inc., Spts Technologies Ltd., Tokyo Electron Limited, and others, are attempting to increase market demand by investing in product development to increase their product line and cater to diverse consumer needs.

Established in 1979, Samco has evolved into a global leader in semiconductor and electronic component manufacturing systems. Originating as a Kyoto-based garage start-up, the company's name, "Samco," reflects its focus on "Semiconductor And Materials Company." Specializing in compound semiconductors and materials science, Samco has been a pioneer in research and development, delivering innovative solutions globally. With a commitment to the electronics sector, the company is diversifying into life sciences and healthcare. Recognizing the foundational role of semiconductors and electronic components across industries, Samco aims to enrich lives through technological advancements. With state-of-the-art capabilities and a global presence, Samco is positioned for continued leadership in electronics, while strategically expanding into new sectors. In October 2022, Samco launched the "AD-800LP," a Plasma Enhanced Atomic Layer Deposition (PEALD) system. The system is designed for gate oxide film deposition in next-generation power devices using silicon carbide (SiC) and gallium nitride (GaN) materials, contributing to advancements in carbon neutrality.

Applied Materials is a global leader in materials engineering solutions, driving the production of cutting-edge chips and advanced displays worldwide. Renowned for expertise in atomic-level material modification at an industrial scale, the company empowers customers to transform possibilities into reality. With an unwavering commitment to innovation, Applied Materials plays a pivotal role in shaping the future of technology across diverse industries, contributing significantly to the continual evolution of semiconductor devices and advanced display technologies on a global scale. In December 2022, Applied Materials declared plans to make substantial investments in its innovation infrastructure within the United States, along with expanding its worldwide manufacturing capacity through 2030. The anticipated investments aim to foster enhanced collaboration with customers, expediting advancements in semiconductor performance, power efficiency, and cost-effectiveness. Additionally, these initiatives will enable the company to bolster its equipment manufacturing capacity.

Key Companies in the Etch Equipment market include

• Samco Inc.


• Tokyo Electron Limited


• Applied Materials, Inc.


• Ulvac, Hitachi High-Technologies Corp (HHT)


• EV Group (EVG)


• Spts technologies ltd.


• Shenzhen Delphi Laser & Robot Co., Ltd.


• Panasonic Industry Co., Ltd.


• ASML Holding NV

Etch Equipment Industry Developments

April 2023: Hitachi High-Tech Corporation has revealed its plans to build a new manufacturing facility in the Kasado Area of Kudamatsu City, Yamaguchi Prefecture. The objective is to augment the production capacity of etching systems for the semiconductor manufacturing equipment business, with the commencement of production slated for the fiscal year 2025.

February 2022: Lam Research Corp. has introduced an innovative suite of selective etch products designed to leverage cutting-edge wafer fabrication techniques and novel chemistries. This offering aims to assist chipmakers in the development of gate-all-around (GAA) transistor structures. The selective etch portfolio comprises three new products—Argos, Prevos, and Selis—providing a substantial advantage in the design and production of advanced logic and memory semiconductor solutions.

Etch Equipment Market Segmentation:

Etch Equipment Type Outlook

• Wet Etch Equipment


• Dry Etch Equipment

Etch Equipment Process Outlook

• Dielectric Etch


• Conductor Etch

Etch Equipment End User Outlook

• Integrated Device Manufacturers


• Foundry


• Memory Manufacturers

Etch Equipment Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America