US Semiconductor Production Equipment Market

Several major factors have helped the demand for semiconductor production equipment in America increase robustly. The pace of technological progress is accelerating in all fields. As advanced semiconductor devices have become crucial to industries such as telecommunications, automotive manufacture, health care and consumer electronics that require high-tech production equipment in order to meet quality standards demanded by today's cutting-edge applications. As these industries transform-incorporating advanced technologies such as 5G, artificial intelligence (AI), and the Internet of Things (IoT)-the need for semiconductor components grows like never before. This steadily rising demand creating an enduring call on state-of-art manufacturing equipment.

In addition, the trend of reshoring in manufacturing has increased demand for semiconductor production equipment on becoming more aware that having domestic capabilities to produce these devices is vital both for upstream and downstream industries' stable and secure supply chains. Add to this the current shortage of semiconductors and considerations about geopolitics, and reducing dependence on overseas production is becoming more important. This has resulted in more investment being made at home to produce semiconductors, which then requires advanced equipment. The U.S.'s car industry is a major source of demand for semiconductor production equipment, producing more than 10 million cars per year with the number currently rising strongly.

Highly advanced driver assistance systems (ADAS), infotainment and electrification all rely heavily on parts made from chips in today's vehicles. The increasing popularity of electric vehicles, as well as the incorporation into traditional cars of increasingly complex electronics has heightened the call for semiconductors. Therefore, semiconductor manufacturers are increasing their production capabilities in response. The demands of the automotive industry for advanced equipment is fueling this development. In addition to self-funding, various funding programs and incentives have been launched in order to encourage companies into investing in advanced production equipment. In addition, the ever-greater complexity of semiconductor designs and migration to smaller process nodes further exacerbate needs for advanced production equipment.

In an effort to improve performance and energy consumption, semiconductor manufacturers constantly seek new ways of miniaturization. Demanding requirements cannot be met but with equipment capable of performing complex processes such as extreme ultraviolet (EUV) lithography and advanced packaging technologies, which in turn requires high-precision, cutting edge semiconductor fabrication apparatus. Moreover, the defense and aerospace industries in particular fuel demand for semiconductor production equipment. From avionics to secure communications systems, these sectors have very broad applications of chip technology. With national security issues bringing to light the importance of a stable and localized supply chain for semiconductors, there is an increased demand for advanced production equipment that can be used in making semiconductor products.