SEMI’s latest report forecasts a dynamic shift in the global semiconductor equipment market, with sales expected to reach an impressive $124 billion by 2025. This projection follows a temporary dip to $100 billion in 2023, a 6.1% decrease from the record $107.5 billion achieved in 2022. However, growth is anticipated to resume in 2024, setting the stage for a remarkable recovery.
Ajit Manocha, SEMI President and CEO, attributes this fluctuation to the semiconductor market’s cyclical nature. He predicts 2023 as a year of contraction, followed by a transitional phase in 2024. The significant rebound in 2025 is expected to be fuelled by extensive capacity expansion, new fabrication projects, and heightened demand for advanced technologies and solutions in both front-end and back-end segments.
In terms of equipment types, fab equipment sales, encompassing wafer processing, fab facilities, and mask/reticle equipment, are projected to witness a 3.7% year-on-year decline in 2023, dropping to $90.6 billion from $94 billion in 2022. The wafer fab equipment sector, however, is poised for a 3% growth in 2024, driven by an increase in memory chip production capacity and a halt in the expansion of mature production capacities. This sector is further expected to surge by 18% in 2025, propelled by new fab projects and technological advancements.
The testing equipment, assembly, and packaging equipment sectors are also on an upward trajectory, with expected growths of 13.9% and 24.3% respectively in 2024. The back-end market is projected to maintain its growth momentum into 2025, with test equipment sales increasing by 17% and packaging equipment sales by 20%.
In terms of applications, SEMI anticipates that equipment sales for Foundry and Logic applications will dominate, accounting for over half of the total fab equipment revenue. These sectors are forecasted to grow 6% to $56.3 billion in 2023, experience a 2% contraction in 2024, and then surge by 15% to $63.3 billion in 2025, highlighting the sector’s robust and dynamic nature.
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